Summary:

In this episode, I will try to explain to you what NFT (or non fungible token) is, how the NFT market has been in the last year or two, and what is happening to most NFTs’ prices now. Should you invest in NFTs? Listen to the episode to find out!

References:

1. https://en.wikipedia.org/wiki/Non-fungible_token
2. https://cointelegraph.com/news/22-year-old-indonesian-boy-makes-1m-by-selling-nft-selfies-on-opensea
3. https://en.wikipedia.org/wiki/Bored_Ape
4. https://cyberscrilla.com/how-non-fungible-tokens-are-changing-sports-forever/
5. https://www.coindesk.com/business/2022/04/13/jack-dorseys-first-tweet-nft-went-on-sale-for-48m-it-ended-with-a-top-bid-of-just-280/
6. https://www.forbes.com/sites/jeffkauflin/2022/04/14/why-jack-dorseys-first-tweet-nft-plummeted-99-in-value-in-a-year/?sh=1a82234a65cb
7. https://beincrypto.com/nft-marketplace-volume-12-billion-2022-lows/

In this episode, I want to explain to you why gas prices are so high, and unfortunately, will remain high for a while, from the economics perspective. The reason may not be what you think, or what the mainstream media try to make you think.

Summary:

In this episode, I am sharing with you an introduction to cryptocurrency, because I believe good timing has come to get (back) into crypto. I want to give you some interesting background on why cryptocurrency was created, whether it is technically "currency", and some advice on how to invest. The episode ends with a word of caution. 

Reference:

1. Why is Bitcoin’s supply limit set to 21 million? (https://decrypt.co/34876/why-is-bitcoins-supply-limit-set-to-21-million?amp=1)
2. Why do many economists not consider crypto as money? (https://youtu.be/KwoaqD7JLdA)

Want to know the one thing I did to become a millionaire by age 35? The one thing is NOT:

1. Getting a high paying job
2. Inheriting a bunch of money
3. Winning a lottery
4. Buying Tesla stocks and/or Bitcoin and held long term

Curious? Listen to the end of this episode to find out the one simple (but not easy) thing I did to allow me to grow my net worth in less than 10 years from negative to $1 million+.

I’ve once heard that one of the key differences between the wealthy and the poor is how often they read - the wealthy are always learning and one of the best ways to learn is by reading; in comparison, the poor think the end of schooling is the end of learning and would rarely read. According to CNBC - Those who read seven or more books per year are more than 122 percent more likely to be millionaires as opposed to those who never read or only read one to three books per year. Take one of the most wealthy men in the world, Bill Gates, who reads 50 books a year, or Warren Buffett, who spends as much as 80% of his day reading. Entrepreneur.com also has published this article stating that millionaires read for self-improvement, and 85 percent of self-made millionaires read two or more books per month.

In this episode, I am going to talk about the 5 books that changed my life, which are all in the self improvement category. These 5 books are:

1. How to Win Friends and Influence People 

2. The Law of Human Nature 

3. The Millionaire Next Door

4. The Simple Path to Wealth 

5. Rich Dad Poor Dad 

I wholeheartedly recommend all of them to you if you haven’t read them already. Of course there are many other great books out there, but if you want a place to start, try these first. They definitely changed my mindset and my life in a great way, and I hope they can have a similarly positive impact on you as well.

What is the metaverse, exactly? Listen to this episode to find out. More importantly, listen to the 10 business opportunities Personal Finance Cat identified after comprehensive research. The metaverse is the “wild west” still, which also means now is the best time to get in! Here is the list of the 10 opportunities, from the easiest to the hardest:

1. Passive investment in companies like Meta or Microsoft.

2. Become an architect or designer.

3. Provide consulting services.

4. Become a technical expert.

5. Provide educational content.

6. Become an influencer.

7. Make digital products.

8. Work for companies that are participating in the metaverse adventure.

9. Produce hardware and/or accessories.

10. Generate new business ideas.

References:

1. Wired Article: What Is the Metaverse, Exactly?

2. Winklevoss twins becoming billionaires story:

https://www.fool.com/the-ascent/buying-stocks/articles/how-the-winklevoss-twins-amassed-a-6-billion-bitcoin-fortune

3. 25 year old designing homes in The Sims: https://www.newsweek.com/amateur-architect-makes-living-building-homes-gamers-virtual-world-1618554

