BennyEast.Com/Blog The official blog of Kenny West

10Dec/170

Hardest Move

Today I moved a lamp.

It was a lamp that sat by my mom's bed.  She used it a million times turning it on and off.  Originally the lamp came from my grandparents house in California.  So, my grandmom and grandfather used to use it.

I moved it across the room so I could eventually move her bed and dresser elsewhere and put the one couch/futon currently downstairs... In the spot where the bed it.

It's complicated.

But the idea is that, for the most part, my mom's room is relatively unchanged 2 years later.

I'm hoping that this small change of just moving the lamp will kind of let me change the room around a bit more...

I think the idea is to just make it into a TV room.  So, make a little space where I can hang out and watch TV and relax.  My mom watched a LOT of TV... SO I think she would approve of changing it from more of a bedroom to a TV room.

I'm a big fan of small changes.  It's hard to make sudden big changes... It's easier to just kind of have a big list but to say... If I change this small thing here and another small thing there... Eventually, that will get me to the end of the list.  Sometimes it's hard to just do a big project all at once.

So, some times you just have to do little steps taking it one little step at a time.

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9Dec/170

Take Things For Pomegranate

My new thing is pomegranate juice.

It's good!  Really good.

Plus, and yes I have no real proof of this, I think it improves your ability to think clearly.

I don't know, I mean, it just makes you feel good all over.

I'm definitely a fan.

But, for sure it seems to kind of improve my thought pattern.  Like, I was able to plow through a couple things that I've been a bit fuzzy on the last few months.  Like,one item was how I'm going to replace a piece of hardware with a bunch of complicated setups and configs and it's connected through multiple different things that will all need to be reconnected...

Today I made a whole excel sheet outline.  It's cake.

Is pomegranate juice the source?  Could be.  Who knows.

It could also be coffee, or tea... I drink a fair amount of that.  I also have been on and off again mixing carrot juice and beet juice with my morning OJ and cereal.

I guess it could be a good amount f things.

But we'll say that maybe it's the pomegranate juice.

I've been reading a lot of stuff and apparently it's really good for you!

In other news, I got to use my new snowblower tonight.  It's pretty sweet.  There wasn't a TON of snow, but it was a enough to use the machine to clear the driveway, and walkway.

Pretty cool indeed.

And it's a quick too!  I was done super fast and then I was just like... Hmm... SO I guess that's it then.

And I put it away and put the battery back on the charger.

Well, that's the latest.

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9Dec/170

First Snow!

Well... Maybe.

So, it's supposed to possibly snow, a LITTLE tiny bit.

We'll see.  I'm excited.

I have work tomorrow though, which means, supposing it's enough snow to break out the snowblower... I'll have to wait until I get home from work.  Eh, it's cool though.

I'm just hoping for maybe a half dozen snow storms this year of anywhere from 3 inches to 12 inches.

That would be super cool.

Just an excuse to break out my snowblower a good 5 or 6 times.

I think I'm just mostly excited about the prospect of being able to get snow days off from work, and then actually enjoy them without having to break my back shoveling.  I'll admit, shoveling sucks.  But snow blowing is fun, or so I'm told... Everyone who has ever used one says it's pretty neat and they actually enjoyed it and were almost sad when they finished.

Shoveling is the TOTAL opposite experience.  When you finally finish you're just like YES!  FINALLY.

Funny I guess... Just to think about snow blowing versus shoveling.

I mean, when you think about it, that means that the same storm that fall, two neighbors would have completely different experiences from the same event.

One would find it actually enjoyable and look forward to it, unable to wait for a chance to fire up the snowblower and power through the fluffy white frozen stuff, and the other would be not looking forward to it at all and would dread even the thought of spending hours digging out.

Anyway, I used to be a shoveler, and now I've finally joined the ranks of the snowblowers!

I guess that's how life goes.

Onward and upwards to bigger and better things.

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6Dec/170

PA Is Boring

The thing I like about PA, is that it's boring.

I find it odd that the glitz and glam places have the worst natural disasters.

Florida... Hurricanes.

Southern Cali... Fires.

"Oh but PA gets cold!  And it snows."

I'll takes it!

At least PA isn't in an apocalypse scenario a once or twice a year.

The thing about Philly and PA is that there's all these old buildings that have been around for hundreds of years.

Yes please.

I guess my thing is, I don't like the whole, burning ship scenario.

Hurricanes, storm surge, run for your lives!  Burning... Evacuate!!!!

I like stability.  I like predictability.

I like to sleep at night.

I like to know that the rug isn't about to be pulled from under me.

This is why my lifestyle is how it is.

A lot of people don't mind renting, that ever present feeling of temporaryness.

They don't mind leasing a car.

They go on vacations where they have a temporary experience and then it's back to the world they live in.

My thing is... YES, I might rent, I might lease a car, and I'll certainly go on vacations... Once I get my initial setup complete.

A lot of people do business on debt.  They borrow money to start a business.

