James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.
A couple of months ago I made a few decision that blew out my budget – mostly related to automotive costs and housing. Between my poor own decision making and inflation I’ve needed to look for aggressive ways to save money and build some side income. I bet a lot of you are in the same situation. So, here are savings and side income ideas you probably haven’t considered.
Cash Back Sites
First, I discovered and starting using use cash back sites about a month ago. The technology is a bit old, but it is tried and true. Depending on the deal, you can get up to 1% to 17% cash back.
They’re easy. You just basically need to open an account with the cash back site and surf from the cash back site to the store. Then buy something at the store. The store will pay the cash back site for a commission on the sale. Then the cashback site will split the commission with you.
The thing about cash back sites is you need several of them. Why? They all have different deals. For example, Dollar Dig has better deals for some stores than Rakuten and Swagbucks. The same with BeFrugal. It all depends on what the sites have negotiated with the brands.
Use A Cash Back Credit Card
Second in the list of savings and side income ideas is using a cash back credit card. Assuming don’t keep a balance, using a cash back card is a solid way to partially offset the cost of buying stuff, getting cash back on travel or whatever you need done. All you’d have to do is use the cash back rewards to partially pay off your card balance. This means you’d have a smaller credit card bill to repay. Supposedly the internal economics of the credit card industry are such that cards can afford to pay 2% in whatever incentive structure they’re using for customer retention. So, you should be able to get at least 2% back.
Use your cash back rewards card in combination with the cash back site. There is no rule that says you can’t. So do it.
Receipt Scanning
I learned about receipt scanning four months ago and I’ve been doing it religiously since them. Receipt scanning isn’t a huge money maker, but if you’re going to be shopping you might as well get cash for your receipts. Plus, scanning receipts is fun and doesn’t take much time.
These are the apps I have. Some of them are passive, some are active. They all work on the same basic principle, you trade your shopping data for
They don’t use much data on your phone. I have all of them in a folder on my Iphone desktop, so its easy to take photos of my receipts and capture them in the apps. The downside is the apps only pay a couple of bucks a month.
Use Coupons
I’ve used a ton of coupons recently. Mostly from Fred Meyer – but it’s gotten to the point that I won’t even walk into a store unless I’ve at least checked to see if they have coupons.
There has been a ton written about coupons on other sites, but if you want to save money, definitely use them. Its a no brainer.
Side Income
Here are the things I’ve been doing to build my side income.
Selling My Personal Data And Spare Bandwidth
I’ve been selling my data online to any company I think is legit and will actually pay. By data, I mean things like browsing history, expense history and social media usage. I figure between this blog and all the tracking big tech is doing my privacy is pretty much shot. I might as well get paid for it. So, I’ve been exhaustively looking for companies that will pay me for my digital footprint. So far these companies look like they’re working.
None of these are fantastically profitable – they all generate between $3 to $5 bucks per month. This isn’t a lot of money, but I’m investing the profits in my IRA or putting it towards my emergency fund, so the cash is going to good use.
Taking Surveys
Taking surveys is a classic savings and side income idea. I secretly hate myself every time I take a survey. When you look at it on a hourly basis, the return on a lot of them is super low. That said, I’ve been able to generate a decent amount from an app called 1Q. The rate pays about 25 cents per question, which is about ten times more than any other survey app out there. It also pays immediately after you’re done with the survey. I like this because I like to see cash flowing towards my emergency fund. Its also been helpful because I’m earning money in the evening instead of watching TV.
At some point I’ll find another way to make money that has a much higher return on time.
None of these things will make me a millionaire overnight. But since my salary is spoken for, they’ve been good steps for moving ahead.
For me personally, growing my net worth is a priority this year. But I’ve been less than clear in how to do it rapidly and sustainably. So, I asked around and looked at some of the literature on how people have achieved significant fortunes.
Here are some preliminary observations:
1. Focusing on wealth instead of income is tax efficient. Federal, state and local authorities usually tax income, they’re less interested in taxing wealth. So, focusing on net worth instead of income is more tax efficient personal finance goal.
2. Material advantages accrue to those with higher wealth, this includes ability to buy better quality food, better quality clothing, better medical care. Wealth is also a form of capital. Various forms of capital are translatable, beauty, health, social status – all of these can be translated into dollars. In return, dollars can be translated into beauty, health, etc.
I hit the books and posted comment thread in a couple of online groups I follow – the White Coat Investors and the savingadvice forums. I’ve also included quotes as relevant.
Here are the practical, actionable ways to radically build your wealth.
1. Seize control of a small country
Another mention in the list of radical ways to build wealth which is probably a long shot – gain influence and take over a small country. A great example of someone who could have done this is Bob Denard. Denard was a French cold war era mercenary who for two decades played king maker in the Comoros where he undoubtedly would have taken power if given enough time. He is reputed to have owned substantial property including hotels, land and a small private army (1).
This kind of thing seems fantastic and far fetched, but its possible where state control is weak. The Italian political philosopher wrote about it extensively in his work The Prince. I also witnessed similar processes happening several times when in Afghanistan. Local leaders with sufficient wealth and power could claim a regional governorship and divert tax revenue to their own pockets.
2. Sue someone and take their fortune
Many torte attorneys commonly do this. Typically what happens is a torte firm will identify a sympathetic client, such as a child with an illness, then they’ll build a class action suit against a large target – typically an asset rich company in pharma, tobacco or securities. The odds are usually stacked in favor of the Torte firm as it typically costs more to defend against suits than it costs to settle.
A classic example of a Torte Lawyers who’ve been able to extract large sums for handling disputes is Joe Jamail. In 1985, Jamail represented Pennzoil corporation in a suit against Texaco. Pennzoil won the suit and Jamail collected a contingency fee of $335 million dollars – making his fortune and landing him a place in legal history.
