Tag Archives: Income

Bitcoin, Ethereum, And Other Cryptocurrencies Aren’t Just For Nerds, You Too Can Invest Like I Did.

Lately, everyone who knows me knows I can’t shut up about crypto currencies. Tired of sharing my excitement with uninterested parties, I thought I’d share my knowledge of cryptocurrencies and blockchain technology with other millennials like you who could really benefit. I am really passionate about this topic for so many reasons. Now this topic is very broad so I will be keeping it surface level here and provide an overview of my experience with the emerging technology thus far.

My interest in cryptocurrencies really picked up about five months ago, when my boss pulled me aside and told me to read up on the newest crypto technology called Ethereum. To start with some background definitions, a cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds. A crypto currency is unique in that it operates independently of a central bank. You can think of this as a monetary unit that only exists and is valuable in the digital space. One of the unique aspects of this currency is that it is not regulated by a centralized base, as the US dollar is by the Federal bank. Instead, Ethereum is decentralized by the mere fact that it exists within Blockchain technology. A blockchain is made up of a network of computer users that jointly manage the digital transactions of currency created by a universal ledger of accounts that cannot be erased. The universal ledger is a record of all transactions that have occurred since inception of the Blockchain.

What I just said probably made your head spin, if you’ve never heard of these topics, but i needed to get the formal definition out. The blockchain is the technology that these currencies are built upon and whenever the currency is traded, there is a permanent digital record that is kept to keep track of what took place.  This record happens instantly and cannot be changed or modified. This ledger of records is decentralized and universally recorded, which is the brilliance behind the technology.

Now at this point I had heard of bitcoin from way back in 2013 when there was a lot of buzz about the new technology, but I never really invested much thought into it before. I’m sure some of you have similar memories, maybe you heard of the Silk Road, the bitcoin crash or other scandals. But up until recently Crypto has been getting a lot of buzz because businesses are starting to catch on and realizing that the world can really utilize this technology for business applications. After doing preliminary research on Ethereum I was interested and started checking the currency rates every day against the US dollar. I noticed the market was very volatile. I was interested when the price of Ether jumped up from $83USD/ETH to $183 USD/ETH in the span of a few days. This is where it hit me, REAL MONEY COULD BE MADE! The market was extremely volatile and going back and forth like crazy. Yes, money was my primary motivation for taking an interest but it wasn’t until I started learning about the technology behind the cryptocurrency before I knew that this was going to be something big because even if Bitcoin and Ethereum fail, the principles and the guiding technology is what would prevail. This is when I fell down the rabbit hole.

I did what everyone else who was in the know was doing. I downloaded an App called CoinBase and threw in $1,000 just to see what would happen. I purchased half a bitcoin and a number of Ether Coins and some Lite Coins. These are the three main coins available for purchase on the popular CoinBase App. I was able to quickly double my investment in the coming weeks. At this point I was hooked. At first it did seem like I was winning the lottery but what I realized and was told before was that the currencies were highly volatile. Also i had been invested in the stock market for quite some time and had to wrap my mind around the fact that these currencies were not shares of a company but exchangeable currency pairs. Because of the volatile nature of these currencies you have to have an appetite for risk. Everyday I would gain/lose hundreds of dollars in unrealized gains and losses. But after a while you start to notice trends and patterns that you can use to your advantage. You can see when to hold your investment or buy the dip. My biggest recommendation for anyone would be to try out the market. When i initially put my first investment into the market if forced me to pay attention. I was seeing headlines i wouldn’t normally read and focus in. What was causing the value to rise and fall? What technological advances have occurred since? The material and future ideas were so intellectually stimulating that I had to dive right in.

Personally I believe in the technology more than anything and that is why I decided to get some of my savings and invest in these three currencies. Blockchain technology and the idea behind a universal permanent ledger for transaction verification will be crucial for the development of future technological infrastructure in our everyday lives. This is one of the biggest reasons I am focusing my time and energy into studying this technology and investing in these currencies.

 

Stop Making Plans and Start Establishing your Priorities.

When I started my job last summer, I became increasingly focused on planning out my future. When you are investing upwards of 10-12 hours a day at the office, you want to know that your time and energy are taking you where you want to go. Not only is “planner” built into my position title, but I have always been a planner in general. I like to know where I’m going, what I’m doing and who will be there.

Making plans has proved beneficial for me in the past, especially while at college, when classes ran on the same schedule every week and I was regularly in touch with the same groups of people. I knew what to expect from my days, so having a plan helped me fill my extra time in the best way possible. However, as I settle into my life outside of academia, I have started to see that the same rules don’t apply. Having plans has become more of a hinderance to my productivity than a help.

When plans are too detailed and timely, it can be very stressful trying to keep up with them. Your mood changes, people change their minds and the weather is never as nice as we expect it will be. If you have a set plan for your day, last minute changes to your agenda can leave you feeling very down, stressed and under-accomplished. Which in turn can reduce your productivity, and lead to increased planning in the future. I know first hand, it’s a bad cycle.

What I have started to do instead, is become increasingly grounded in my priorities. As someone who hadn’t put serious thought into my priorities before, it was difficult to determine what they actually were. I asked myself these four questions to get started.

  • What do you spend the most time doing already and why?
  • What do you do the most in your off time and why?
  • What is the majority of your Instagram/Facebook/Youtube feed filled with and why?
  • If you were on your deathbed, what would you want the most and why?

