030R - The Side Hustle Crowdsourced Case Study

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Time Speaker Text Tags
0 - 13 Jonathan Mendonsa Welcome back guys this is your Friday roundup today with me in the studio. I have Brad and we're going to be discussing this week's episode. I am thrilled to get a chance to talk about Monday's episode with Alan Donegan from pop up business school. How you doing Brad.
13 - 39 Brad Barrett I am doing quite well Jonathan. Yeah. This I think was my favorite episode of all the ones we had recorded so far. I just really enjoyed meeting Alan getting to know him and just hearing all these really brilliant ideas of how to get started with businesses and ways that I just never would have thought of. So yeah this was a very exciting episode for me. But aside from that yeah everything is gone well where actually recording on July 4th and just looking forward to a nice family day today and a nice relaxing week.
39 - 40 Jonathan Mendonsa Is the pool open the day Brad.
40 - 51 Brad Barrett The pool is open today but this is funny because you know how I'm always talking about like looking at the world a little bit differently like we would never go to the pool on July 4th. Never ever ever.
51 - 57 Jonathan Mendonsa So we used to go in there when no one is there you own the pool for five days out of the week during the school year right.
57 - 97 Brad Barrett That is exactly right. And I would go essentially every single other day other than July 4th and we pretty much did we were there until it closed last night but everyone and their brother comes out for July 4th and it's just a mob seen and frankly pretty miserable. It's funny because we kind of live our lives just generally like people go out for Mother's Day brunch or something like Valentine's Day. And I'm screaming in my head like no why would you ever go out on those days. They're the busiest possible day. You're getting substandard service and fair usually and they charge you more. It's like guys why would you ever do something just to be like a lemming like everybody else. So anyway a lot of noise.
97 - 124 Jonathan Mendonsa I mean it's just you know so even though you're right and I was just thinking that is actually how you live every aspect of your life and it's what we're encouraging other people to do. When we talk about travel rewards the reason that it's so powerful for the FI community is because you've already added the aspect of flexibility into your lifestyle so you're not forced to go on the same two or three holidays that the entire rest of the world is trying to travel. You're able to scoop up these deals because time is a tool that you have in your back pocket to use it when you want it.
travel, travelrewards
124 - 154 Brad Barrett Now that's a good that's a good way to put it. I never would have considered that but maybe lemmings will a little bit strong so I apologize to everyone I just offended but just open your mind a little bit expand your mind and just think a little bit differently. If you go out to dinner with your significant other on February 13th it's still considered Valentine's Day in my book and it's going to be a whole heck of a lot easier to get in. And you won't have to pay quite as much so just like just think about think about things a little bit differently is basically what I would argue.
154 - 155 Jonathan Mendonsa I have to make that confession.
155 - 157 Brad Barrett Oh I can see where that is going.
157 - 161 Jonathan Mendonsa I don't know. My wife made me buy the pool membership yesterday so that we could go to the pool today.
161 - 164 Brad Barrett Seriously.
164 - 168 Jonathan Mendonsa Oh I'm one of the lemmings. I'll be there today fighting for the lawn chair.
168 - 170 Brad Barrett Only Today. You're going one time a year.
170 - 174 Jonathan Mendonsa That's right. I get to go like two days ago today and Labor Day.
174 - 176 Brad Barrett That's great.
176 - 177 Jonathan Mendonsa I'm in the club.
177 - 183 Brad Barrett That is so great. Well hey maybe when you're on the other side of Fi you'll have the flexibility right.
183 - 191 Jonathan Mendonsa I tell you though it's all about grabbing those chairs though and it just got to have a home base. It doesn't matter what else is going on as long as you have your home base just got a lot of down those two or three chairs and.
191 - 195 Brad Barrett You can't get up. You can't move You can't guard them.
195 - 199 Jonathan Mendonsa I HATE YOU SO MUCH.
199 - 202 Brad Barrett I could teach you some jujitsu here before you go out there man.
202 - 254 Jonathan Mendonsa The lessons keep on stacking up. I I'm going to figure this thing out. But we do have a parade that we're going to as well it's July 4th parade so I am very much excited about the 4th but I'm excited. First of all to get to explore this episode with our community because this was an episode that was so overdue. And it goes back I'm going to say it probably every single episode. Going forward you don't know what you don't know until you do. And there was so many gems in this episode that blew my mind and expanded my mind and so many different ways and it gave you tools to allow you to look at a problem just a little bit differently and maybe let you see an opportunity where before all you saw was an obstacle. So to me Alan's messaging was perfect. It resonated with me at every level and it didn't just resonate with me. It resonated with my wife and that's saying something because she's on the team. She listens to all the episodes she enjoys the episode but I don't think I've ever seen her lean in before. Right. She was leaning into this one.
254 - 258 Brad Barrett But tell me tell me about that. You didn't tell me about this previously.
