I am quickly learning that when we make oaths to become wealthy, it is usually because we probably had close calls with acquiring wealth in the past. A decade ago, I almost sold a screenplay for $5 million and I blew it. We are usually the cause of our own suffering in life.
Before I get into my extremely close call with wealth, let’s talk about how we all have close calls with wealth.
Lottery Tickets
How much money do you spend on lottery tickets?
An average person spends about $223 annually on lottery tickets, while working-class people who live in economically stressed households spend over $412 annually. Buying a lottery ticket isn’t a close call with wealth – the close call is what could have been done with the money that purchased the ticket instead.
If you invested $223 in a stock market index fund at 10 percent interest, you might have about $260,000 after 50 years. Or, you can invest that amount in United States Treasury bonds and possibly earn $86,000 in interest after 50 years.
That may seem like a long time to wait, but aren’t all of us waiting for retirement?
Except, most people don’t plan or save for retirement. My point is that we usually mismanage the very thing in life we need to get through it. How many times have you rued not having an extra $200 or $400 when you needed it? You are not alone. Most Americans can’t produce $400 in a financial emergency.
Getting In Our Own Way
Yet, we find the money to pay for lottery tickets, even though lottery authorities continually change the odds of winning. Or, to pay for cars we might not need because it fits our identity.
I come from New York City where people pay rent for decades, dream about homeownership, own one or two vehicles, and then take mass transit every day to save on gas. It costs about $8,500 annually, or about $700 a month, to maintain a car.
The tools to build our own wealth are usually always within our grasp, we just usually ignore them. We borrow money to start a business without a business plan. Or, we invest in the renovation or aesthetics of a home, instead of strategizing how to monetize it. Wealth acquisition demands sacrifice, planning, and that need for you to get out of your own way.
We usually self-sabotage our own financial goals, intentionally or not. When we have money and opportunity, we more often than not make decisions at the moment that goes against increasing our future wealth. It’s human nature.
However, continual self-improvement and learning are also human nature. We are usually the cause of our own financial misfortune. When you realize you’re digging a hole you’re trapped in, it’s best to stop digging.
My Close Call with Wealth
In 2012, I was recently divorced, homeless, had no money, and had moved back home with my mother who was not in the best of health. Instead of getting a job and saving money, I got depressed. I telecommuted as a freelance writer, but not with the focus I have today. A lot of time and opportunity to make money was wasted.
I was obsessed with getting rich fast because I have a talent with writing. But that is never enough. There has to be focus, a plan, and a realistic way to attain goals. It can take years to reach a goal – like making a film. In 2012, I thought it would be easy. I reflect in horror at my naiveté of real life.
To say that I am obsessed with comic books and movies is an understatement. I am also obsessed with action movies, specifically martial arts films. So, I researched what the most relatively affordable films to make, with the most loyal fans, are low-budget horror, comedy, and action films. I have since been working on screenplays for years.
So, I put together a business plan and sent it with a 10-page sample of my Library of Congress copyrighted screenplay, based on a tentative comic book, to over 300 production companies, entertainment lawyers, and venture capitalists worldwide. I was playing the lottery. If only I had worked and saved some money instead of waiting on someone else to pay for my business dreams.
Unrealistic Expectations
My business plan attracted the notice of an entertainment lawyer. I asked for $5 million to film on location in Asia. He agreed! With conditions. For one thing, he was the only financier, or, “producer,” attached, and he would only release funds to me if I secured another financier.
This is how the business works. Who doesn’t want to reduce risk in high-risk investment? I didn’t know it at the time. I didn’t get a business license as a writer, talk to finance experts, or take more time to revise my business plan. Instead, I sulked and felt sorry for myself.
Then, in February 2012, I secured a meeting with an actor famous in Asia. He loved my script and was anxious to direct and star. We had a great meeting. But I was so far out of my depth. I knew nothing about coordinating an international film production. Two people meeting, even if one is a star, won’t jumpstart that.
Also, unless you are already in the business, most films begin as short films that continually secure fundraising for completion. The process is a lot more complicated than I am describing. Instead of building on connections and educating myself, I just fell into despair. I gave up.
I treated the experience unto a non-winning lottery ticket. Instead, I should have used the setbacks as a way to slowly and incrementally build my business aspirations. And, become wealthy.
Getting Out of My Own Way
God, I wish I could go back in time with my present experience. We can only learn from our past. I am currently in the Philippines and striving to start a small comic book company. I then plan to initiate a fundraising plan. It takes time to become wealthy, and it all starts with planning.
I will detail my business plans and budgets in future columns. The most important thing I have learned is that I need to save money, budget, and scrupulously plan for a return on my investments. I am investing in myself and if I am successful, will go a long way to attracting outside investment. I am going to be wealthy. It just might not happen soon.
Read More
Allen’s Wealth: Lessons Learned #1- No More Credit Card Debt
Allen’s Wealth: Lessons Learned #2 – Advantages of Budgets
Budget Travel Guide Summer 2019 – Cambodia and Nepal
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.