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Category : Money

Money

Seven Unpopular Views About Investing Your Money That Aren’t Obvious

Unpopular Views About Investing

Photo by Jakob Owens on Unsplash


Investing is an art.

The best investors are learners, not money gurus. The information that provides an investing advantage is mostly about psychology.

When you lose a boatload of money, what are you going to do? That’s a question I’ve spent my entire life thinking about.


Your memory is a terrible liar

Every 5–7 years people forget that recessions occur every 5–7 years — themotleyfool

There’s recently been mad speculation in financial markets. People are acting as though recessions are outlawed, because the US government has created trillions of dollars out of thin air.

While excess money can help paper over the cracks, nothing can stop recessions forever according to history. Another 2008 financial crisis will happen. It will be bigger. It will hurt people who are unprepared.

What can you do? Don’t panic. Expect chaos and diversify your risk so you don’t lose the lot betting on YOLO Elon Musk.


Good investing is more tempting than buying stuff

Once you truly understand investing, it’ll become the most addicting thing you can do with your money.

All the things you could buy lose their luster quickly when you see your money grow $100, $500, $1000, $3000+ in a day, and you didn’t have to lift a pinky to get those gains. — @thewealthdad

They say consumerism is an addictive drug. Wait until you make a 500% gain on Bitcoin or Tesla stocks. That’s when going to the shopping mall and buying a shopping trolley full of broken dreams will lose its shine.

Your psychology changes when investing works in your favor. The other side of the coin is, it can become an addiction if you’re not careful.

Money buys time. And having limitless amounts of time to do whatever you want is a secret drug more powerful than coke.

Invest. Make money. Watch it change your purchase history.


You can fight your way out of inflation

Money will get you assets. Assets will get you freedom.

— @FSFmoney

The problem of rising prices caused by inflation and the devaluation of US dollars can only be defeated by the following:

  1. A brand new monetary system. (Ain’t going to happen.)
  2. Investing in assets that outpace inflation.

For the second option to work you need to add in growth investments like tech stocks or crypto. Otherwise, the less than 0.5% interest your bank gives you or the 1.4% you get from owning bonds will quickly erode your hard-earned money, thanks to 6.2% inflation.


Freedom comes from investing

Investing is buying a piece of your freedom one day at a time — KennyAccentInvesting

Investing isn’t about getting rich. That’s a myth.

We want to make money from investing so we can buy back our time. Most of us are seeking calendar freedom, not a candy pink Lambo.

The process of reaching this level of freedom doesn’t happen overnight either. Investing works in the long term, and can be devastating if you only do it short term, a.k.a day trading.

If done for long enough, investing gets you to a point where the income of a job isn’t as important anymore. At that point you can work less hours or slowly transition over to your own business. Or maybe you just want more time to be with family.

Time is designed to be spent however you want. Then it runs out and the party is over, which is why you shouldn’t waste a single minute.


Volatility is how you beat inflation

When you have a long enough time horizon, volatility is an opportunity, not a risk — themotleyfool

Time in the game beats sitting on the sidelines and waiting for prices to drop, or a recession to hit. The trouble is we’re impatient. We want investment gains yesterday, so we do dumb stuff that prevents it from happening.

Professionals have been critical of Bitcoin’s volatility. They have short memories and tiny brains.

Amazon stocks went down 90% at one point. This is the front page of the newspaper that Amazon founder Jeff Bezos posted on Twitter to remind us.

Image Credit: Jeff Bezos via Twitter

The newspaper was wrong.

Critics’ opinions are often proven incorrect and become nothing more than clickbait designed to sell ads of the companies they criticize. Over the short term any company looks wild and crazy at some point.

Crazy is often innovation in disguise — that’s what’s missed.

What I’ve learned is, it comes down to how disciplined your investing psychology is when you get punched in the face by price drops (and you will).

So much of investing is “what’s your time horizon + how much volatility can you stomach?” — Morgan Housel


Don’t build your resume. Build your assets.

If I was in my early 20s right now I’d go learn investments.

I’d start apprenticing & investing…

I’d worry less about accolades for my resume & more about assets for my portfolio.

Cashflow > Credentials

— Codie Sanchez

A resume has lost a lot of its value the same way the US dollar has.

A resume is a summary of experience and KPIs. What has real value is a portfolio of work with live examples that show execution, intelligence, problem-solving, and strong psychology so you can deal with bullsh*t.

When you have cash flow from your investments and side hustles, you don’t care as much about factory worker designed productivity anymore. You still might have a normal job, but you care less about office politics or your employer.

Oh, and with only one source of income from a job, your salary doesn’t even keep up with inflation (6.2%).


There’s a new race

Bots.

Big Short investing legend Michael Burry explains the problem.

