Growing your net worth from $0 to $1 million takes time. First, you have to ask for what you want. It starts at the negotiation table.
The sorted topic of coin. Everybody needs it, but those that really want it ask for it.
Ask for what you want. Anything at all. That includes money.
It may not be easy, but you have to negotiate.
It is the only way to get the best deal for you.
You know your worth, so don’t accept anything less.
Speak up to be heard.
Always be reaching. Never settle.
SPEAK UP
A lot of people are afraid to say what they want. That’s why they don’t get what they want. – Madonna
Remember that piano scene in Sex and the City where the piano player kept saying, “one more time for the cheap seats in the back.”
Well, that is real advice.
No one can hear you if you whisper. You have to shout. If you do not speak up on your own behalf, no one will.
Believe me, prince charming or princess darling isn’t coming.
It’s like that part in The Lord of the Rings where Gandalf shouts, “fight for your lives.”
I say that to myself all the time. Do it like your life depends on it. Whatever it is, make it count. Finish strong.
Like that voice in Mortal Kombat used to say, “fight hard.”
Either that or die trying.
BE FEROCIOUS AND FEARLESS
Better to live one year as a tiger, then a hundred as sheep. – Madonna
I can’t tell you how many times I’ve been called a rebel.
For standing up for myself. For voicing my opinion. The list goes on and on.
I think back on that scene in Troy. To fight back.
If you want something, then you better be willing to go to bat for it.
I have asked or negotiated for better pay, grades, food, clothing, a deal on a house, fees, and interest rates.
I’m a lioness. I’m like Miley Cyrus says, “I can’t be tamed.”
I like to go for the gold, but I’m not ashamed to get silver or bronze.
Now when people say no, I only hear yes to my dreams.
WHATEVER DOESN’T KILL YOU
I stand for freedom of expression, doing what you believe in, and going after your dreams. – Madonna
You know the saying…only makes you stronger. Well, it’s true.
I will never forget those hard times being picked on as a kid.
I heard Jillian Michaels say she was bullied and teased relentlessly until she started taking martial arts. She says then the bullying stopped real quick.
I just focused on my studies. And my dreams. Just ignored everyone and everything. I was laser-focused.
I maintained good grades, a well-kept appearance, good manners, strong work ethic and a no nonsense attitude. The teasing stopped real quick.
It truly has paid off. As I have done the following:
Completed my education
Paid off debt
Learned how to invest and build wealth
Traveled more
Maintain my health
Took martial arts
Became a writer by starting a blog
I just did what I believed in. And I believed in myself. I just trusted my instincts. I picked a path and didn’t look back.
Things may not have always worked out the way I wanted, but I was never standing still. The needle of my life was always moving forward.
BE THE ARCHITECT OF YOUR LIFE
Don’t you ever let a soul in the world tell you that you can’t be exactly who you are. – Lady Gaga
What do you want?
Be specific.
I’ll give you an example.
I plan to have enough money to retire in 13 years.
Be more specific. No problem.
By May 5, 2031, I plan to have enough money in savings and investments to retire from full-time work forever.
And that is not a wish, but a goal. This is real.
I am planning for that date. Right now.
Will I retire? I don’t know. However, I still plan to have the option to do so.
Madonna said, “Poor is the man whose pleasures depend on the permission of another.”
Warrant Buffet decided at age 10, after going on a trip to the NYSE, this planted the idea in his young head to organize his life around money.
You are the person in charge of your destiny. Never forget it.
PENNIES OR DOLLARS
The mind is the greatest weapon. – Rambo
Oh, it is. If you have ever seen an episode of MacGyver or been in a tight situation and talked yourself out of it, there’s your proof right there.
I have noticed that math and science are great skills for analytical thinking. Great subjects to study in school or to use to prepare for a career.
In the 2004 film Ray, Jamie Foxx plays Ray Charles and is told the way to get a better deal is to ask for one.
Don’t be afraid to ask for more.
