entrepreneurial finance

Real World Strategies in Entrepreneurial Finance

This past week I had another chance to go to a business accelerator event here in Indy. This one was hosted by Techstars, who helps sports based businesses with entrepreneurial finance here in Indiana.

As I was listening to the pitches by various companies, (some I’m sure you’ll be hearing about soon in your everyday life!) I started thinking about how some of them had seen such great success in fairly quick periods of time.

Not only were there founders from these various companies in the room, but they were joined by representatives from sports partners from around the city. This included the Pacers, the Colts, Indiana Sports Corp, the Indianapolis Motor Speedway and others.

Soon I started thinking about a common connection of the talent I saw in the room. The success here was different than you hear about from the online entrepreneurial world.

The companies in the room were talking about sustainable growth and building opportunity and jobs in the community. Online, you hear more about “earn $5k in your first month doing…”.

In short, it’s looking at long term decisions yielding true wealth vs short term hustle.

And, really, I think successful online entrepreneurs are doing their followers and students a disservice. On top of how to create income online, they should also teach them how to leverage the funds they already have to keep growing!

The Hustle Approach to Finances

When we think of online business, many of us think of 24/7 hustle. We think if you’re not working, than you’re limiting yourself. Why hang out with friends and family when you should be out there making content or the next deal? It’s only when you’ve been successful doing these things that you’ll have your Ferrari and nice high-rise apartment. 

So go out and get it done!

Well, for one, that mentality doesn’t necessarily apply to everyone in business. There’s people who aren’t the best hustlers, but they’re great at making the hustlers around them more efficient.

And, two, this thought process suggests that you can always outearn any financial issues that you’re having. If you just bring in more income, you’ll be richer.

That isn’t necessarily the case.

In fact, I’d say that more often than not, when people earn more, they’ll spend more. And if your goal is to be wealthy in all aspects of your life, this method isn’t going to get you too far.

That said, there’s other bad financial decisions a business owner can make. So let’s take a look at those before we start improving our decision making.

Bad Entrepreneurial Financial Habits

When it comes to where people go wrong with their finances, there’s a few that are pretty widespread. Here’s a few examples:

No Personal Organization

I can’t tell you how many times I’ve met first time entrepreneurs who don’t know anything about keeping records of their business. They don’t have a system for receipts, they don’t have a business banking account, and really, they’re not sure what their actual profit is.

No Tax Strategy

So, of course, because they’re not actively keeping track of their expenses and profit, there’s really no existence of accounting. So, everything gets cramped up to the last 2 or 3 weeks before the yearly tax deadline. And really, that makes things so much more stressful than it needs to be.

Money Is Earned to Spend

On the podcast, one of the questions I occasionally ask the rapid fire question segment is “What is something that all high school students must know?”. Often, the response is something to do with the management of finances.

We live in a world where we’ve grown up with media telling us to “Buy New, Buy Now”. Consumerism is king. If you don’t actively participate, you’re not part of the “in crowd”. So without financial education in schools, thinking that you have to keep up with the Kardashians is pretty prevalent.

As I’ve found out, wealthy people and successful entrepreneurs know how to create cash flow, but they also know how to manage their finances.

Changing Your Financial Paradigm

If any of the above sound like habits that you use in your business and life, it might be time to make a few tweaks.

Here are a few basic concepts I’ve learned about managing wealth.

Think of Money as Water

When I think about money, I look at it as a resource. In fact, I look at it like I would water in a post-apocalyptic world like you’d find in The 100 or Mad Max.

In that type of environment, water is more than just water. It’s a commodity. And because water is vital to life, clean water is going to be in short supply. Just like money is today for so many people.

If we had a way of providing clean drinking water in that world, we’d have the potential to be on the top of society.

Same thing is true with your business and its ability to make more money at will.

With that type of mindset, I think it’s easier to get a grasp on how money should be used. Here’s a couple of habits you can practice to be more successful in this arena.

