I don't care if everyone else is going
I'm not giving you the money for the concert ticket. No you can't have the car
tonight
I'm sorry if the kids make fun of you
we can't afford to spend that kind of money on clothes. I don't have the money
for your senior trip
It is my pleasure to introduce someone who has achieved many successes in his
life. This person has owned and operated several successful businesses, has
managed close to 100 million dollars for individuals and corporations, has
visited over 26 different countries and now wants to share with you several
secrets to achieving your dreams and having all that you want. Ladies and
gentlemen, Mr. Lon Goforth, president of Life Skills Unlimited, Incorporated. In
the next several minutes you'll uncover the power to be somebody very special.
Your friends will look up to you, you'll have the edge over others, your parents
will be proud of you, but most importantly you will have the ability to
have what you want. I'll tell you right now it's not going to be easy. It'll take a
lot of guts, but I believe you have what it takes. Let me ask you a few questions.
Would you like the freedom to make your own choices?
Yes! Would you like more money? Yes! What would you do if you had more money?
Would you like to be your own boss or do you enjoy being bossed around?
Would you like to own your own business making your own money? All these things and many
many more are possible if you dare to dream. Be prepared to watch this
instructional video many many many many many many many times to learn and
remember remember everything I'm going to teach you. You can have all the things
that are important to you. Now sit back, strap yourself in and let's get down to
business. Seven. Six. Main engine. Three. Engines up and burning. Two. One. We have
liftoff. We are reaching for the stars.
This video is about making and managing your own money and with making your own
money a lot of good things can happen. Think of all the places you spend your
money. Somebody owns those businesses and they're enjoying your money. I will teach
you to have your very own business no matter what your age. My staff has
assembled a list of 50 different businesses that you can own, but before
we go any further there's someone I'd like you to meet. I want to introduce you
to Becca, one of the hardest working field reporters in the business. Becca, how
are you? I'm just great Lon, how are you doing? Just fine, thank you. Becca, I
understand you've been interviewing teenagers from all over the country to
find out their feelings about money. Yeah it's interesting to find out how many
young people are excited about running their own businesses and learning how
to manage their money. It's great and this is why. So how does it feel when you
have to ask your parents for money? I don't really like it because if you have
your own money then they'll say like you can do what you want to do with it
because you earned it, but if it's their money they earned it so they
get to tell you what to do with it. How does it feel when you can't have
something you want because you don't have the money? Well I feel that like I
should get up do something so I can earn the money so I could get the thing I
want and I also feel bad that I can't have it because it shows that I don't
do it much better. So money's important then you think? Yeah. What about you? I would rather work for my own business just because like Heidi said it gives you more
space, more freedom to do what you want. Go where you want to go and kind of set
up your own thing. Thank you Becca. We'll be getting back to you later for more of
those interviews. Those are just a few of the feelings expressed by young
ambitious people like yourself. However you feel I'm sure we can all agree on
this. To get money you need to take action. For example get a job or perform
a service. Let's be real when was the last time your mom or dad said oh you're
a cool kid here's five dollars? It isn't gonna happen. Isn't it more like if you
don't clean the kitchen, do the dishes, fold the laundry, take out the trash,
clean your room and learn to fly all by noon I'm not gonna give you your
allowance. Before you learn how to use and manage your money you have to learn
how to make money. So you both had mentioned that you'd like to have your
own business. What's keeping you from doing so? Well I like the idea of owning
my own business but I just don't know how to get started and how to promote it
and how do you keep it going once you get it started? Lon, why don't you tell us
about that? Okay folks listen up. We're now gonna get very very serious. Having
and making money has responsibilities so I need you to pay very close
attention. If you'd like to take notes that's fine. Are you ready? Yes! Let's get
started. How to own your very own business or I am a teenage entrepreneur.
If you're tired of being bossed around it's time to become your own boss.
Entrepreneur. Webster's defines it as a person who organizes, operates and
assumes the risk for business venture. So if someone were to give you a list of
50 things that you could do to make money for yourself would you be
interested in that? Yeah, who wouldn't be? I definitely would.
I saw a couple of businesses up there that I like. How do I know which one is good for me?
Good question Kutura but there really is no magic to making the best choice.
First, it's important that you choose something you like to do. Second, are you
good at what it is you've chosen? There are some things you may like to do but
are not very good at and if you don't do a good job people may not want to pay
you. After you've answered those questions consider, is there a market?