A good way to implement this is to sign up for all the class action suits you can find. Or could you canvass the major torte law firms and see if you could partner with them.
3. Buy a controlling interest in a small capitalization company
Small companies with publicly traded stock are vulnerable to takeover. For who aren’t familiar with the concept of market capitalization, a companies market capitalization is the dollar value of all its shares multiplied by the number of issued shares. If a company’s stock trades for $1 and it has 1,000 shares, then its market capitalization is 1 x $1,000, or $1,000. If a company has a market capitalization of under $5,000,000 its possible to buy enough shares to effectively control the voting rights of the company – putting you in charge.
Typically companies that are publicly traded but have a small capitalization are marginally profitable – you can get around this by doing your homework or by hiring new management to improve the companies profitability.
4. Work in a very high paying profession: Physicians, small business owners
“If you want to be super rich – sales is definitely the no.1 way, might I suggest going to investment banking after going to a “target school” – then private equity/M&A? Or if you can’t cut it – enterprise sales. On the side, you should start your own business.” – White Coat Investor Group Member.
“Become a licensed plumber, get a Sugar Daddy (Mommy), etc.” – Savingadvice Forums Member.
“Work at UnitedHealthcare (Utilization Review Dept), work at Express Scripts, sell medical devices.” – White Coat Investor Group Member.
5. Real estate
Aggressively acquiring real estate has historically been an excellent way to radically build your wealth. Start with a single family home, get another one, and another one, after you have three, get a duplex. Then get another duplex, then work your way up into small apartment buildings.
Participants in the white coat investors forum agree.
“Invest in multifamily real estate.” – White Coat Investor Group Member.
“Farm ground has done well for me. First place we purchased was $750 an acre (30 years ago), it’s now worth conservatively $5-6,000 per acre, plus it’s been spitting off income the whole time.” – – White Coat Investor Group Member.
6. Invest in equities (stocks and mutual funds)
“Invest in low cost index funds before you even see your paycheck hit. If you don’t see it, you’re not missing it. Live below your means“. – White Coat Investor Group Member.
“I’ve invested in the stock market for years and done just fine but once I started investing in real estate it really moved the needle significantly on our NW. Buying below market with built in equity is the key. Also investing in businesses, keeping them profitable and growing profits will do the trick as well!” – White Coat Investor Group Member.
7. Build a business.
“Our single best investment has been my husband’s business, which we never would started without first following all of the steps you mention“. – White Coat Investor Group Member.
Incidentally, the late Felix Dennis has some excellent advice on building a business. (here).
A couple of great ideas for building a business in 2020 are:
“Shadow someone whose has become a self-made millionaire and learn their strategies“.
“Become famous on a new social media platform/gain a following“.
In fact, building a business is a tried and true way to radically gain wealth. In fact, the Forbes list of the 40 richest Americans under 40 is populated by business owners (here).
8. Marry well
“Marry a girl who is a consultant doing well but still underpaid“. – White Coat Investor Group Member.
“I think studies show that being born into money is the fastest way, and by correlation, marrying into it. Putting in 60-100 hour weeks for 25 years and living below your means sure hasn’t done it. Of course, only the last 5 years have been higher earning, with 21 to go till retirement I might be able to afford extra diapers in the nursing home“. – Saving Advice Forums Member.
9. Avoid having children
High net worth individuals tend to have fewer children. No wonder, as according to the USDA, in 2015 the cost of raising a child was $233,610.
“If you are all about net worth it becomes your life. Kids done right are really not that expensive but they take your time. Time invested in a business is what has the greatest return on investment but not always the greatest return on life“. – White Coat Investor Group Member.
10. Live below your means
This classic, and helpful personal finance advice.
“Beans and rice, rice and beans”, “You sell so much stuff the kids think their next” – White Coat Investor Group Members.
“Live below your means, consistently contribute to retirement and stay the course. It is not quick, but over time it builds and then compounds“. – White Coat Investor Group Member.
11. Improve your income
Improving your income provides a basis for radically building your net worth.
“Improve your income is the fastest way. Jump companies get a promotion, build another income stream. This seems to work best for us. I mean we save from our income, but our biggest boost has been making more money. Without having always been financially prudent DH wouldn’t have leap into a new career and neither would I and it’s paid off in spades for him and it’s starting to look very promising for me as well. So he’s far outstripped what he used to make. I am making less still overall but my job is more flexible and something I can do part-time and potentially longer. So it’s a win we both feel“. -Savings Advice Forums Member
12. Work hard
High net worth individuals regularly work really hard. In 2016 US Trust, the private wealth arm of Bank of America, studied 683 people with assets worth over $3 Million. The people in the US Trust study most commonly said that “hard work, ambition and family upbringing” were responsible for their success (summary here). In short, self made wealth people work really, really hard.
Here is a neat video by Arnold Schwartenegger on this topic. He basically credits much of his life success to “working his ass off”. Estimates are that Schwartzenegger is worth between $400 and $450 Million.
13. Save consistently
“I think saving consistently is the key, especially when you are younger. When I was working, I would encourage the younger teachers to open a retirement account, even if they couldn’t afford much because compounded interest was there friend. Even as a retiree, we try to save money and look for decent interest rates on the cash. But one big thing is we still watch our spending. We aren’t living like misers, but are careful about our spending and not going crazy. We have a friend who makes far more in pension monies and Social Security, but even still, cannot make it and has to constantly borrow money. And it is for more stuff“. – Saving Advice Forums Member.
14. Manage your psychology
“Stop poverty thinking. Pay off debt, and give at least 10 % …. gratitude.”