Keep Track of It

If we’re looking at money as a resource that we have to be smart with we need to have metrics on where we’re at any specific time. In our analogy, we need to know how much is going out to the market. We also need to know if anyone is stealing any.

So with that in mind, it’s important that we get used to regularly checking our bank account. On top of that, we need to keep track of income and expenditures. 

Get used to asking yourself and tracking:

  • How much do we plan to make versus how much we actually did. 
  • How much do we predict to spend versus how much we actually did.

Cut things out when necessary.

Build Up a Reserve

If you’re the person in charge of delivering clean water to a community in this new world, you might want to consider something.

What if there’s a problem in getting the water? What if the rain doesn’t fall or the wells don’t work? How long does it take for you and the leaders of the community to start growing concerned?

If your business functions on the funds that you get directly from income, then you might have a potentially huge problem. Be prepared and build at least a month’s reserve of cash for emergencies. Or even better, perhaps 90 days or more. The bigger the reserve, the more insurance you give yourself to be able to dig yourself out of a bad situation.

However, just like water that sits in a reservoir or lake, if money isn’t moving, it’s not doing you any good. Naturally, if water is stagnant, then it tends to go bad. A great example of this is the Salton Sea in California. However, if there’s inflow and outflow of water such as a river, then the water is useful for sustaining life.

Same thing for money. If money is stagnate, then we tend to get overprotective of that money. Being frugal and smart with money is one thing. Being a miser and potentially those around you miserable, is another. You don’t want to be a Scrooge from a Christmas Carol.

Leverage Your Position

As this successful water provider, you’re doing your job well when everyone is getting an adequate supply. If people feel like this isn’t a problem, then it’s one less stresser in their life. Heck, the more they have, the less they think about it.

What if your community has such a huge reservoir of water that you can start using it to trade with other communities who might not be so lucky?

At that point, you’re leveraging your position with the excess of your resource to get things in return. Sure, you might not have as much water left over in your reserve, but you are gaining things in exchange for it. Which those might be more valuable in your own community than water.

In our business, it’s a bit more simple. The more money we have in reserve, the more options we have. We need to know the difference between liabilities (fancy cars, eating out, partying, etc.) vs assets (using better tools, hiring a team, etc) when it comes to making more money. The more assets you have, the greater potential we have for generating more income.

Action Steps

So, to help you make this transition, I have a few recommendations for you to start getting better at finance. 

The first thing I’d recommend is read or listen to Rich Dad, Poor Dad. And really think about anything that the author Robert Kiyosaki has to say. He has a good enough track record that students at Purdue’s entrepreneurship department used his info in creating their own businesses when I was there.

Next, I’d recommend getting a business bank account. Keep business money separate from your personal money.

Also, I’d develop something (maybe even a spreadsheet) to monitor your cash flow. Again, how much are you forecasting yourself to earn? How much did you earn in comparison? Same thing with expenditures? Where can you cut out if necessary? This information is great to have if you ever hire an accountant to help.

Finally, I’d look into subscribing to Quickbooks and anything else that might make your accounting easier. If you don’t have a business credit card that you put all your expenditures on (which I highly recommend) then you’ll need to manually keep track of receipts. You can do it as you go with Quickbooks, but if you like waiting to the end of the month, you can use a service like Shoeboxed to do it all for you.

the mentor

Antonio Smith Jr – The Making of the Mentor: Escaping Poverty & Building Others Up (AoL 134)

When someone hits rock bottom, they usually have a choice to make. One, they can blame everyone but themselves for what has happened to them. Many times this prevents people from moving on from where they’re at.

They can then choose to make the other choice. They can realize that they’re actually the one in control of where they’re at and make it their mission to get out of that situation and never come back.

The term “rock bottom” is a relative term. Rock bottom for one person can be quite different than rock bottom for someone else.

For some people, a simple habit change can be enough to help them get out of their situation. But on the other hand, the person might need a complete mindset overhaul.