Will people pay you? Will you make money? Let's start with the first question, is
there a market? For example, do you have a neighbor like this? It doesn't appear to
me that he's the type of person interested in cutting his own grass. He
might want to hire you to cut the grass for him. Now the second question, will
people pay you? If people don't want to pay for your service, don't be
discouraged. It's not a rejection of you personally. They just don't need your
service but somebody else will so keep trying. And the last question, will you
make enough money to cover your product, your service, or your time? When that
happens, that's your profit. What makes a business successful? You do. You are the
key to success. After all, you can't spell success without you. Keep in mind
what I said earlier though, even if we provide you all the tools to build your
business, you are still the key to its success. You've got to want to be
successful and must be willing to stay away from those things that will hurt
you or your business. There is one other thing that will challenge you in your
drive to be successful and that is competition. The biggest competitor you
have is yourself. If you decide something can't be done, it can't. To be a great
entrepreneur, start each day by looking in the mirror and saying, I can, I will.
The power to be successful is based in the belief you have in yourself. And
remember, it's okay to be afraid. Uncertainty is scary. This slope is scary,
but with the risks come the rewards. Now there are other forms of competition
that you need to be aware of, drugs and alcohol. The decision to use drugs and
alcohol is yours. I want you to be aware that the use of drugs and alcohol will
compete against your ability to be successful. I know it's very hard to just
say no, but it's not hard to say, I have a business to run today. Those around you
that take advantage of the information on this tape will blow by you on the
road to success if you let them. Please choose your path wisely. Don't give them
the edge. Stay clean and sober. It's also important to stay in school. Ask
yourself the following question. If I do own my own business, who would I rather
have working for me? A high school dropout, a high school graduate, or a
college graduate? Whether it's fair or not, that's how we all are going to be
judged. There are no exceptions. One of the most difficult things about owning
your own business is just that. You are on your own. People will try to
discourage you and poke fun at you, sometimes intentionally, sometimes by
trying to convince you that you'll have more fun by going to the concert. After
all, what you're trying to do is impossible, or so they say. Let's face it,
on a bright sunny day going to the beach or going to the baseball game sounds
great. However, let me ask, which would you rather do? Go to the baseball game or
own the baseball team? Be an owner. What they say or do may break your heart. You
need to understand that they don't want you to have something they don't have.
It's up to you to pick up the pieces.
Why would people discourage me, Lon? It's sad, but some people need you to fail so
they feel better about themselves. Sometimes they might not even know
they're discouraging you. Sometimes it'll be those closest to you, your friends or
your family. Remember, it takes a great deal of courage to say, no, I have a
business to run. But that is the difference between those that finish the
race and those that were afraid to try. Never, ever be afraid to try. Just by the
fact that you're watching this tape tells me that you already have the
desire. You have the drive to be in charge of yourself. Remember, even if you
stand alone, stand tall. You, in fact, can win.
Hello, my name is Steven Chernowski and we're from Jupiter Productions
Incorporated, which is a custom clothes and design operation. This is my partner,
David Madden. I'd like to talk to you about two of the businesses that we own.
One is Hats Catering and one is right behind us, Jupiter Productions Custom
Clothes. We went into business for two reasons. One was the money, of course, and
the other was we set goals and we obtained them. Well, in the beginning, some
of the discouragements that we did have, and the biggest discouragement, was the
fact that people did not take us seriously because of our young age. And
in this tape, Lon has some very good ideas that will help you become
successful. And then there will be people who, through encouragement, will provide
you with an uplifting experience. Encouragement can come in the form of a
compliment, handshake, a hug, or a pat on the back. Some people will even help push
you along. When you get this kind of encouragement, you'll feel great. Know
that the best source of encouragement is that person that looks back whenever you
look in the mirror. The feeling that you get when you know that you've done the
job well will give you a natural high. To keep a higher view on life, it may be
necessary to turn to yourself for encouragement. After all, you are your own
best friend. Okay, now let's look at the three areas that will help you get and
grow your money. Negotiation, needs versus wants, saving and investing. First, let's
find out how negotiation will help you. Negotiation is when two people that have
different goals discuss their differences and come to a mutually
agreeable solution. In other words, both people are happy with the outcome of the
negotiations. Negotiation is like trying to balance a seesaw. You may have to give
a little to get a balance. Before we begin, know that you already possess these
skills and have been practicing them on your parents, your friends, and your
teachers for years.