My thing is... it's too risky.  Yes, you get SOOO much more growth...

I'm just old school I guess.

Very old school.

I'm a cash and carry kind of guy.

My plan is...

Own house.  Build business headquarters that I own.  Own car.  Own investments that pay income.

Own own own.  Build income.  Buy house to rent out and create more income.

Own income stocks/bonds/REITS.

Fund business ventures with cash income.

Make music.  Start small businesses.  Buy shares in small businesses.  Branch out slowly.

That's the key.  I'm in no race... I'm in no hurry for anything.

Everyone is in some big hurry.  I'm in no hurry.

Who knows how long it might take me to do anything.  I do it at my own pace.

But my thing is... I want growth in a way that is raw income feeding the next phase.

So, I don't want to borrow to grow.  I want to incorporate my own business, generate solid income... And then pay for the next thing with that income.

My other thing too is... I'm not a fancy car, or fancy house kind of person.  I don't care for 5 star hotels.

I don't care for beachside resorts.

I'm a fan of living small personally, and growing my income streams.

Why is this?

I'm not trying to offend anyone.... But the brutal honest truth is... it's because I come from money.

See, people who don't come from money.... They are sucked into fast cars and jewelry and big screen TVs and all that glitz and glam.

If you come from money... As I have, and my grandparents were millionaires when I was born...

You don't buy fancy stuff in the sense that people who don't come from money do.

It's just a fact.

Most of my also wealthy family friends who I've known since we were born... Don't spend money on two things...

Cars.  And TVs.

They spend money on houses.

The people who I know who don't com from money... They have big ass TVs and obnoxious cars... And they rent.

It's just how it is.

Old money owns property.

New money... Owns glitz and glam.

Old money puts money into stocks.

New money takes money to the casino.

Casinos are a waste of time.  The only thing you should do with a casino is buy shares and collect the dividend.  Or own one.

Old money owns businesses that generate cash.

New money?

Spends money.

You can tell people who are new money, or as my mom used to call those people, Nouveau riche.

https://en.wikipedia.org/wiki/Nouveau_riche

It's just how it is.

My mom always said... New money wears it on their back.  Old money puts it in the bank.  It's true as true can be.

When there's family lines of money... You know how investing works.  You know how owning businesses outright works.  You focus on VERY long term growth...

When you're new money?  You're that salesman who works at whatever corporation that does anything to make a sale... You make 100+k a year, but you own a fast car, you have a boatload of credit card debt, you're living WAY beyond your means.

Old money lives below their means.  So they make more money in income from their investments than they even spend and reinvest the income so that their wealth grows even more.

It's just in my genes I guess.

Florida and California are a bit like Nouveau riche.  Miami.  Obnoxiously glitz and glam.

It's just not me.

Main line money?  Ardmore, Bryn Mawr, Wayne, Devon, Malvern... Old money.

It's just how my grand parents were.

Some people.... Have the mentality that... Oh, might as well spend it while you got it!  Can't take it with you when you go!

My family doesn't share that view.  My mom and grand parents and their family line...

It's selfish thinking to say, can't take it with you... It's your responsibility to assist the next generation, and to teach that generation to teach the next.

Anyway, I'm old money.  Always have been, always will be.

I prefer to have last years model for a TV, and last years model for a car.  I prefer to have old clothes... and old school by not having debt.  I pay my credit card off in full each month.

Old money.

I don't buy into the glitz and glam.

Own property.

Find things of value.

Build equity and wealth.

Stability.  Not shoot for the stars.

Anyways... That's why I like PA.  It's boring.  It's dull... it's old money.

I'd never in a million years live in Miami, for example, where it's all just look at my car, and boat... It's just not impressive to me.  A smart brain and creative wit is what does it for me.

A night out at Science After Hours getting my learn on is what makes me happy.

That connection to the past.  That feeling that something lasts.

That's where my joy lies.  Slowly and honestly building up investments and ownership in things.

Not financing it all with debt that may never be paid back.

For every 1 dollar in physical items that you have to show, you should have 10 in the bank.

A lot of the nouveau riche people don't even have money, in fact, their 1 dollar in owned property and physical items is actually backed by 10 dollars in debt.

It's just an irresponsible way to live if you ask me.  Hey, it may seem harsh... But that's my honest opinion.

I don't sugarcoat my thoughts... I'm old money and I'll admit it.

The faster a dollar is earned... The quicker it goes.  That's my view on things.  And some of the wealthiest people make money by not spending it.

It's a mindset... And the whole wolf of wall street fancy condo and boat and car and classy clothes... means eventually, it will come crashing down on you.

So, I'll stick with boring PA and build from a base that is backed with stability.

And I'll enjoy the snow when it finally does start to fall.

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5Dec/170

Dollar Cost Surfing (Meow)

So it's interesting... Basically, and I didn't even realize it...

I'm dollar cost averaging with my active trading... Well, it's more like share cost averaging... Since I'm buying a fixed number of shares with each transaction while the price changes... But for all intents and purposes it's kind of like dollar cost averaging... So, for the sake of "put it in plain English" terms... I'll just call it dollar cost averaging.