For today’s guest, he was more of the latter. After being homeless through the ages of 6 to 16, he thought his only way to get ahead was to excel at football. When an injury killed his chances to get a scholarship, he felt stuck. Luckily, a mentor stepped up and taught him that he had a gift of communication.

Ever since then, he’s been on a mission to develop this gift. Doing so has given him opportunities he might not have ever considered as an athlete.

Join Harrison and I as we talk with Rev. Antonio Smith Jr. about this transition and how others can make a positive impact in their community!



  • Why does Antonio still feel like an immigrant to the America even though he was born in the US? 10:34
  • How did he find his first mentor growing up and what are his thoughts on mentorship through life? 12:42
  • How does Antonio reach out and help those who are living lives of quiet desperation? 26:35
  • Is there a secret in finding opportunities to work with celebrities like Antonio has? 32:21
  • Is it possible to balance Christian values with business values? 37:29
  • How does he emotionally deal with it when he knows that only a fraction of the people who listen to him actually take his advice and act with it? 41:30
  • What’s Antonio looking forward to and excited for in the future? 46:36
  • Who are his Favorite Top 3 Influencers? 54:28
  • Who would he have dinner with, living or dead? 54:38
  • What is a habit or belief that has improved his life in the last 5 years? 54:47
  • What’s a gift he likes giving others? 55:02
  • What’s something he wants to do that no one knows about? 55:14
  • How can someone make a difference in their community? 55:33

Right click here and save-as to download this episode to your computer.




Why High Performers No Longer Perform Highly

Profit over Popularity

Keep the Wrong People Away

From Where You Are to $100k

Thanks for Listening!

Thanks so much for joining us again this week. Have some feedback you’d like to share? Leave a note in the comment section below!

If you enjoyed this episode, please share it using the social media buttons you see at the top of the post.

Also, please leave an honest review for The AoL Podcast on iTunes! Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show, and we read each and every one of them.

If you have any questions feel free to email them over via the email mentioned in the show or by our contact form.

And finally, don’t forget to subscribe to the show on CastboxiTunesStitcherSoundcloud, and/or Google Play Music. It’s absolutely free to do so.

A huge thank-you to you guys for joining us!


balanced lifestyle

Damion Lupo – Don’t Live to Work! Discover Your Own Balanced Lifestyle (AoL 125)

The saying goes, “If you can do it once, you can do it again!” This is especially true for us creative types who might see success with one project, but on our next, we might start seeing our metrics go down.

This session’s guest, Damion Lupo, once owned 150 single family houses as as a real estate investor. But in 2008, everything came to a grinding halt. He was no longer able to live the lavish lifestyle that he was pursuing at the time.

It was soon after that he started on a quest to put more meaning into his life.

In 2012, he coauthored a book called Reinvented Life, where he talks about many of the things he learned during that journey.

In today’s chat, we go over some of these concepts as well as some pointers that he’d give someone just starting in investing.


  • How did Damion become so resilient as an entrepreneur? 6:36
  • How does he see wealth and how can abundantly thinking people reach out to others? 10:22
  • What’s his thinking behind financial freedom and retirement? 12:23
  • Why entrepreneurs might not make the best investors. 20:20
  • If someone has a $5,000 – $10,000 to invest in something, what’s a good strategy to get started? 27:41
  • What’s the best way for someone to find great opportunities in REI? 33:28
  • What are the pillars of Yokido? 37:05
  • What does Damion believe about Elon Musk’s perspective on having a universal income? 43:45
  • Who are the three influencers that has helped Damion get to where he’s at? 51:21
  • What’s an issue that more people should be talking about? 52:01
  • If Damion woke up tomorrow as a 10 year old and all his memories were intact, what would he do? 53:17
  • Something he’d like to do in his lifetime that no one knows about? 54:18
  • What’s the secret to achieving personal freedom? 54:54

Right click here and save-as to download this episode to your computer.