258 - 340 Jonathan Mendonsa So at every single point that he was dropping when we talked about how to start a restaurant for free or how to barter skills she literally made me pause the episode and talk about how she could use that specific tool. And so we're actually exploring a few different side hustles for her we're going to have her start reading audio books that's going to be a side hustle that we're going to try to start for her and maybe narrate some audio books because she has this amazing accent she has a wonderful reading voice she is essentially if you're reading any sort of children's novel I think J.K. Rowling's or think Roald Dahl books if you read any of those. Imagine she literally has the perfect voice for that. And as a teacher because that's what she does. She has spent years reading to kids and the equivalent is that they lean into her messaging and so we think there's an opportunity there and we're going to try to explore that. And every single bullet point that Alan dropped on us she was riffing off that essentially and saying I think we can do this. I think I really want to get started. And then every two to three days since that episode she's been asking me. So when are we going to make this happen. What are what's the next step. What do we want to do. And so at a very visceral level this episode excited her and she wants to explore this concept more and more and so I give Alan just absolute kudos for inspiring me inspiring my family and hopefully inspiring the tens of thousands of people that downloaded this over the last week.
families, hustle, teacher
340 - 405 Brad Barrett That is really really neat. So. So she's actually going to take action in the next month or a couple of months based on what on what Alan talked about what really resonated for me with Allen's messaging was you don't need a lot of money. Right like that was the big takeaway is if you just are a little bit intentional about it and a little bit smart and try to prove out your concept before you drop a crazy amount of money and mortgage your parents house and do all this other nutso stuff for like on a restaurant. That was one of the big things right. Like everybody talks about these restaurants costing a fortune. And what's the failure rate on a restaurant. Ninety percent. I mean it's something absurd like that 90 plus percent. And I always think to myself why would anyone mortgage their house and leverage their entire future for something that has a 90 percent failure rate. So Alan's thought of coming in and proving out the concept by networking and communicating with people and doing it in a way that you can have essentially no risk. That was the biggest takeaway to me. Was there anything in particular Jonathan that Danny picked up that she could do or that she intends to do.
405 - 508 Jonathan Mendonsa Yes absolutely. So there were several big things. One was bartering the skills that you have now just to start a side hustle and now that was a different one but she's a teacher and now right now she is a mom full time. And one of the things she wants to do is barter her skills and act as a tutor and she already has opportunities she just needed to say yes to it. And so she's actually setting up tutoring as a side hustle right now by bartering that skill that she has. The other one was unused resources. So things just lie around your car sits in the driveway 98 99 percent of the time. There are schools that have massive amounts of resources that go unused all the time. The next one that she's looking at is is there a way that I can leverage that. Is there a way that I can use these resources that are just lying stagnant and in some way help my business. And so for her maybe approaching a school and looking to see whether or not she can partner with the media department of UR our VCU and I actually piggybacked off that Brad I thought how cool would it be if we went to one of these schools and we looked to see whether or not they're I don't know exactly what component of the school would want to talk to but let's say we went to like VCU and we went to their media arts department and we said we have this podcast that we're building and that it's growing and we want to know do you have someone that would be interested if we were to develop some sort of internship program. And we were to look for students that are interested in editing a podcast right. Editing a podcast creating media design and we actually created an intern program with the school allowing them to get experience and also US be able to use some of the resources that they have. College students that need experience in this particular field maybe there's something there. So these are just places that my brain is going looking for ways to explore more what Allen talked about. It was very inspiring for me to get exposed to that.
college, hustle, teacher
508 - 651 Brad Barrett Yeah that's really cool. And the mutually beneficial aspect of what you're talking about specifically with us and this is again the first time I'm hearing about this but it's such a cool idea. I mean there are people who need experience who want to do that editing or whatever maybe they might want to be podcaster someday and hey I mean we're right here in Richmond 10 minutes away from VCU. Why wouldn't we throw that out to them and see if we can get some benefit. Right it would help you. I mean you spend hours upon hours editing each of these episodes and it would give someone a whole heck of a lot of experience. I mean that's really great. And Allen kind of obliquely referred to this which was that aspect of your benefiting each other and your relationships are what drive everything here. So you need to establish like we've talked about many many times on this podcast is establishing these real friendships and these real relationships. And when that trust exists there's so much that can be gained from that relationship moving forward. And sometimes you don't see it right. You're not doing this as some contrived way to create benefit for you down the road. I mean you're just making friends in life that is kind of the backbone of this. But it never ceases to amaze me how many people I have in my own life who I can help and they can help me. And it's just this self-perpetuating thing. I mean yesterday I met some guy at a men's retreat that I spoke about a couple of months ago and he shot me an email yesterday. Hey Brad I know you're you're up on saving for the long term and saving for retirement. Send me the name of a book that you it would be beneficial for a large audience and of course I sent him the simple path to wealth by our friend JL Collins and this company is now going to buy probably a couple hundred copies of that book to give out to all the attendees at this one big conference and Jim Collins didn't have anything to do with that relationship but by me knowing Jim I probably just sold a couple of hundred of his books and this guy reached out to me because he knew I had some authority and influence in this area and understanding. So I thought that was kind of a random example like that's just another power of networking that really helps all of them because I'm the connector in this group. And Jim gets a couple of hundred extra copies of his books sold. And this guy that I met can reference a book that is going to really legitimately help his audience so it's just a win win all around.