I mean, if you call it "active".

Today I did nothing.

I had work today.

But besides, there was nothing to do.

Sometimes you just gotta wait out the game.

So I'm about to use some of my income from Reality Income Corp to purchase my next dividend champ stock.

My plan, as I've mentioned before, but a quick 1 paragraph recap, is to go from less risk, to more risk, in layers.

I'm active trading Reality Income Corp, or "active" trading it.  Meaning, I trade whenever I feel like it.  And when I don't... Or don't have time... I just sit and hold, and cash out the dividend from my shares that I have sitting in the stock.

Right now I have 3 lots of 100 shares.  I go in, and out... I make money from the bumps and dips... But, I also make money from dividend checks.

Both  of those income sources go into my permanent holdings.

And those dividends go into my layer 3 holdings, All Time High stocks... and things like GBTC.

And THOSE holdings will go into venture capitalist startups.

Who knows, I might start a cat related investment fund... Would that make me a VENTURE CAT-ITALIST?

Possibly.

Meow.

Moneyow.

Anyway, dollar cost surfing...

So, basically basic investing has this thing called Dollar Cost Averaging.

Here's how it works:

https://www.investopedia.com/terms/d/dollarcostaveraging.asp

 

So, what I do... Is I surf... Dollar costing.

The price of Realty Income Corp goes up and down through out the day/week/month/year.

I buy shares, in what looks like a dip against a longer term up trend.

If I'm right, I take the profit, and do it all over again.

But I don't just do it once... I do it with lots of 100 share trades.

Now... I do get it wrong... I'm in with 300 shares right now that are technically at what's called an unrealized gain.

If I were to sell those shares tomorrow, I'd have lost money.

If  hold the shares... And hold them through Jan 1st.... I'll get 63 dollars on Jan 15th.

No matter what the price of the shares does, I get that money.

I then use that money to put into new investments.... Or pay taxes.

Or buy my cats treats.

Meow.

Now, if the price drops more... I hold my existing shares, and try to catch another bottom.  Now I'm holding 400 shares.

If I'm right, I get back out.  Back to 300.

If I'm wrong, I hold my 400, and get in with another 100 later on down the road.

If I hold 400 shares then on Feb 1st I get 4 X 21 shares... Or 84 dollars in income...

That goes on to my layer 2 level of investments...

Okay, so lets say the price pops up by a few dollars... I get back out on all my shares and take the gain... now I'm back to zero holdings... I sold all 400.

The price starts to drop again... I dollar cost average back in.

As the price drops... I buy 100 shares again... If it goes up, I take my gain.  If it goes down, I dollar cost average again... Price drops again... I go in again.

100

200

300

500

1000

Now I'm getting 210 dollars a month in income if I'm in on 1000 shares.

Okay, so let's say I don't get a return level in price?

That's fair.  It could happen.

Now, let's go back a second, without this dollar cost averaging process... If I had spotted a bottom, which turned out not to be a bottom... and the price continued lower... and I had gone in with 1000 shares.

I would be locked in.

Yes, I would be still getting my 21 cents per share per month income...

But, depending on how far the price had fallen (unrealized loss)... I have pretty much no option but to wait it out...

Let's say I wait it out... Could be years... Or never.  Who knows?

NOW... Let's say, that I had dollar cost averages it... 10 lots of 100 shares.

The price kept going lower.

One of my share holdings is only at a small loss, the newest one purchased.... Whereas the older one, is at a much bigger loss.

They are all paying me 21 dollars per month per 100 shares in income.

Let's say, I need the money for something.

I now have options to hedge against my loss.  I can sell the most recent purchase at a loss.

Let me explain something first... SO my share purchases will be capped at 1000 shares.

I won't risk any more than that.  SO if the price keeps going down, I'll stop at 1000 shares.

No more capital will be risked.

Like wise, depending on how much is falls, the purchasing slows.

So here's an example...

If the stock is at 55 dollars a share and I buy 100 shares...

I'll buy shares again at 54.

But, if it keeps going... I won't buy again until 52.

My next buy is 50.

Now, I probably won't buy until 46 now.

If it keeps going down, I may not buy until 40

30.

20.

5.

Etc.

That's an extreme example.

If the share price fell 50 percent... I'd probably stop this process and find something else to trade.

Anyway...

The point is... It has to fall further each time to trigger another buy... This brings the dollar cost averaging down.

Now, let's say the price hit 54 dollars a share, I had both at 56 and 55 and 54... Let's say it sky rockets up to 60 all of a sudden.

This triggers a sell.

Now it goes back down slowly... I ease back in.

Realty Income Corp pays a monthly dividend and the date of record for share holders is the last day of the month, usually.

SO, even if I'm dead wrong... I still cash out that money... and it goes to layer 2 of my stock holdings.

