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3. The one ability you're forgetting you have
Excuses are easy to come by. I hear them all the time:
I call bullshit.
Very few people are born extraordinarily gifted in a specific area.
Most people fail due to lack of effort. It’s plain and simple.
A lot of people feel their excuses are valid, so they just don’t bother trying.
Are you willing to let your excuses run your life?
- There's no rewind button in life. You can try hard, take your best shot, and look back and say, “yes that was awesome.” Or...
- You can look back with regret, knowing your excuses were made out of fear.
Hard work is the one ability you're forgetting you have. Make the most of it.
4. The best investment you can make
One of my first jobs was making $5.50 an hour working at The Popcorn Stand when I was 13-years-old.
Barely making anything + being raised Jewish, I’ve always thought very carefully about where and how I spend my money.
I’ve invested in startups, long-term stocks, and more. I've had some success, and plenty of failures.
If you want to be successful financially, Sam recommends real estate.
Look at the property in terms of expandability. It's all about expansion. You can build a really high-quality extension for $500 per square foot. But if you can re-sell your property for $1,000 per square foot you’ve instantly doubled up your money.
“Expandability” is important to more areas of life than just real estate:
- I recently purchased Leoh.io, a Chrome plugin with 40k+ users. The #1 reason I bought it was the chance to grow a new user base long-term
- When I decided to learn Hebrew, it was to expand my horizons and feel a deeper connection with my family #jewlife
- Spending $1.5m on a domain name was one of the craziest decisions I’ve ever made in business. But, when I looked at the bigger picture, owning Sumo.com will help us 10x our business long-term
5. How to setup your finances for success
Spend your time where you make your money.
It's easy to neglect your most important assets and focus on “busy” work. Sam knows this first-hand.
Real estate makes up around 40% of his net worth. But for years, he didn’t really do anything with these assets aside from letting them sit there and taking in the rental revenue.
Now he’s created a framework to help him understand where to spend his time:
- Quantify how much revenue (% of your total income) comes from each asset
- Split out how much time you’re spending on each asset
- Focus your time on the things which bring you the MOST money
For example, if you're only spending 10% of your time on an asset that's worth 40% of your wealth, you should probably adjust higher.
In business, I call this “doing more of what’s working”.
At Sumo, content marketing works for us.
But, we made the mistake of not trusting results last year. We wasted a bunch of effort, time, and money on tasks that weren’t nearly as rewarding as content marketing.
When we went back to content marketing, we saw growth. Lesson learned.
When something works, do more of it.
6. How to avoid jealousy in your life
Sam lives in San Francisco where bazillionaires hang out.
If you see young 20-somethings driving Maseratis and renting $10,000 per month apartments, it’s easy to feel jealous.
Sam makes a conscious effort to avoids jealousy by focusing on his goals and his gifts.
It's not always easy, but it's made a difference in his life.
I know that there's always going to be more money out there. So I’m just happy with what I have. I have my personal goals, I try to achieve them, and then that's it.
In your own life, I challenge you to avoid comparisons.
If you have a 100 foot yacht, someone will have a 110 foot yacht. If you make $1 billion, Bill Gates is still richer.
Do you best to AVOID comparing yourself with others.
Sam sees freedom, not money, as his #1 measure of success:
I'm not competing with anyone for my freedom. So if you are a billionaire, but you have annoying shareholders, you’re stressed out, you hate life… screw that!
This was just the tip of the iceberg.
Learn more lessons from Financial Samurai Sam Dogen, whose site has helped 25 million people over the years.
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Bonus: I’d love to finish this post up with one final tidbit from my conversation with Mister Financial Samurai Sam Dogen:
If the amount of money you're saving each month doesn't hurt, you're not saving enough.
Cheers to financial freedom. 🌮