Don’t gamble! Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it. – Will Rogers.
In my last post, Down the Financial Freedom Rabbit Hole, I talked to you about having over $300,000 in retirement savings. In this post, Part 2, I will talk about the behavior you will need to use to get there.
One of the biggest lessons I learned about life is that you have to give to get. There is no free lunch. Nothing is free. You have to work for everything you have. And don’t let anybody tell you any different.
Even starting out with nothing, you can end with something.
However, it won’t happen overnight.
Little by little everyday you make progress. You have to set a goal. And you have to focus. Much like Obi Wan Kenobi’s Jedi Master in Star Wars said to a young Anakin Skywalker.
So without further ado, here are some of the behaviors that can help turn you into a millionaire. And we’re off…you can now wave goodbye to broke in the camera and say hello to financial freedom.
Learn to sit on a box until you can afford a chair. – money quote
Starting from scratch was not easy. The number one thing I did was make a goal. It does not matter how big or small, you have to start with a goal.
You cannot get to a destination without first knowing where you are going.
My ultimate goal was $1M USD. I then broke it into actionable steps.
Get a job that offers 401k’s with a match was one of them.
I also knew I had to increase my income. Whether it be sales, HVAC School, plumbing, teaching, or college, you have to find a way to make a living and bring some money home.
I took Dave Ramsey’s saying literally in when he says it is not what you are willing to do that will make you rich, but what you are willing to give up. And I gave up a lot. Nights out with friends, parties, vacations, you name it. But the sacrifice was worth it as it moved me closer to my ultimate goal: freedom.
I would spend my nights studying (sometimes up to 8 hours a day!) and doing my college work. Then I would spend my days looking for jobs that offered retirement accounts with matching contributions. Since I chose the college route, I knew that after I got my degree, that I would use that to negotiate a better job with higher pay.
I couldn’t just start in at the top. It’s like what the late rapper Young Dolph said on being wary of helping those who refuse to help themselves (“Million Dollaz Worth of Game” interview, 2021): Everybody wanna start at the top. Everybody wanna start at the top, and everybody wanna ball off the rip.
So true. How can you possibly start at the top? You don’t know anything. You have to put in the work if you want to get ahead and if you want people to respect you.
Dolph sounds a lot like one of my favorite Disney characters, Scrooge McDuck.
A panel from an Uncle Scrooge comic by Jack Bradbury. Character created in 1947 by Carl Banks.
So if you find yourself mopping floors, but earning the respect of your fellow workers and the CEO that leads to creating long lasting relationships, getting mentoring from those who played the long-game and won, you climbing that corporate ladder to one day being in the C-suite, count yourself fortunate to work your way up to the top you lucky duck! Pun intended.
Those that try to skip putting in the work miss out on opportunities and experiences that are necessary rungs on the ladder to success that are needed to stay at the top. You have to work late nights, get up early and be consistent. Nobody ever got rich sleeping all day.
Once, I got that magic 401k, I went to work investing in it. That was around 2007. However, my account was increasing too slowly.
I needed to figure out a way to free up some capital to make it go faster. That’s when I figured it out. One of the best ways to start investing larger sums of money with minimal effort. Change my behavior and attitude toward material objects. Namely; cars.
I would pay off my car and then not get into another car payment.
I would instead redirect that money to my investments. I gave up on the desire to having a flashy car in parking lot and focused on financial freedom. I paid off my car in 2009. I have not had a car payment since.
This along with paying off credit card debt, in my opinion, is the best ways to build wealth.
After that, my investments started to take off. I also opened up a Roth IRA around 2011 to invest even more money. I did this because when I did the math, it showed that if you max out your retirement accounts; $23,000 in your 401k and $7,000 in an IRA which are the limits in 2024, with a 10% return, you could hit $1 million in 15 years. That’s less than two decades! It takes the average millionaire about 27 years to get there.
Simple plan: Pay off car payment and max out retirement accounts. I just gave you the magic ingredients to the secret sauce.
Come on, let me get a 5-star rating for that advice like Nora got on Upload.
As of this writing, I am closing in on hitting my next target of $400,000 in investable assets. I was getting closer to my goal of $1M in retirement savings.
Getting so close to my goal made me realize that personal debt is the mortal enemy that threatens to suck the money out of your wallet and the joy out of your life.
I wanted to slay debt like my favorite Marvel comic book character Red Sonja does her enemies.
I wanted to strike first and show no mercy when it came to getting rid of and staying out of debt like Cobra Kai!
I felt like Carmen Sandiego when she meticulously plans her escapes…with style. I was leaving debt behind and flying toward freedom.
You can do the same. By changing your behavior to earn interest instead of paying it by investing. Until next time…
For those of you out there that grew up in the in the 90’s, then you may remember a video game by the name of Maniac Mansion.