Okay, so let's say the stock isn't moving much... Let's say it's just meandering... and I'm stuck holding, let's say I'm at my cap of 1000 shares.

Now, what I can do is sell one of those 100 share lots to try and active trade again.

In order to do that I will HAVE to take a loss, I have no choice.

But I can hedge against that loss... As long as you are in the green more than in the red, all is not sour.

How can I do that?

Remember I'm holding 1000 shares that pay me 210 dollars a month in income.

But also remember that I'm active trading/dollar cost surfing.

I can play it two ways...

I can use my previous gains to balance out this loss to unlock 100 shares to start trading again.

Or, I can just wait.

Eventually, after a few months, the income from the shares will cover the loss, and then I can unlock my newest shares at the lowest loss and start trading again.

Dollar cost average in.... hedge out.

And I can use the loss as a tax write off against my other holdings.

I've lost no money in actuality... And then maybe I start trading again with that 100 share lot of shares and I make a little more...

The key to it all though, is the dollar cost lots of 100 shares.

If I had just gotten in one time with 1000 shares... If it went UP, everything is beautiful.

But it goes down?

I have ways to free up capital.

Dollar cost averaging is pointless if you know the stock is going to appreciate in value 100 percent...

The problem with any investment though is... nothing is 100 percent.

So, it's a hedge against a scenario where the stock goes down in value.

Dollar surfing combined with monthly incomes gives me the ability to create a cashflow to fund secondary levels of investments.

Active trades make money off of dips and pops of the stock price in the short term... Dollar cost averaging lets me get out of mistakes easier, and dividend income is a further hedge against further possible losses.

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4Dec/170

Another 100

Today I bought another 100 shares in Realty Income Corp.

So right now, I'm holding 300 shares and on the 15th of the month I'll get a payment from those shares.

This is pretty much how many shares I SHOULD have bought a couple years ago in GBTC (Bitcoin Investment Trust).  One of my friends was like "DUDE... BUY IT!  BITCOIN!"

I was like... It doesn't pay dividends.

Same with Amazon shares.

I know, I'm probably the dumbest investor alive.  But I like my income.  Yes I could create income by periodically selling off shares.

We won't talk about selling covered call options... Which is another way to create income.

My thing is... I don't want to sell my shares.  I'm also not a fan of wild speculation... Or companies that just do all kinds of crazy things to make money.

I guess I'm like a turtle.  I like slow and calculated.

It's probably the complete opposite of most people that actually run hedge funds.

I'm not a gambler I guess.

I want to own.  And then draw income from ownership.

Who knows, maybe in the future it will all just be Bitcoin and Amazon.  It's possible.

I could be totally wrong with my REITs.

I could be totally wrong with rent.

Everything might just be delivered to your house...

There is one small thing about physical common spaces.

If everyone wanted everything delivered to their house...

The home gyms of the 90s would have taken over already.

Maybe I'm wrong.

What's the deal with these Hand and Stone Massage places?

Amazon can just deliver to your house... Why are people going out in public to get their backs rubbed?

Nail salons.

Yoga studios.

Breweries.

Take home beer has been a thing FOREVER...

Now there's breweries on every corner and people can't get enough of going out to them.

All these places pay rent.

Doesn't matter to me if you pay your rent in dollars, or Bitcoin.  You're still paying rent.

There's a whole musical about it.

RENT!

Even Amazon pays rent.

https://www.geekwire.com/2017/amazon-leases-major-new-seattle-office-tower-pointing-continued-growth-hometown/

Amazon is king... But Sears was king at one point many years ago.

Anyway...

I'm a fan of commercial multi use properties that aren't retail in the traditional sense.

I like services, instead of goods.

Photography studios.

Day spas.

Cross fit gyms.

Breweries.

Beer bars.

Wine bars.

Hookah bars.

Hair salons.

There's a reason why they call it stir crazy.

Being at home is only enjoyable for so long...  And the park eventually gets boring.

Commercial real estate probably isn't going to be changing any time soon... Until we get sucked into The Matrix or something...

But for now, sure, you can order that fancy shiny new gadgitamathingamabob from Amazon and have it delivered...

But when it comes down to it and you just want to meet a friend for a coffee date...

The physical world, still applies.

Because drinking digital coffee and skyping just ain't the same.

Also, I don't know about any of you, but I was recently at the Cherry Hill Mall in NJ and they have valet parking service now for the restaurants around the mall... and let me tell you, it was PACKED... Someone forgot to tell that mall that malls are dying.

I mean, also, when was the last time that you had Amazon deliver you a mini golf game with friends or family?

Anyway, so, sure I could have made a killing off bitcoin like a lot of people have...

But for now I just feel like I'd rather get into owning income generating assets.

Eventually I'd like to expand my rent footprint and buy more things that collect rent from people.  Price appreciation and speculation has its place.

But, I don't know.... I just like rent.  I like the flow of money each month.  Steady payments.  Month, after month, after month...

