Change your Mindset

It seems like the first thing that needs to be taught in order to retire-at-40 is to be able to adopt the right mindset.  You cannot just out earn your spending habits.  All spending needs to be purposeful.  Every dollar scrutinized.  You need to be able to put off instant gratification and play the long game.  It is important to think about things differently.

This came apparent when a good friend of mine is extremely frugal, but seems to be able to take wonderful vacations and travel.  When you unpack his spending habits, we find where every expenditure is scrutinized.  The initial response is no.  That is the default answer.  He has trained his kids in this model, which seems like a depression generation mindset, but could be very real for anyone that grew up poor.

Then is the other important factor is the absolute belief that you will find a way. Whether, you driver a beater car, or ride a bike.  It is impossible to live a lifestyle of a family making 100k per year without spend 100k a year.

This mindset always says I can do that myself.  I can find cheaper parts, I can sacrifice for now.  Once the spending is under control, you are well on your way to retire-at-40.

The next step is have an income stream that will support you in retirement.  Stay posted.

Financial Freedom

dave ramsey

What is the number one indicator of people building their wealth in their 401k?  Dave Ramsey’s answer would have been rate of return. How much the investment yields.  Whether a single stock or a mutual fund the difference if making 2% on a money market for the last 20 years versus 12% on a good money market account for the last 20 years mutual fund would be astounding This is exponential progression.  The difference between 8% and 12% is just staggering.  You would think between 8 and 12 % would be like a fourth more, but it is more like times 2 or times 3.

Dave Ramsey reiterated his point that if he were to guess on that the biggest factor for driving wealth it would be rate of return and he would be wrong.  The correct answer is to invest in your 401K consistently.

Using Financial Freedom, gets you out of debt, creates an emergency fund so you do not take money from the pot of money that goes into investment every month. If you have an emergency Dentist visit, you need to take that money out of the emergency fund, not your 401k.

So on top of great meteoric rises that can get you to retire by 40, let’s not forget the basics in getting there either.  This may not get you retired by 40, but it can allow you to live comfortably by 50.

EasyBay Pro- and Guerilla Marketing


I have looked at a number of sites looking for a simple way to make money on eBay.  It looks like the Goldmine comes from driving traffic to eBay site by way of affiliates.  The traditional model of buying a product at a good price and turning around and selling it for a profit takes time and a lot of effort.  It ties up your cash and you are hustling to try and justify the time you have spent for the money you have made.

A very important question to always ask ourselves is how much is our time worth.  So I have attached a short video that talks about eBay’s affiliate program.  This is just the mechanics of how much better it is now in terms of tools to use to push traffic to customers selling products on eBay.  The affiliate program basically pays you for driving traffic to the site. If they click through your link and actually buy the product on eBay, then you get paid.  Once you create the link, it will show the auction with the price and time ticking down.

This approach involves you creating a website in Word Press and using an Ebay or Amazon widget to create the intelligent link.  The guerilla marketing tactics include finding a niche market and then creating a great free offer to get people to submit a form to get the item.  You gather that data to create a mini-marketplace for that niche and then you look for good deal on eBay to advertise to your marketplace.

If you like looking through eBay or Amazon, this looks like a very inexpensive way to start a business.  The costs that you need to be aware of our hosting costs for your site and  registering the site.  Once you build the infra-structure which may take a day or two, then you build your database to market to and then do your research on what items you can promote on your website.

No worries about shipping and handling or dealing with Paypal.  You just get paid when someone comes through your link to buy the product.  This is not residual income, but if I had enough money to get buy to sustain a bit of a learning curve, this would be a fun business to try.  This looks worth looking at harder.  Once I cast I wide net on other options, I may double down and look at this in more detail.

The more detail likely comes from paying someone who has figured out and teaching it to others.  I am looking for free information at this point, but will post if I have more I can learn for free.

It Starts With Buying One Property and then…

Notes from Kris Krohn on making money in real estate.  Kris talks about the most important element of retirement is residual income.  Kris states that you can make more retirement income in 5 – 10 years in real-estate, then 40 years in the stock market.  His process is to find your initial property at well below market value. His first property was 40k under market value.  The property has a finished basement that he rented out and that income covered his mortgage.  After 6 – 12 months the banks looked at him as “seasoned” and were willing to give him a portion of that 40k in a home equity loan that he used to get his second property.


Kris advocated partnering if you have little to get started with.  Kris also spoke about the power of one. Which is essentially one more and went on tell how much better it felt with MORE cash flow from the investment properties.


At retirement, you can sell the paid off properties and do it in a way that minimizes the tax impact put into a vehicle.  His belief is that if you follow the right plan, you should be able to retire within 5 – 10 years.  Kris suggests while real estate has obvious advantages with equity and tax advantages, the most significant portion is that real estate can give you residual income.  In the stock market you need well over a million dollars that is then put into a vehicle that produces income.


So where residual income is king, it looks like investing in real estate could be a nice part of someone’s portfolio.  These advantages also need to be offset by knowing the dangers of when the housing market goes down, then you can be upside down on the properties and unable to unload them.  Now the positive cash-flow turns into a negative cash-flow.  That is why a prudent portfolio make-up of paid up properties with a smaller number of leveraged properties might make sense.  Knowing that mix and staying disciplined to it is not in my nature.  I would tend to have an optimism bias and believe that nothing is going to go wrong and I would be in a world of hurt. For the right investor this could be tailor made, but for me I know that this would attack the weak part of my DNA that is missing some key genetic code for discipline.