It was released on October 5, 1987 on multiple platforms such as Apple II, Atari and Nintendo to much fanfare and critical acclaim and was developed by the man who created Luke Skywalker and the Star Wars franchise, George Lucas, through Lucasfilm Games.
This was long before the iphone was released to worldwide sensation back in 2007, which was developed by another pioneer, Steve Jobs of Apple.
What I absolutely loved about this game was the character development. They were so much fun. Interacting with Weird Ed and Edna and the tentacles was a riot!
Even how the characters spoke to each other was hilarious. Let me provide you with this example.
However, as with anything, you have to look below the surface and take a deeper look. Therefore, I wrote this post focusing on the financial aspects of this game in regards to how you can relate money to the world around you. Even a video game.
And do not even get me started on the price of games today! Growing up we thought $60 a pop for one game was outrageous! Boy, were we wrong.
Today, you can spend $80 or more for a subscription to play your Playstation or Xbox console. Another subscription! Come off it marketing departments across America! You know people can’t afford to barely buy toilet paper out here, let alone video game subscriptions!
Don’t believe me?
When the longest government shutdown in United Sates history, it lasted 35 days, happened people were in line at soup kitchens!
Missing one check caused people absolute panic. And I don’t mean at the disco! One lady said that she was down to $1.26 in her checking account; that was all the money she had and she didn’t know what she was going to do.
You see back in the good old days, you would go to the store, buy an item, do the transaction one time, and like Cinderella’s fairy Godmother’s would say, “bibbidi-bobbidi-boo” and you owed the thing free and clear as the transaction was done, over, finito.
This post will show you how to save money, get rich, and maybe decide to put a down payment on some property, but it doesn’t have to be a mansion. So here we go.
5 Money and Life Lessons from Maniac Mansion
But first… What is Maniac Mansion?
Maniac Mansion is a 1987 graphic adventure video game developed and published by Lucasfilm Games.
It follows teenage protagonist Dave Miller as he attempts to rescue his girlfriend from a mad scientist, whose mind has been enslaved by a sentient meteor. The player uses a point-and-click interface to guide Dave and two of his six playable friends through the scientist’s mansion while solving puzzles and avoiding dangers. Gameplay is non-linear, and the game must be completed in different ways based on the player’s choice of characters.
MONEY AND LIFE LESSON ONE: MANSIONS COST MONEY
It has been over twenty years since a mysterious purple meteor came hurtling out of the sky and made a large crater in the front lawn of a large Victorian mansion belonging to the Edison family. Dr. Fred, his wife Nurse Edna, and their son Weird Ed were reclusive people who left the house very rarely, but the meteor’s arrival brought about a strange change in Dr. Fred. Now, a local cheerleader has vanished without a trace. Dave, her boyfriend, has gathered a few of his close comrades on a mission to invade the mansion and save Sandy!
However, if we just focus on the part about the mansion…basically, big homes costs big bucks! For fun, I looked up the cost of Victorian homes.
The Main House at Skywalker Ranch inspired the design of Maniac Mansion‘s setting, which is reported to have cost self-made millionaire George Lucas around $100 million dollars.
The Skywalker Ranch
So unless you are onstage with your two friends Kelly and Michelle or creating the next new franchise, you may want to stick with buying a home you can afford.
Let’s not forget that property taxes are forever! If you can’t pay your taxes, you can still lose your home, even if you own it free and clear.
Taxes are an ongoing expense to owning a home.
Let us not forget that even celebrities have to sell homes for unforeseen reasons and sometimes at a loss.
It was reported that Johnny Depp was suing his management company for $25 million and in the court filing it detailed his spending at at $2 million- a-month! He had considerable property holdings and it was also reported that he was advised to sell a family home located in Paris, France or something along those lines and possibly at a loss at that!
Curtis “50 Cent” Jackson was also recently in the news as his Connecticut manse was costing him $70,000-a-month to maintain. That basically is the cost of running a small boutique hotel or miniature bed-and-breakfast. He ended up selling the property at a loss, he paid $4.1 million and sold at $2.3 million, to stop paying the exorbitant cost of owning the place.
Lastly, Mary J. Blige was reported to own a couple mansion-style properties in New Jersey that were unable to be rented. You read that right. She is paying for properties that are uninhabitable, costing her money every single month night and day, and collecting no rent on the properties. In her divorce filing, she was reported to make over $300,000 a month so it is unclear why exactly these properties are unable to be renovated and sold without a closer look at her financial records and proper accounting.
The reason I refuse to buy a big home is because they along with cars can be wealth suckers.
Doing the math, if you buy a $350,000 at a 5% interest rate and take 30 years to pay it off it will cost you around $700,000! Or a $500,000 home could cost you $1,000,000. Yes, twice what you bought the home for.