I don't really like the whole... "OH MY GOD LOOK AT IT GO UP!!!!  IT'S GOING UP SO FAST!!!!!  It's UP SOOOO HIGH!!!! Annnnnnd look at it come back down... Awww man.  I was rich for like a day.  Damn it."

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3Dec/170

So Much Junk!

I don't get it.  I mean, I literally throw out one thing a week pretty much.

I feel like there's even MORE stuff in this house than there was before.

It's crazy.  In the last 6 months I've legitimately trashed, or donated like, one thing a week.  That would be 26 items... I've actually done, on average, 2 to 3 things, so I'm really at 75 different items.

An old walker, couch cushions torn apart by cats, old gas and paint cans and car things from the garage, the old lawn mower (two of them) and weedwacker, broken space heaters (two of them)...

And a bunch of other things.  Old shampoo... Sauce packets that my mom kept, like hundreds of them...

But it's just like the MORE I throw out... the more there seems to be!

I really need to go to home depot and buy another storage unit.  Ideally I want to use the basement as a staging area and then re-do rooms in the house.

I'm considering buying a small house somewhere just to use as storage.

What I'd do is rent out one of the rooms to cover costs, and then put a padlock on another room and just use that as a storage unit.  I wouldn't go rent a real storage unit because then you're just throwing money away.

If I buy a small house and rent it out, it's a physical asset that I can sell at a later date... And not only do I get storage space, I also get income.

My biggest problem with renting is... I hate people.  No offense... I don't hate ALL people.  I just hate those people that try to take advantage of other people.

So, for example, if I rent it to someone and they pay first and last month security, and pass background check, and pay rent, and don't put holes in the walls...

That's someone I like.

If they move in.  Stop paying rent.  Refuse to leave.  Break a bunch of stuff when I try to kick them out... Do drugs in the house, threaten my life...

Etc. etc.

I don't want to have to deal with that kind of person.

I feel like in the rental game, you probably have those people.

Deadbeats.

They just exist.  It's a fact of life.

This is why I'd rather possibly, buy the property, then have a management company handle everything for me... THEN use that income check to pay for space at a storage company.

Buy shares in the storage company so I get the dividend.

I don't know.

Seems like a lot of effort to avoid accidentally renting to deadbeats.

I imagine this is how women probably feel about online dating.

You want something good... But you have to deal with the possibility that you might end up encountering a deadbeat.

If only there were a way to just NOT have deadbeats in the world.  Just round them all up... Send them to some kind of finishing school so they can learn to be productive and decent members of society... Instead.

Who knows... I don't.

Anyway...

All I REALLY want to do is deal with this junk.

I was thinking a possibly better way to do it would be to buy shares in a REIT that rents out apartments, or houses... Then use the income from that to rent storage.

OR, use that income to pay for taxes on a house, and maintenance and what not...

And then just own the house and use it for storage.

That way, I don't have to rent to anyone.

And then every now and then I could AirBNB it or something.

Again though... You might end up dealing with that person who tries to take advantage of you.

See, it always comes back to that person who might screw you over.

There should just be a national reporting database for people who are unscrupulous and you can cross check them against that database.

What makes one person have morals and ethics and manners, and another... Have a complete lack of them?

I've always wondered that.

I guess that's just the way of the world... Some are good people, and some... Break things, kill people, do drugs... Who knows.

Anyway... SO I'm working on a better way to deal with all the junk in this house.  I just keep doing one item at a time.

Right now I'm still cutting up this carpet.  It's slow going, but I'm getting it in pieces.

Next I need to get rid of this super old big CRT TV.  I need like a e-waste recycling service or something.

Although, my boss offered to come over with his truck and we'd load it in that and then carry it into work and put it with the work e-waste...

I don't like to mix business and personal though, that's my thing.

I like to keep work at work and my personal stuff at my personal stuff.

I think that's my thing with that.

I just think it's weird when work and personal things overlap.  It feels like those two environments should always stay completely separate.

I don't know why, it just does.

Anyway, so... Hopefully I'll start to see more space around the house and then I can buy my drumset and work on my music area and my "study" area.

And then get some new furniture too like a nice couch to be able to lounge on and watch netflix.

The problem right now is this one cat just poops everywhere and another pukes.  SO if I buy a couch, within a week it would have stains all over it and they would claw it up...

I can't even use the current one because it's not even a couch it's a futon but it's all gross and nasty.

I don't know, maybe I'll buy a second house that can be my non-cat house, with nicer things, and then I'll have this house that is just full of junk and cats.

I mean, those two cats ARE like 15/16 years old, so I suppose in the next few years... Things will just resolve themselves if you know what I mean.  Cats have an average lifespan... So eventually, things will work themselves out.  That sounds mean... But I'm just saying... I want a nice couch, and I can't have one because of the cats.

Annoying.  Haha... Eh oh well.

Right now I'm not buying new stuff anyway, I'm in the process of clearing out.

Out with the old, not yet in with the new.

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2Dec/170

An Unstoppable System

So... I'm gonna talk shop again... Basically what my main goals are.