relationships, savings
651 - 771 Jonathan Mendonsa That is so cool. I love that example. Absolutely and that is what networking looks like at its finest. And that really does tie in the value of networking in that genuine human connection that you referenced in that episode the other part that I love that I truly loved is to sell your value before you create it sell the idea first get the money first then produce the content or product. And he gave this great example of how Dennis did that with the lasagna. And I would love to get a follow up on where Dennis is now that is incredible and it sounded like by him showing Dennis what that looked like. It completely changed his world. It changed his confidence levels it changed everything for him. He went from being stuck to having a plan and then executing very very cool. But on an. Everyday basis that is probably one of the most powerful lessons that he presented and it's probably one of the ones that will have the most value for me personally going forward and hopefully for you this idea that there is no reason for you to spend two years of your life or a year of your life for eight weeks or whatever it is creating a product that no one is going to buy sell your value first. If it's a great idea sell the idea sell the idea and then after people buy into the idea create the product. And if you want examples of what this looks like just go check out Kickstarter go see exactly what that looks like. But you can apply this across the board. This means if you're tutoring someone as an educational process ask for the money up front. Say if you would like for me to tutor your child and whatever you know whatever field that we're talking about we can do four sessions at $50 apiece that's $200 I'll need this upfront. The added benefit of that is that if down the road they decide well we have something coming up or they need to cancel a one of those sessions because they've already paid you they're going to be thinking about canceling that session. Definitely twice before they do that and if they do they're going to be way more likely to give you the heads up and try to get something rescheduled at a very small level. Sell your value first collect the money upfront and then produce or create the content. You can do that. That is absolutely something that you can translate into every single aspect of your life.
771 - 833 Brad Barrett Yeah and like we mention in Allen's episode it's very important to actually prove this out. Don't just go to your friends and family and coworkers and say oh does this sound like a good idea. Because I guarantee you they're all going to smile and nod and they're going to give you a bunch of great reasons why this can't fail. And it's wonderful. But the proof is in the pudding. They need to actually pay. There's a whole different dynamic when you walk up to one of those people who say they love it and say All right well I'm taking preorders. Let's go for it. Are you in. And then you'll see if you have a true product or a true service because until that point where someone pulls out their wallet and hands you cash or hand you a credit card or whatever it is you will not know. So that is one of whether I was one of my biggest takeaways from the episode. And I've read this before but to hear Alan say it it just really struck a chord with me. Please don't think your idea is enough. You need to prove it out before you spend the time creating it and the money creating it. Just actually prove this thing out.
families
833 - 1087 Jonathan Mendonsa What I loved about this conversation was that we're starting this as a side hustle and you can start with as grand or as big of an idea or a small of an idea as you want but it doesn't have to stay there. Things don't have to remain what they are you just need to have an idea and then you need to execute on it. And then from there you can take the skills that Alan is willing to teach you and share with you and that if you are willing to put the time in and learn you can do this and you can almost implement these skills and techniques to any idea. But if you don't like the way the table is set change the table. And that's what the side hustle gives you it gives you the ability to completely change the dynamic in which you currently find yourself. And there's so many different ways to approach this. And there is not a single idea you just need to have a idea and once you have that idea and you implement and it's creating a little bit of income for yourself from there. There are so many different places that you can take it and this conversation actually got continued on our Facebook group and I'm going to give a plug to Luis who actually was talking about it on this thread with Alan and because he shared it there. I'm going to share it with you in our audience. So he's on our Facebook group said Have we met before Alan because it's like you're picking my brain on the side hustle topic. My wife is a hardcore side hustle enthusiast. Her main is catering to which we plan to expand to a restaurant in the near future. We had explored the same idea as you had mentioned with a local close by 2pm restaurant and we're working on the trust with the owner but that fell through. Nevertheless we press on. We do OK for what we can handle right now. I'm looking to expand having a restaurant fully running without my wife cooking. The goal is to solely own maybe manage a bit but I want to create an asset that brings an income but not wanting to work too hard once it's gotten going. I guess that steps out of the realm of side hustle but getting there is going to take a lot of side hustling. And he said he's looking forward to the round up and he plugged his wife business which I wanted to go ahead and do on the show as well. It's Berta Lynn's specialty catering. So Helen got back to him and immediately said and this was so value added that I wanted to mention it. First of all Alan loves tamales in case you needed to know that. But he said side hustles can absolutely turn into businesses and businesses can turn into businesses that run themselves. It always starts with hustle and energy from you and then it builds from there. And that is so powerful to me. First you need an idea then you need to have the energy and enthusiasm to turn it into a side hustle. And then from there if the idea has legs and your first idea won't necessarily have legs but once you get this energy going you will find something that has legs. And once you do that it's going to at some point if you're willing to put the time and if you're willing to learn this stuff willing to learn the skills that Alan is happy to teach you at some point you should be able to transition and scale this thing and maybe even scale yourself out of it and that's my final play that I want to make on this. Don't buy a franchise. Start one. That's the play that's where the money is. Buying a franchise involves you going $600000 a million dollars in debt and maybe never clawing yourself out starting a franchise is beautiful and you should absolutely consider it and it can be started from your garage. In almost every scenario. In fact out of Richmond we have sweet frog I'm pretty sure that one went viral and there's actually a sweet frog in Egypt and that started with one little store right here in Richmond and within the last two to three years so you just needed an idea and mediocre frozen yogurt can transform the world apparently. So just be willing to learn a new skill get out of your comfort zone and explore the possibilities of learning everything that you don't know. This is the missing link. This is the piece that we've needed in order to explore the story of what FI looks like even more. Ultimately if you're in a job that makes $30000 a year in some fields you may never make more than 35 even if you perform at 100 percent and follow all of ESI's guidelines in that particular job. You're one to three percent raises may never get you to 50 or 60 or $100000 a year. That's a reality. And that's fine it is what it is. But the missing link has always been how do you change the table right. What can you do to completely transform the dynamic in which you find yourself and that is where the side hustle comes in, how do we change everything. And I know at a very personal level people that have experienced this people that were in a very predictable career path and decided you know what I don't like were that predictable path goes. I want to change everything Brad. I mean Brad is a perfect example of what that looks like. And Brad do you want to take a couple minutes and just talk about what that looks like for you.