And most people are working to pay for this behemoth, fancy vacations, and expensive nights on the town with bottle service meaning they are not even home enough to enjoy paying double the cost of it!
All good things come in time. Building wealth is no exception to the rule.
I started out with a toothbrush, a bag of clothes, and some books.
Now I have a home, paid off vehicle, stocks, investments, and even more books. The point I’m trying to make here is that you accumulate money and things over time. You may not have everything you want right now, but keep working.
Never let yesterday use up too much of today. – Will Rogers
If you are working towards something, the don’t stop or quit for anything. I turned a $450 car payment into $100,000. It took like a decade.
Come to think of it, it usually takes people 10 years or more to perfect whatever it is their doing so you may as well chill out.
The humorist Will Rogers (1879-1935) once told a young John Wayne some sound and simple advice. I will share it with you here.
After John Wayne (1907-1979) complained for a full 10-15 minutes of why he wasn’t being paid more to act on film, he asked Will Rogers what he should do? Will Rogers replied, “Well kid, are you working?” To which, John Wayne replied, “yes.” Then Will Rogers says, “keep working.” And then proceeds to walk away.
So my reply to anyone who wants something NOW, “have patience.” This is me NOW moving on to the next paragraph and lesson in this post, which is my equivalent to Will Rogers walking away. I have given you all the advice you need on that topic. Moving on.
MONEY AND LIFE LESSON THREE: MAKE FRIENDS NOT ENEMIES
One of the best things about the game are the characters. Each have different looks, mannerisms, ways of speaking, talents and abilities. This is part of what makes the game so much fun.
Dave is on a mission. To save his girlfriend Sandy. But he can’t do it alone. He brings along his friends to help him out and watch his back.
This is also sound advice if you want to build a fortune and an empire. Nobody does it alone. Eventually you will need to work with bankers, lawyers, businesses, investment professional, and tax attorneys.
It is always best to make friends than enemies as you never know when it is the next time you will see someone again.
When you are climbing that corporate ladder, those same people you tried to step on on the way up, you may see them again on the way down.
Hopefully, you offered them a piece of the pie instead of one to the face.
Mark Cuban said some great business advice in that if you start a company, then make sure your employees have some stock options invested in it as part of their compensation. That way if the company is successful and gets sold then the employees make money too.
This does two things: 1) eliminates wealth inequality (many of Mark Cuban’s former employees, 300 out of 330, became millions); and 2) encourages people to pay it forward through philanthropy and spend money that gets circulated back into the economy.
MONEY AND LIFE LESSON FOUR: RESCUE THE GIRL OR GUY FROM FINANCIALDUNGEONS
In the game, if you get caught snooping around the mansion, then you are sen t to the dungeon.
The game is notorious for constantly getting you thrown in the dungeon by almost every member of the household if you are seen.
Fortunately, the game has a cheat in which you can get the dungeon key and let yourself and others that have been captured out of the dungeon. Without this trick in the game, you are toast.
Speaking of toast, avocado toast is not causing millennial’s to be broke. It is the ever escalating cost of education, housing, and healthcare that makes it harder to save.
All wealth building starts with saving. Period. A good cash reserves is a must. Here is a tip for you. Pros have cash. Amateurs do not. Pros are not under any kind of financial pressure. They remove the pressure and make rational decisions because they have money in the bank. Only amateurs allow pressure to get to them. Remove much of the pressure in your life by having cash reserves.
I recommend that being $10,000 or more in savings. That is how you are able to rescue yourself from being trapped in a financial dungeon. Just have cash.
MONEY AND LIFE LESSON FIVE: ALWAYS HAVE A BACKUP PLAN
The video game Maniac Mansion has 5 possible endings. Depending on what players you chose to play and what actions you take.
The game allows you to have 3 characters for game play out of about 6. These are the people that have your back in case things should go wrong.
In addition, their different talents and unique abilities allow each kid to be an asset to the team. You must too do this in life. You must have back up…plans that is.
For example, I try to keep a minimum of 2-3 months or more of savings in the bank at ALL TIMES! Then I ramped it up to a goal of $10,000.
In addition, if you can save $233,000 in your 401(k), then you do not have to add another cent! After 20 years, with a return rate of 8 percent, you will have $1,001,857.35 in your retirement account. That’s Plan A. Cant’t envision making that happen? Then go to plan B. Save $168,000 in your 401(k), then do not add another penny. After 25 years, with a return rate of 8 percent, you will have $1,001,358.03 in your retirement account.
Are you starting to get the idea?
You can move the finish line and change your actions according to what is happening in your life, but keep the goal. If necessary, you can have a Plan A, B, C, D, etc. The point is to make it so that you are always moving forward by planning ahead.
Just like you have to do when playing Maniac Mansion.
So let’s get out there, have some fun, and start saving!
