Anthony O'Neal: A Raise Won't Get You Out of Paycheck to Paycheck

Anthony O'Neal recounted his experience of being tossed out of his house after an argument with his father and dropping out of college. With his belongings in black trash bags, he found himself homeless and living in his car in a Walmart parking lot off Highway 76 in Oceanside, California.

During this period, O'Neal resorted to holding a cardboard sign asking strangers for money for food. He vividly remembered looking left and right, terrified his mother might see him at the same Walmart she frequented, hiding his situation from both his parents and friends.

This deeply impactful experience motivated O'Neal to make a vow: he would learn everything there was to know about money and then commit to teaching others, ensuring they wouldn't face similar struggles.

O'Neal attributed the root cause of his financial struggles to a significant lack of information and a strong desire to project an image of wealth. Growing up in a faith-based home, he learned about generosity and tithing but received no education on personal money management.

He noted that popular media in the 1990s and 2000s, such as BET and MTV, heavily influenced his belief that appearing successful was equivalent to being successful. This led him to finance everything, driving a $40,000 car he couldn't afford to fuel for a $5 McDonald's meal, ultimately resulting in financial instability.

This mentality pushed him to make immature decisions during college, leading to his dropout and subsequent argument with his father, which resulted in him being kicked out of his home and starting his journey of homelessness.

Anthony O'Neal pointed out that while financial education is slowly making its way into schools through organizations like Ramsey Solutions, it is not universally implemented across all high schools. This leaves many students without crucial foundational knowledge.

As a professor at Virginia Union University, an HBCU, O'Neal observes that his 19-year-old college students often lack understanding of basic financial terms such as 'margin,' 'interest,' or the concept of credit bureaus. He criticized the education system for prioritizing job placement over equipping students with the practical financial basics needed for adult life.

He stressed that the current system focuses on getting students a job to earn income and pay bills, but fails to teach them how money actually works or how to manage it effectively once earned.

Anthony O'Neal strongly asserts that the inability to build wealth and the prevalent issue of living paycheck to paycheck, affecting 62% of people, is not due to a lack of income but rather a lack of financial strategy and information.

He explained that most individuals do not possess a basic, practical strategy for managing their money. The common pattern involves receiving income, paying bills, and then spending the remaining 15% on non-essentials until the next paycheck arrives, with nothing saved or invested.

O'Neal defines 'margin' as the crucial difference between income and expenses, highlighting it as the greatest wealth-building tool. Without a clear strategy to create and maintain margin, people remain stuck in a cycle of financial instability, regardless of their earnings.

Anthony O'Neal emphasizes that 'margin' is the most critical tool for building wealth, even more so than income level. He defines margin simply as the difference between income and expenses, providing an example: if one earns $5,000 and has $4,000 in expenses, the resulting $1,000 is the margin.

Conversely, if expenses exceed income, creating a negative margin (e.g., $5,000 in, $6,000 out), individuals are forced to borrow money, relying on credit cards or friends, which prevents any form of wealth accumulation. This lack of margin is a significant factor in why many struggle to get ahead financially.

He shared a startling statistic that 39% of Americans believe simply achieving a paycheck-to-paycheck status is a positive financial outcome, indicating a widespread misunderstanding of true financial progress and the necessity of creating margin to build wealth.

Anthony O'Neal highlighted the significant problem of people receiving financial advice from non-accredited sources on platforms like TikTok and Instagram, where individuals may not truly understand the essence of money.

To ensure the accuracy and reliability of his own advice, O'Neal made a conscious decision to pursue formal education. He earned a bachelor's degree in finance and accounting, an MBA in finance and church management, and is currently pursuing a DBA with an emphasis on finance and investing.

His academic pursuits are driven by a desire to be a responsible steward for those who trust his voice, enabling him to teach practical, correct financial information, unlike many unverified online 'experts.'

Anthony O'Neal shared that 'surviving day to day' was a normal experience for him because he had witnessed his own parents living in the same way, often without even realizing they were merely surviving. This normalization made the struggle less surprising to him.

