What I Would Do If I Had To Start All Over

August 24, 2018 By Robert Leave a Comment

I recently did an interview for a site called Online Money All Stars (they have a bunch of great content, check them out) and was asked an interesting question:

“What would you do if you had lost all your business and reputation?”

I gave an answer in the interview (again, go read it here) but I also wanted to share a full-length response that’s a little more in-depth. Mainly because of recent events like Alex Jones being deplatformed from everywhere, or last year’s big YouTube crackdown.

For this situation, there are some ground rules:

You get to keep any money or non-Internet assets (stocks, BitCoin, rare comic books, etc).
No crimes were committed, so you aren’t in legal trouble.
You just lose what you already have (any websites, eBooks, Twitter accounts affiliate deals disappear. You also are perma-banned from your current web host). You’re still allowed to join programs and use services offered by any other company.
What you do for money must be realistic or fitting your personality (i.e. no becoming a cross-country truck driver or professional arm wrestler).
You must do something for income, and you can’t live at home.

Alright, those are the rules. And here’s what I’d do.

1. Move To A Second-Tier Asian City

Whenever you see “If I had to start all over again” articles, they’re usually full of advice like buying a $10,000 suit and pitching consultant services to executives in Manhattan.

Realistically, no one ever does this at their low-point.

If you’ve ever had a friend or family member wrapped up in lawsuits or a messy divorce, you’ll know what I’m talking about. Heck, even success guru Don Lapre stabbed himself to death when faced with legal trouble.

Likewise, many people suggest going “full Unabomber” and moving to the most remote area possible. This is also a bad idea. Many rural places are often as expensive (if not more) than living in an urban environment. Plus, you’ll need a car to get around. Something which adds to your expenses.

Instead, I’d move to a second-tier city in China or Vietnam. They’re safe, have nice infrastructure, and are massive in scale. Some of these places are completely unknown to foreigners, but have populations comparable to Seattle, LA, or even New York.

Plus, they’re super cheap.

I went on a road trip last week and got a hotel room (in the city center) for $4 a night.

So the first thing I’d do is move to an area like this, pay a full year’s rent up front, and rest easy knowing my housing costs were covered for an entire year.

Side not: Despite being super cheap, second-tier cities have all the amenities you’d find back home. Like movie theaters, shopping malls, supermarkets, fast food, nightclubs, book stores etc…

2. Re-Route My Emergency Fund To Investing

Since rent is a whooping $124 per month, I’d take my emergency fund and use it to continue investing in high-yield dividend producing index funds.

This (plus my current holdings) is an easy $1,200+ per year in passive income.

If nothing else, these dividend payments are enough to cover another year’s rent. But, more realistically, the next part of this plan will cover all expenses and then some.

3. Get A Low-Effort Online Job (Which Pays Hourly)

Instead of “brand building” or cranking out an eBook, I’d get a low-effort, low-brain power online job. Something that pays $8 – $14 an hour, and requires no prospecting, cold calling, or extra work.

I’d probably choose something like homework helper, transcriber, Zen Desk support staff, or some other easy job where you work for a company while getting paid hourly. I’d do this three to four hours a day, covering all my expenses and then some.

The rest of my day (for the first month or two) would be spent going to the beach, walking around town (or the mountains), and reading books.

Kind of like a mini vacation.

4. I Would Build An Old-School Adult Website

Instead of crafting information products (they’re harder to sell than most realize, my eBooks require around 40 – 50 visitors to their landing page just to sell one copy) or doing something in the fitness niche, I’d join every single adult website’s affiliate program. Then, I’d install the most aggressive ad network possible (pop-ups, banners, etc). This turns every pageview into profit. And with a strong enough program, you’re getting $4 – $6 per 1,000 hits.

At 60,000 views per month (2,000 per day, very reasonable) you’re making just under $400. This doesn’t include affiliate sales.

For content, I’d just repost all the promotional clips and pictures the affiliates provide. And for traffic, I’d link out to every forum, blog, etc…

This is about the lowest effort business there is.

You don’t make products or write copy.

Once the ad money started rolling in, I’d outsource everything through Mturk, paying someone literal pennies to run the whole project. Then I’d move on.

