I thought a rambling 2016 recap post would be a good idea, looking at some wins and losses. Overall, it is Win orientated, which comes from my personality, I’m not naively optimistic as a person, but I do move on quickly from my mistakes, and hopefully don’t repeat them!
mLife
Let’s start with mLife. What started as concept a year ago has proven to be very lucrative, with the following ballpark numbers. Four visits to Vegas, three suites, two with round trip limo. Total food/beverage comp around $5,000, cumulating with the tasting menu at Robuchon. I liken this gig to the aspirational approach to fancy travel. I still think that few people would pay $1400 for a dinner for 2, but they would spend 140000 ultimate rewards on AA F, money is funny. After the last visit, my goose is finally getting cooked there. I do have a legacy offer that I could cash in, but I’m going to let it fade away.
The unexpected loss from Vegas came in the form of ‘winning’ too much, it skewed my AGI (Adjusted Gross Income) which I use to control tax credits and which grants me $480 for the entire family, per year healthcare. In order to fix that issue and control my taxes, I have to eschew the Standard Deduction and Itemize my taxes, which ‘costs me’ a few thousand in deductions.
Vegas is a win, and a loss.. but mostly a win.
DGAF
One of the big wins is a movement towards DGAF. I’m really starting to feel this mindset – the Don’t Give a F*$K approach to things. I’m not going to trek to Vegas for a free room and food in one of their best hotels because I’ve other things to do, and I don’t DGAF. Same with chasing every offer, following every gig, replenishing every resale item. I’m much more in control. I focus my time more on clients and family (this is also why I’m posting less) and I fit gigs around my lifestyle. If the lifestyle is too hectic, I let them pass me by. DGAF.
This is why I suggest a symbiotic approach to the earn/burn/churn cycle: you both reduce your leakage/inefficiency, and you increase your passive/semi passive earning via applying for things that you don’t really understand, but are just worth it.
An example of this in action was the decision to do the following:
- Carry zero debt
- Open a business
- Apply for DiscoverIT without knowing why
Having very low monthly consumption expenses (no mortgage/loans/etc) means that most of my expenses are discretionary and variable rather than fixed. While I still need to eat, we can throttle down the Rib Eye steaks and buy cheaper cuts if things get tight. It’s a lot harder to throttle down mortgage payments. This means that any income over a very low threshold can be put to work in an investment. DiscoverIT paid me about $2,000 in cash back, and that covered real investments in myself, $2,000 could be:
- 20% of my business technology expense for 2016.
- The cost of attending two conferences to learn and obtain continuing education credit
- The cost of my Enrolled Agent education
Because of the way taxes work, there’s inherent leverage into such spending decisions ($2,000 rebate tax free, $2,000 expense tax deductible) and they also fuel industry and help Make America Great Again.
I still consider not carrying a mortgage a huge win, and one that continues to offer upside in cases like the above.
My biggest mistake for the year was not taking enough time for ‘me’. I went from being deeply involved in martial arts training as a hobby to almost nothing. I’ve carved out one slot a week at the moment, and am committing to another in 2017. It’s incredibly hard to pick something up like this when you are super busy, but it is also incredibly important to reduce stress, and reset the body and brain.
My closest reminder to this feeling was the rage I would feel while working in kitchens during college. The head chef would stroll in mid shift, when we were deeply ‘in the weeds’ and behind on orders. He’d order us to stop everything, clean everything down, and start again. The process used to infuriate me, but I know that it created a reset that allowed us to regain perspective and finish service.
Therefore, my biggest wins for 2016 are realizing that you need to carve out time for yourself. That you need to give less of a F in terms of the noise out there, and that investing free money in education and tools to create more value for people. This should result in more money and a more enjoyable life.
Trevor says
That’s an impactful lesson. The fact that you shouldn’t chase every gig. Definitely something that I’ve been coming around to on the resale side.
TravelBloggerBuzz says
When you write “need to reduce your leakage”…I am on the floor loling big time 🙂
Added a second session per week with personal trainer. If I could only stop eating tacos…
Matt says
You find it funny because you are old, and you never can trust a fart.
MickiSue says
The fact that I am only now, after two full years reselling, hitting a double 5 figure sales month is testament to the idea that taking it slow, and giving yourself time to recharge as needed is just fine.
I have enough work to make life meaningful, enough income to make it safe and fun at the same time, and enough miles, points and cash back to add extra fun as desired.
I’m at the other end of the child raising spectrum from you, as you know, Matt. I’m thinking about how to help out with the futures of my grandkids. But having grown up a half a continent away from my only living grandparent, I understand that time spent with children is the absolute best legacy. The way you are structuring your life allows you to give that to your son, and for that, I salute you.
Matt says
Is double 5, 10? If so wow!!! I’m a huge fan of using the miles to achieve things beyond the flight, like staying in touch… and I often forget how fortunate I am to have the home situation that I do.
Hank says
Don’t suppose you have details posted somewhere about that $480/year healthcare for the entire family?
Matt says
That’s complicated. You need to earn just the right amount based on family size. Almost impossible unless self employed.
Jay says
DGAF – First time I heard about this abbreviation/phrase.
I’ve been practicing this concept for the past 2 years, and now I have a clear name/phrase for it. Thanks Matt!