Yokido is Born

The Financial Freedom Formula

Damion on the Bigger Pockets Podcast

Damion Interviewed by Dom Brightmon

Thanks for Listening!

Thanks so much for joining us again this week. Have some feedback you’d like to share? Leave a note in the comment section below!

If you enjoyed this episode, please share it using the social media buttons you see at the top of the post.

Also, please leave an honest review for The AoL Podcast on iTunes! Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show, and we read each and every one of them.

If you have any questions feel free to email them over via the email mentioned in the show or by our contact form.

And finally, don’t forget to subscribe to the show on CastboxiTunesStitcherSoundcloud, and/or Google Play Music. It’s absolutely free to do so.

A huge thank-you to you guys for joining us!


supply vs demand

Supply Vs Demand: Equal Factors in Innovation?

Back when I was actually studying entrepreneurship in school… I studied a lot of theory based stuff. But hey, that’s what you do in school – study theory!

One of the things that really opened my eyes about how politics plays a role in the economy was learning about John Maynard Keynes and Friedrich August Hayek. They were two prominent economists of the Great Depression era with sharply contrasting views. The arguments they had in the 1930s are revived whenever we have a global financial crisis (or every 10 years).

Keynes suggests that more spending is the answer to reviving an economy, while Hayek believes that artificially pumping the gas on the economy yields worse busts. He believed that stimulus packages were nothing more interference in a naturally occuring rhythm. 

This year marks the 10 year anniversary of Stimulus Act of 2008. Recently, the Trump administration has been talking a bit about tariffs and trade wars. If any of it imposed, we might see some wild fluctuations in the stock market. So maybe it’s a good time to bring this subject up again?

On August 28th, 2011, I posted this piece about the Keynes and Hayek. If you look at the entrepreneurial space using both of their perspectives, then you can come out ahead regardless of what the government stimulates. Or, on a larger scale, you can see how companies like today’s Tesla create a market which other companies can support in the future. 

I have a chameleon personality by any definition of the phrase. Every source that hints to what my personality should be suggests that I have a gift in seeing the world in a balanced manner. Every personality test I’ve taken has jumped around with a result. When I took the Myers-Briggs test, one day I’d be an introvert – another day I’d test as an extrovert.

Heck, forget the sun sign of when I was born – the planets and moons were in alignment for me being a well balanced person too!

Missing out?

Funny enough, most people don’t have a chameleon personality. While mine is no means perfect (most of the time I’m too busy trying to please everyone!) most people are biased in one perspective or another and don’t consider the other side of the coin. The problem with this is that they’re probably missing opportunities.

Remember true intelligence can be defined by the ability to understand two conflicting points of view and make your own decision. So… QUESTION EVERYTHING!!

Case in point: I recently viewed a couple of videos regarding the current economy and two conflicting ways in how to solve it. Most people will see the problems in the economy from one perspective or another and thus the solution is as simple as doing what “is right” to one point of view.

Part 2:


Personally what I get from both of these videos and their perspectives is that demand (Keynes perspective) is just as important as innovation and providing the right supply (Hayek) to the economy. Without demand, income doesn’t exist. Without innovation and supply, then no one will buy anything because there’s nothing to buy. It’s a yin and yang sort of deal. Too much of one might give us results we don’t want. For examples, government subsidies have saved many farmers. However, because we’ve relied on it as much as we have, the soy and corn industries have a stranglehold on modern agriculture.

A More Practical Example

If you see both sides of the deal like what I’m talking about, you’ll realize that you can make your cake and eat it too.

One group of smart entrepreneurs are those that are marketing green technologies. Whether you believe Al Gore or not, there is a lot of interest in being green. Part of being green is producing Earth friendly fuels. So those that are building businesses in the green fuel sector are not only good for the environment, but they’re also smart in that they’re cashing in on a GREAT opportunity!!

Not only are they going the Keynes route by being supplemented by the government, but they’re also practicing a bit of the Hayek route in that cars with engines that can utilize the fuel will be created soon.