What I really want to be able to do is to remove friction and wait times between ideas.

Okay, so let me explain... I get a lot of ideas.  I mean, some are just like, a new way to re organize my closet.  Or, things around the house.  Maybe I want to fix something around the house...

Currently, I have to wait until it makes economical sense to do something.  For example, I want a drumset... And I want to buy a new organizer for my cothes, and I want a new fridge and washer and dryer.

While I have the money to be able to go out and buy those things... It's not sustainable money.  And that's bad.  It's like drawing water from a reservoir.  You need to have a source of replenishment.

My goal is to have no wait time.  So, I want to be able to just decide, oh look, I want to upgrade the software version of music software I use to record... Which I need to do as well... but I don't want to have to wait.  I want to be able to just do it.

All of that is in the process of starting to happen.

 

In 2006 I made my first trade... And I also started learning a lot about how investments work.  I've spent the last 11 years learning basically how money in general works and flows.

From that understanding, I've started a system of holding mostly dividend paying stocks, and bond ETFs, and REITs, that pay income.

And I've been growing it slowly.  I've used the income that I've made this year to purchase lawncare equipment, and I also used it to buy other things that I needed.

The way I look at myself is, as  business... Inputs and outputs.

A flow of productivity.  The faster I can do things around the house, the more free time I have, to do more things.

I'm not a big vacation person... I like to use my free time to do what I love... Making music, writing books... Etc. etc.

Cleaning up around my house and reorganizing better.  Chopping away at my to-do list.

My ideal life would be that I don't have to save.  I have zero wait time as soon as I want to do something.

This is starting to happen.  The amount of dividend income coming in is continuing to increase.  A lot of people care about the overall value of their investments, or their net worth... All I care about is the income velocity.

I call it the $v.  Dollar velocity.  Surf value.  Big S, little v.

The way I look at life is that you're in a contest to knock down as many bottles that are sitting on a table.  Those are the task that are on my list.  The only way to knock down bottles is by balls that appear in front of you.

This is the income coming in.

So, you have a conveyer belt carrying balls in front of you, and a conveyor belt in the distance carrying bottles...

Your ability to knock tasks off a list.

What a lot of people have is a very slow moving ball belt, and a fast moving bottle belt.

Lots of crap to deal with, not a lot of income to be able to deal with it.  Pick and choose which things to fix and deal with.  Add everything else to their "some day" list.

Every now and then you get one bottle knocked down... But it's slow going.

What I want is where the belt in the distance is moving at the normal pace, but the ball belt is delivering balls at an ever increasing rate.

So, I can throw as many balls as I want at a super fast rate.... maybe I miss bottles, but who cares... I have so much ammo to throw at the bottles... I don't care if I miss.

This would be throwing money away.  Maybe I make a mistake and  buy a piece of crap tool or something.  Who cares.  I can just throw it out and buy another one.

Now, you say, you can only throw balls so fast, so having a lot of balls won't do you any good.

Sure... I can.  This is why I hire someone to stand next to me and throw balls.

Now we're both knocking down bottles.

Now I hire a second person... Now I no longer throw balls myself.  I just walk behind the ball throwers and I tell them they are doing a good job.

I hire a third.  I fire the first one.  I higher two more.  I hire and fire until I build a team of people who can hit every bottle that comes in with the ball in their hand.

In the real world this means... Instead of doing my own work around the house, I hire people.  Cleaners, gardeners... Etc. etc.

Instead of producing my own music 100 percent on my own, I start outsourcing people to do various production phases... I incorporate a film company, and hire out people to throw balls at bottles... AKA, I hire people to do legwork for me.

This is basically what every founder of every company did.  They started by doing everything themselves... Then when they grew... They hired people to do things for them.  And they just manage and make decisions.

So with my income from my portfolio... Eventually, I'll hire a money person to manage it for me.  I'll hire professional traders to trade for me.

Scale it up.

It's interesting because at first it's really slow going.  But, for example, the amount of money I made in just dividends for the last month, compared to 10 years ago?  It's like 100 fold.

So, 10 years ago, it took me 100 times longer to make the same amount of income, as it did for me last month.

The idea though of all of this, is to make something that can't be stopped.

To make something that no one can take away from you.  That basically you're like a rooted tree and there's nothing that anyone can do to take it away from you.

Set it up that you own it all.

As a shareholder in companies... There's nothing that anyone can do, to stop you from getting income.  There's nothing that anyone can do about it.

No one can take away my shares.  The company could stop paying a dividend, or go out of business... Obviously there's an easy fix for this, you just diversify into lots of things.  If you have an entire forest, and one tree dies, you can just plant a new tree.

That's my goal though... Is to just plant more and more trees... And then the dividends just fall from the tree and I go around collecting them.

My thing is... When you work for a living, no matter where you work... It never feels safe.

Working has one built in problem... People get fired or laid off... Or, like I said, the company can go out of business.

It's not a sleep well at night type of deal.