Image Credit: Michael Burry via Twitter

Let’s be honest: we get some of our investment advice from social media. Anybody who says they don’t is lying. Our minds are all influenced to some degree by social media.

If you look through a lot of tweets, for example, they’re posted by bots. Large influencers on social media call themselves Generals.

The bots are their online slaves. If they want an idea to go mainstream, or collect donations for a new Squid Games pump and dump crypto investment, they simply send their army of bots out to artificially inflate the number of comments and shares on the post.

It goes even further. I have two friends that run “bot businesses.” The bots post pre-scheduled content on a daily basis and then send users to automated email funnels that make the General rich.

Bottom line: don’t fall for investment hype. Do your own research.


This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.

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Money

Inflation Isn’t Temporary, It’s Permanent Theft

Money Lessons

Photo by Joshua Rondeau on Unsplash


Inflation is the one money principle you need for survival.

The topic is hotly debated right now as the US hits 6.2% inflation. If you use the pre-2020 inflation formula then you’ll get a number over 10%.

Inflation matters because it causes prices to rise. The illusion that’s happening is far deeper. Inflation is really the devaluing of a country’s currency. When you think of it like that it’s a lot more harmful than many people make out.

The devaluation of your dollars makes you get poorer.

The title of this article, which comes from money guru Steve Burns, calls it theft. I agree. You pay tax, then you pay for inflation. The rate is different for everybody and the rich can easily avoid inflation.

Inflation, the value of money, the amount of currency, what things are worth — all of it isn’t transparent. You have to be a financial expert or dig through a lot of information.

Even when you do you’ll get left confused and with more questions. Let’s dig deeper so you can better understand inflation and overcome it.


The greatest lie of the stock market

Stocks are worth $100.

Print a lot of money, stocks are now worth $200.

Tax the unrealized gain of $100 Rinse, repeat.

— Matt Huang, Sequoia Captial

Many of you are aware of the phrase “money printing. It’s where governments create money out of thin air to pay for problems, like a global health crisis. Thanks to 2020 most of you are now experts.

What Matt Huang points out in this tweet is something I’ve read at least 100 times. When trillions of dollars are created out of nowhere, it ends up in stocks. Why?

The rich know they need to outrun inflation.

Stocks going up are how they stay ahead in the race, although even that technique is being questioned now. When stocks go up and you make a gain as an investor, you pay tax. So inflating the money supply, to force people into stocks, so they end up paying capital gains tax is an interesting chain of events when you analyze it.

There is a bill in America to introduce a tax on unrealized gains. All this means is that instead of paying tax after you sell your stocks, you’ll pay tax before you’ve realized the gain.

The legislation will never get through and many believe it’s a joke. But it illustrates how bizarre the stock market many of us invest in is.

Why stocks are soaring

There’s euphoria in the streets.

The stock market is soaring and investors are roaring.

Iconic investor Paul Tudor Jones, notable client of self-help celebrity Tony Robbins, says the demand side of the US economy is $3.5 trillion greater than it would normally be because of all the money created out of thin air.

This may seem innocent. It’s not.

Jones goes on to say those trillions of dollars are “just sitting in liquid deposits that can go into stocks or crypto or real estate or can be consumed…It’s waiting to be utilized, which is why inflation will not be temporary.”


Shrinkflation equals consumer theft

Many of the consumables we buy hide inflation. Check out these examples.

Image Credit: Jessie Walczyk via Quora

The packaging changes over time to reduce how much product we get. None of us bats an eyelid. We just accept it. Again, this may seem silly. Let me join the dots for you.

The calculation used for inflation doesn’t factor shrinkflation in. So the theft from inflation looks smaller than it is.


The million-dollar question that keeps us awake at night

What’s my inflation rate, mate?

That’s what we secretly should want to know. The idea we all have the same inflation rate is stupid. Only sheep people fall for this nonsense.

A lot of why inflation sparks heated debates is because everyone spends their money differently so there’s no single inflation rate.

Your inflation may be very different than someone else’s, then people get angry that others don’t see what they see. — Morgan Housel

American Federal Reserve chairman Jerome Powell and his team are responsible for the monetary policy that speeds up or slows down US dollar inflation, the currency most of the world’s goods are denominated in.

In a recent video it became clear that Jerome used a different inflation metric to help make inflation seem less than it is. Instead of looking at the last twelve months, he focused on the last eighteen months’ consumer prices to minimize the effect of the 2020 coroni-macaroni.

Well-known investor and star of the movie “Big Short” Michael Burry got extremely pissed off with Uncle Jerome when he found this out. He went on a rant about it on Twitter.

Inflation is often thought of as a measurement of the cost of a basket of goods. The truth is it’s way more complicated. These factors are forgotten:

  • What time horizon are we using to measure prices?
  • Who’s inflation index are we using?
  • How old are you?
  • Where do you live?
  • Do you own a home?
  • Do you have financial assets?
  • Do you drive and how much gas does your car consume?