5. Build Some Legitimate Businesses

(On ClickBank, The Little Arrows Mean A Product Offers Recurring Commissions)

Grey area businesses are a great source of fast cash. But, they tend to get shut down quickly. As such, once I had some passive income coming in, I’d build some niche sites. For products, I’d pick physical goods (they always convert better than info products), or services with a recurring commission.

I’d also take my excess earnings, and also invest them into more high dividend index funds. This way you’re making money from three streams of income:

A job.
Investments.
Owning A Business (Your Sites).

This balances your cash flow between stability (a job), scalability (your business), and passive income (the returns generated on your investments). I would then stick to a simple formula of writing one article or sales letter per day (minimum) every day for the rest of the year.

Additionally, I’d build backlinks and do promotion daily, building up the traffic and boosting the page ranking. I’d also work on 3 – 7 sites simultaneously, allowing them to all grow at the same rate.

Within eight months, at least one will be generating $1,000+ per month. And even the smaller ones will make $100+ monthly.

Worst case scenario, all of them flop and you’re *only* getting $700 – $800 a month total. At that point, just keep what you’ve built as is, then start a new batch of sites.

Following this basic strategy, you’d still end up making $36,000 – $45,000+ over the course of a calendar year. This is also something of a low-end estimate, so the numbers could be much higher.

And, much of what you did (between investments and sites) will compound over time. So your second year of starting over is already positioned to be better than the last.

7 Things I Don’t Spend Money On

August 17, 2018 By Robert Leave a Comment

I’ve invested over $17,118 across the past four months, set aside some money for real estate, and went on two nice (but short) vacations this summer. That sounds impressive, but here’s the catch. I make a pretty modest amount of money.

Like well within the middle-class tax bracket.

In fact, many of my friends and family members make more than me. However, most of them spend their money on depreciating assets like cars, expensive booze, or watches. The result? They miss out on a great time period for building up multiple income streams and capitalizing on the power of compound interest.

Today’s article is all about seven things I personally avoid buying. And how doing so gives you a huge surplus in money you can reinvest into other ventures.

1. Meme Clothes

(These Are Wal-Mart Quality Shirts)

When I moved to Vietnam in 2015, I instantly went from spending $1,500 in rent to $500. Being 21, I took some of this money and made a sound investment in two expensive T-shirts.

I’ve probably worn them half a dozen times at most. And when I do, I’m always worried about spilling something on them, or getting sweaty armpits.

In contrast, I usually wear cheap, form-fitting, monochrome V-necks that cost $7 – $10 each. When I spill something on them or a muddy dog jumps on me at the park, oh well. They’re a workout shirt now. I’m not losing sleep over that.

In many cases, high-end clothes really don’t matter. Especially casual wear. Those Supreme T-shirts people spend $400 look terrible. And almost any outfit from Gucci makes you look like you’re cosplaying as the Paddington Bear.

Buying clothes that fit, and being in shape, is infinitely more important than what’s trendy.

A big fat guy in a Balmain outfit is still a big fat guy.

And how much you spend on clothes really doesn’t improve your physical attractiveness beyond a certain point.

2. Hipster Restaurants

Most trendy restaurants are basically junk food dressed up.

French fries cooked in duck fat, locally sourced pizza, gluten-free hamburger served on a thrice toasted artisan bun. Many of my friends love going to these places, but I honestly don’t get it.

Paying $30 for a burger and fries seems stupid to me. Especially when there are tons of wonderful, quality restaurants for about the same price.

Likewise, I suggest avoiding chain coffee shops (like Starbucks) for similar reasons. Nicer, more upscale tea and coffee houses cost about the same.

When I go on dates or meet friends for coffee, I usually go to a place like Harrod’s or some of the nicer independent tea houses around town. Despite being much better than a Starbucks type chain venue, the prices are generally the same.

If you’re going to overspend on tea or coffee, do it someplace nice.

3. Cars

What do Zuckerberg, Warren Buffett, and Jeff Bezos have in common?

They all drive modest cars. A lot of people, including many of my relatives, spend way too much leasing cars they can’t afford.