career, hustle
1087 - 1222 Brad Barrett Yeah you bet. You bet. I think I probably was maybe 10 years ago the least likely person to start a side hustle. I was just a regular office worker for intents and purposes I was a CPA but I was in a fairly stable job but it was really essentially going going nowhere. Per se but I just started learning and just lapped up every piece of information I could starting with Tim Ferriss' Four Hour Work Week and leading into podcasts and blogs and just everything I could get my hands on and I didn't have any comprehension of where it would go or if it would go anywhere. But I just had this sense that this is something that excites me. And like Jonathan's saying it changed the paradigm of how I even looked at life. Like I just tried to approach things differently and test things out and I very rarely have talked about this in the podcast. But but I had these Web sites that were just absolute garbage like in retrospect but I literally after again after reading the Four hour work week. And he talked about like drop shipping product. I literally bought a web website for a kid you not $512 I still remember. It doesn't exist anymore. It was like fire wood dash rack dot net and it's just the most ridiculous sounding Web site in the world but we literally drop shipped firewood storage racks and these things were really expensive. There like hundreds and hundreds of dollars to store firewood. I didn't have a fireplace. I've never lit a fire in my entire life but yet I had a website that sold firewood storage racks and it was me and a buddy of mine and we knew how to get the site at the time we knew how to get the site up and Google rankings and we made a couple thousand dollars. I don't remember exactly how much it was but it was it was a minimal amount of money but it was really fun you would get a sale and all the entire work would be forwarding the e-mail to the manufacturer who would then send the product out mail to them via FedEx and they would just charge my credit card and I would take the difference and it amounted to like 30 percent. That was the coolest business model in the entire world. Obviously I picked the wrong product because there isn't a huge market for firewood stores that.
hustle
1222 - 1228 Jonathan Mendonsa I don't know. Brad you are into fire before fire was blown up. I see that connection and.
1228 - 1262 Brad Barrett I like that I like that. Yeah yeah it is a sign of things to come. Geez I never knew. But anyway. So but then this kind of a long winded way of saying like we tested it and we tried to learn things and honestly we screwed up beyond all beliefs because we did this kind of gaming Google and just like doing things that I knew weren't right and we got punished for it we got knocked down in the Google rankings and that was kind of bad for that site. But that said it was a good learning experience and I learned when something doesn't feel right to me. I shouldn't be doing it. I'm right Jonathan we talk about like Mike quote unquote gut feeling all the time.
1262 - 1268 Jonathan Mendonsa Yeah. Your gut feelings get out of control these days. It's just rule in your brain.
1268 - 1428 Brad Barrett Yeah. But I let it I let it guide me because it has served me well and I think that kind of leads into my my recent businesses and successful ones and that's you know these three Web sites that I have travel miles one to one Richmond savers and now this ChooseFI podcast and I guess not going to talk about the details of each one. But but what it's allowed me is to change my entire life. I I reached FI dramatically faster than I ever would have because I was working and making some money and now I left my job two and a half years ago and the sites bring in a decent income certainly. And it just enables me at this life that I simply never would have had. And I left my corporate job at 35 years old and have a degree of financial security and financial freedom. That would have seemed impossible to me 10 years ago just absolutely impossible. Because sure we were saving money and doing all the quote unquote right things. But but we never saw the end of this and this side hustle got me there quicker than I ever could have imagined. And like we talked about with Alan on episode 30 I did a lot of these things that he espouses without really even knowing it. Like with travel miles 101 I created that course and marketed it before it even existed. It was just an idea and we wanted to prove it out. And like I mentioned again in the podcast We've put over 23000 people through that email of course and that was something that would have seemed to it seemed to me I could not possibly imagine that two and a half years ago when I started that site that it is just an absurd number. And every month there's another whenever a thousand or 2000 people that come through the course and that was just an idea that I had in my head and I proved out. And it's been a big success and I think that that again is my my huge take away from Alan's episode is just have these ideas and find low cost or free ways to prove them out and just keep iterating. I failed with five to 10 web sites before I ever found any degree of success. And even when I had the success it was on a dopey Web site called Richmonds Savers dot com. I mean like that is not a site that had national aspiration and there was just a fun little side project that I put together. But I saw a problem which was this travel rewards thing that people like me should benefit from and they weren't able to because they thought it was too difficult. So I put together a step by step plan to Disney World and that got picked up in the New York Times that it's just so improbable. But again you do the right things you lay the foundation you prove things out for FREE and your network also and good things happen.