My mother taught me that.
She says all people can do is say yes or no.
In the movie, the man says to Ray you think pennies you get pennies, you think dollars you get dollars.
That was just by changing your mindset.
When I think now, I always think in millions.
For instance, it will take approximately 20-30 years to build a million-dollar investment portfolio depending on how much you save and the interest rate. Investing $10k a year at a 8% interest rate will net you $1,000,000 within 28.55 years.
You just have to decide.
Do you want thousands or millions? You think millions, then you get millions.
If you ask for it and are turned down, then use your mind to find a way to create this reality.
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.
Don’t save what is left after spending; spend what is left after saving. – Warren Buffet
If you take a look at your bank accounts, you will notice that the rates on your savings accounts are minuscule.
On average, savings rates are a paltry 0.01% APY.
That means you are not even earning 1% on the money you have stashed away in most big banks.
This meager 0.01% APY is not doing anything for you.
If I put my hard earned money into a bank, I want something for it. These rates are almost no better than sticking your money under a mattress!
However, don’t do that. If the house ever catches fire, your money also goes up in smoke and is not FDIC insured.
I once heard a real estate mogul say that many years ago there was a time when interest rates were paying 10%. He was able to double his money every 7 years!
Now, that is fantastic.
However, this is not the case anymore.
Although, there are some banks that are willing to pay a fairly decent rate for the opportunity to house your money.
I found a few from doing an online search.
So, here is how you can earn money from placing your money in a high yield savings account.
WHAT IS A HIGH YIELD SAVINGS ACCOUNT
A High Yield Savings Account is a savings account with a variable rate typically higher than retail brick-and-mortar banks.
These banks are usually online and offer no physical bank that you can visit.
However, you can deposit your money online via electronic funds transfer.
Access to you funds may include a combination of wire transfers, checks, or ATM withdrawals. But this is not always the case.
For example, American Express® Personal Savings accounts are not meant for everyday spending. Therefore, debit cards, ATM cards, or checks are not provided. Transfers have to be done online. And transferring funds online can take anywhere from 1 to 3 days to complete.
Therefore, you should only deposit money in these types of accounts that do not require you to need access to these funds immediately or for daily spending purposes.
THE RULE OF 72
This rule allows you to estimate how long it will take for an investment to double at any given interest rate with the “Rule of 72”.
Knowing this will allow you to make a more informed decision before placing your money in any investment or savings vehicle.
You must also pay attention to the type of account you put your money into. For instance, a money market account or Certificate of Deposit (CD) will pay you more than a savings account.
Stocks pay you he highest rates of returns and give you the biggest bang for your buck!
The average annualized total return for the S&P 500 index over the past 90 years is 9.8 percent.
With the Rule of 72, If you use the formula, that equates to 72/9.8 = 7.34 years to double your money.
However, many banks are paying 1% or less!
Therefore, if your savings are earning only 1%, this means you money will double in value in 72 years.
That is 10x longer than if you had invested your money in stocks.
BANKS WITH HIGH YIELD SAVINGS
After doing a short search online, I found the following banks with high yield savings:
American Express National Bank – 1.90% APY
Ally Bank – 1.90% APY
Barclays Bank – 1.90% APY
HSBC Direct – 2.01% APY
Synchrony Bank – 1.90% APY
HOW MUCH YOU CAN EARN
This amount can vary based on how much is deposited.
Of course, the higher the deposit amount the higher earned in interest.
You can use this money for anything you want or simply keep it invested and let the interest keep compounding on the amount you earn.
Please be advised that you still have to report this as income on your taxes. The bank will supply you with a form for tax purposes.
Now let’s show you the money.
We will use the 2.01% APY as our rate.
If you deposit $15,000, into an accounting paying 2.01% APY, you will get the following:
If you deposit $25,000, into an accounting paying 2.01% APY, you will get the following:
If you deposit $50,000, into an accounting paying 2.01% APY, you will get the following:
SKY’S THE LIMIT
All yeah! Let’s stack that paper!