He recounted one of his most embarrassing moments: begging for food with a cardboard sign at a Walmart parking lot. He was terrified his parents, who frequented that specific Walmart, would see him. A passerby's refusal to help, based on the assumption that the money would be used for drugs rather than food, left a lasting emotional impact, especially as he only wanted to buy a meal from Carl's Jr. across the street.

This experience underscored the stigma associated with poverty and the difficult reality of needing help while facing judgment from others.

Anthony O'Neal stated that many people in America today have normalized the act of simply 'surviving' financially. He suggests that this normalization prevents individuals from truly understanding or aspiring to what it means to 'thrive.'

This perspective highlights a fundamental difference in mindset: moving beyond just meeting basic needs to actively building wealth and achieving financial freedom.

Anthony O'Neal recalled the depths of his financial struggles, stating that at his lowest point, he couldn't afford to eat. Beyond food, he also lacked access to basic hygiene, resorting to showering at the Boys & Girls Club or the YMCA throughout the week, often going without showers on weekends.

He emphasized that 'surviving' was deeply ingrained in his DNA, having observed his parents living day-to-day. This perspective made the challenges of his homelessness, including hunger and lack of hygiene, feel like a continuation of a familiar struggle rather than an unexpected hardship.

Anthony O'Neal shared that despite making progress, he fell into the trap of lifestyle creep. After returning home, apologizing to his parents, and getting a job as a bill collector while working three jobs and saving $100 from each paycheck, he managed to save about $5,000 by age 20. His job then offered him a supervisor position in Jacksonville, Florida, which came with a significant pay raise to $60,000 annually.

However, upon moving and receiving this raise, O'Neal immediately increased his living expenses. He opted for a $2,000-a-month apartment in a desirable area, rather than maintaining his previous frugal lifestyle. This decision, driven by the belief that he could afford it, meant that despite the substantial increase in income, he found himself still living paycheck to paycheck.

He notes that the raise did not break his cycle of financial instability, illustrating that without a change in strategy, increased income often leads to increased spending rather than wealth accumulation.

Anthony O'Neal profoundly credited his faith with saving his life during his lowest moments. He revealed that he contemplated suicide only once in his life, specifically when he had to beg for money to buy food at Carl's Jr. This was the turning point where his faith reminded him of his purpose and inherent worth.

He also realized that his friends, whom he had tried to impress by financing various purchases, abandoned him when he was at his lowest point, offering no help with shelter or food. This stark contrast solidified his reliance on faith rather than superficial relationships.

Today, O'Neal's faith continues to be a central pillar of his life and business. His company donates 10% of its income to a local church or non-profit, and he personally contributes 14% of his income to his home church in Maryland, emphasizing generosity as a key ingredient for building wealth and fostering a biblical perspective on financial principles.

Anthony O'Neal redefined financial freedom, stating it's not about being a millionaire or billionaire, but about living below one's means while pursuing the purpose God has set in their life. He clarified that financial freedom could mean earning $60,000 a year, or $200,000, or even $2 million; the income figure itself is not the defining factor.

He asserted that God does not design people to struggle or live paycheck to paycheck, but rather for an abundant life. He encouraged those struggling financially to reconnect with their faith and trust God with their money, starting with tithing 10% and observing miracles with the remaining 90%.

O'Neal shared that by giving away nearly 24% to 25% of his total income, he lives more prosperously with the remaining 75% than he did with 100% of his income when he was not generous. This practice, rooted in faith and the belief that generosity reaps generosity, is a core component of his philosophy for financial health.

Anthony O'Neal outlined a multi-step strategy to move beyond living paycheck to paycheck, starting with laying a clear foundation by establishing a vision for one's money. This involves asking what one desires, such as financial freedom, homeownership, or funding children's college education, and placing these goals at the forefront.

The process continues with defining specific financial goals needed to achieve that vision, and then establishing monthly and daily habits necessary to reach those goals. O'Neal noted a common failure point: many people have a vision and goals but lack the actionable habits and a concrete plan.