Often the investor matters more than the investment. Good investing behaviors have psychological advantages that help prevent us from doing stupid stuff. Examples of good investing behaviors include: diversification, dollar cost averaging, minimizing fees, focusing on generating great after tax returns, and aggressively saving.
15. Declutter and sell things you aren’t using
Clutter sucks up your mental energy and increases your costs. The self-storage market in the Unite States has a total market capitalization of $49.1 Billion. In other words, there is a large industry just devoted to charging people money to store their stuff. Most people would be better off simply selling their clutter – it cuts your costs and frees up mental bandwidth.
16. Automate
Provided that you have a high degree of regularity in your income, you should automate as much as possible.
David Bach has a very good book on this topic, if you’re interested in it. Its called The Automatic Millionaire.
17. Pay off high interest debts
High interest credit card debt averages above 20% per year. Very few investments pay more than this on an annualized basis. Pay it off ASAP.
18. Be engaged in your community
“Make long term friends, be engaged in your community, volunteer, eat well, commit to meaningful work“. – White Coat Investor Group Member.
Incidentally, social relationships are how information, capital and opportunities flow. So, the more active you are in your community, the better access to opportunities you have.
19. Inherit money
Not everyone inherits money, however when the do it matters. About 20% of American households have received an inheritance. Of those, inheritances account for about a third of their wealth.
“I have not been so effective at building my net worth as of yet but many of my peers have been very successful at inheriting money“. – White Coat Investor Group Member
You may not inherit wealth, but even if your parents aren’t rich you can encourage them to do modest amounts of basic estate planning. Things such as having a will, or converting traditional 401(k) or IRA accounts to their ROTH equivalents can save substantial time or taxes.
20. Build human capital
The more substantive expertise you have, the better able you are to convert that to wealth. This is generally because specific knowledge allows you to command a higher wage in labor markets. This is because when your skills and education improve, then you’re more productive and you can generate more wealth.
“Higher salaries and work satisfaction tend to be associated with significant technical competency in a particular area of expertise“. – White Coat Investor Group Member.
21. Hold diversified financial assets
“Many baskets, many bank accounts- stocks, bonds, real estate, debt deals, and entrepreneurship“. – White Coat Investor Group Member
The concept of diversification, also known as modern portfolio theory, was first discovered by Harry Markowitz in 1952. Markowitz basically found that if investors hold a basket of unrelated assets, the overall return increases and the overall risk decreases. Markowitz’s thesis and subsequent work became the basis for the financial industry’s recommendation that investors diversify. The finding has been verified by dozens of academic studies – its about as close to academic truth as you can come. What is key about diversification is that it results in MORE money and LESS risk.
Diversification should be limited to your investing activity only. In other areas of your life, focus brings better results.
22. Negotiate hard
Don’t be so nice that you’re short changing yourself. Ask for what you’re worth. Negotiate compensation in every job you take.
23. Have good habits.
The concept of having good habits was made popular by Tom Corley in his book “Rich Habits”. Corley argues the rich do things the poor don’t including: living withing their means, reading for personal improvement, avoiding gambling, etc. His research is based on comparative interviews with a sample of high net worth individuals and low net worth individuals. He basically said good habits are:
Live within your means
Don’t gamble
Read every day
Avoid surfing the web and watching TV
Control your emotions
Network and volunteer regularly
Go above and beyond in work
Set goals
Don’t procrastinate
Talk less, listen more
Avoid toxic people
Don’t give up
Avoid self-limiting beliefs
Get a mentor
Eliminate the term “bad luck” from your vocabulary
Know your main purpose
Go here for a more detailed discussion. Corley’s best book is ‘Rich Habits”. His stuff on parenting isn’t as good.
24. Keep track
Keeping track is an excellent exercise to keep your mind focused on whats important.
“List your assets (what you own), estimate the value of each, and add up the total. Include items such as: …If you are a high income earner, consistently save a chunk of income. That is step #1 and the most important step. WCI likes to say save around 20% of your gross income“. – White Coat Investor Group Member
“Track your spending, your budget as well as other things that contribute you having a healthy life“. – White Coat Investor Group Member
If you aren’t tracking your net worth – consider starting. It will force you to improve how you think about building your wealth. If you need a template, we’ve got a free one below:
These next radical ways to build wealth are less common, but are effective if you organize them correctly.
25. Become a CEO
If you decide to go this route, you’d need to answer two questions. How do you become a CEO? and, how do you lead your company? The answers to these questions are pretty straightforward. To become a CEO you can either build your own company or you can run someone else’s. To lead a company, one good approach is to lead from the front. This means show up, take care of people and be there, early and late. Your clients, customers and team need to be believe that you care about them, your job is to make that happen. However, CEOs at big firms tend to get highly compensated via salary stock options and deferred compensation.
Here are some BAD wealth building ideas
A) Engaging in illegal behavior. Initiating pyramid schemes, cocaine trade, embezzlement are all a seriously bad idea. The US courts and police are highly efficient and will eventually catch you.
So, don’t do this:
Well, bank robbers rob banks because that’s where the money is at. So, there’s that. Give it a go. – SavingAdvice Forums User.
B) Associating with thieves or others of low character. Trusting thieves: Giving money to Nigerian scammers.
C) Trying MLM business models. These almost never work. Or if they do, they benefit only a small percentage of the sales staff and leave the bulk of the product representatives with financial losses.
D) Inflating your assets.One thing I am doing is starting to over-estimate my assets. That increased my net worth in about 10 minutes. – Saving Advice Forums Member
E) Playing the lottery. This is a bad idea for two reasons. First, statistically speaking you’re almost certain to lose money in the long run playing the lottery. Second, if you do win the lottery its hard to hold onto the cash because you haven’t developed the capacity to successfully manage the wealth.