Hi. Oh, hi Erica. How are you? Good. Did you have fun at the mall? Yeah, I had a really good
time. Oh, did you see the dress I told you about? Yes, I did. It's very, very
pretty. Oh, thank you. Yeah, but it cost $150. That's a lot of money. Well, I really
need it for the prom. Well, I'm sure you feel that way, but I have to think about
$150. If I do some chores in the house, you know, for the next four weeks, could
I maybe get it? Well, next four weeks is a long time, I'll tell you what. I know
you're very excited about the prom, so I'm going to say two weeks of chores and
I'll help you buy the dress. All right, thank you. Dad, I was wondering, could I have an increase in my allowance? An increase in your
allowance? An increase in my allowance. No, don't think so. Why not? Can't afford it.
I can do stuff around the house where you like, I can wash the dishes for a
week or something. What do you need all this money for? I got things to do. I can
trim your bushes and stuff, man. I could cut the grass, wash the car for a whole
week. Yeah, I think your allowance is already high enough. $8 that? If I give you more
money, you'll get in trouble. I could take out the trash and stuff. You know those
shoes you got from 1970s? See, I can polish them hand-made and stuff, man. See,
instead of you putting them in a washing machine and they get messed up, I can
polish them hand. Well, tell you what though, you know, if you really want to do
something, you know, there's car needs washing, grass needs cutting. If we could
work out a deal, maybe I could increase your allowance by a dollar or two. Okay.
So that means you're willing to wash the car and cut the grass and I'll increase
your allowance by two dollars? Yeah. Sounds like a deal. And there you have a
successful negotiation. Both parties got what they wanted but had to give a
little and it balanced out for each person. Practice negotiating so that both
parties can win whenever you can. Negotiation is also something you'll
practice within yourself to determine the difference between your needs and
your wants. Why is it important to understand the difference? It's a way of
making sure that no one controls you but yourself. And to stay in control before
you buy anything, get in the practice of asking yourself, do I need this or do I
want it? So if you're going to buy something, what thoughts go through your
mind before you buy it? I usually think about how much it costs and where that
money could be better spent and how much, how hard I've worked to earn that much
money and where I really want it to go. What I usually do is I look at it and
say, do I really need this and will I regret buying it later or will I regret
not buying it? So you think about it a lot then? Yeah. There will be times you
will need your money and if you spend all your money on things you want, you
won't have the cash when you need it. It's okay to buy something just because you
want it but it's a balancing act. To be on top of the world and stay in control,
balance your needs on one hand and your wants on the other. You should always
have money for both your needs and your wants and that will bring us to a very
important part, saving and investing your money. Let's start with savings. What did
you find out about saving, Becca? So do you think that money's important?
Definitely. What do you need money for in the future? College and just like normal
expenses like housing, cars, food. Definitely want to go away to college.
I want to go out of state which is more expensive than going in state. I think money's great.
Just to have money, you know that you're able to go out and buy food and clothes
and things like that. So money's important? Yeah, it makes me feel better knowing that I have money.
So you guys don't like asking your parents for money I take it? No, nope.
Most of the time you ask them when they're in a bad mood or something. It's Murphy's Law I think.
Or if you do ask them when they're in a good mood, they always turn and have a bad mood after you ask them.
There you have it. Different answers and different reasons. But the message was clear.
Money can and will make a difference in your life. Let's investigate how money can work
for you by saving. What is the savings account and why should I have one? Very simply,
a savings account is used to save money for a short-term goal. If you wanted to buy a bike or a car
or something else within a short period of time, then you would put your money in a bank savings account.
So do you save your money? Yeah, I do. And where do you save it at? I have a bank account.
In fact, I just got my interest statement a couple days ago and I make close to $10 in interest.
That's great, that's great. Mom, why don't you tell us how that works? Glad you asked.
The money you put in is called principal, and the interest is money paid to you by the bank
and added to your principal. Therefore your money grows. Soon the bank pays you
interest on the interest they gave you before, and that's called compound interest.
Compound interest is what causes your money to keep growing and growing, and it's like a snowball
that rolls downhill, it just gets bigger and bigger. Saving money will be very important
to your success and to your future. Let's hear what your friends or classmates
have to say about saving money.
I think it's important to save money because you gotta buy a car or a house
because you don't want to live with your parents when you come out of college. You want to have freedom.
That's why I'm saving up now, so that I'll have some financial security when I go away.
It's really cool to save your money.
For the opportunity to make more money on your money, you'll need to make investments, and there are a lot of ways
of putting your money to work for you, including stocks, bonds, and mutual funds.
Before we get started, are there any questions about investing?
So, do you guys have any questions about investing money?
Are there any risks to investing money?
I'm not really sure how to get started.
Okay, good questions, and I'd like to start by telling you a true story.