Action Steps

So now that you see these two perspectives, how can you use this knowledge in your own business? Is there a pool of money you can tap into before you start actual work? It doesn’t have to be government reliant. Maybe working with a nonprofit and doing their ads? (As an example, Google gives grants to nonprofits.)

Then, once that space is created, how might you be able to capitalize on it?

online income

Building an Online Business: An 11 Step Blueprint to An Online Income Generator

The below is a post that I recently posted in the Junto. It helped quite a bit of folks over there, so I thought I’d go ahead and post it on the official blog just to make sure I had it around when I needed it.

I think it’s a great representation of the online business world we live in and… in fact, it might even be something had I known a couple of years ago, I would have done things a bit differently!

So, without further adieu – here’s 11 steps to generate growing online income

Money Making Myths

I hear it all the time from people here in Indiana.

“There is no money in small town business – why should I stay?” or “Only people in big cities make the big income.”

There might have been a time I agreed with this. In fact, most would have at some point. It’s why Indiana and many states in the middle of the country have been suffering from brain drain.

However, today I’d say that both are myths – especially in 2017.

Why? It’s simple. The internet.

The Rise of Internet Commerce

Just like the introduction of interstates killed the local economies of so many small towns, the internet has essentially done the same thing to those metropolitan areas. We’re starting to see less and less of particular retail stores because it’s just simply easier to buy certain products offline.

And the great thing? ANYONE can be a seller online just as much as they can be a consumer.

Not only can you buy new releases of entertainment online, but we can also sell it and other goods and services on the internet ourselves as well.

If you’re someone who would like to make a larger impact in the world with your work, but you’re unclear where to start, here’s somewhat of a blueprint to get you started.

1. Find Clarity in how you want to help people.

Make sure you have clarity. What do you want to help people with? Do you want to help people with woodcarving? Fly fishing? Photography? Maybe even football. The first step is figuring out what you love to discuss and naturally help other people do if they’re interested.

2. Start building a following online.

Whether that’s a Facebook Group like the Junto, a YouTube channel, or a real Instagram account. (Actually you can do all 3 – this is what Laila Rahmatian is doing!)

3. Provide value by Teaching what you know.

If you’re just learning your craft, that’s fine. Get interviews with people who know the craft equally or better than you. Or if you’re funny – just be entertaining. There’s been a lot of channels which have boomed because the person is simply hilarious.

4. Hustle if you need to make income right away.

If you’re just starting out and in need of some income, there’s a few things you can do. You can do retail arbitrage like Tyler Philbrook, or learn some digital marketing skills. Whether you are creating content, working on SEO, or helping with sales funnels – these are all things that people have made thousands (even millions) online with. Check out JR Rivas’s group for help with that.

If neither of those are for you, perhaps you can sell your skill online. For example, a photographer can take stock photos for companies. Or if you’re a musician, write jingles for podcasts. Check out fiverr to see what’s available out there for quick cash.

Make sure you’re getting testimonials as you do things at the beginning for free or for the cheap. Having these testimonials along with case study videos of what you’ve done can be useful when going after bigger fish with larger budgets to pay you.

Also – start working on making contracts so you can cover your rear properly for work you’ve done!

5. Don’t Quit on Your Other Endeavours.

As you’re building income as a freelancer, you need to continue to build your following. Eventually you don’t want to sell your time for $. To stop doing that, you need products online. The most cost effective products are those that are called infoproducts. And since you’re probably already doing something successful in your life already, You can start building products that your following is going to potentially buy. I’d employ the teachings of Dane and the Foundation as much as possible. You can hear about that method in last week’s post.

6. As you’re learning more about your craft, share with your following.

How many times have we seem someone jump from one building to another or from one cliff to another after seeing the person they’re with do it first?

Same thing applies in business. If your followers see you succeed, they’ll more than likely have the right frame of mind to accomplish the same thing. Help them do what you’re doing and learning about. If you’re learning about ways to create passive income, teach what you’ve learned about that topic. That’s exactly what Pat Flynn did with his blog – and people are STILL replicating his success! (Just goes to show you don’t have to worry about originality!)