Mind-bender: inflation is deeply personal. Calculate your own inflation rate.


Inflation can make us do dumb stuff

Once you know your inflation rate it can be a blessing or a curse. I calculated my inflation rate for the last twelve months and it’s well over 20%.

When the truth about inflation is in front of your eyes, you get angry. That’s where the problem can start. To beat the rate of inflation the only solution is to invest your money.

Investing = Risk

In the old days your savings account paid a nice amount of interest and the risk of the bank rolling up your $100 bills and smoking them was low. Now the bank can’t save you from inflation.

When you’re on your own and have to invest, it’s easy to make dumb decisions or become too arrogant.

I’m guilty of this.

Inflation can easily become the trigger for us to make a series of dumb decisions that will hold us back for years, and even destroy our families.


Inflation turns owning a home on its head

Paying off your mortgage used to be a badge of honor.

Now it’s a sign that you don’t understand how money printing and asset price inflation works — Mike Alfred

When the way we value money changes, everything else changes with it. Paying off your home used to seem smart. When you calculate the benefit of doing so using inflation, things can quickly change. Getting debt for a home allows you to access leverage. Once you pay off the home you no longer have that leverage.

You may still want to pay off your home though despite inflation.

Daniel Vassallo on Twitter said it better than I can:I paid off my mortgage because I don’t need to worry about how money printing and price inflation works.”

Don’t forget: No Debt = Less Stress.

Still, money created out of thin air fogs up the price of everything, including your home. So when you think your home has gone up, it probably hasn’t — due to inflation and money printing.


The forgotten salary theft

Inflation often doesn’t lead to any increase in salary. Businesses know that the friction and discomfort to leave your job is too much, so you’ll likely stay and continue to accept a salary that isn’t adjusted for inflation.

Even if you get the typical 5% increase, with inflation at 6.2% in America, it’s useless.

You still lose.

Then if you don’t invest that money you go even further behind.


Inflation won’t ruin the US dollar

Hyperinflation is going to change everything. It’s happening — Jack Dorsey, Twitter Co-Founder

With all of this inflation talk it’s easy to get carried away. As much as I love the visionary Jack Dorsey, I completely disagree that the high inflation we’re seeing will lead the US — and other major economies that have copied them — into a world where hyperinflation takes over.

Instead, investor Willem Middelkoop calls this normal than high inflation Super Inflation. It’s more logical that we won’t see the end of the US dollar any time soon or complete mayhem in the streets, so rest easy.

Don’t let inflation talk ruin the 2020s.


All the inflation talk boils down to this

You can only fix the inflation problem when you take life into your own hands and buy financial assets. There’s now no choice.

Confident investing (like this) beats inflation

  • Know what you’re invested in. Don’t give your money to some investment firm and hope for the best. Know the assets you own. Know exactly how much.
  • Diversify. Don’t YOLO every dollar into Dogecoin or some other popular trend. Spread your money around various assets in case you’re wrong or a random event occurs that you could never predict (like 2008 or 2020).
  • Make investing a habit. Invest money every month. That way if the markets are down or up, it doesn’t matter so much. Some months you’ll get bargains, other months you’ll overpay. Nice.
  • Have an emergency fund. Don’t put all of your money into any investment. Assume an emergency will happen and have at least six months of money to pay for it.
  • Lower your expenses. Take the savings and invest them.
  • Have multiple sources of income. Risk management is key. Assume you’re going to lose your job. Start a side hustle. Make money from more than one place. Focus on increasing the number of income sources you have as you get older. It’s never too late to start.

Even if you invest your money it’s still not enough.

Your personal inflation rate is likely quite high, and stocks or bonds aren’t enough to outpace the rising prices.

The only solution is to add some volatility to your investment portfolio. The simplest way I’ve found is to add in a tiny amount of Bitcoin and Ethereum. This will increase your overall investment returns and help lower the effects of inflation further.

Bottom line: Go from relying on luck to beat inflation — to a rock-solid plan.


This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.

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Money

The Biggest Way You Make Life-Changing Money Is by *Not* Doing Dumb Stuff

Money Life Lessons

Photo by Erik Mclean on Unsplash


When your hero slides into your DMs, your rules go out the window.

Recently I opened a DM. I saw the name. He is one of the biggest money influencers on the internet. I couldn’t believe it.

“Honey, this is it. We’ve made it. Pack your bags, we’re going to New York.”

The message started with a hi. He wanted to know what I was working on. I went for the subtle plug of my online academy to sound smart. I threw in a hint about my favorite financial asset. And of course, I told him how I watched his daily show every day, without sounding like a cheerleader.

