Month: March 2020

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Saying Something Negative Is 40-70 Times As Powerful As Saying Nothing

That is right. Saying something negative is 40-70x more powerful as saying nothing. Simply stating something out loud is 10x more powerful than thinking it. I recently listened to an amazing Impact Theory interview of Mindset Expert Trevor Moawad. Here is the full interview, I highly recommend taking a listen to it. Put the TV down for 30 minutes and watch this instead. You will learn and gain so much incredible wisdom from this individual.

 

Key Takeaways:

  • If you have a positive thought or something you are thinking, say it out loud so it is 10x more powerful than internalizing in your mind. I think this is a reason why affirmations are so powerful. 
  • It is better to internalize a negative thought than externalize it. Period. When you speak a negative thought, it amplifies the possibility of it occurring. 
  • Trevor isn’t saying fake positivity in this podcast interview. He says be real with yourself, but the main thing is to not externalize negative emotions. 

Don’t forget @TheYoungRetireeBy33’s 3 Core Principles:

1 – Your money should make money for you⠀⠀⠀⠀⠀⠀⠀⠀⠀
2 – Start early to realize the power of compound interest⠀⠀⠀⠀⠀⠀⠀⠀⠀
3 – Eliminate your largest expense by house hacking

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February Airbnb Financial Update – Ol’ Faithful

A February Airbnb update is long overdue! Time to look at a February Airbnb financial update. I always strive to be completely transparent with all my numbers. This is real financial updates for my Airbnb properties. February will be the last month where my update will only include one property, Ol’ Faithful! Ol’ Faithful has been a great property as my first Airbnb and so far the numbers have been pretty solid!

I have had a lot of things going on with closing on two homes within a week, handling the cancellations from my Airbnb’s and trying to fill my master bedroom with another long term tenant.

Financial Update For February

Time for an update from last month. Here are the actual numbers:

Feb Airbnb Update

Overall, I would say last month went really well. Overall cash flow ended up being $906.

A few main contributors to this:

  • High occupancy again! February isn’t known as one of the more busy months of the year, so I was excited to see 93% occupancy
  • No major capital expense this past month! The pool pump definitely took a hit to cash flow in January

It is great to reflect back to what can be done in a month when Disney isn’t closed down. I am very interested to see what the numbers come in at for March and to see when Disney and the other parks open up!

Key Takeaways:

  • Take the good and reflect on it! It is exciting to see the numbers from February be positive! 
  • High occupancy is key! I had a few two night gaps this past month that I reduced my min stay to 1 night to try and fill
  • Keep your head up and roll with the punches that will naturally happen with real estate investing!

Don’t forget @TheYoungRetireeBy33’s 3 Core Principles:

1 – Your money should make money for you⠀⠀⠀⠀⠀⠀⠀⠀⠀
2 – Start early to realize the power of compound interest⠀⠀⠀⠀⠀⠀⠀⠀⠀
3 – Eliminate your largest expense by house hacking

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W2 Bonus Season! Big Checks Are Always Nice!

Part of my overall compensation is my yearly bonus! I am extremely fortunate to earn a bonus each year for the company I work for. I am grateful of all the opportunities they have provided me and the compensation. I have busted my butt to get here, but grateful nonetheless.

My bonus has changed a bit over the years. There are two main things that have changed in regards to my bonus.

First, my bonus is now based off performance. Previously, everyone got the same bonus multiplier. Now, the higher rating you get for performance, the higher the multiplier. This means if you are a bottom performer (which I don’t plan on being) that you can get half or even 0% bonus.

Second, as I have continued to get promotions, my percentage bonus target of salary has also increased. Early on this percentage was small, around 18%, but now my target percentage is at 28% and continuing to grow if I get another promotion.

Breaking Out My Bonus

I will receive my bonus check this Thursday. My bonus came out to be $46,845. Yes, I know for a lot of people that could be a years worth of salary. Again, I have busted my butt at work to get where I am at and I am grateful for having the opportunity to earn this amount.

Overall, this paycheck comes out to $53,390. The reason for this is my normal two week pay is added on top of the bonus.

Of the $53,390, here is a breakdown of where the money is going:

  • Taxes: $10,901
  • Social Security: $3,307
  • Medicare: $773
  • 401k: $3,154 (this will put me at the max of $19,500 for the year!)
  • Net Pay: $35,085

I didn’t detail out some of the line item insurance stuff, but there is the breakout of my bonus!

With all the market volatility, I am going to look at putting a decent chunk into stocks and then the rest will help me float a the hiccup of the impact to my Airbnb business. Click this hyperlink to read more details of how everything that has been going on is impacting my Airbnb business.

Key Takeaways:

  • When negotiating salary, don’t forget that you can negotiate your bonus!
  • I like to frontload my 401k. This will bring much larger paychecks later on in the year. I am excited to say my 401k is now maxed out!
  • Maxing out your tax advantaged accounts is a great way to reduce my overall Adjusted Gross Income (AGI) and helps me pay less in taxes. This is critical because of the amount of money I earn.