hustle, savings, travel, travelrewards
1428 - 1563 Jonathan Mendonsa There's a couple of things that make the side hustle so rewarding in the FI community and also different from what you might see anywhere else and that is because we're doing the side hustle in the construct of FI we don't need our businesses to last forever. They don't have to. They are essentially Yet another vehicle that we can use to get to FI once you're at you are at FI and you have a choice. So for instance when you hear people talk about their 15 minutes of fame and their inevitable burnout in Hollywood and in the end the media the reason for that is that for short periods of time people get this incredible boost in their income and a lot of times in their national exposure and they feed off that. And because that is where they started with that one item they then built a lifestyle around that. And then when that flame passed or when that exposure passed and their income went away there was nothing else to support that. And so inevitably you end up with a very sad story that you can then tell your kids about all of the mistakes and what you could have done if you could do it all over again. It's very different in the FI community when you create something and it takes off when you're operating it from the FI mentality. It's a vehicle to get you to that number or to that reality. And once you're there if your business some point fades because most businesses even ones that are traded on the stock market have peaks and ebbs and some of them go under many of them do. If you've created your side hustle from the FI mentality and it's gotten you to your number. If it does go away you're still fine because you have this amazing financial baseline that other communities don't have. And this is one of the things that that my wife has talked to me because I get very excited about where maybe our side hustles might go in the future and she says well if you pursue this full time and you give up your very safe 9-5 what happens if a year two years three years five years from now your business falls apart. To which the easy response is sweetheart. This is a vehicle that we're using to get to FI. And when you create a fully funded lifestyle change you have a backup plan for your backup plan. And you're not increasing your lifestyle. There's no need to because you've already found a lifestyle that makes you very happy. And you're only increasing it as it increases your happiness. You have a much more balanced approach to the side hustle than you do from the outside world looking in.
hustle
1563 - 1653 Brad Barrett And yeah I like how you put that because you know I have to say when I left my very safe job two and a half years ago there were periods of stress. There's no doubt about it because at that point we weren't quite as far down the road to FI and the Web sites weren't really making all that much money at that point which was in retrospect kind of a scary decision that I made to leave my job. But we are now a couple of years down the road. The stock market's been doing well I've been able to save more money and we're at a point now where we're learning I actually talked about precisely that which is even if the sites did go way that we would be absolutely fine now. And that is because a we've kept our expenses show so low. And b like Jonathan is talking about we have backup plans for backup plans. Right we have been able to save a boat load of money and our net worth has grown dramatically and also Laura's little tax accounting job that I've mentioned previously where she doesn't make a ton of money but she makes enough that that would cover the vast majority of our yearly expenses. And she just works for two months a year and she does it because she enjoys it even though right now we certainly don't need the money. She just gets some intellectual stimulation and satisfaction from it. And that's great. So there's no reason that she's going to leave that job and then it's just a good little backup plan. So we don't have this existential worry that we did maybe two and a half years ago when when I did make that huge leap. But definitely Jonathan I think that was a good perspective for sure.
networth, stocks, tax
1653 - 1688 Jonathan Mendonsa OK guys we've been teasing this since Monday and actually really we were teasing even before that we had this unbelievable announcement that Alan is going to make today this episode because of this announcement is a game changing episode if you go back to frankly episode number one. We said there's all these different silos. There's the frugal list minimalist. There are the tax optimizers there are the entrepreneurs and side hustlers. There's the real estate crowd. How can you bring everybody together. This next segment is what does that. Unbelievably excited to play this for you. Hang on just a second Brad I'm going to pull this up.
hustle, tax
1688 - 1784 Alan Donegan So in England we run two workshops. Actually we're starting to travel around the world running these two week work shops but what we don't really do is coach individuals because that's just not this space in the day to do it and we get more leverage by helping bigger groups. So this is a complete shift for me. What we're just about to offer and what I want to offer to your community is to find someone that we can support to grow a site. And I will coach them with Jonathan and Brad for 12 to 24 months to help them grow that business and the benefit to the community. I mean one person will win this prize and we'll get the coaching the benefit to the community is that we could all work along with them and learn with them as we go. So if they are starting that business we can learn from their challenges. We can all grow together. So the competition is we want you to send us an audio submission telling us why do you want to build a side hustle. Do you have an idea for a side hustle. And No. OK. You don't have to have an idea. We can help anyone here. And then you dedicate time each month to being able to build the side hustle because the one thing I do know is that if you don't put some energy and effort into it it won't work. So if you send us. an audio submission we will then get the community to vote on who we want to support. And I am dedicating my time to co-chief for 12 to 24 months to build your side hustle business. And the thing I'd really love is in a year's time when this person that we're helping is making money doing what they love I'll fly out to the states and we'll go get tacos to celebrate. That would make my day.