7. As you provide more and more value, find out what what your group members or followers really want.

Learn how to perform idea extraction, verify, and do presales of MVPs (Most Viable Products). Having a process for these 3 steps will help you craft anything your tribe wants!

8. Capitalize on your Testimonials!

If so, it’s time to go after those bigger fish! Heck, even better, just create a website showing what you can do, then send out emails to prospects redirecting them to the website. There’s all kinds of ways to find potential clients – it doesn’t have to be manual (Use Facebook ads if you’ve worked on that skill – that’s what JR did to find his chiropractor clients.)

9. Don’t forget to Grow the size of your Team

By this point, you’re probably making a decent income. Congratulations!! But we’re just getting started and there’s some things for you to start thinking about.

For example, I’m sure at this point you might feel that you’re overstretching yourself. Maybe it’s time to hire a VA or start mentoring someone to help you with stuff you suck at? A good place to start is Airtasker.

Also, if you haven’t already (which I know you have!) it might be a good time to invest in yourself. Start going to conventions and meeting people. Start thinking about buying those big name courses you always wanted.

10. Repeat the Process.

Build more products – hire more people to help! This is how you start scaling. As you grow your services and company, keep bringing on more people to help you with various things so you can spend more time doing what the founder should be doing.

11. Do what the Founder (or President) should be doing.

It’s totally up to you what that means. This might involve you working in your local community more and/or helping to start an incubator where you can mentor younger creatives. Perhaps it means going out and becoming a speaker? Or heck, maybe you could get into politics if that’s your thing.

Actions Steps

I hope this helps you guys a bit. I think the biggest thing that I didn’t do on purpose was focus on getting results for someone. That needs to be the first thing you focus on. Then, from there, get 3 to 5 testimonials that you can use on your first landing page for a course, eBook, etc.

Feel free to let me know if you have any questions or thought I left something out in this post. I might actually make it into a more detailed opt-in sometime.

retail arbitrage

Escaping the 9 to 5 Through Online and Retail Arbitrage: How Selling on Amazon Can Buy Your Freedom with Tyler Philbrook (AoL 099)

In this session, I wanted to take it back to where my idea of starting a podcast originated from. I’ve been a big fan of the SPI podcast ever since Pat Flynn started it. From that show, I’ve been turned onto several of other business and lifestyle podcasts and influencers.

Pat motivated and inspired me to do more and he continues to do so.

Today’s guest was also motivated by Pat but at a much deeper level.

Unlike me, Tyler Philbrook has experimented with multiple ways of making passive income that Pat has talked about on his show. If Pat is the crash dummy of online business, then Tyler is kinda like the dummy that didn’t turn out so hot after the wreck.

Nothing seemed to work for him. But he kept listening to Pat and eventually stumbled on session 99 with Jessica and Cliff Larrew.

For two years, Tyler has been slowly building his Amazon based business to a point where he could step away from his day job of being a pharmacist.

And now, he’s in a place where he can start helping others do the same. I’m glad to hear I have another TA friend!

In our chat today, we discuss what he learned along the way of working on Amazon, what beginners should know, and what he’s looking forward to working on now that he has more freedom with his time.

Thanks for listening, and enjoy the show!


  • What was life like growing up in Maine for Tyler? 15:56
  • When did he figure it was time to do his own business? 18:09
  • How’d he start with the SPI Podcast and applying what he learned? 21:05
  • Did growing up working with his parents’ restaurant impact his ability to start his own business? 23:31
  • What were Tyler’s first items that he tried to do retail arbitrage with on Amazon? 25:15
  • Is he only doing Amazon sales? 28:13
  • How does he determine which products to source? 30:05
  • If someone is starting from scratch, what are some definite things need to know about retail arbitrage? 34:25
  • What’s it like to be out of his 9 to 5 job? 38:02
  • What is Tyler looking forward to do with his extra time? 40:46
  • Top 3 favorite books he tells others about? 47:04
  • What’s a tool that he uses all the time that a beginner should know about? 49:04
  • Hardest thing he’s ever had to say no to. 50:52
  • What’s a few things that all high school students must know? 52:15
  • What’s the secret to achieving personal freedom? 56:47
  • … and MUCH more!