The responses that came back were dry. No emotion. No acknowledgment of my love for his content.

“Do you trade? How’s your portfolio?”

The question seemed odd and direct. Moments later the knockout punch came.

“My investments went up $200K last month by trading.”

I knew what came next. A sales pitch. Sure enough I got given a link to a trading school. (Trading is just gambling for us normies.)

You’ll probably have more fun losing your money in Las Vegas than being a wannabe Wolf of Wall Street trader. Heroes often disappoint, especially when they’re already smoking rich and want even more money (from you!).

Becoming a trader is one way to be dumb with money.

Investing in accidental memes

Two memes have gone viral: 1) Dogecoin 2) Shiba Inu.

These are not assets. They have no utility. Social media pumps and dumps the price for fun. Memes are cool. But don’t bet your life savings on them. They are designed as a joke, not an investment.

I’m going to go against the grain here.

Both Dogecoin and Shiba Inu are jokes to traditional investors. While they have zero value right now, there are loads of people all around the world who worship them more than the Marvel comic franchise.

Some smart cookie may decide to take this community and do something useful with it. At that point these meme coins could have value. Until then, be careful investing in memes. They count as dumb stuff.

A big part of being financially secure is not doing stupid sh*t with your money — EmpireEd

Risks can be smart or catastrophic

Dialing in a bit of risk into your investment portfolio can do wonders.

Putting as little as 1% of your money into bitcoin would have seen a 20% increase to your entire portfolio over the last year. Small risk. Decent gain.

On the other hand people take crazy risks. One of the reasons I am reluctant to talk about crypto is because people get it wrong. I told many of my close friends that if they wanted to dabble in crypto then bitcoin and ethereum would be sensible options.

You know what happened?

They bought Cum Rocket.

(Yes, it’s real crypto).

They took my advice and bought unknown cryptos that started two months ago. I told them until I was blue in the face not to touch anything else until they’ve been in the space a few years. They don’t listen. All they see is money. It drives me nuts.

If you take wild risks and don’t know what you’re doing, then expect to be heading back to a regular job real soon to pay off the debt from your dumb mistakes and suck up to your boss for a raise.

A lack of research is a huge risk many take.

Be self-aware with greed

The worst part about money is it’s addictive.

Even if you don’t want to own a yellow Lambo like me, greed can still get you. The idea of paying off your parent’s home or donating lots of money to your favorite charity is tempting as f*ck.

Over the last year my investment portfolio is up over 500%. The global health crisis created a paradigm shift. People have finally begun to understand inflation and money printing, hence the increase in investment opportunities.

To try to make more than 500% feels plain greedy to me. I could do it. I could invest some of the returns in a Defi account and get another 8%. But that’s greedy. When you act greedy you eventually make a mistake.

What I’m doing is taking a timeout. I’m not doing anymore investing for a while. I’m sitting on the sidelines and watching all the madness, looking for an alternative way to think. When everybody is acting greedy it’s best to check yourself before you wreck yourself.

Greed makes us blind. Greed makes us execute terrible decisions.

Instead of greed try gratitude. Become self-aware of when you feel greedy and stop yourself.

Look at your money buckets

A money bucket is an investment type: cash bucket, gold/silver bucket, crypto bucket, real estate bucket, stocks bucket, bonds bucket.

A dumb mistake is to have all of your money in one thing. My partner knows this lady. She went all in on Tesla. She bet the house on YOLO Elon. That’s acting dumb.

No matter how sure you are of any investment it can still blow up in your face. Many people thought in the early 2000s that Enron was a sound company. They were wrong.

There are always things you can’t see about an investment — often, by design. That’s why it’s best to invest in multiple types of assets in case you’re wrong, or in case a black swan event like a global health crisis forces people to stay home for a few years.

Investing disguised as gambling

My worst nightmare is to become Chevy Chase in “Vegas Vacation.” I never want to become an innocent gambler like him in that movie.

I live in Australia. We love a punt. It’s part of our “give it a go mate” culture. And it leads to financial ruin. One tiny bad decision leads to many others. A lot of investing is simply betting in disguise.

All investing boils down to this: will the price of X go up or down?

It’s literally that dumb. You could argue the buildings on Wall Street are the casinos, and the weirdos in pinstripe suits who work there are the dealers, and their customers are the crack-addicted gamblers.

The way you know if you’re a gambler is when you’re actively looking at your investments every day and making changes.

One of the most successful investors in history, Warren Buffett, has only made a handful of investments and hardly ever makes any changes. That’s investing. Gambling is where you think you’re smarter and go in and out of investments all day.

Instead of being a highly active investor, the smart way to make life-changing amounts of money is to do this:

  • Improve your skills
  • Have a side hustle
  • Work after hours
  • Create multiple sources of income
  • Focus on passive income
  • Invest a portion of what you make slowly over time and forget about it

Don’t do dumb stuff with your money like a lot of people. Take it easy. Do your research. Diversify. Don’t become a trader. Be patient. Be calm. Be aware when you’re becoming greedy.