Unless banks start putting a cap on the amount you can deposit, you can pretty much do this until you feel you have deposited enough in savings.
The point of using a High Yield Savings is to grow your money while you sleep.
That’s right. You can earn money just for breathing.
Merely allowing it to sit in an account paying less than 1% will not beat inflation; being its customary 2-3% rate per year.
At the very least, your money can keep up with inflation and not fall so far behind.
The goal is to always beat inflation.
Your money will have less purchasing power as inflation does its thing.
Therefore, it is your job to finds ways to keep the money train going by figuring out how to earn more, invest more, save more, and ultimately beat the inflation monster that is coming out every year to a theater near your wallet.
“The first wealth is health.” – Ralph Waldo Emerson
I am sure many of you have heard the saying “An apple a day keeps the doctor away.”
Well, I wish I would have taken that more to heart when I was younger.
Sure, I focus on my health more today, but when I was young I was a junk food junkie.
And I would feel sluggish, moody, and unhappy. I didn’t drink enough water and craved salt and sugar.
About six years ago, I started getting serious about my health as most of my reading on wealth would discuss how important your health is in the journey to accumulate wealth.
In one excerpt, a man stated he worked out and ate well for the past 60 years because he knew he would acquire most of his wealth toward the end of his career.
In the illustrious words of Bill (Alex Winter) and Ted (Keanu Reeves), from Bill & Ted’s Adventure: Whoa!
Hearing this man say that really made me think about the choices I was making. I started to clean up my act. Limit the sugar and focus on nutrients.
It has also been reported, that most people become millionaires after the age of 50!
In fact, 99% of Warren Buffet’s wealth was earned after his 50th birthday and he is worth over $60 billion dollars.
So, put down those empty calories and stop eating those chips and pass the hummus!
Here are some of the things I would tell young me to do in order to be healthier to get wealthier.
FOCUS ON WHOLE FOODS
I heard Jillian Michaels once say that if it doesn’t come from the ground or a mother, don’t eat it.
Real whole foods are the way to go.
You do not eat for taste. You eat for nutrition.
SKIP THE BOX
I used to be the cereal queen.
If it had sugar in it, I ate it.
It was like that scene in The O.C., when Seth (Adam Brody) says, “please help yourself to the large assortment of breakfast cereals.”
Yes, he just loves cereal.
Unfortunately, food that is in a box usually contains high amounts of sodium, sugar, and GMO’s.
Major no-no’s when it comes to health.
Best to just stick with real eggs, lean meats, nuts, fruits and veggies.
IF IT’S FAST, GO SLOW
I would go to McDonald’s sometimes twice a day! Now I haven’t been inside one for the past five years or more.
What a difference a decade makes!
It’s no secret that fast food is loaded with salt, sugar, and lots of calories!
In some instances, a burger such as a double bacon cheeseburger can be 1,200 calories or more! And that’s based on the recommended 2,000 calorie diet. Yikes!
Better to purchase farm fresh ingredients and cook at home. Less calories and more flavor. Oh, and did I mention it’s cheaper.
The money saved on not buying junk or the medication to remedy any maladies from bad food consumption can go straight toward investments and working for you instead of being spent on you.
STAY ACTIVE
They say even walking has its benefits. It keeps joints and muscles healthy. The mind sharp and is a mood booster.
So lace up those sneakers!
People who stay active tend to have less health problems down the road.
This means more time to focus on working, accumulating, and growing those assets.
DRINK WATER
I know smoothies are all the rave, but I still prefer plain old water.
In addition, I prefer to eat my calories.
In one book I read (Beyond Diet), it said to drink half your weight in ounces daily.
Not only does water help your organs, it keeps the weight down, regulates your mood and blood flow. Yes, all that from H20. So drink up.
Oh yeah, and it clears the skin better than anything else on the planet!