The most commonly leased luxury car in America is a Mercedes C-Class. And it costs about $1,000 a month to drive. That adds up quick. And it’s not even a particularly cool car. There are many better ways to spend $1,000 per month (remember, this is $12,000 per year, or 6% of your income if you’re making $200,000).

You can put it in stocks, stash it in your emergency fund, or use it towards saving for real estate.

Also, many people who lease cars physically cannot invest in anything. They’re too strapped for cash, having wasted it all on depreciating assets.

Lastly, leasing cars and “fake it ’till you make it” isn’t a particularly good business strategy. Both my Dad and Uncle drove used cars the whole time they built their businesses, and I don’t think that ever killed a sale. Likewise, the only Maybach owner I know doesn’t take his car outside of our neighborhood because it’s a magnet for trouble.

Just something to think about before visiting the car lot.

4. Alcohol And Cigarettes

Drinking and smoking are two of the dumbest activities.

They’re expensive, they prematurely age you, and they also cause all sorts of terrible health problems as you get older. Like the fedora, most guys can’t pull this off.

For every George Burns or Dean Martin, there’s a hundred men embarrassing themselves while drunk.

Same goes for smoking.

Outside certain countries, it’s stereotyped as low-class.

Lastly, I want to quickly mention bottle service or nightclubs. Specifically for picking up women. This is something I see a lot in my neighborhood, where people rent a Lamborghini or rack-up huge bills to “impress the ladies.”

At that point, you’re paying for sex. And you might as well book an escort agency’s pornstar menage for half the price.

5. Owning A Home To Live In

This one is somewhat controversial, so remember that this is my personal opinion. But, I do not think that buying a house before buying a rental property is smart. Many people are really into renovating their homes. And it becomes a very expensive hobby requiring lots of time and effort.

According to my Dad, who’s an architect and owned a construction company for years, most people renovate their homes because:

A) In-laws are coming and they want to show off to them.

B) A neighbor remodeled and now everyone else is scrambling to do so.

If you’re always rushing out for new counter-tops and cabinets, things get expensive fast. Like I said, this is my opinion, and a lot of people do love their homes.

However, from a financial standpoint, you’re probably better off owning a revenue producing property before settling into your own house.

6. Day Trading And Penny Stocks

(Penny Stocks Are Not Good Investments)

Nothing gets the teenage boys more excited than YouTube day trading.

In reality, this is a pretty easy way to lose money.

Something like 97% of day traders lose, giving you worse odds than most casino games.

Penny stocks are no better, and many “gurus” use them for nebulous pump and dump schemes.

Personally, I’d stay away from both.

7. Brand New Books

This last one might sound a little weird, but as someone who reads a lot I buy most of my books second-hand.

Between GoodWill and the library, it’s easy to pick up a whole year’s worth of books for under $50. Any extra titles you want are easily filled on through Amazon. This might sound weird or frugal, but it’s a great way to quickly build up basic knowledge on a subject, without spending much.

Case in point, I bought Market Wizards, The Intelligent Investor, The Little Book That Beats Markets, and Invest The Warren Buffett Way for $0.10 each.

These same books would cost over $60 in total if you bought them new on Amazon.

Same information, massive price difference.

How To Have A Fantastic Year

July 10, 2018 By Robert 3 Comments

Warning: Today’s article contains graphic and gory images. Do not read at work!

What makes a year good? And how do you turn a bad one around?

By all accounts, 2017 should have been the worst year of my life. But it actually became one of the best.

In this article I’ll explain why.

This isn’t a “dear diary” entry either. You’ll find several powerful techniques for reversing a lousy situation, finding the positives in an otherwise terrible event.

These are easy to implement strategies for enjoying life to the fullest.

Appreciate What You Already Have

Last February I was visiting my parents in Iowa. One night, a huge wind storm erupted, knocking over a massive tree in our front yard.

The next morning, my Dad went to survey the damages. While inspecting the tree, it rolled over (I think he tried pushing on it) and crushed him. I spent a good 15 minutes, waiting for the ambulance and standing next to my Dad while he bled out all over the lawn. When the paramedics arrived, they weren’t sure if he’d live. And they were certain he’d never walk again.

(Here’s my Dad’s Leg)

Luckily, my Dad’s okay now. And he can walk around just fine.