Most important: invest some of your gains back into your community. That’s how society prospers in the long term from the life-changing amounts of money you can make.


This article is for informational purposes only, it should not be considered financial, tax or legal advice. Consult a financial professional before making any major financial decisions.

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Money

We Want to Get Wealthy for the Time (Not the Money)

Money Lessons

Photo by Mustafa Yasser on Unsplash


Money doesn’t buy happiness. It buys time.

That’s what we’re all chasing whether we realize it not. Author Shane Parrish sums it up perfectly.

We want a clean schedule. We want other people to do the things we don’t want to do. We want to spend money to buy time.

I don’t care if you post a picture of a new Lambo, or you own $1 million of cryptocurrency, or can afford a luxury holiday. The biggest form of accomplishment is having control of your calendar, without answering to anybody about what you’ll be doing today.

“You will never be wealthy as long as you are spending time to create money”

Wealth is best expressed by spending money to create time — Shane Parrish

I spent most of my career trading time for money. If I didn’t earn money then I couldn’t pay bills.

Early in my career I was afraid to take a sick day. I only got ten per year. That may seem like a lot, but it’s nothing if you suffer from a dark mental illness that causes you to vomit all the time out of fear.

What changed is I stopped spending money on collecting more possessions and started spending money to buy back my time.

Practically this involved investing in financial assets, learning new skills from online courses, and going to live events where I could learn and meet people smarter than me.

The results took a few years to manifest. Eventually I managed to work less and go down to a 4-day workweek. After 7 years I was able to 100% own my time and not work a traditional job anymore.

The work isn’t finished though. I still have an online business that takes up time every day. My next goal is to use money to employ people to do some of the daily tasks I do. What’s bizarre about my approach is I have no interest in running a business again with over 100 employees. I’m happy with 1-2 people helping me and that’s it.

A big business seems like a good idea.

If you love owning your time it’s a bad idea. Businesses suck away your time. I prefer to use my time to express my creativity through art, as opposed to seeing dollars hit a bank account.

Know what category you’re in. Do you like the status of business owner, a free calendar, or lots of money? Secretly, the answer is probably time if you think long and hard enough about it.

I used to be impressed by people with fancy houses, cars, and degrees.

Now I’m impressed by people with passive income, quality networks, and complete control over their calendar — Brian Feroldi


How to Own More of Your Time

Let’s go through some practical steps you can implement today.

Start smaller than you think

The ideas that lead to the money that will help you buy back your time can be problematic to implement. For example if I said start a Substack newsletter and build it to 6-figures, it might sound like a great idea. But where the heck do you get started?

When you think of a passive income idea the key is to make it small in your mind. It’s to start small. If your decision is to start a paid newsletter then start with the name of your publication first. It’s an action so tiny you can’t mess it up. Then do the next small step.

When you move from small step to small step it’s much harder to become overwhelmed. Whereas if you start with enormous goals, you will overwhelm yourself and procrastinate.

10,000 bets, not 10,000 hours

Entrepreneur Daniel Vassallo taught me this one. Working hard at one goal can be stupid. When you’re figuring out how to buy your time back it requires plenty of trial and error.

You could work hard at a goal, but it might be the wrong goal. Don’t get romantic about it. I began writing startup press releases for grandpas. Now I run an online academy.

How you start this journey is not how it will end.

Don’t be available for everyone

People steal our time. Some do it on purpose for their gain, and others don’t. Be available to the people you must. Be unavailable for strange requests of your time that don’t make sense based on your goal to become time wealthy.

Work on it in the morning

If you go to a job and then come home to work on your side hustle, you’ll most likely be too drained to do the creative work.

Mornings are best for productivity. Laborits Law states that you should do your biggest or most mentally difficult task first.

Do you love it?

I hear from people all the time who want to buy their time back. They struggle. I dig deeper. The most common reason is they choose goals that they don’t love.

A goal you love is easier to execute on every day than a goal you’re simply doing to earn money to own your time. The journey to time freedom is actually better than when you arrive at your goal.

The bizarre problem that makes buying back your time difficult

The more you spike your dopamine the more depleted the pool of dopamine your system can release becomes.

The more depleted your dopamine, the lower your baseline state of motivation becomes. Basically, if you try to keep spiking your dopamine you’ll just feel worse and worse — Dan Shipper

I’m guilty of being a dopamine spiker.

Too much social media. Too many afternoon gelatos I didn’t earn. Too many spine-tingling movies at home.