F) Trading: In a 2011 paper in The Journal of Finance, authors Barber and Odean found that individual investors typically underperformed standard benchmarks, sold investments they should have kept and held diversified portfolios (here). Trading is typically a bad wealth building idea.
Is Finding Radical Ways To Build Your Wealth Really What You Want?
Lastly – do you even want to go hard on building your net worth? Many people who accomplish great levels of wealth often have significant costs. Wealth also tends to amplify character. So, if you’re generous – having more money makes your more generous. If you’re vindictive, having more wealth will make you more vindictive.
There are massive opportunity costs associated with radical ways to build your wealth. Time spent building your assets is generally time spent away from family or time spent way from other pursuits, such as participating in religious or community events.
Wealth also magnifies bad behavior. For example, late billionaire Felix Dennis famously said:
“Making Money…wreaked chaos upon my private life. It consumed my waking hours, it lead me into a lifestyle of narcotics, high class whores, drink and consolatory debauchery. As a philosopher put it – all the dreary afflictions of the seeker after wealth“. – How To Get Rich
Here are some more excellent articles on net worth:
There are plenty of news stories covering the onging terror attacks in Israel, so we’re not discussing that. Instead, today’s posting is on the 80/20 rule, The 80/20 rule is also known as the Pareto Principle. Since most of you aren’t professional economists, in 1906 the Italian sociologist, Vilfredo Pareto, observed that 80% of Italy’s real estate was owned by 20% of its population. Ever the gadfly, Pareto also noted that similar relationships was found in other European societies, thus he proposed a scientific law of human behavior called the Pareto Principle.
Obviously,1906 was somewhat before the modern age of American Business. In 1941 Pareto’s ideas were dug up an American industrial engineer, Joseph M Juran. In a typical American company, Juran saw that 80% of a problem was due to 20% of a cause and widely applied Pareto’s principle to contemporary business management.
So, what does the 80/20 rule mean for your personal finance? We’ll if you’re someone like David Bach, you’d argue that to pay down your debt or increase your income, you should focus on identifying and addressing the few activities which most impact what you want to do. For example, since taxes are usually your biggest expense, it might make sense to focus on being tax efficient, rather than trying to save a few bucks by clipping coupons.
Ark7 is a new crowdfunded real estate investment platform that enables investors to gain access to premium properties with as little as $20. The start-up was launched in 2019 and since then, has been a standout in the field. With the emergence of several crowdfunded investment platforms in the market today, it can be a chore to determine which ones are legit and which ones are not. In this blog post, we will give you an overview of Ark7 and answer the question: is Ark7 legit?
This article is largely based on my arguably limited six month investing experience with the platform, as well as my brief conversation with the founder and their staff.
About Ark7
Ark7 is a real estate investment company that enables investors to invest in residential and commercial real estate assets through a crowdfunding platform. With Ark7, you can select properties that align with your investment goals, budget, risk tolerance, and preference. Ark7 basically acts like an acquirer and manager, ensuring that investors have access to a wide range of properties. What makes Ark7 a “crowdfunded” platform is the fact that they get thousands of small investors into the platform, e.g. a “crowd’, instead of getting funds from bigger angel or institutional investors.
The low minimums are especially appealing to younger or cash constrained investors who don’t have the capital needed to outright purchase real estate on their own.
So, is Ark7 legit and how do we know?
Ark7 Has Insurance And Is SEC Registered
One of the primary concerns of investors is trust. It’s important to evaluate if an investing platform has security measures in place to protect investors’ funds. In this case, Ark7 is basically trustworthy. They use industry-standard security protocols to ensure that investors’ data is safe. The platform also provides a comprehensive insurance coverage plan that protects investors’ money and properties against damage or theft.
Additionally, Ark7 is registered with the Securities and Exchange Commission (SEC), meaning that it operates under regulatory standards to protect investor interests. Here is listing of all their SEC filings since 2020.
Another aspect of trust and legitimacy is return. If a company makes money and shares it with its investors, it means they are basically doing their job.
Ark7 has a good performance track record as it has provided investors with an average return of 11% since inception. The platform’s management team is composed of experienced real estate professionals who vet the properties to ensure that they meet investment criteria. And by and large they seem to be doing a good job selecting properties. Ark7 also provides investors with regular email updates on their investments, ensuring transparency and accountability.
Here are a couple of their listings from my mobile app:
These listings are good quality houses in good neighborhoods, so their selection staff are doing a good job picking properties.
Note: I’m only getting 5% pretax from the platform, but that’s better than some other crowdfunded real estate apps, so I’m happy.
Fees and Costs – About 6%
As a rule, fees and costs eat into investing returns. Ark7 charges a 1% annual management fee and a 5% acquisition fee. These fees are relatively low compared to traditional investment platforms. Additionally, investors may incur property management fees, which are dependent on the property’s performance. Before investing, it’s crucial to read and understand the fee structure to avoid any surprises. Although, their won’t be too many with Ark7 – it’s basically transparent.
Investing in real estate comes with real risks. Ark7 partially mitigates these risks by providing investors with a detailed analysis of the properties’ investment potential. Additionally, investors can diversify their portfolio by investing in multiple properties to spread risks. And, if you’re so inclined, you can also get into commercial real estate through their platform.
Yes, Ark7 Is a Legitimate Investment Platform
So, is Ark7 legitimate?
Yes, it is a legitimate investment platform that offers investors access to premium properties with as little as $20. The platform uses industry-standard security protocols, is SEC registerd, provides comprehensive insurance coverage plans, has a good performance track record, and has a low fee structure.
If you like Ark7 and you want to check out their app, you can get more information here, or click on the button below:
I’ve been thinking about this post for a while, but haven’t had a chance to get everything down on paper. There’s been a lot of discussion in the popular media recently about the role of bankers in the U.S. economy. With all the bad press about chasing dollars, some of you may be wondering what the overall point of building wealth is.
