Month: December 2019

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Start – The Four Things You Need to Start to Become the Next Great Version of Yourself

The other day I wrote a blog post about what I believe people need to STOP!

Now, it is time to talk about what people should START! These are things everyone can see benefits from. It doesn’t matter where you are in your life or path to Financial Independence, these are for you!

Start Being Grateful

Gratitude is one of the most powerful things you can feel. There are so many things that surround you everyday to be grateful for. If you look at the world we live in, there is so much to be grateful for. The technology we have these days allows us to connect and do things never imagined before. The world of social media allows us to connect with others in the world we would have never known of. The ability to seek out wealth through your own personal means has never been more available.

When I look back at this year, here are some of the things I am grateful for:

Start Investing

Yes! That’s right. Start investing. Let me make sure you fully understand what I mean by investing. In my eyes, there are two types of investing.

First, you need to begin investing in yourself! Invest time in educating yourself in whatever fields intrigue you. Invest time and energy reaching out and connecting with people who are where you want to be. Most of this type of investing can be at $0 cost to you. There are so many incredible resources out there to learn from. I hope you are using my blog as one of those.

Second, you need to actually begin investing! There are so many different ways to begin investing. I have chosen to take the route of investing in two things. Index funds and real estate. Before you go off and begin investing, make sure to do the proper research. At least begin investing in your retirement accounts and increase the percent contribution by 1% every two months. Trust me, you won’t even notice the difference in your take home pay.

Start Taking Action

The single biggest piece of advice I gave on my first podcast interview, you can watch here. Don’t get into the analysis paralysis. The only way you can begin down the path you want to be on is by taking action. There are a ton of people talking about how hot the markets and housing market are. Yes, these statements are true as numbers don’t lie, but what if next year is the same. What if the market continues going up and up and up? Will you be glad you were sitting on the sidelines the entire time?

The goal is to invest early and often! Continue taking daily action and learn from the decisions you make. Be reflective on your thought process and the inputs that drive the outputs. If another year goes by and you haven’t taken action, how will you feel?

Once I get home in Orlando, I plan to get a property under contract to do my second house hack by the end of January! Can’t wait to document my journey to hold myself accountable!

Start Killing Automatic Negative Thoughts

The first time I heard about this came from Jim Kwik. If you haven’t heard of the guy, you need to go research him. Jim speaks about killing A.N.T.s. These are Automatic Negative Thoughts.

What are Automatic Negative Thoughts? These are the thoughts that go on in your mind whether you consciously know it. Have you ever stopped to hear what thoughts go on in your mind? It is very interesting to evaluate whether those thoughts are positive or negative. For any negative thoughts that surface, kill them! You are better than that. Imagine if you killed all the negative thoughts you had throughout the day. You would be so much happier and more grateful. So start killing A.N.T.s!

Key Takeaways:

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The Automatic Millionaire – Why Skimping Out on Latte’s Won’t Make You Wealthy

Before I “bash” on this book, let me say how much I recommend reading it. With everything you read, there are things you agree with, and others you don’t.

In a previous post, I spoke about the three main things I agreed with from the book. In this post, I want to discuss the things I don’t agree with. And why I don’t agree with them.

The Latte Factor

First on the list, a concept called the Latte Factor. What is the Latte Factor? This is a concept that talks about how all the little expenses add up, like buying lattes. The concept puts a high emphasis on eliminating the smaller expenses.

Why do I not agree with this concept? Simple, if you breakdown your actual expenses, notice how much is spent on the little things. Your largest expenses are housing, transportation and food. It is more important to cut your housing expense (30% of take home) than it is to not buy lattes in the morning! Also, don’t stop doing things that bring you happiness.

Diversified Portfolios

Second on the list, having a diversified portfolio. There is a little caveat to this one in particular. So let’s explore that. What does it mean to have a diversified portfolio? For me, this means having different investment vehicles because you are nervous of a downturn. From a stock market standpoint, this would look like buying many different individual stocks. Or even having a large mix of stocks and bonds to try and “steady” out the ride.

The key reason I don’t agree with this comes from the why most people have for a diversified portfolio. If your why is protecting yourself through a downturn, that is what I disagree with. The goal should be to find the investment vehicle(s) you believe in and invest. Keep it simple. Having a diversified portfolio can mean a myriad of things depending on who you ask. I am not saying you are wrong if you have a diversified portfolio. I simply don’t agree with a diversified portfolio if the why is to protect yourself from a downturn.

Paying Off the Home Early

Last, the author spoke about a concept of paying off the home early in a unique way. The author spoke about making bi-weekly mortgage payments. If you make full mortgage payments bi-weekly, you will end up making one extra mortgage payment each year.

Why I don’t agree with this? Your mortgage interest should be less than what you can make with that money elsewhere. For that reason, making an extra payment to your mortgage could be better spent invested. If you are paying 4% interest on your mortgage and you could make 7% in the market, what would you do? Personally, I would invest that money versus paying the extra mortgage each year.

Key Takeaways:

  • Don’t sweat the small expenses if they bring you happiness. Focus on your largest expenses, mainly housing and transportation.
  • Keep your portfolio simple. Having a diversified portfolio in worry of a down market will only make things more complex.
  • Instead of paying an extra mortgage payment each year, invest! Invest in something that you feel confident will make a higher return than your mortgage.
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Airbnb November Earnings – How to Cash Flow $2,000 In a Month

Finalized numbers are in for November! How did it go? Let’s take a look.

Total Income ($4,582)

From an income standpoint, November was my highest grossing income month to date. The two main drivers behind income generation are occupancy and nightly rates. This month I saw an occupancy rate of 90%! For people who aren’t familiar with Airbnb, average occupancy rates in my area are 70%. Being booked for 90% for the month was a big win!

The average nightly rate I was able to bring in during November was $136. This was another big win from an income standpoint. Most nights, my rate hoovers around $120/night, but the demand for November was high.

Total Expenses ($2,562)

From an expense standpoint, my main focus has been on the expenses I control. The main two expenses I have control over are cleaning and electric. When I first started my Airbnb, the cleaner I found was charging me $125 per cleaning. I didn’t fight the cost too much at the beginning because I wanted to get things setup. After things were all set and rolling, I then started shopping for a new cleaner. After much searching, I was able to find a cleaner who would charge $100 per cleaning. For the November alone, this switch in cleaner saved me $200!

The second thing I did that made a big difference was installing a Nest thermostat in my place! This installation allows me to control what the temperature inside. It also allows me to limit what temperature ranges guests can adjust to.

Key Takeaways:

  • The two key drivers of income are vacancy rates and average nightly income. If you can optimize both of these, you will make a lot of $$$
  • Understand key nights of the month and year where you can charge more! Weekend rates should always be higher than week day nights!
  • Optimize your expenses! There are things you can control, and things you can’t control. How much you pay for cleaning and how much electricity is used are roughly in your control.