Right click here and save-as to download this episode to your computer.



March 3rd, 2017 of Ask Pat LIVE:

Jessica and Cliff Larrew Interview via Rob Anderson over at Dollar Moves: 

Chase on “How to Be a Newbie and Succeed”:

What the GaryVee School Would Look Like:

retail arbitrage retail arbitrage retail arbitrage

Thanks for Listening!

Thanks so much for joining us again this week. Have some feedback you’d like to share? Leave a note in the comment section below!

If you enjoyed this episode, please share it using the social media buttons you see at the top of the post.

Also, please leave an honest review for The AoL Podcast on iTunes! Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show, and we read each and every one of them.

If you have any questions feel free to email them over via the email mentioned in the show or by our contact form.

And finally, don’t forget to subscribe to the show on iTunesStitcherSoundcloud, and/or Google Play Music. It’s absolutely free to do so.

A huge thank-you to you guys for joining us!


how to get bitcoins

How to Get Bitcoins: A Beginner’s Guide to Cryptocurrency

Naturally, I’m an investor. Going through my 20’s and now my in my 30’s, I’ve always tried to find things to pour money into that over time would yield me a larger income.

I think I started this way back in my teen years when I played video games that allowed me to buy ingame property that would continue to give me money over time after buying it.

Thinking about that, I believe what pulled me into reading Rich Dad, Poor Dad was that I could understand what Robert Kiyosaki was talking about. However, I made a dead stop when he said that you need money to be an investor. And that the smart way to build up that money is through building a business system.

At the time I was a college student, and I didn’t really have spending money as what I earned was going to pay my tuition and rent.

So, I put the idea on hold and continued my formal education – eventually wanting to come back to investing – someday – when I had that spare money!


Someday Happened

Soon after I got out of grad school, some of you might know that I got involved with a series of startups. One thing that you probably don’t know is that I when my mom passed suddenly in 2010, I got a significant inheritance. With that inheritance, I was able to 1.) help get those startups going a bit more and 2.) learn more about and improve myself as a person. One of those startups is America Multisport where Maria and I still contribute to in several forms – including this past weekend where we’re always found at the events taking pics.

I full heartedly believe that it’s been because of this inheritance that I’ve had the luxury of time where I’ve been able to learn about topics that most people don’t get the chance to learn about. I understand what it’s like to live paycheck to paycheck because that’s how I lived all throughout my college years – you just don’t have time to really explore.

And, that’s kinda the point of this site; it’s to give you all insights into what I’ve learned along this journey! (Thanks to David Anderson for helping me realize I needed to tell you guys about this part of my past. I haven’t really known what to do with that information.)


Be Prepared…

Anyway, knowing that someday that I would get an inheritance – albeit I didn’t know it would be so soon and as big as it was – I had to be prepared. I knew what I wasn’t going to do with it – blow it all away like some who just won the lottery might. However, I also knew that I wasn’t going to be a miser and just sit on it either.

I was going to invest it into long term, mid term, and short term options.

So, looking back, I ended up with these choices:

  • Long term investments were annuities, index and mutual funds.
  • Midterm investments included the startups and individual publicly traded stocks.
  • And short term investments included CDs and… cryptocurrency.


Yes, I know – I need to get involved in real estate. I’m simply not at that point yet!

Here’s a tip – if you ever find yourself with a large sum of money, the worst thing you can do is let it just stick around as a liquid asset or spend it. Make sure you get it invested correctly so it can continue to grow for you. This is the biggest difference between those that earn a lot and live well for the rest of their lives versus those that earn a lot and end up broke.