As bit of a refresher, here are some of the reasons why you should be focusing on improving your bottom line.
1) Money Allows You To Negate Office Politics: One reason why it makes sense to be financially secure is because it allows you greater freedom of action. For example, before I went back to graduate school I was working for a think tank in Washington DC. The job was terrific – I was making a lot of money, publishing a lot of papers – everything a budding social scientist could ask for.
Unfortunately, after a couple of years, my direct boss was forced out after a senior management change. After the change over he and his wife were persona non-grata around the organization due to some interpersonal conflicts among the management staff. This was a shame as both were really first rate social scientists. By the time he was forced out, I’d been able to bank about $100,000. Even though associating with my boss and his wife was politically risky, I was able to continue working with them without fear of losing my job due to my fat savings account. Having the money in the bank meant that I didn’t have to put up with the office political nonsense.
2) Money Makes Exercising Freedom of Speech Easier: This may be before some of your times, but back in 2002 Bush administration treasury secretary Paul O’Neill was kicked out of the government because of his open criticism of the administration’s policies. When asked what gave him the courage to speak out, O’Neill famously responded that they couldn’t do anything to him because he was independently wealthy.
One wonderful aspect of American society is our relatively high degree of freedom of speech. Unfortunately, speech that really matters is often critical or controversial. Very frequently by exercising it you can be subject to social pressure or in some cases job or business retaliation. On the other hand, if you are financially secure, this far less of an issue for you as you aren’t reliant on a paycheck.
3) Building Wealth is Linked to Character and Skill Development: While there are many ways to attain wealth, most first generation rich people had to work for it. Typically, this is through starting a business. Some are able to get it by saving and investing diligently over their life span. In either case, becoming wealthy is facilitated by developing new skills, sweating through trial and error and overcoming disappointment. While this maybe less of a factor for inherited wealth, there is a strong relationship between character and skill development and first generation wealth. When you are creating wealth you are usually gaining valuable skills that will last you a lifetime.
Many people seem to be ideologically or philosophically opposed to becoming wealthy. This is a shame, because achieving financial security can have tremendous benefits, more freedom and better skills are just a few.
Tesla Motors’ founder may have designs on travel to Mars, but his brother Kimbal Musk plans to stay on earth.
Although the two have collaborated on a couple of major ventures like PayPal and Zip2, Kimbal has amassed his own wealth.
Although it’s hard to top Elon Musk’s success with SpaceX and Tesla, which have catapulted him to a net worth of as much as $13.3 billion, Kimbal has taken a different path toward enriching his fortune.
Kimbal Musk’s Net Worth
So what is Kimbal Musk’s net worth? Tallies have varied from as high as a couple billion in 2015 to a recent count of about $472 million in 2021. Both figures are merely estimates based on publicly known sales of stock he has held — including PayPal and Zip2 — along with data on current holdings like The Kitchen.
Started at 18
Kimbal first got bit by the capitalist bug when he was 18, and started College Pro Painters, a residential painting business that made $50,000 during its two-year lifespan.
From there, he and Elon launched Zip2, a sort of precursor to Google Maps that also provided local advertising content to newspapers like The New York Times and The Boston Globe.
In 1999, when Kimbal was 26, Zip2 was sold to Compaq for $307 million after beating a bid from The New York Times. According to Forbes, Elon only received a small slice of the sale, but it was enough for him to “never have to work again.”
From PayPal to Culinary Institute
Yet, Kimbal Musk’s net worth only continued to grow when he and his brother invested in X.com, an online banking site that would subsequently become PayPal. In 2002, eBay acquired PayPal for $1.4 billion. Although it’s not clear how much Kimbal took home from the deal, it was probably enough for another life-long vacation. From there, Kimbal sashayed into the restaurant industry by enrolling in the French Culinary Institute.
The Kitchen
In 2004, he launched The Kitchen, a chain of restaurants located throughout Colorado and Illinois that serve up farm-to-table recipes. The first restaurant cost $600,000 to open, which was only a fraction of Kimbal’s fortune, and Elon chipped in with some cash as well. Regardless of the initial investment, The Kitchen proved to be extremely lucrative, and although the exact figures are not available, Kimbal has called it his most successful venture.
Other Business Roles
Although he’s best known for his endeavors in the culinary world, Kimbal has held other leading roles in companies over the past couple of decades. In 2006, he was appointed CEO of OneRiot, an online advertising agency. Then, in 2010, after a freak inner tube accident that paralyzed him for two months, Kimbal decided he was done with working for OneRiot. Soon after Kimbal quit, Walmart Labs purchased OneRiot.
He continues to see himself as having a personal mission of getting communities rapidly thriving by improving every part of the food culture. That vision led him to create Learning Gardens, an educational nonprofit that teaches school children about agriculture. It also lead him to co-found Square Roots, an indoor urban farming initiative focusing on modular farming in urban areas. The modular farms look something like this:
Source: squareroot.com
In addition to his focus on The Kitchen and Learning Garden, Kimbal sat on the board of Chipotle Mexican Grill between 2013 and 2019. He currently sits on the boards of Tesla Motors and SpaceX.
Indeed, a penchant for hard work appears to run in the Musk family.
Tesla Wealth
While Kimbal’s role on Tesla’s board is unclear, it’s certainly been lucrative. According to Yahoo Finance, between Sep 21, 2021 and Sep 21, 2023, Kimbal has sold or exercised options on $134.8 Million worth of Tesla shares. Here is the data:
According to Musk’s most recent SEC filing, he currently holds 1,708,720 shares of Tesla. At current market value, this is worth $435,723,600. In addition to his options, his role on the board of directors at Tesla nets him a modest $20,000 annual salary (SEC).