When you are an employee, you always have that little voice in the back of your head that says... What if I lost my job?!?!

Having a portfolio of investments doesn't have that voice.

Especially once you go beyond 100+ different investments in your portfolio... 1000+ investments.

Owning property that you rent out.

Owning a second property that you rent out.

Owning 5000+ different stocks and bonds in a portfolio, and owning 10+ houses that you rent out...

Now THAT's what I'm talking about.

You go to bed basically knowing that you'll never have to worry about how you are going to buy what it is you need in life.

That's my dream and goal.

Paycheck redundancy to the max.

Now I just setup a machine that throws balls on my behalf at the bottles.

And sit back and live a stress free life...

No worry about what I would do... No heightened sense of fear whenever you see someone higher up on the command chain at your workplace... Because your workplace is the beach.  And you check the activity on your investments and see those dividends and rent checks coming in and just go back to sun tanning.

And everyone you communicate with, answers to you.  Because you're the owner on the shares... You're the owner of the rental property... And there's not a thing anyone can do about it to take it from you...

It's an unstoppable system of income.

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2Dec/170

Weekend Edition: All The Blogposts

Most of the blog posts I think of never get written.

For every blog I write, I'll generally have 4 other blog posts pop into my mind.

It makes me kind of hate what I write.

But why?  You ask...

 

That's easy to answer.

Because, a lot of the times the posts I actually end up writing, aren't what I really want to say.  I mean, they are what I mean to say in a way, but I feel like it could be said better!

OR, alternatively... The post I decided to go with could be more on the negative side when I should have chosen something stupid or positive to post about.

It's kind of like there's always two things happening, the good thing, and the bad things...

Most news you read is about bad things... But most social media that we read is good things.

People tend to just keep bad news things on the low down and tell the world about good things.

There's a lot going on in my mind at all times.

Most people have a lot going on in their mind, and sometimes when you let things flow... You don't get the most coherent string of words that you exactly wanted to put down in that exact way.

But you don't get just that finely filtered "Oh that's fantastic news!" result that everyone seems to do.

It happens a lot of dinner party and holiday party things...

Very few people will just tell you like it is.  My mom was an exception to that rule.  She would say anything and everything instead of how most people put on that filter and only talk about the good things or things that are happy go lucky and are just general chatter.

How's the weather out there!

How about that unrelated sporting event?

I try to keep my blog more raw...

It probably makes me sound crazy to the people that read it.  But, I do sometimes just write things and then delete it all, and then write something else.

It happens to me a lot.  I write out posts, then delete them.  Write out new ones.

 

My thing is though...

A) Why be fake and filter everything to be all roses and sunshine all the time?

Life isn't roses and sunshine the time.

B) Why should I sit here caring what people who read my blog might think of me?  Just be me... And if people get all uppity about it... Then hey, that's at least the real me instead of a fake me.

 

I just think it's better to say things like they are.  Be honest.  Be open.  Be real.  Ramble on my friends.

The thing is, I just have TOO much to say... So... I have to pick and choose what to write about!

Sometimes I write stream of consciousness thoughts and sometimes it doesn't make sense.  And sometimes it's witty banter, and sometimes it's not.  As that one phrase goes, it is what it is what it isn't.

So there you have it!  Behind the scenes on my blog.

 

 

 

 

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30Nov/170

Nashville

So, I'm 35, and still single.  A lot of my friends and peers are married and have kids and what not.

You know, it's not the worst thing being single at 35.  I mean... I'm pretty free to do my own thing.

Like, supposing I really wanted to... I could just legitimately sell everything I own and find a new home for my cats and turtle, and just go backpack Europe.

There's really nothing to stop me.

I don't have kids.  I'm single.

I guess even if I backpacked,  I could take the cats and turtle with me.  Have a little stowaway carrying cargo container for them.

I mean, yes, in the long run, I plan to end up somewhere new...

Right now what's stopping me is that I'm building my indie salary.  I just don't want to have to worry about a paycheck in the future.  An indie salary means I can move ANYWHERE I want, and I don't have to worry about how I'm going to afford life.

Life pays for itself.

Anyway... I mean, sure, one can always interview and find jobs... But I know SO many friends who moved somewhere new, and they couldn't find work.  Portland, for example.  I know a good 5 people who ALL moved to Portland Oregon... And they went several months with no job.

No health insurance.

No pay check.

Savings dwindling.

To me?  That's just not a smart way to do it.

My mom would never of approved.

My grandparents wouldn't have either.

That's how I look at life... Would those you looked up to have approved?

My mom was very big on the idea that you don't leap before you look.

You need to be responsible.

Find a job, and a living space first... Then move.

People who just move, without a care in the world... It's irresponsible.  I mean, sure it works out for some people!  But for others... They end up depleting their savings... possibly almost on the street.

No health insurance, no job... Running out of food in the fridge.

Nope.  Not for me.  No thanks.

Anyway, so right now I'm still building my insurance policy.  I'm making sure that I have a steady flow of money that is more than what life costs me.