So about cryptocurrency…


What the heck is Cryptocurrency?

Cryptocurrency is simply a form of currency that is purely “internet money”. Wikipedia defines it as a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Ever since I heard about Bitcoin in 2009, I knew I wanted to get started – but I had no idea how. At that time, the best way to get started was to be a miner – but I didn’t know where to look to even begin with that.

That’s where I stood for quite awhile – until I started hearing how much of the world is really starting to pay attention to Bitcoin as a low barrier way to invest – similar to investing in gold or silver.

Remember what Robert said about investing? He said that investing was for people who already had lots of money to invest, right?

Well, while this might be true for most investment situations, it isn’t necessarily the case for cryptocurrency – Bitcoin included. In fact, you can start investing with as little as a few dollars here and there and start a pretty good ball rolling. (In fact, that’s about as much as you’d want to use in one sitting because really – this market is highly volatile – it goes up and down quite regularly. So only spend “Las Vegas” money when you’re getting more.)

Unlike stocks, you can buy fractions of a Bitcoin. So instead of sinking a certain amount on one share of TSLA stock, you can use that same money to invest in different forms of cryptocurrency – and as low of dominations as you like.


Forms of Cryptocurrency

how to get bitcoins

You’ll see in the above image, I’m participating in 3 cryptocurrencies in this portfolio: Bitcoin, Ethereum, and Litecoin. There are of tons of them out there. (Just to note – I started this account back in May and only bought $25 per currency. So not bad performance thus far!)

Here are 6 you should know about. But there are many more.

Here’s Wikipedia’s collection where you can find out more about them including Dogecoin.

Here’s the thing. There are some that are regulated. And there are some that aren’t as much. Stick with the ones that are regulated such as the three above – and you’ll be good to go.


The above image is from a wallet called Coinbase.

I’m currently checking it out as an alternative to where I’m currently keeping mine: bitpay.

Before you buy your first “crypto-coinage”, you’ll need a wallet to keep your stash. Again, just like cryptocurrencies themselves, there’s plenty of options to choose from. And just like anything else, there’s yearly writeups in which is “best”.

So far I like Coinbase and while bitpay is open source, I like Coinbase’s ease of use.


Using Your Funds

So sure, you can save your crypto-coins indefinitely just like you can with traditional stocks. The difference is you’re allowed to use them for payment as well.

In fact, more and more businesses are starting to accept Bitcoin online and offline. SpendBitcoins  & Spendabit has list of places that accept Bitcoin around the world.

Here’s a long list just in case you wanted to see more examples at once. Or if you want a short list of 8 major retailers – here you go.

And for us creative folk, there’s a specific reason we should take interest in cryptocurrencies. We can use them to pay your VA’s around the world. Just make sure that they can get a wallet tied to an account where they can retrieve their payment! 😉


Action Steps: Getting Started Yourself

So now that you know theoretically how these cryptocurrencies work – how do you get started again? Here’s how:

  1. Find a wallet. Perhaps go with Coinbase if you’re in the US. Seems to be pretty straight forward. It reminds me a lot of Paypal.
  2. Setup payment methods. Just like Paypal, you’ll need to connect and verify payment methods. Paypal is an option itself.
  3. Buy any or all of the three options there. (If you want to get more options – you’ll need to find another wallet! Just make sure they’re “on blockchain”.)
  4. Buy low/sell high if you’re in it for prospecting.
  5. Spend as you see fit – knowing that the banks aren’t following your buying habits!

After you’ve gotten started, keep learning about the future of this technology called blockchain. If you’re really into tech, here’s an article I picked up via Wired that dives deeper into that side of things.

If you want to go at a more conceptual level, here’s two great TEDx videos I saw last year:

How the blockchain is changing money and business

How the blockchain will radically transform the economy.

And be sure to keep me posted as you discover more about cryptocurrency and blockchaining. It’s really interesting how it’s developing and changing!