But, in life, you usually take the people closest to you for granted.

You think they’ll always be around, then one day they’re not. This goes for family, friends, role models, and even people you know online. Because of this, I just want to take a moment and say thank you.

You don’t have to read this site, comment, or interact on Twitter. But you do. And it means a lot to me.

Alright, that’s enough sappy content. Let’s see what’s next.

Take More (Calculated) Risks

This is something I’ve written about before, but using Expectation Value allows you to take “gambles” where the rewards greatly outweigh any risks.

The $20 bill is a great example.

A few years ago, the government was debating whether or not they should remove Andrew Jackson from the $20 and replace him with Harriet Tubman. Most people fought about this online, or argued around the water cooler. A smart person would have simply walked into the bank, withdrawn $1,000 in new $20 bills, and put the money in a protective Mylar sleeve.

Why?

Because if Jackson was replaced, those old bills would have gone up in price. And, if he wasn’t, they’d still retain their full value.

No risk, all reward.

This is applicable to regular life too. I remember being 18 and depressed, so I decided to visit Central America for Christmas break. Everyone warned that “You’ll have a sh*tty time,” and “It won’t be fun.” Had I stayed home, I’d have a bad time too.

So on one hand, you have a guaranteed bad time. On the other, there’s only the possibility of a bad time, while the amount of fun you’ll have is virtually unlimited. It’s a little bit like standing on a sinking ship. If you stay you drown, if you take the lifeboat there’s a good chance you live.

When you think about risk and reward like this, it’s easy to avoid situations where failure is the default.

Likewise, you’re often able to find events where there’s very little at stake, but the payoff is huge.

If you play cards or do any investing, you’ll often hear people ask the question: “Where do I get the money to start?” The general response is “Cut down on unnecessary expenses.” This sounds like eye-rolling lame advice, but it’s true. There are professional poker plays (Tom Dwan’s initial $50 bankroll comes to mind) who started with pocket change and worked their way up.

A lot of times the money that’s spent on trendy brunch cafes, or drinking, is enough get you started in some other venture.

Last May I decide to cut back on my expenses for one month (cooking at home, no coffee shops, etc) and used the excess money to pay my rent a month early. The next month I went back to my normal routine. But, I had some surplus cash, so I paid the rent early again. That kept compounding and compounding, all from one tiny decision.

In many cases you can take something you’re guaranteed to lose (your time, money, whatever) and “swing for the fences” instead.

Lose and you aren’t out anything extra. But if you win, the rewards are limitless.

Focus On The Future

I love investing.

Specifically, the idea of building something that continues to grow and prosper over time. There’s a certain joy in looking to the future and knowing every year is better than the last.

The power of compounding is incredible, and taking advantage yields insane long-term results.

Workout every day for a year and you’re going to get big.

If you write an article a day, you’ll end up with 365 pieces of content. Law of large numbers says you’ll attract an audience.

Having a project makes bad days near impossible.

Because you’ll always know the next week, month, or year is going to be infinitely better.

How To Stay Fit While Traveling Abroad

July 3, 2018 By Robert Leave a Comment

Today’s article is a metapost. On the surface, it’s about working out while traveling abroad (I had to spend two weeks away from home last month). Underneath, it’s a set of principles which apply to any activity. From fitness, to writing, to learning new languages.

Below, you’ll find the tools for adapting to new situations whenever you’re thrown off your daily routine.

1. Momentum Is Your Friend

Habits are easily maintain, yet hard to form or break. Look no further than New Year’s resolutions. People quit smoking for two weeks, then they’re back at it. Same for saving money, eating healthy, and working out.

The flip side?

Once you’ve built good habits nothing will stop you.

If you decide to wake up at 5 AM every day, the first month is going to suck. After this, it becomes so routine you don’t even notice. When you’re already working out on a consistent basis, a change of scenery means nothing.

We’ll talk about this more in a moment, but this is one of those habits that, once developed, sticks around.

2. Pack Some Basic Equipment

Whenever I travel, I always bring a quality jump rope. And, if there’s enough space, I pack boxing gloves too.