Venture Capital & Other Investments
In addition to his Tesla holdings, Kimbal Musk’s net worth has been fueled by investments in two Valor venture capital funds managed by Tesla board director Antonio Gracias. (source). Kimbal also has historically owned shares in Chipotle Mexican Grill, and reportedly drives a Porsche and wears Patek Phillip watches. His olorado home was designed by high-end architect Annette Martin.
Kimbal is available on social media, here are his accounts:
Everyone is looking for a fast buck in the stock market these days. However, what most people find over time is there just isn’t any substitute for following following the personal finance basics, repeatedly for months and years at a time.
So, here is a list of personal finance advice that works.
1) Pay Off High Interest Debt. If you have any credit card debts, payday loans, title loans or other high interest garbage, payday loans online same day $255 pay it off . Credit cards will charge you between 13 and 30 percent, payday loans and title loans can be much more expensive. The finance industry isn’t your friend and seeks to make money by charging you excessive fees, don’t play that game.
2) Take What Uncle Sam Gives You: Regardless of your employment situation there are tax advantaged retirement accounts suitable for you. These are usually 401(k) plans, 403(b) plans, or the various flavors of IRAs. So, maximize your contributions to these accounts, they’ll reduce your taxable income, effectively increasing your investment returns. Employers sometimes also give you matching funds, so get any matching dollars you can.
3) Take Action Now: Don’t delay or procrastinate. The longer you wait to take action on something, the less money you’ll have. This is because wealth usually takes time to accumulate, so give yourself as much advantage as you can. Act now.
4) Save, Invest and Reinvest: Let your money build up in a savings account, and then make an intelligent decision about how to allocate it. Once you’ve made your allocation decision, reinvest your wealth. This will let compounding work for you. This is effective, especially when investing in common stock. Here is a great example of the Coca-Cola company’s total return between 1996 and 2016. If you save, invest and reinvest you can have this too.
5) Save and Invest At Least 5 to 10 Percent of Your Income: At a minimum you should have a retirement savings account to reduce taxes. In general, you’ll want money saved and in the markets so you can seize opportunities as they come up. Saving isn’t hard when you focus. The founders of this blog saved $21,000 in ten months. Put at least 5 to 10% away.
6) Have An Emergency Fund: If you can’t get six months of expenses on hand, don’t worry about it. Just save at least $1,000 dollars. Things happen, and you’ll need cash on hand. And, yes, you can save $1,000 even if you don’t have a lot of income.
7) Own: The magic of capitalism is in ownership. Equity has historically done better than other asset classes. Own stock or equity funds.
8) If You’re Married, Build Your Partnership: Listen to understand and speak respectfully. When you need to, get professional help. Discuss your dreams, concerns and issues. Avoid judging your partner and accept their limitations. Compromise and cooperate. You’ll go farther together than you will acting on your own.
9) Own Your Home: Home ownership isn’t for everyone. Some people are able to gain wealth by renting and carefully investing. But, in the long run, owning is more cost effective than renting. This is because of the tax benefits, appreciation, borrowing potential and diversification that you get when owning real estate. Own your home.
Readers, if you have any other “no-brainer” personal finance advice you’d like to share, drop us a comment below.
Reading together can be a wonderful way to bond with your significant other and strengthen your relationship. Whether you both enjoy fiction or non-fiction, there are plenty of great books out there that can bring you even closer. So, without further ado, here are the best books for couples to read together.
Why Reading Together Strengthens Your Relationship
There are many benefits to reading together as a couple. Not only does it provide a great opportunity for bonding, but it can also help you develop better communication skills and gain a deeper understanding of each other. Here are just a few of the reasons why reading together is so valuable:
Expanding your understanding of each other
By reading together, you’ll get a glimpse into your partner’s interests, values, and personality. This can deepen your understanding of each other and help you appreciate each other even more.
For instance, if your partner is a big fan of science fiction, reading a science fiction novel together can give you insight into their imagination and creativity. Similarly, if you’re reading a non-fiction book about a topic that your partner is passionate about, you can learn more about their values and beliefs.
Overall, reading together can be a wonderful way to strengthen your relationship and deepen your connection with each other. Whether you’re reading for pleasure or to learn something new, the act of reading together can bring you closer and help you grow as a couple.
Choose the Right Book for Your Relationship
Reading together can be a great way to bond with your partner and deepen your connection. While there are a plethora of books to choose from, finding the right one for you and your partner is key. Consider these factors when selecting your next read:
Identifying your shared interests
One of the best ways to choose a book that you and your partner will both enjoy is to identify your shared interests. Do you both enjoy mystery novels or self-help books? Finding a book that you’re both interested in can make the reading experience more enjoyable for both of you.
For example, if you both love history, you could choose a historical fiction novel that explores a period or event that you’re both fascinated by. Or, if you both enjoy cooking, you could choose a cookbook that features recipes from a cuisine that you both love.
Balancing personal preferences
While finding common ground is important, it’s also important to balance your personal preferences. You don’t want to choose a book that one of you hates just because the other person loves it. Instead, consider alternating between books that each of you are interested in or finding books that merge your shared interests with your personal tastes.
For example, if you love romance novels but your partner prefers thrillers, you could choose a romantic thriller that combines elements of both genres. Or, if your partner loves science fiction but you prefer non-fiction, you could choose a non-fiction book that explores scientific topics that are relevant to the science fiction genre.
New Relationship? You Might Need Different Books
Depending on where you are in your relationship, you may want to consider books that explore different themes. For example, if you’re just starting out, you may want to read books that focus on building a strong foundation, such as communication, trust, and intimacy. These books can help you establish a solid base for your relationship and give you tools to navigate any challenges that may arise.