Our lives are full of dopamine. If your dopamine levels are always high then doing normal work that helps you eventually own your time again will be extremely hard. You’ll keep accidentally chasing dopamine highs instead of the natural dopamine release you get when you work on a goal.

Be aware of what spikes your dopamine.

Make these tasks less frequent and schedule them after you’ve done the real deep work that makes you time wealthy.

Final Thought

The desire to get rich and buy a Lamb is stupid. What we chase deep down is a meaning for our lives and the time to do whatever we want.

Experiment with goals that can one day make you enough money to own your time. Remember that if you lower what you need to own and spend money on, you can get there faster.

Lastly, many people who have time freedom don’t have millions of dollars in the bank. They simply changed their relationship to money, and therefore, how much they need to own their time.


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Money

Six Ruthless Truths About Making Money Online (Learned over 7 Years, the Hard Way)

Making Money Online

Photo by Ubiq on Unsplash


Making money online looks like a rainbow unicorn if you believe social media.

It’s not. What stopped me from earning a living online for most of my life was the bad content I consumed on the topic. If I had known the harsh reality upfront, my expectations would have been correct and I would have stopped giving up so easily.

This is what I learned the hard way that will stop you from making the same mistake.

It probably will work for you (just not on your time horizon)

The cliche advice the critics have is “It won’t work for you. Give up, get a job, be happy with what you have. Struggle.”

They’re wrong. Making money online will work for you if you understand how it operates. First off, you need to be patient. Nothing will happen in 90 days. Even after a year things could be slow. You want it that way.

The threshold it takes to get results causes most of the wannabes to give up.

If they didn’t give up you’d make a lot less money. Nobody talks about that. The big-name Youtubers that make millions of dollars simply produce more videos for longer. Their videos aren’t even that good a lot of the time.

Change your time horizon from 30 days to more than 12 months.

You’ll probably need multiple income sources

Making money online is risky. Right now you still need middle man platforms for most of the reliable sources of income. These middlemen are dictators without a tech giant court of law to keep them honest.

They can wake up and change the rules. They can delete your account. That’s okay because it’s their choice. No point worrying about it because it’s out of your control.

The insurance policy needed is multiple income sources with the help of several tech companies. Expect to get banned or have your account deleted, and you’ll be ahead of the rest of the pack who get surprised when it happens and go cry on Twitter to a crowd of people who don’t care.

There are limitless options. Here are a few in case you need inspiration.

  • Take the skills from your 9-5 job and turn them into a service people can purchase. Direct message people on LinkedIn who might need the service. Book 30-minute Zoom calls to build relationships and validate needs.
  • Sell an eBook.
  • Write articles and get paid for them.
  • Sell a paid newsletter via Substack.
  • Offer an online course via Teachable.
  • Build an eCommerce website.
  • Promote products as an affiliate on behalf of another business.
  • Coach people on a skill you know.
  • Learn about Web 3.0 and upskill people who aren’t up with the times.

Now I read that list back, there are so many ways to make money online. Really there’s no excuse. Try one. Build several over time.

The biggest fear we have about wifi money

I’ve spoken to many of you over the years. I know your fears.

The biggest one is you’re afraid to sell. Look what happened when this platform launched referrals. Some of you got upset.

Whatever you do in life you have to sell. You come out of the womb born secretly to sell, so there’s no way around it. The reason you get angry about having to sell is because of this:

A small number of people will hate you when you sell something.

Guess what? That’s normal. Not everyone is your customer. Some people will hate what you’re selling or how you do it. No problemo. Smile and move on. Don’t let a few people who don’t like that you’re selling something put you off making money online for the rest of your life.

What a waste. You’re better than that. We’ve gotta eat. You sold yourself to get a job. Why can’t you sell yourself to make money online? There’s no difference. You can.

Social media will be a part of the strategy

Over the years our relationship with social media has changed.

We’re no longer willing for our attention to be given up for ‘likes.’ We want to own our data again. We’re tired of report after report of Zucks who gives no f*cks breaking our trust again and getting away with it. Understandable.

These negative effects have caused some of you to hate social media. One of my readers said to me, “I will never use that horrible Amazon platform because they’re evil.” Here’s the rub: their dream is to be a published author with several books. That’s an impossible dream without Amazon because, to date, no competitor has challenged their #1 position in the book market.

Forget about getting angry at tech companies. Web 3.0 will fix the problem eventually. In the meantime, use social media to unlock an audience.

Some of that audience will end up helping you make money online. Not how you think though. Some of the audience will buy from you directly, but what’s missed is that some will never buy from you.

They’ll do something even more magical. *Waves Harry Potter wand*

They’ll tell everybody they know about your work and spread the word. This is why creators who delete email subscribers that refuse to spend money aren’t the brightest.

Non-customers provide distribution. Think about that.

Getting a proper website will drive you insane

I’ve burned thousands of hard-earned dollars writing online trying to get a proper website. Three times in a row I’ve been scammed.