He also addressed married couples, observing that they often struggle financially due to misaligned visions for their money. He advises couples to set a unified vision, allowing them to work as a team and enabling the shared vision to be the basis for saying 'no' to expenses, rather than one spouse directly denying the other.

Anthony O'Neal emphasizes the importance of implementing a zero-based budget as a core strategy for financial stability. This involves meticulously listing all income and subtracting all expenses, ensuring that the total equals zero, with any leftover funds consciously directed toward savings, investments, or business ventures. He explains that money only flows in two directions: in and out, making it crucial to account for every dollar.

His budgeting method begins with categorizing fixed costs, such as mortgage, utilities, transportation, food, and childcare. Following these essentials, individuals should identify and list fluctuating expenses, including phone bills, gym memberships, and any subscription apps.

O'Neal advises engaging in monthly financial planning, either alone or with a spouse, to prepare for upcoming needs and expenses. This proactive approach allows for strategic allocation of funds, such as budgeting for a child's new soccer uniform or setting a specific amount for dating expenses, as he does for himself. This discipline ensures that choices align with financial goals and future aspirations, preventing impulsive spending from derailing wealth-building efforts.

If starting over at 21, Anthony O'Neal's very first move would be to live like a college student, even if uncomfortable. This means getting one, or even two, roommates to keep rent around $500, aiming to maximize savings from an average graduate salary of $50,000-$60,000.

He recommends buying a cash car for $1,500 to $2,000 instead of financing a new vehicle. By combining these frugal choices with careful grocery management, a young person can live significantly below their means, thereby creating a substantial 'margin.'

O'Neal suggests maintaining this lifestyle for five years to save and invest approximately 25% of annual income, potentially accumulating $50,000. He also advises choosing affordable geographic locations like Idaho or Fayetteville, North Carolina, over expensive major cities, to further facilitate wealth accumulation early in one's career.

Anthony O'Neal advises that by age 25, instead of starting a new company from scratch, individuals should leverage their accumulated capital to purchase an existing business. This strategy allows them to acquire a company that already has established customers, a database, and operational systems.

He suggests integrating AI and modern technology into these acquired businesses to enhance their growth and efficiency. This approach enables the creation of an owned source of income, which he views as the primary vehicle for true wealth building.

O'Neal projects that by following this method, an individual who started with an entry-level salary of $50,000-$60,000 could potentially generate $250,000 annually in revenue by age 30, emphasizing the significant financial leverage gained by acquiring, rather than starting, a business.

Anthony O'Neal describes 'power moves' as significant financial actions taken once substantial margin has been built, such as saving $50,000 to $100,000. These moves include buying a business, purchasing a home, or investing in the stock market, all designed to make money work for you rather than exchanging time for money.

He clarifies that his definition of retirement isn't about stopping work, but rather achieving a position where one no longer has to exchange time for money. At 42, O'Neal exemplifies this by working as a professor for free, explaining that his money 'buys back his time,' enabling him to pursue desired activities and give back without needing an extra salary.

The ultimate goal, according to O'Neal, is to build a life where your finances provide the freedom to choose how you spend your time, whether through teaching, promoting his book, or engaging in philanthropic efforts, rather than being dictated by the necessity of earning a paycheck.

Looking 25 years into the future, when he will be 65, Anthony O'Neal envisions a life not of traditional retirement but of purposeful engagement. He plans to spend six months of the year in Accra, Ghana, where he has purchased a house with his wife, building a financial literacy school. The remaining time will be split between three months of leisure and three months dedicated to continuing his work in the US.

O'Neal expressed a wish that someone had advised him in his twenties to 'do the boring, hard stuff' during his 20s and 30s. He believes this early discipline allows one to enjoy the 'fruit' of their labor in their 40s, 50s, and beyond, freeing them from constant hard work later in life.

Having built a multi-seven-figure business, he is now in a position to focus on impacting others rather than merely working for a salary. His future plan reflects this shift, prioritizing giving back and enjoying life while his money continues to work for him, a direct result of his earlier financial discipline.