That's my goal.

I like to look FAR ahead before any leaps.

Anyway, so one of my potential leaps, might include Nashville.

I keep meeting people who are from there, or have visited there, I even have a friend who lives there now.

They say it's just a totally different vibe.  Artsy, laid back, interesting...

I mean, yes, I'm not the biggest country music fan, so that's a problem... But, aside from that...

It seems like a cool place.

Austin Texas seems pretty cool too.

I don't know yet, honestly... I just know that right now I'm in the look phase, and not the leap phase.

I'm just working on detaching my physical and logical layers and making it easier for me to be anywhere in the world instead of fixed.

Basically most people are fixed to their living space and their working space.

It's a lot like a computer operating system and the hardware.

Most people have a physical computer, and it has an OS on it... Like windows, more Mac.

But there's also virtual OSes... The idea that things can be portable.  That the logical layer, or the software, isn't fixed to any one piece of hardware.

Docker basically has this solved, by creating something called containers.

Containers can basically run on any hardware, and it's the same everywhere.

That's how I want my life.  I want to be not fixed to any physical space or place.

Two things are need to achieve that...

First, an income that is self sustainable and self generate-able.

That's what owning shares in companies does.

Today, I got 3 dividends that totaled about 30 dollars in cash income.

I'll have to pay taxes on that income net year, but it's fine.

The point is, that money came in, and it now can be used.

It's geographically independent.  That means, I could live in any state, or any country... and I would still make that money.

Just need to keep boosting the amount.

Or, heck, even do nothing and let the companies boost it for me.

Second thing is, I need physical space mobility.

There's a few ways to do this, one way I plan to do this is... Just like how there's a LOT of McDonalds all around the world.

So, right now I own a house.  My next plan is to buy another house.

Then I'll rent that house out.

That will now add to my income stream.

I'll then use that to buy a 3rd house.  Rent that out.  Buy a 4th... a 5th... 6th... 7th... 10th... 20th...

Now, it's a LOT of work renting out houses.

So, I'm willing to sacrifice money made to let a company handle it for me.

But why?

So, my plan with owning lots of houses or condos around the country, and eventually around the world, is that...

I can move anywhere I want.

I wait for a lease to terminate, and don't sign a new one.  Then, I'll go live there.

Then I'll live there until I am notified that a lease hasn't been renewed at another property I own...

Annnnd I move there.

Basically anywhere that my property is currently un rented... I'll move there.

But what I might also do is just buy property in places I want to live, and then when I do move somewhere new... I rent it out.

Those rental income streams along with the stock dividends just follow me.  That money just keeps coming back to me...

And I don't have to physically be in an area of the world.  I don't have to make sure I have a job first before I move to that area.

I just find a house or condo I like, buy it, and live in it... Do whatever strikes my fancy, and when I move to a new area...

That old area now becomes a new income stream.

It will be easier to explain when I actually start doing it.

I mean, I already am doing it.  I'm getting income now from my stock holdings.  That just keeps coming.

It will make more sense as it starts to happen and I start to scale it up.

I think my plan is to hold one dividend paying stock for every physical property I own.

Buy another condo or house, buy another stock.

Get bored with that city or location...

Buy another house or condo, buy another dividend paying stock.

Etc. etc.

A lot of people basically have told me it's a stupid idea...

Most of those people are married or in relationships.  They're starting plant roots.

I have no roots to plant.

I guess that's what happens when you are single.

You just kind of go with the wind.

My thing is, yes, this will take a while to get going, but once it gets going, there will be no stoping it.

And then as I age more and more... Instead of it being my focus to find work and worry about a paycheck...

I can just relax, and know that everything is paying for itself and that as time goes buy, the income coming in actually allows me to buy even more, which in turn produces even more income and further diversifies my holdings...

So should 1 or 2 or 5 or 10 of those investments or properties stop producing income... I don't care... Because I just keep diversifying more and more in this positive income feedback loop.

Live small, and live under my means...

And let the income keep building...

My main goal in the future is to know that I won't have to go to bed worried about paying bills or money, or where I'm going to live next...

I just get stressed with all that.

I just want to be able to go to bed in a big comfy bed, with comfy PJs, in clean sheets and a big quilt...

And know that I have so much money coming in from so many different sources that when I wake up the next morning...

My mind will be so rested that I can sit out on the back deck with my morning coffee and breath a big sigh of relief as I log into my investments and see that I have so much cashflow that I can book a flight that day to Nashville on a whim...

And stay the night at one of my condos.  And go out and get a beer.

And then come back home...

And know that I didn't even touch the money coming in.  Didn't even come close.

And that the next day, there will be even more.

And the day after... Even more.

So I'll never have to worry ever again about where my next anything will come from... Next meal, next pay check... Just pure relaxation...

If I wanted to, I could just sleep by a pool all day.

Know that my investments and rental properties are taking care of themselves.

Ahhhhhh.

That's my longterm plan.

That's my Nashville plan.

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