hustle, travel
1784 - 1838 Jonathan Mendonsa I'm inspired by this. I'm so excited to get a chance to share this with our community so what we'll do. Go onto our website chooseFI dot com. leave us a voicemail. Up to five minutes long describing just the basics of what you would like to do and filling out the questions that Alan has asked. We will those on our Facebook community group which you can access by going to chooseFI dot com slash Facebook you can be a part of that private group and then we'll vote on it. We'll pick that one person and you're going to get a chance to benefit from one on one coaching for free from Alan Donegan and then the rest of us get to follow your journey which is so inspiring. And this is going to be essentially we did that case study with Paul which was a financial case study that this is going to be one that everybody can benefit from because the side hustle is available to everyone. It's a lever that anybody can pull if they're interested. And so I am incredibly grateful to Alan for being willing to share that idea with us. Brad how amazing is this going to be.
hustle
1838 - 1926 Brad Barrett Yeah I can't tell you how excited I am and I hope I win the competition. Honestly if I. I would love to work with Alan for two years but think about this. Someone from our audience is going to work one on one with Alan for one to two years and get all of his knowledge and all of his information and skills and actually make it happen for their lives. That is just incredible I cannot thank Alan enough. It is so beyond generous that I frankly can't believe he's doing it. But like he kind of alluded to he normally does this for groups of people and it is a bit of a departure to work one on one with somebody. But I think the larger point is he's not just helping this one person he's helping the entire choose FI community because what we're going to do is every single month we're going to have an update so you can expect on in all likelihood a Friday roundup that will have a segment with Alan. And the winner of this contest and Alan's going to impart some business wisdom for that month. So each month there will be a topic that he's going to essentially teach us. And we as the audience can follow along with and implement that in our businesses. So I fully anticipate that many many hundreds if not thousands of people are going to start actual businesses in their lives because of this contest. And that is just the most remarkable thing ever as far as I'm concerned. I mean that will be the most exciting thing going on at choose FI over the next two years. And I just cannot overstate how cool this is and how impactful it's going to be.
1926 - 2000 Jonathan Mendonsa And it gives us an opportunity to explore all the financial stuff that goes along with creating a side hustle just in the states creating the solo 401k versus the SEP IRA looking at tax code as it affects the entrepreneur. And then along with that looking at the problem a little differently looking at unconventional answers to very typical problems the story is chills down my spine. Awesome right that we get a chance to build continuity start with a baseline and we get to incorporate all these concepts as they apply. And then I think that along the way as usual I will find a way to incorporate my second gen FI pitch into this conversation how to get your kids involved. And I'm working on Edmund Tee to set up this method to the Edness segment because he has taken everything he creates businesses around optimizing his entire tax schedule. It's incredible and he gets his family involved and he starts businesses depending on the stage of life that his kids are in it's really it'll blow your mind. And so as we can weave all these really cool ideas into this conversation there's so much to learn every single step of the way. It's very inspiring to me. And Brad even though I very much doubt that we're going to pick you for our case I promise you'll get to be a part of it.
2ndgenfi, 401k, families, hustle, ira, solo401k, tax
2000 - 2005 Brad Barrett Well that makes me feel a little bit better but I do want to I do want to work one on one with Alan.
2005 - 2010 Jonathan Mendonsa In the meantime continue to enjoy your empty pool Monday through Thursday.
2010 - 2152 Brad Barrett Indeed indeed. And you have kind of like you're referring to I fully anticipate that we're going to bring a lot of our in-house experts in for this like Keith from the wealthy accountant. He's an obvious person to bring in as part of this entire crowdsourced case study. Right. So this is not just going to be Alan. This is going to be hopefully the entire FI community. And I think that it just adds an extra layer to the absolute awesomeness that this is going to be. So usually Jonathon's the one kind of exuberant with excitement but and I'm a little more laid back. But guys I hope you can hear it in my voice like this is just the coolest thing ever. And please just send in your ideas and send in your submissions. And Alan's mentioned this on the Facebook group and he mentioned this to us personally. But I wanted to reiterate is that the idea is not the crucial part. You're not being picked necessarily because of the idea. I don't think that will be the most important factor by any means. It's about showing some dedication showing excitement showing that you have time to spend on this and that you are serious. And I think that is to a large degree what we're going to use to pick the winner. So please don't think if you don't have a world changing idea like Uber or something like that then we're not going to pick you. That is really that's almost beside the point. We're looking for people who are going to be serious about this who are excited and motivated and are really going to put their heart and soul behind it. So he had the best place to leave. Your submission is to just head over to choose FI dot com our main homepage right there smack in the middle you can miss it. Leave a voicemail leave us a detailed voicemail and that will be your submission. And like Jonathan mentioned we're going to ultimately pick some finalists and then we're going to put this into our Facebook group to pick the winner. So this is all part of the main community that we're building here ChooseFI. This is not me and Jonathan deciding everything from on high. This is a community deciding what's going to happen for the community. So that leads right into join the Facebook group choose FI dot com forward slash Facebook. You'll just enter your e-mail address we'll send you out a link to the private Facebook group. Right now there's 11 hundred people in that group and it's amazing. I can't keep up with all the comments and different conversations going on in there. It's it's a remarkable group. So yeah this all kind of ties together into building choose of-I into an even better and and more impactful community for you guys.