TO BE OR NOT BE ORGANIC
I started doing some reading about organic foods to see which is better.
Safe to say the organic shelf is the top shelf of foods.
However, not all organic food tastes great or may even be necessary.
One dietitian said that sure all organic is a great way to go but, if you cannot afford it then at least get organic milk and eggs.
You just need to focus your energy on what you can do to be healthy and not what is the most expensive.
Remember this: Life is not about wants, but needs.
Don’t get me wrong. It’s good to want things. Just like Winona (Ryder) says in Welcome Home, Roxy Carmichael.
However, everything does not have to be so expensive because truth be told most useless things are.
Put that money to work and then use it for something that is useful.
After doing some research on millionaires and billionaires, I have noticed some recurring attributes among them, which include: reading, pursuing a passion, and setting goals.
READ
“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.”
― Dr. Seuss, I Can Read With My Eyes Shut!
Many of the affluent read daily or often. They seem to set aside at least 30 minutes a day for reading. This greatly improves their knowledge of their products, brands, and businesses. When you know what drives the market, then it makes it easier to compete with everyone else. I even read that Marilyn Monroe was also said to be a voracious reader.
I know in my life reading has helped me a great deal. I was able to do better in school, make better informed personal and professional decisions, and increase my investment knowledge.
One of the most successful investors of all time, Warren Buffet, says he reads every day. Buffet typically spends 80% of his day reading. Here are some quotes from interviews he has done over the years in regards to how to become successful.
The CEO of Berkshire Hathaway, when asked once about the key to success, pointed to a stack of books and said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
Warren Buffet starts his days with an assortment of national and local news. The billionaire investor tells CNBC he reads the Wall Street Journal, the Financial Times, the New York Times, USA Today, the Omaha World-Herald, and the American Banker in the mornings.
Even though Buffet reads tremendously, it would mean nothing if he did not retain what he has read. Buffets says that knowledge builds up over time. Here are some tips to remember what you read – take notes, skim the text, read out load – are just a few things you can do to retain what you read.
“To give anything less than your best, is to sacrifice the gift.” – Steve Prefontaine
I have always had an affinity for writing. I write pretty much every day. My goals are that my writing helps to plant the seed that inspire people, motivate them, and make them feel good about themselves. Writing about finances is the cherry on top of the sundae for me. And I give it everything I’ve got. No less. When I’m sick. I write. When I’m tired. I write. When I was down to my last $2. Still wrote. I would write down my thoughts, hopes, dreams, and goals. I have crossed off at least 5 items on my 10 year to do list. If it can work for me and countless others, then I know it can for you.
Dreams can come true. You just have to believe and lay down the groundwork. There is no builder of a home that would not first lay down the foundation and then build up. The same goes for life. You do not start in at the top. Otherwise, if you do, you are more likely to have created a house of cards, that can easily come tumbling down. Like the three little pigs, you want bricks and not sticks or straw. You want something that is concrete. Construct your life blueprint on building or creating something that is solid.
If you can, find a mentor. Mentors help guide and keep people on the right path to succeed. I suggest finding someone who has already done what you want to do successfully and then asking them for advice. You can also read their books or attend their workshops. Either way study their success and see if you can imitate it.
SET GOALS
“Set your goals high, and don’t stop till you get there.” – Bo Jackson
The best advice I have ever read was to write down your goals. I have heard this from numerous celebrities including Beyoncé. She said she would write down her goals; and that she wanted to go platinum and sell a million records. Well, she wanted to be financially secure. Well, she can scratch that off her checklist. Simply heed these words: Write it down.
When you set goals and pursue your passion it is a winning combination for success. Instead of watching the clock, you just keep on working. There are too many hours on the clock when you do something you detest, but no enough hours in the day when you do something you love.
Forget the naysayers. They are not you and you are not them. Focus your energy on doing what you enjoy putting your effort into. The energy you use to pursue your passion or anything that you do well is never wasted. When you can focus and limit or ignore distractions, you are well on your way toward success.