Many years ago, when I was a professional investment advisor, there was a young man who came to me.
He was 11 years of age, and he was making his own money.
Every week he'd bring in $5, $8, $10, $12, whatever extra he earned that week.
We put that money away. We invested it.
And on his 19th birthday, he had over $20,000 of his own money that he had saved and earned.
I believe that teenagers need to invest their money, and that's a very good reason why.
It's great that he experienced the success, and there are definite reasons for you to have your own investment success.
Let's check in with Becca to find out what are some of the other reasons that you would want to accumulate money.
Yeah, because I mean, I feel that I have to learn now how to deal with my own money
and pay my own expenses when it comes to little things and some big things.
Just come to college. My parents aren't going to be there to pay all my bills,
and I'm going to have to be working and stuff like that.
What kinds of things will you have to buy or pay for in the future?
Makeup, cars, clothes, a house, the water bill, the insurance, a credit card.
Those will get you.
One good investment that can help you prepare for the future is by buying stocks.
Common stock is a type of investment that represents ownership.
If you buy stock in a company, you actually own a piece of that company.
Common stocks are purchased through a stock brokerage firm, though sometimes you can purchase stocks through banks as well.
The bank or stock brokerage firm will buy the stock of the company you want from the stock exchanges.
It is important to know that if you're under the age of 18, you cannot have a stock brokerage account in your own name.
Your parents, legal guardian, or grandparents will have to have the account in their name, but for your benefit.
That's exactly how my young friend did it.
I like the idea of owning stock in a company, but is there a risk?
Owning stock in companies can be very exciting and very rewarding, but there are some risks you need to know about.
Number one, your money is not guaranteed.
In other words, you may start out with 10 shares of a company's stock that you bought at, say, $10 each.
10 shares at $10 is $100 that you've invested.
But if that company doesn't do well, the value of that stock may go down to $9 per share.
You still have your 10 shares, but they're now $9 each, so your value now is only $90.
Oops, we're losing money.
And that can happen when you buy stocks.
The price of each share of stock can go up or down, and that's why it's considered a long-term investment.
The value of each share needs time to hopefully increase and therefore make money for you.
What kinds of companies are good to invest in?
When you're getting started, it's a very good idea to invest in something you know will be around for a long time.
The electric company, the gas company, or a company that produces food.
But keep in mind, even the value of these stocks will go up or down.
What are bonds, and are there different types?
Bonds come in different types. Some are corporate bonds, and some are municipal bonds.
But you know, that's not as important as knowing what a bond is.
A bond is a loan you make to a company, and they promise to pay back your money at the end of a certain period of time.
While they have your money, they agree to pay you interest.
And you remember what interest is. Good.
It's what's paid to you while someone has your money.
Bonds are usually not such a great investment for younger people.
What do you know mutual funds may be?
I've heard about mutual funds, but I don't know what they are. Can you explain it?
A mutual fund is a group of different companies' stocks.
I like to compare a mutual fund to a bucket.
Think of it this way. You can put several different items in a bucket.
But all those different items are in one bucket.
Same with a mutual fund. Many different companies' stocks within one bucket.
There are many different types of mutual funds.
The reason mutual funds are good is because you can own small pieces of several different companies by owning just one or two mutual fund shares.
Keep in mind the stock in a company is called a share, and so is a mutual fund.
A way to remember this is that you share ownership with all other stockholders.
So let me ask you guys this. Do you think that investing money could be an advantage for you?
Definitely.
Yeah, I think it gains experience for the future.
Today we've talked a lot about investing money and owning your own business.
Do you guys have any final comments you'd like to make?
I think that a lot of teenagers get stuck in the $5 an hour job, and I think it's really cool that they can own their own business.
I think it's good that teenagers can start thinking about investing their money and becoming their own entrepreneurs.
Back to you, Lon.
Your future will depend on your ability to take care of yourself.
In this world, you can have all that you want if you're willing to work hard and be smart.
Remember these four words that we said earlier.
I can, I will.
Repeat them often and take action.
You are the key to your success.
Make the decision you will not be average.
Make the decision you will be extraordinary.
Make the decision to be the best you can be.
In school, at home, as an entrepreneur.
Wherever and whatever you do, be all that you can be.
If you decide that you will be the best you can be, then I'll see you at the top.
Don't delay, we'd like to see you going places.
You're really free.
If you've got money, that's how it'll be.
Everyone's your friend, loves you, you will see.
Money, money, money.
Money, money, money.
Money, money, money.
Money, money, money.
You won't get very far if your money disappears.