accountant
2152 - 2185 Jonathan Mendonsa Brad I think one of the things that to me is so rewarding is when you meet somebody that has a business an unorthodox or unconventional business or side hustle or maybe full time business. When you find out they're into this fi concept or that they already discovered this rabbit hole and maybe went deep down into it it's really cool to find out that they're in the FI community. Like I think you mentioned several weeks ago or even several months ago now Craig who has a business here in Richmond a landscaping business. And you actually hired have to do some work for you a long time ago and then you found out relatively recently that he is deep into the Fi rabbit hole right.
hustle
2185 - 2292 Brad Barrett Yeah. This was the most mind blowing thing that I've experienced in the FI community. It's called green side up landscaping and yeah I mean 10 years ago when we moved into Richmond we actually hired this company and at the time Craig was a young guy we Laura and I were both young and we hired this company to do this big landscaping project. And just real good guy we actually hired them because of Craig. I mean he was just a really engaging individual who we just liked. And so anyway fast forward until a couple of months ago and I hadn't thought of them in years even though I see their trucks all over the place and they've grown significantly into one of the biggest landscaping companies in Richmond. And I was on the way over to Jonathan's house and I stopped for gas and I saw this green side up landscaping truck. And I thought oh I wonder what Craig's up to. It was just this random like thought and no joke. Ten minutes later I got to Jonathan's house. I checked my email and there was an e-mail from Craig from Greenside. Not to me but you choose FI to Brad and Jonathan at ChooseFI basically saying that he loves the podcast. He's been a member of the FI community for years and I've subsequently found it like he's all out. I mean he's like as FI as anybody I've ever met. Like he sold his house and rented an apartment and now he's building a essentially tiny home at his family's house or his sister's house or some such. It's this remarkable thing. But I mean it was just so bizarre that Craig had no idea. Brad Barrett who he met 10 years ago when he did a project. He was just e-mailing choose FI and there I had this email from him and it was just so like it said so mindblowing because you just don't know who is part of this community. So yeah I mean that was like a very cool little glitch in the Matrix type small world story I thought.
2292 - 2328 Jonathan Mendonsa But it's things like that that are so rewarding. I get such a huge kick out of meeting business owners from the fi community and we've been e-mailing back and forth with Evan Belang and he was just sharing with us all these different concepts that he was getting excited about. And along the way we found out that he actually is pursuing a winery out of Oregon What an absolutely fascinating side hustle. And if you can get to a place where you don't need to worry about how to keep the lights on and you can just pursue this there is something so powerful about this idea. And we actually asked for his story because it was just so interesting. How do you go about making this choice what is it that you're doing. And he actually sent this to us. Brad did you want to read that.
hustle
2328 - 2399 Brad Barrett Yes sure. So he said that my wife and I both work in the wine business she is a COO of a local winery and I am a professional Vineyard manager for other people's vineyards. When we were just married we bought a house ended up renting rooms out and followed Dave Ramsey all the way through until we paid the house off. We bought the house in October of 2008 in a tough time to make a big purchase and ended up paying it off. Four years later by that time it was 2012 and there are houses on our street that were selling for only 60 to $100000. We are in a distant suburb of Portland Oregon and even then unbuilt empty lots were worth 80000. The market was clearly broken. Houses were selling at a steep discount to their intrinsic value. We turned our backs on Dave Ramsey got a lock on our paid off house then started buying rentals. We bought one to two per year since then we are now up to 22 rentals not counting our place. That strategy allowed us to fund a wine brand called Bellinger estates and a year ago let us by our dream property where we are living and we'll be planting vineyards this fall. We're both still working and most days really love our jobs. But being at FI turns down the volume on the stress of our career.
career, ramsey
2399 - 2405 Jonathan Mendonsa That is awesome. And that reminds me what's that quote you always throw out that Buffett says about the bathtub quote.
2405 - 2454 Brad Barrett That's perfect John because that's exactly what I thought of when I read this was Buffett in his annual letter to shareholders said every decade or so dark clouds will fill the economic skies and they will briefly rain gold when downpours of that sort occur. It's imperative that we rush outdoors carrying washtubs not teaspoons and that we will do. And jeeze. Evan and his wife did exactly that. They saw this insanity in the real estate market that just made no sense and they made a departure from Dave Ramsey even though that's where they had followed for years. Took out this home equity line and just started buying up rentals and then they have 22 now. I mean that's absolutely incredible. So I mean this is this is one of the perfect FI stories encapsulated here in just a couple of paragraphs so yeah I mean we definitely enjoyed e-mailing back and forth with Evan.
ramsey
2454 - 2498 Jonathan Mendonsa And I think that we are going to have to explore that concept more because there is a recession coming. Right. There is going to be a downturn in the market. It doesn't matter when it is going to come. And I think we have a responsibility as we continue to grow this community to make the attempt to empower ourselves on a personal level and also our community. What is the play there what do you need to be thinking about how do you protect yourself one from the downturn and to what adaptations do you make. And I'm not ready to have that conversation today but I will say that Matt in our community has been reminded me you have a responsibility to have this conversation and we're going to have to explore that and really figure out what that conversation looks like so that when it comes you can be ready to run out with your wash tub. Right.