Jumping rope is a very underrated activity. As heavyweight champion Joe Frazier explains:

Turning the rope and keeping it turning works your hands, wrists, forearms, and shoulders – which you use for punching. Getting up over it works every part of your legs, from your calves to your thighs – which you use to move. And the constant movement works your heart and lungs, which, of course, run everything else.

Likewise, it’s pretty common to find someone hanging a heavy bag in the park. You’ll see this a lot in Latin America and Asia too.

Lastly, bodyweight exercises are on par with lifting weights. Dips, pull-ups, push-ups, sit-ups, and squats are all great for maintaining (and even building) muscle.

Back in 2015, I injured my foot and couldn’t workout for about three months. After recovering, I just did bodyweight most of the time and still blew up in size.

Every park or beach has a workout area, and push-ups and sit-ups are doable in your hotel room.

Heck, a friend of mine started doing bodyweight exercises while in prison. There was nothing else to do, and he eventually became a competitive powerlifter (before opening his own gym).

When you want to accomplish something, you’ll get it done regardless of your technical capacity. I’m writing this article on my phone at the grocery store. There are a million “it can wait” excuses (keyboard too small, can’t remember how “Frazier” is spelled), but you power through.

Especially when you think “big picture.”

3. Develop A Long-Term Mindset

Here’s a great to ask yourself: “What is one thing I can do today which yields long-term benefits?”

Additionally, the following is an excellent statement to think about multiple times per day: “If I have time for [X], I have time for [Y].”

Use it like this:

“If I have time to Tweet, I have time to lift.”

Or…

“If I have time to watch YouTube skits, I have time to read a book.”

Or…

“If I have time to goof off texting, I have time to practice Spanish.”

The is the best, and easiest, time management technique ever developed. Re-frame ideas like this, and you save yourself lots of wasted time. Unfortunately, most people don’t think like this. Instead, they’re focused on short-term dopamine hits.

They assume the party will last forever

Think about $30k millionaires (the guys leasing a Porsche or Rolls-Royce while living in studio apartments), they get the fun of driving a car without the funds to support it.

My relatives who make $500,000 a year and are broke, could have easily re-invested half that money, *only* spent $21,000 a month, and still ended up with a multi-million dollar net worth.

Building a foundation and planning ahead is crucial.

Why?

Because the earlier you start, the greater your returns. If you’re staying fit through your 20’s and 30’s, you’ll gracefully age into your 40’s (go look at pictures of Reg Park vs Elvis Presley). Similar to how building an investment portfolio early saves you from greeting Wal-Mart customers at 72.

Time decay is real, and the clock is always against you.

You can either accept this and get to work, or fritter away the hours and make excuses afterwards.

How To Reinvest Your Money

June 28, 2018 By Robert 3 Comments

In 2010, Roscoe Dash had hit singles playing on radio stations across the country. The money rolled in and there was no end in sight.

Now he drives a Lyft.

For years my Dad owned a construction company, before getting out in 2007. If you’re unfamiliar, real estate development attracts many “fake it ’till you make it” types. Guys wearing four Rolexes on the same arm, or driving a different color Ferrari to work each day.

They made good money (or at least enough for leverage) during boom times. But assumed the bubble wouldn’t burst.

Any economic downturn left them hanging from the rafters or in serious trouble (my Dad tells a funny story about some developer who couldn’t pay a Tony Soprano type contractor, and ended up hiding in his office bathroom to avoid confrontation).

On a more personal note, my distant aunt and uncle are two smart people making about half a million dollars per year (he does computer stuff, she’s a surgeon). Apparently they didn’t save any money for retirement (instead making impulse buys, like a $30,000 pizza oven they’ve never used) and are now in a very stressful situation.

Today’s article is all about avoiding this mistake. We’ll look at ways to reinvest your money, making your assets work for you.

These are all things I do, so it’s not a complete list of all available investment options. Also, quick side note, I’m obviously not a financial adviser. So do your own research first.

Anyway, with that out of the way, let’s dig in.

Low-Risk Dividend ETFs

I don’t day trade or try to “beat the markets.” Most people attempting this fail, and (unless you’re playing with millions) it seems like a giant waste of time.

Buying $10,000 worth of FitBit stock, then selling it once the price rises $0.01 is too much risk.

Same goes for single stock swing trades.