If you’ve been together for a while, you may want to read books that explore complex relationship dynamics, such as managing conflict, navigating life changes, and maintaining passion and connection over time. These books can help you deepen your understanding of each other and your relationship, and give you strategies for overcoming any obstacles that may arise.
Overall, choosing the right book for your relationship can be a fun and rewarding experience. By considering your shared interests, personal preferences, and the stage of your relationship, you can find a book that brings you and your partner closer together.
The Best Gifts for Book Lovers
Just like book types, there are many different types of book readers. There are some bookworms who like to highlight their favorite quotes or color code their bookshelves. Consider gifting custom book-related items, from custom stickers of literary quotes, book club lapel pin metal bookmarks with exclusive graphics and text. These bookish gifts might even inspire them to start reading again or pick up some book-themed items for themselves.
Non-Fiction Books for Couples
Reading together can be a great way for couples to bond and grow together. Whether you’re looking to improve your communication skills, gain inspiration from others’ experiences, or explore new ideas, there are plenty of non-fiction books out there that can help. Here are a few recommendations:
Both books are well regarded in the personal finance community and are actually practically helpful in building the financial aspects of your marriage. Next in the list of best books for couples to read together are relationship and self-help books.
Relationship and self-help books
For couples who want to improve their communication and relationship skills, books like “The Seven Principles for Making Marriage Work” by John Gottman. Gottman and his wife Julie are well know for their research on couples and their books, videos and newsletter are all worth the time to study.
“Hold Me Tight” by Dr. Sue Johnson is another addition to the list of best book for couples to read together. This book draws on attachment theory to help couples understand and improve their emotional connection. It provides exercises and tools for building intimacy and trust.
Lastly “The Five Love Languages” by Gary Chapman is a best seller. It can provide valuable insights and advice.
All of these books offer practical tips and strategies for building a stronger, more fulfilling relationship.
Thought-provoking essays
If you enjoy exploring different perspectives and discussing big ideas, “The Art of Possibility” by Rosamund Stone and Benjamin Zander or “Outliers” by Malcolm Gladwell are great additions to the list of the best books for couples to read together. These books offer fresh insights into how we can achieve success and happiness.
Another great option is “Meditations” by Marcus Aurelius. This book is a collection of the Roman emperor’s personal reflections on life and philosophy. It offers timeless wisdom on how to live a meaningful and fulfilling life.
Whatever your interests and goals, there are a ton of non-fiction books out there that can help you and your partner grow together.
Fiction Books for Couples
Reading books together can be a wonderful way to connect and share a love of literature. If you’re looking for some great fiction books to read as a couple, there are plenty of options to choose from. Here are three different genres to consider:
Classic love stories
For couples who enjoy romance and the classics, there are few better options than “Pride and Prejudice” by Jane Austen or “Wuthering Heights” by Emily Bronte. These timeless tales of love and heartbreak have captivated readers for generations and are sure to leave you both feeling all the feels.
But don’t stop there! If you’re looking for more classic love stories to explore, consider books like “Jane Eyre” by Charlotte Bronte or “Sense and Sensibility” by Jane Austen. These books offer a glimpse into the social norms and expectations of the time, while still delivering a powerful love story.
Adventure-filled novels
If you and your partner are looking for a thrilling escape into an action-packed world, consider books like “The Hunger Games” by Suzanne Collins or “Jurassic Park” by Michael Crichton. These books are packed with adventure, danger, and excitement, making them perfect for couples who love to live on the edge.
But why stop there? If you’re looking for more adventure-filled novels to explore, consider books like “The Da Vinci Code” by Dan Brown or “The Girl with the Dragon Tattoo” by Stieg Larsson. These books will keep you on the edge of your seat and provide plenty of opportunities for discussion and debate. All of these are best sellers.
Contemporary fiction
If you and your partner prefer modern stories that explore current issues, “Little Fires Everywhere” by Celeste Ng or “The Hate U Give” by Angie Thomas are great choices. These books tackle important topics like race, class, and identity, while still delivering compelling characters and a solid plot.
But don’t limit yourself! If you’re looking for more contemporary fiction to explore, consider books like “Normal People” by Sally Rooney or “The Overstory” by Richard Powers. These books offer a glimpse into the complexities of modern life and provide plenty of fodder for discussion and reflection.
Whether you’re in the mood for a classic love story, an adventure-filled novel, or a contemporary tale that tackles important issues, there are plenty of great fiction books to explore as a couple. So grab a book, snuggle up with your partner, and get ready to dive into a world of imagination and wonder.
Books for Couples with Different Reading Tastes
Reading together can be a great way to bond with your partner, but sometimes it can be a challenge when you have different reading preferences. Fortunately, there are many books out there that can satisfy both of your tastes. Here are some additional recommendations to add to your reading list:
Historical Fiction
If you and your partner enjoy learning about different time periods and cultures, historical fiction is a great genre to explore. “The Nightingale” by Kristin Hannah is a powerful story about two sisters in Nazi-occupied France during World War II. It’s a ale of survival, sacrifice, and the unbreakable bond between siblings.
Another great historical fiction novel is “The Book Thief” by Markus Zusak. Set in Nazi Germany, it tells the story of a young girl who steals books and learns to read during a time when books are being burned.
Memoirs
Reading memoirs can be a great way to learn about someone else’s life experiences and gain a new perspective. “Educated” by Tara Westover is a memoir about a woman who grew up in a strict and abusive household in rural Idaho and went on to earn a PhD from Cambridge University. It’s a powerful story about the importance of education and the resilience of the human spirit.