This isn’t uncommon. I used to work for a large company that sold thousands of websites every month. More than 50% of customers were angry with what they got. Some supposed experts will tell you to go with a template website from a company like WIX. What they’re not telling you is that most websites are lucky to convert 2% of the people who visit.

Getting a proper website will drive you nuts but it’s a must in the long run. As you expand your tiny empire, you’ll eventually need a corner of the internet that you own outright and have full control over.

I’m now on my fourth website attempt. If it’s successful I’ll be happy to share the strategy for free to save you from this hassle. But for now, assume this step is a pain-in-the-ass that will leave you crying yourself to sleep.

You’ll feel imposter syndrome

I’m not supposed to admit this. The guy that designed my Twitter banner said I need to look cool, so we used the photo of me wearing the Ray-Ban sunglasses. *Hangs head in shame*

Here goes: I feel like an imposter on some days because I make money online. I feel like I’ve unlocked some door to a parallel universe. It’s lonely at times. That’s why I write about it in the hope others will join me, and then perhaps, it won’t be such a lonely journey.

It’s normal to feel like an imposter.

This making money online opportunity didn’t exist for our parents. They didn’t have the same leverage, and instead, had to go door-to-door to round up an audience. They had to rely on dinosaur book publishers to say yes to their dreams. They needed a tv network to shine the light on their business. Or an employer to choose them for a dream career opportunity.

We don’t have any of those problems. The internet leveled the playing field, yet most of us haven’t fully realized that gift from a higher power.

It’s okay to feel like an imposter. It’s normal. These are strange times in which the internet takeover of our lives is accelerating at hyper speed.

Final Thought

Making money online starts out as hard.

That’s why I say until I’m blue in the face to treat it like a side hustle and do it after hours. Once you’ve done enough experiments to find the income sources that work for you, it’s simply about putting the work in and fighting your own excuses to quit.

The temptation to quit is high. The rewards if you don’t are enormous. Jerzy Gregorek is right though: Hard choices, easy life. Easy choices, hard life.


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Money

The Most Important Lessons from a $100,00 per Bitcoin Price

$100,00 per Bitcoin Price

Photo by Old Money on Unsplash


Bitcoin is on fire.

The critics are nowhere to be found. The financial media has fully embraced bitcoin. The largest publication in finance, Bloomberg, can’t stop talking about a bitcoin future. They should be renamed to Bitcoin-berg.

The price of bitcoin is on target to hit $100,000 per coin as the famous stock-to-flow model, created by pseudonymous institutional investor Plan B, predicted. There are so many brand-name American companies working with bitcoin now that there are too many to list.

$100,000 bitcoin appears inevitable.

Here are the most important lessons most people have missed.

A secure asset that can’t be created out of thin air is essential for prosperity

The biggest problem with the current financial system run by banks is it’s unfair. You need permission to access it. Access levels are granted based on your net worth.

If you live in Africa, sorry, no bank account for you. If you have less than $1m to your name, sorry, no access to invest in startups. You can gamble at any casino you like though and buy $100,000 JPG NFTs. Just not businesses. They’re too good for you.

God forbid you find a good one that makes money and invest. Can’t have that.

The US dollar runs the world. Most things are priced in USD. And that’s where everything goes up sh*t creek. People say “my house went up” or “the S&P 500 went up.” Only if you measure it in US dollars. And US dollars can be created out of thin air with zero approval needed.

Making you think you’re getting richer is the biggest lie of the modern era.

Listen carefully: you’re only getting richer if you measure assets in US dollars. If you switch the denominator your purchasing power is actually going down.

The greatest thing Bitcoin did was expose this dark side of finance for the public to see. Until then, only a few highly educated finance people knew about it, and they profited off it nicely. Not anymore.

Bitcoin demands the following:

  1. Show me the money supply.
  2. Prove it to me with code.
  3. Make money scarce.

Bitcoin had to be worth trillions of dollars for everyday people to believe its message about money printing. Now it’s reached that figure the idea has gone mainstream, and people have decided to place some of their money in bitcoin. The trend will continue. That trend will drive Bitcoin over $100,000.

Bitcoin is honesty reinvented

The finance industry has been screwing us for years.

They take our money, pay us peanuts, and then lend it out to customers for a large profit. It’s the same model Facebook used to get free content and give users back empty ‘likes.’ Bitcoin quietly said “prove it with code.”

The bitcoin price shows us the high demand for a scarce resource: honesty.

Every transaction on the bitcoin network can be seen. Every transaction on the network must be validated by computers all around the world, otherwise it didn’t happen. Collusion is near impossible, unlike Wall Street.

Bitcoin made lending honest too. You lend your Bitcoin to the network and users can access it and pay you interest in return. The interest you get is fair.