“Market gurus,” like Jim Cramer, fail to keep pace with the S&P 500. And their strategies involve tireless research, corporate evaluation, and a whole bunch of complex metrics for picking individual stocks.

Instead, I just buy ETFs. These are index funds which trade like stocks, and they contain a whole bundle of assets.

Like any asset, some ETFs are great while others are trash.

My two biggest holdings are VOO (Vanguard’s fund mirroring the S&P 500), and VYM (Vanguard’s high dividend fund). I also own a few smaller holdings too, like SPHD which pays a monthly dividend.

(Investopedia Monthly Dividend Model Portfolio)

These “strays” are more for experimentation, in my model portfolio SPHD generates $3k+ per month in dividends, and fun. Also, I do own a handful of single stocks. These are mostly dividend aristocrats, and I bought them to practice asset research.

But, for the most part, Vanguard ETFs are my biggest holdings.

With VOO you’re getting the entire market, something Warren Buffett advocates. And, your management fees are incredibly low. I think Vanguard charges about $8 per $10,000 (annually), and it’s even lower if you buy directly into their Admiral Shares program.

Lastly, all these pay a dividend. So you’re getting paid just for holding the asset. VOO’s rate is about 1.9%, so you’re getting $190 per $10,000. And VYM is 3%, giving you $300 per $10,000.

That’s not huge money, but it adds up over time. Plus, you’re still making something even in a sideways or stagnate market. If you have excess money you aren’t going to spend, parking it in ETFs is something to consider.

High-Risk Speculation

In 1980-something, my parents took a trip to New York. While there, they spent $500 on a painting by a little-known artist named Keith Haring.

In terms of appreciation, that painting has beaten the S&P 500 many times over.

At the time, however, my parents didn’t know this. They thought the design looked cool and it might have some value in the future. In financial terms, this is called speculation. You buy something with no guarantee of it holding or increasing value (many obscure artists stay obscure). But, if the value does go up, you’ll often see considerable gains.

Some examples?

Family heirlooms (think Antiques Roadshow).
Buying $100 worth of BitCoin in 2009.
Real estate that’s off the beaten path.
Investing in long-shot stocks.
Purchasing art.

I don’t put a whole lot of money into these, because they are high-risk and unpredictable.

However, I will throw a couple hundred bucks into some high-risk assets. I own BitCoin and several alt coins, plus I have an annual fixed-fund for placing sports bets / playing poker.

This is more of “fun money” than anything else. Because, if I don’t see a good speculative play, I don’t invest.

When BitCoin hit the $9,000 range, I didn’t buy any more. And I haven’t placed any bets in over five months. Instead, that money gets held in cash.

Picking a winning altcoin or throwing cash onto a prediction is kind of like playing video games. It’s exciting and fun, but I certainly wouldn’t use it as a long-term investment strategy. To paraphrase Warren Buffett’s thoughts on gold: When BitCoin was $20,000 a piece, you could have bought 80 shares of the S&P 500. You’re owning a slice of every major corporation, and are backed by 100+ years of aggregate growth.

Which is more likely to fall in value?

Regular Cash

Years ago I read Tony Robbins’ Money: Master The Game. At on point, there’s an interview with Marc Faber. He’s a billionaire investor and always buys when there’s “blood in the streets.”

In the book, Faber shares his number one piece of investment advice:

You have to keep cool and have money when your neighbors and everyone else is depressed. You don’t want to have money when everyone else has money, because then everyone else competes for the same assets, and they are expensive.

Basically, don’t invest during an all-time high or mania.

When everyone else decides something is “going to the moon” (be it $20,000 BitCoin or rapid growth Chinese meme stocks), don’t join in. Instead, as Marc Faber says, just wait for the price to fall.

Case in point, between June 5th and June 16th, all my choice investments were up. Since the S&P 500 (historically) grows by a mere 1% during summer months, I figured there’d be a slump.

That investment money stayed in cash.

Then, the trade war started two weeks later.

Once everything fell, I started buying. And, as of writing, these assets are on the rebound and appreciating in value.

While savings accounts give terrible returns, there’s nothing wrong with sitting on cash. It gives you the power to take advantage of future opportunities.