4. Freecodecamp.org Blog: 10 Free Websites For Learning Coding: ​​https://www.freecodecamp.org/news/learn-to-code-in-2021-10-free-websites-for-learning-coding/

5. Meta resources:

https://about.facebook.com/immersive-learning/our-story/

https://about.fb.com/news/2021/10/facebook-company-is-now-meta/

https://sparkar.facebookblueprint.com/student/catalog

https://www.facebook.com/business/learn/digital-skills-programs/meta-career-programs

In this episode, I am going to explain what mutual funds, index funds and ETFs are, and which one is recommended and why! Even though I am mostly a real estate investor, I do want to diversify my investment portfolio. In summary:

1. Mutual Fund: A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. 
2. Index fund: A type of mutual fund that seeks to track the returns of a market index, for example, the S&P 500 Index.
3. ETF: ETFs offer investors a way to pool their money in a fund that makes investments in stocks, bonds, or other assets, and can be traded like a stock.

The recommendation is Index funds due to its low fees and the fact that in the long run it usually outperforms the other types of mutual funds. 

References:

• Investor.gov
• New York Times article:

https://www.nytimes.com/2020/07/31/business/mutual-fund-winners-stocks-bonds.html

• The Balance article:

https://www.thebalance.com/how-and-why-john-bogle-started-vanguard-2466413

This episode starts with the obvious, which unfortunately nowadays is not as obvious perhaps. The best way to deal with debt is to not incur it in the first place. It is still doable, even in developed countries like the U.S.! That said, Personal Finance Cat believes that good debt is still O.K., or even good, to incur, because of the power of leverage. The below is an example of using $100,000 to purchase real estate using all cash v.s. with debt, which shows the mathematics of why the latter gives you higher cash on cash returns.

All Cash With Debt

Price per unit 100,000. 100,000

# of units purchased 1 5

Rent per unit per month 1000 1000

Expenses per unit per month 300 300

Mortgage per unit per month 0 429.5

Net cash flow per unit 700 270.5

Total cash flow 700 1,352.7

Cash on cash return (annual) 8.4% 16.2%

Assumptions:

1. 20% down payment
2. 5% annual interest rate and 30 years term for mortgage
3. No closing cost (or seller pays for closing cost)

As you can see, using leverage almost doubles your rate of return!

Anyway, let's get into the 5 tips to pay down bad debts.

1. Live below your means.
2. Find alternatives for expensive items such as housing.
3. Earmark bonuses and other “windfall” money to pay debt.
4. Increase your income.
5. Delay gratification.

Summary:

In this episode, I start with the reasons why I think real estate is still the best and my personal favorite investment vehicle. I then provide you with the correct and ideal steps you should take to invest in real estate (beginner friendly!). I also want to give a big shout out to BiggerPockets (at biggerpockets.com). In this episode, you will hear many references to BiggerPockets.

1. Learn the basics, and decide what type of investing you want to do - rental, flip or wholesale.
2. Decide where you want to invest.
3. Network and build a team.
4. Set your criteria.
5. Analyze the deals.
6. Make an offer.
7. Close the deal.
8. Renovate the property, if needed.
9. Rent it out or list it for sale.
10. Realize your profits.

References:

1. Fun fact: over the last two centuries, about 90 percent of the world's millionaires have been created by investing in real estate. (https://thecollegeinvestor.com/11300/90-percent-worlds-millionaires-do-this/)
2. Three ways old money holds on to its riches: (https://www.usnews.com/opinion/blogs/economic-intelligence/2012/04/16/the-three-ways-old-money-holds-on-to-its-riches
3. Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties by David Greene (https://www.amazon.com/s?k=long+distance+real+estate+investing+david+greene&sprefix=long+distance+real%2Caps%2C343&ref=nb_sb_ss_ts-doa-p_1_18_ )

In this episode, I am going to guarantee you that what you’ll be hearing in this episode is different from most if not all what other influencers are talking about on this topic. I’m not going to talk about how to max out your 401(k) and HSA, how to put your money in savings or investment accounts right after you get paid, how to cut back on dining out or Starbucks coffee, etc etc. I actually only have two tips I want to share in this episode and they’re not what you might think. But they really work, based on my personal experience!

1. Change your mindset.
2. Invest your money in illiquid assets like real estate as a means to force yourself to save and build wealth.

How do you implement these tips? Listen to this podcast to find out!