2498 - 2525 Brad Barrett Yeah sure. And we are not professional prognosticators we're not saying there's a recession coming next year but by definition there's one coming inevitably right it's going to happen five 10 20 years. I mean I can almost guarantee you in the next 20 years there will be a recession. So it's our duty not to scare you. That's not in any way what we do. But it's our duty to help educate and not just talk about the rosy side of things. So yeah I definitely hear you on that Jonathan.
2525 - 2530 Jonathan Mendonsa I scared myself when I said that I just realized it and I don't even really I'm not even worried but I just.
2530 - 2590 Brad Barrett That's for sure. And but isn't that what Jim Collins talked about. Right. Is that when you even when you invest in broad based index funds like VTSA X that we're always talking about you know for certain there are going to be downturns you know for certain there are going to be corrections and bear markets and huge drops over the next 40 years. That is a guarantee if you cannot deal with that then just put your money under the mattress and do nothing. And I'm not advocating that by any means. You need to figure out mentally where you are and steel yourself to know that things go up and down. That's just the way it works. There will be recessions there will be boom times but we all need to understand that it's just not going to be rosy all the time. So if you can mentally preparing yourself and that ties to what we talk about a choose FI all the time is psychology is so important. Prepare yourself to know when that next 30 percent drop in the stock market comes. What am I going to do. What's my reaction going to be. That's the crucial part that's what Jonathan's getting at here.
indexfunds, stocks
2590 - 2712 Jonathan Mendonsa This story got started with the Monday episode and it blended fi with the side hustle so perfectly that I am happy to somewhat bring this Friday roundup to a close just with this and just leave you thinking about this concept of the side hustle and where you would like to see this going forward. This show is about the fi community it's definitely not the Brad and Jonathan's show. It is a chance for us to facilitate this conversation that frankly we were looking for. It's what we wanted to find. And what I continue to realize more and more is how powerful the ideas are of the members in this community. And one of the things that were the most interesting to me when I would go to other FI bloggers web sites would be to read the comments from the community because there are so many ideas that are out there that are worth exploring more and there was no place for that. They were getting lost at the bottom of really great blog articles. This show is a chance to present those and talk about those and give them the light of day in the time that they deserve. And so this conversation will continue. Twice a week Monday and Friday and all the days in between. On the Facebook community group FI has the ability to change the world. And this community doesn't exist without use it. Thank you for being a part of this. Lastly as usual it is time to bring this episode to a close and we try to finish every episode by doing a weekly drawing for a copy of JL Collin's book the simple path to wealth. We actually mentioned this book previously. Brad and I do feel that it is the perfect place to start in terms of an investment in a lifestyle book to offer to someone that really hasn't been exposed to this before its incredibly powerful. Its one of the first books I recommend as does Brad obviously. And so if you're interested if you would like a chance to win a free copy of JL Collins book the simple path to wealth. All you need to do is go to choose FI dot com slash iTunes. There will be some super simple instructions on how to leave a short written review. Do that and then just send us this screen name that you left the review under and you can send that screen name to feedback at ChooseFI dot com that's all we need. to enter you in this drawing. And then every Friday we announce our winner. So Brad do you want to go out and announce our winner for today.
blogger, hustle, testimonial
2712 - 2732 Brad Barrett All right. The first winner is Lily and Lily said. I love this podcast so much. I'm relatively new to the FI community and choose FI has been so helpful in introducing the concept and providing the research and learn more about all aspects of FI. I listened to every episode and recommended choose FI to a few close friends. Thank you and keep up the good work.
testimonial
2732 - 2783 Jonathan Mendonsa And the second winner is Chris and Chris says making Monday's great again. Thank you Brad. Jonathan first of all every episode is awesome. I wake up early every Monday and take the long way to work so I can listen to as much of the show as possible. My favorite episode to date is Episode 9 about travel hacking until I listen to this episode. I thought I was doing well with credit card bonuses. Now I have actionable steps to improve my return on investment. I am looking forward to running the chase gauntlet. I also love your thoughts on second generation FI. My 16 year old daughter recently got her first job and opened a Roth IRA and bought her first share of VTI. Keep up the good work. Sincerely Chris. Thank you so much for sharing. The fire is spreading my friends and we'll see you next time. As we continue to go down the road less traveled. You've been listening to choose FI radio podcast where we help middle class America build wealth. One life hack at a time.
2ndgenfi, Jonathan_Catchphrases, ira, roth, testimonial, travelrewards

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