Or you can borrow money against your bitcoin and use it as security/collateral the same way you do when you use the equity in your home to borrow money. The difference with bitcoin is it’s piss easy to unlock your financial energy.

The asset is easily transferred and quick to verify. Try getting a loan against your home. Try shifting around physical assets like real estate. There are loads of middlemen and extra fees and permission you need to seek. Bitcoin is permissionless.

The public has spoken: banks suck.

Show us your Bitcoin. Let us validate. Here’s your cash. Thank you mam.

It’s the canary in the coal mine. It’s the most honest market we have in the country, and it’s telling us that this decrepit … regime is just about to blow up

— Peter Thiel (PayPal co-founder)

Bitcoin saves the environment

So much electricity that is created around the world is wasted. Wrong place. Wrong time. Wrong amount. Power plants, solar panels, wind turbines — all waste power.

Bitcoin mining is how the network is secured and verified. The process involves electricity. Those that provide computers and electricity to the network get paid in bitcoin for doing so (through block rewards — tech jargon).

Previously bitcoin was thought of as an environmental hassle.

Not anymore.

Bitcoin turns electricity into digital energy. That digital energy has utility because it powers computer code to verify trust and secure a $1 Trillion+ network that enables individuals’ digital property rights.

Creative geniuses all over the world are now slowly migrating their wasted electricity-generating assets to mine bitcoin when there is no need for their energy. The coolest project takes steam from volcanos and turns it into electricity that mines bitcoin. Smart.

America isn’t going to ban Bitcoin

The biggest risk for bitcoin was that America would ban it or severely limit its use. Nope. Game over.

The SEC regulates financial assets in America. It’s run by a guy called Gary Gensler. Gazza says bitcoin is a commodity. He has no issue with it. In fact, America recently approved multiple bitcoin products that banks now offer.

Old mate Gary does have an issue with other cryptos. That’s okay. More than half the cryptocurrencies in existence will go to $0 over the long run. That’s the price we pay for innovation. The price is only paid if you don’t do your research and fall for memes like Shiba Inu coin.

Another large superpower with a red communist flag tried to ban bitcoin multiple times. They failed. You can’t stop the internet. Bitcoin reinforces that point. Adopt or die.

Bitcoin isn’t designed for frappuccinos

“I can’t buy a Starbucks frappuccino with Bitcoin.”

That’s the biggest criticism I used to get from critics. For a long time I had no answer. Now I do. The bitcoin network will have multiple layers. Big ugly transactions will occur on the traditional Layer 1.

The tiny transactions of $5 for a Starbucks frappuccino with whipped cream will occur on Layer 2 and above. Transactions on Layer 2 are bundled together for batch processing later. This reduces cost and keeps the speed of the network fast.

Humans will always solve technological limitations if you give them long enough. Don’t let bugs in bitcoin and crypto make you believe it will die. As the bugs have been resolved the network has become more valuable. That’s how we ended up on the doorstep of a $100,000 price per bitcoin. Nice.

Profit from technological bugs with optimism and patience.

Bitcoin is part one, not the end game

First, hard internet money via bitcoin was created by my brother from another mother Satoshi Nakamoto. Then venture capital was disrupted because of smart contracts that allowed any man and their dog named Scooby to raise money for a startup idea (ICOs for those in the know).

Then the decentralized lending boom happened. Then Axie Infinity showed us the power of crypto gaming. Then NFTs signaled to Hollywood and the art snobs to watch their backs.

While all of this was happening a little baby known as ethereum bubbled away in the background.

First it was used for smart contracts. Now ethereum is decentralizing Silicon Valley and creating a brand new platform for developers to build apps, infrastructure (cloud), LLC organizations, and any piece of technology our minds can dream up.

Bitcoin created the start of an internet revolution. Users want to own their data and the platforms and apps we use. The blockchain technology bitcoin created allows the internet to be rebuilt from the ground up. Hooray. Sorry Zucks who gives no f*cks, it sucks for you. (We only lent you our data and attention while we figured this Web 3.0 thing out. Catch ya later.)

Final Thought

What is missed is that other assets like ethereum will rise in price at the same time bitcoin hits $100,000. This result is a sign of the potential of the human race being upgraded through Web 3.0. I expect other crypto assets to rise in value at the same time as bitcoin.

As we approach a $100,000 bitcoin price and the supply of bitcoin available to purchase continues to reduce, remember what bitcoin really did. Bitcoin gave birth to Web 3.0. Over time bitcoin will be one part of the Web 3.0 revolution.

The original promise of the internet being decentralized will be restored. The centralized powers will no longer program our lives to the same degree with their algorithms the way they did in Web 2.0. That’s what bitcoin gave us beyond a digital store of value similar (but better) to gold.


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