Another great memoir in the list of best books for couples to read together is “Born a Crime” by Trevor Noah, which tells the story of the comedian’s childhood growing up in apartheid-era South Africa.
Fantasy
For those who love to escape into magical worlds and fantastical creatures, fantasy novels are a great choice. “The Name of the Wind” by Patrick Rothfuss is a beautifully written epic fantasy novel about a young man who becomes a legendary wizard. It’s a story of love, loss, and the pursuit of knowledge. Another great fantasy novel is “The City of Brass” by S.A. Chakraborty, which takes place in 18th century Cairo and follows a young woman who discovers she has magical powers and is descended from a powerful djinn family.
Make Reading Together a Habit
Obligatory photo of couples reading together.
Reading with your partner can be a wonderful way to bond and share new experiences. It’s a great way to learn more about each other and explore new ideas together. If you’re looking to make reading together a habit, here are some tips to get started:
Setting aside dedicated reading time
One of the best ways to ensure that you read together regularly is to set aside dedicated reading time. This means making it an intentional practice and committing to the time, even if it’s just 20 minutes a day. By scheduling this time, you’ll be more likely to stick to it and make reading a habit.
Consider choosing a time of day that works well for both of you. Maybe it’s before bed, or during your morning coffee. Whatever time you choose, make sure it’s a time when you can both be present and focused on your reading.
Discussing the book as you progress
One of the best parts of reading together is being able to discuss the book as you read it. This can help you both gain a deeper understanding of the text and explore the themes together.
As you read, take the time to ask each other questions and share your thoughts and feelings about the book. What do you think about the characters? Are there any themes that stand out to you? What do you think the author is trying to say?
By discussing the book as you read it, you’ll be able to connect with each other on a deeper level and gain new insights into the text.
Overall, making reading together a habit can be a wonderful way to connect with your partner and explore new ideas together. By setting aside dedicated reading time, creating a comfortable reading space, and discussing the book as you progress, you’ll be well on your way to making reading a regular part of your routine.
Overall, reading together is a wonderful way to deepen your connection and strengthen your relationship. So why not give it a try? Choose a book, grab a cozy blanket, and settle in for a night of reading and romance!
In Conclusion – Read More
Reading together as a couple can be a rewarding, fun, and unique way to strengthen your relationship. By choosing the right books, making it a habit, and sharing the experience with others, you’ll enrich your lives together and create lasting memories. Happy reading!
P.S. All of these links are Amazon links, and if you click through and buy a book, the site will get a portion of the revenue. This will help keep the lights on. Your support is appreciated!
I wanted to take a minute to weigh in on one of the internet’s biggest obsessions: passive income.
Passive income is the kind of thing bloggers love to write about: money coming your way with little or no effort or risk on your part. When you read about passive income, you’ll usually get a list with the following kinds of suggestions:
Earnings from a business that doesn’t require your direct involvement
Royalties from publishing a book or other form of intellectual property
Earnings from internet advertising
Dividends and interest income from owning securities, such as stocks, bonds, or mutual funds
Rent from investment properties
People have devoted entire websites to the topic. Some of these are sites like: www.passive-income-pursuit.com/ , www.smartpassiveincome.com, etc. The internet is full of them.
The major issue with all of these is there is no such thing as a free lunch. All investments require either labor or capital. Most require a combination of both to be successful. Let’s say for example that you own investment properties. Well, most of the time you should get passive income in the form of a rent check, but the maintenance of the investment requires effort (you need to do market research and show & maintain your places – or pay someone to do it). Even stocks require time and effort. For example, if you are into stock mutual funds, you need to research the fund, and monitor its performance quarterly to be sure management doesn’t take a turn for the worse. To thoroughly evaluate the fund you’ll have to do due diligence
So, the point bears repeating, there isn’t really any such thing as truly passive income. Only choices which require varying levels of capital or labor.
Just posting a quick update as to what I’ve been up to financially. Briefly, it’s been bonds and fractional ownership of real estate.
For bonds, I’ve been increasing my position in SMBX, which is a nifty little bond marketplace. We’ve covered it extensively on the site here, and here. I’ve been lending on the site for a couple of years and the results have been good, no defaults and the payments are generally made on time.
Here is my portfolio:
Also – because of how SMBX structures the bond paybacks, you get your principle and interest back on an accelerated schedule. This means you can rapidly reinvest in the platform. Plus, every time you get a payment, they send you an email. Its a nice little psychological win every time you get one of those.
Second I’ve been experimenting with some fractional ownership of real estate apps. This has mostly been experimental as my cash has been pretty constrained in the last few months.
Companies in this space that seem legit to me include:
Ark7 => This outfit is new. They originated in the US Chinese community, and are doing some interesting things with their marketing and expansion strategy. I did an in depth review of them here, and recommend signing up if you are interested in targeted geographic investing, here.
Fintor => This is also a new player in the space. For a while they had a super generous referral program. I had the impression it got picked up Facebook referral groups and passed around, so I don’t know how well they are growing their customer base. On the other hand, they have low share minimums and are good for investors who want real estate exposure and don’t have $20,000 for a downpayment. Here.
Fundrise => This is a private REIT. Fundrise has low minimums and is generally well accepted by investors. I got in with them a few months back, and I think I’m down 5%. Worth checking out. Here.
I have accounts with all of these, and am satisfied with the results so far. I recommend you check them out if you just have a couple of hundred and want to get some exposure to real estate. Alternatively if you want a basic overview of how to get started in started in real estate, go here.
One question I’ve gotten is: how are these better than REITS? This is a good question, and I frankly have not thought it through.
On a final note, Nick Maggiulli over at Dollars and Data has an excellent observation the price of success. He notes that success almost always entails some extreme level of sacrifice, and in a lot of cases the level of sacrifice simply isn’t needed for happiness.
