If You Can Make it Here, You Can Make it Anywhere

by Kristina on April 22, 2010 · 6 comments

Golden Bar
Good Business Equals Good Finances. It is not a secret that you need to be successful to make money. Actually, let me rephrase that because we live in a society where people who party at nightclubs in NYC are famous, and people who are born rich become instant celebrities. In the majority of cases, being successful will also make you very rich. You could be successful in business, or successful at something such as a sport, or possess a talent but either way you are making money.

For some people making money is a problem, but for others who already have it, keeping the money is the problem. In my opinion making money is harder than keeping it. If you are broke and you become rich you should always remember what it’s like to be broke. Therefore you should preserve your wealth. However, temptation does wave that sweet apple in our faces and sometimes we just need to give in and take a bite. If you are wealthy and feel the need to flaunt what you’ve got, that’s ok. As long as you do it intelligently, and with a business mindset.

Mr. Sean Carter once said “I don’t buy the bottle. I buy the bar.” This is maybe the best piece of business advice I have ever heard. It is all about smart business. Instead of spending money on something that will bring you nothing in return; spend the money wisely on something that is sustainable and will bring you increased profits over the long term. If you buy a bottle of alcohol at a nightclub then that’s it. It’s over, and you got nothing in return to show for it (except for a hangover in the morning). You made no profit and you lost $200 in less than 4 hours. But if you buy the nightclub, you will make a profit from the clubs operations every night!

In case you don’t know him as Sean Carter, you may know him as Jay Z. He is the multimillion dollar business man who owns a successful record company called Rocafella Records, a chain of sports bars called the 40/40 Club, as well as a clothing line for both men and women called Rocawear. As if that wasn’t enough, he is also the former president of another major record label, Def Jam Records. In 2009 Jay Z made $35 million dollars. Oh did I mention he grew up with a single mother in Brooklyn NYC?

It is the American Dream… He came from nothing, and now he can have everything he wants. This is possible for anyone who has discipline and a basic sense of business…the rest you will learn along the way. He didn’t graduate from a Management School, he doesn’t have his MBA. He was a normal teenager who had ambition and grew up into a successful man. He also married Beyonce. Combined they made over $122 million in 2009 according to Forbes. Not their net worth…their combined net income.

Think twice before you spend money. If you are going to spend it make sure that you spend it wisely, and that you get something in return. Buy a house before you buy a car. Real Estate will always have an increase in value. The exact opposite is true for cars. Over time your property value increases, while the value of your car depreciates…even if you add a custom interior and spinning rims.

~ Kristina

(Photo by glennharper)

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{ 6 comments… read them below or add one }

1 Coffecents April 22, 2010 at 9:10 am

Real Estate doesn't always increase in value. See 2006-2008. Bummer if you bought in 2006 and then moved in 2008 because your job downsized and you had to relocate

Stephen P

2 Financial Samurai April 22, 2010 at 9:26 am

Anybody who bought real estate for a flip or just a 2 year period shouldn't expect to ever make money.

3 Michael April 22, 2010 at 9:41 am

I'm not sure about your point behind "Buy a house before you buy a car." Houses have higher entry cost than cars, and the problem with cars depreciating in value can be softened by purchasing a high quality used car. The inability to buy a house can be mitigated by renting; what are you going to do without a car? Public transportation isn't always a viable option for some people.

Also, housing prices do always increase in value – given a long enough timeline. The sharp decline in value that housing prices saw over the last four years won't be completely recovered in that same amount of time. While a house is most certainly an investment of sorts, more importantly it's a safe place to lay your head at night. A car is a depreciating asset, but more importantly it's a means of getting somewhere. While I can't argue with trying to spend your money wisely, it's often very beneficial to decouple your investments from the essential pieces of your day-to-day life. My computer is also a depreciating asset, but that doesn't mean that I'm going to get rid of it and head to the library every time I need to send an email.

4 David April 25, 2010 at 1:31 pm

I just started "Think and Grow Rich" and from what I understand the key to wealth (according to the author who spent decades researching wealthy men and how they came to that wealth) is to have a single all-encompassing drive to accomplish a specific task.

Sean Combs is a great example of someone who had that drive. He drove 8 hours round trip every weekend from Howard to intern at a record label. He knew what his goal was and was going to stop at nothing (short of death) to get there. I'm not surprised he's wealthy.

5 Tahnya Kristina April 29, 2010 at 10:54 am

David,

I'm going to pick up that book! "The Wealthy Barber" is also an inspiring book about growing and preserving your wealth. Its a great book for anyone with an interest in finance.

6 Christina May 1, 2010 at 6:55 am

It's nice to hear stories like this. Nothing is really impossible and I really have to agree with you, if you know how it feels like being broke, you are more discipline handling your finances. I knew a couple of people who've been through the same and they continually inspires me.

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