The key to everything is patience. You get the chicken by hatching the egg, not by smashing it. – Arnold H. Glasow
I read that the average age of a millionaire is 62.
That means most will not reach the millionaire milestone until after age 50.
Therefore, you will need to treat your working years as golden nuggets of knowledge and labor in which each year of work gets deposited into your wealth accumulation bank.
If you start your 401(k) at the age of 25 and invest consistently, this would require that you save and invest for a minimum of 26 years to reach the millionaire ranking through this vehicle alone.
A $1-million-dollar nest egg can generate $50,000 of income on a 5% return.
Since, $50,000 is around the average earnings of many workers, a $1-million-dollar money bucket keeps raining enough dollars on you to walk away from work if you are earning this much or less.
As long as you only spend the interest, and not the principal.
NOW, WAIT IT UP
In order to get to this badge of honor, financially speaking, you will have to learn the art of waiting.
Waiting to buy a home.
Waiting to buy a new car.
Waiting to start a family.
You see what I mean.
Nothing comes without first understanding how to manage your time.
Patience is key.
Think of patience and investing like the letter and the stamp. One does not work without the other.
Consider the postage stamp: its usefulness consists in the ability to stick to one thing till it gets there. – Josh Billings
Life is complex. Situations may arise that will make it harder for you to reach your financial goals.
Remember this: It’s not the situation, but whether we react (negative) or respond (positive) to the situation that’s important. –Zig Ziglar
In my experience, optimism, truth, and positivity attract money to you.
Warren Buffest said, “The Stock Market is designed to transfer money from the Active to the Patient.”
We may all get the same 24 hours, but what we do with it is what matters the most.
Consider this quote. 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
Therefore, manage your time wisely.
You do not have to move so fast. Slow down and focus. Distractions do not yield results only focusing does and that takes patience.
STOCKING UP ON STOCKS
The stock market has averaged returns of at least 9% over the last 90 years (1928-2016).
The shorter the time your money is invested so too are the amount of the returns.
You need a longer time horizon to invest to reap any rewards.
Here are some questions and answers when it comes to investing in the stock market.
Why should I buy stocks?
“If you don’t play you can’t win.”– Judith McNaught
How do I decide if I should invest in the stock market?
If you don’t feel comfortable owning a stock for 10 years, you shouldn’t own it for 10 minutes. – Warren Buffet
How do I decide what stocks to buy?
When buying shares, ask yourself, would you buy the whole company? – Rene Rivkin
How long should you hold a stock?
“Our favorite holding period is forever.” – Warren Buffett
Don’t you have to be really smart to invest in the stock market?
Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it. – Peter Lynch
Aren’t stocks risky?
“The biggest risk is not taking any risk… In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”– Mark Zuckerberg
Ask yourself, what is my risk level?
If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks. – John Bogle
Should I avoid stocks?
Why not go out on a limb? Isn’t that where the fruit is? – Frank Scully
Where should I invest my money?
“Consistently buy an S&P 500 low-cost index fund.”- Warren Buffett
What should I do once I invest money?
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson
I say this when it ultimately comes down to investing or not investing; if you feel you can only afford to lose $5, then that is your risk level. When you pass that mark, whatever it is, it’s gambling.
And nothing is riskier than doing nothing except gambling.
Buffet once called a bad period the “Financial Pearl Harbor” during a terrible time in the market. Guess what? He still held on to the bulk of his portfolio and is one the richest investors in the world.
So understand that you have to pursue wealth.
It is not simply going to come to you.
You have to do something.
As in life, you have to give to get.
Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”
Think like this: If your ship doesn’t come in, swim out to meet it! – Jonathan Winters
And remember this: “A ship in harbour is safe, but that is not what ships are built for.” – William G.T. Shedd
So know this, it’s not what you make, it’s what you keep.
When it comes to investing, just do your research, do your best, and have fun.