While my mind was all over the place at first, after a few weeks of journaling and observing my behaviors and thoughts, I came up with my answers. These were undoubtedly my priorities, whether I had realized it before or not. The most important part of my answers was the ‘why?’ Becoming very clear about your priorities and having concrete reasons as to why they are what they are, is crucial for living an honest and productive life. Yes, it may be scary to admit that you truly can’t plan out your day, year or life, but if you commit to operating based on your priorities, you can never really lose.

As you learn to say no to opportunities that don’t align with your priorities, you will naturally gravitate towards those that do. You will be able to make decisions more confidently and will be less thrown off when things come up unexpectedly. We can’t predict what will happen in life, but we can decide how to react when things do happen. If we are always mindful of our priorities, then we can best decide how to react to situations in order to live out our goals.

FOUR Financial Lessons from the Homeless

New York is one of the biggest financial capitals of the world. Finance is everywhere in this city, whether in the billion dollar hedge funds that are making million dollar deals or the restaurant owners calculating bar tabs, brunch receipts or tenants saving for the unruly rent they owe their landlords at the start of each month. 

One lesson I have learned from observing the homeless on my street, is that being a pure minimalist has its benefits. These people carry with them only what they need and nothing more. It would be inefficient to carry around dead, excess weight. We as millennials need to understand why excess is bad and recognize how our spending habits are based on desire instead of necessity. If we all became more aware of the things that we buy and their ability to clutter our lives, we might start to realize that material goods do not help us meet our goals or delay the process.

The second lesson we can learn from the homeless is how we can market ourselves well to attract the attention of others. I regularly encounter homeless individuals on the subways and in the streets. They are holding signs that tell their story or are yelling at passengers about their specific misfortunes. Many of them have had a lot of practice doing this, so they know what works and what doesn’t. They are forced to put their best foot forward and try and try again to sell the bystanders on a few dollars of investment into them. They are essentially pitching themselves to an audience of investors, like you see startups do on Shark Tank. When you want money for an investment or business, or are trying to land the perfect job, you need to market yourself to your best ability. This means looking the part and connecting with the given audience on a personal and real level. The homeless live it everyday. Their survival depends on it.  Since yours doesn’t, if you were to apply the same sincerity and passion into improving your current state, you would likely get very far.

The third lesson is utilizing the resources around you to the best of your best ability. I was in the train station one time and a homeless man was cleaning all of his clothes in the bathroom sink. Since the station is a public facility, this was free to him. He was being resourceful. I also see many homeless people using public places for shelter or the public library for entertainment to pass the time and read or subway seats as beds. We as millennials also have boundless resources around us that will cost us little to no money to utilize things such as books, mentors, the internet, newspapers, other people in our field willing to help us if only we just ask. Many of us do not use these resources to our advantage as we should.

The fourth lesson is that homeless people ask for what they want. If asking doesn’t work with one person, they try and try again. They are relentless because they need to survive. They will badger so many people and most of the time it works. I know because I see so many people fall prey to their tactics and reach into their pockets to grab money. Its human nature to feel empathetic towards other people and want to help them out. Ask for what you want and if you get denied ask someone else.

The final lesson to consider is that homeless people use a cash based accounting model. These days everyone is in debt. Debt is a tool, but most of the time people, especially people our age, abuse this tool. Homeless people collect cash, use that cash and simply go and try to get more when they run out. They don’t just put their purchases on a credit card. People need to realize that we should only spend what we have available. Try carrying around a specific amount of cash each day, spending only what you need and nothing more. Don’t always be putting the little things in life on a credit card because it creates bad habits that are hard to stop.

 

Why Jake Gyllenhaal In Nightcrawler Is The Perfect Entrepreneur

Last night I decided to watch the movie Nightcrawler upon the suggestion of my friends. They were bragging that it was “a must see movie,” so I wanted to see what all the buzz was about. Overall the film was very dark and ominous. The movie revolves around a man named Lou Bloom (Jake Gyllenhaal) who is a creepy, obsessive person attempting to solidify a career as a ‘Nightcrawler’. A ‘Nightcrawler’ is someone who races to crime scenes throughout a city in order to capture first response footage of different accidents, murders, breaking news, etc. They then sell their footage to news stations and other media hubs. I don’t want to reveal  too many spoilers, but if you haven’t seen it yet, I highly recommend doing so.

Why Lou Bloom is the Perfect Entrepreneur.

Lou is curious. In the early stages of the film, Lou pulls his car over after spotting two camera men trying to capture footage of victims at the scene of a car accident. He saw this as an opportunity to explore a new career. Curiosity is an extremely valuable trait for any successful entrepreneur because it is the seeking of unanswered questions that leads to the expansion of any business idea. In this instance, Lou wanted to learn everything about what they were doing…from the equipment they were carrying to the strategy they were employing. He is eager to learn, takes action and ultimately gains useful knowledge by doing so. When you are constantly seeking out new environments and new information, you are essentially opening the doors for positive change and modifications to your business plan.

Lou is persistent. He closely approaches crime scenes with confidence and assertiveness, even though his presence tends to be unwelcomed. He also demonstrates persistence when he continually asks news correspondents about increased compensation for the novel footage he captures, even though they don’t comply. Being turned down does not stop Lou from carrying on with his business endeavors. He is persistent while remaining passionate about the success of his business, and will do whatever is necessary to assuage those around him. Passivity doesn’t fly in this fast paced world. If you want to succeed, you must show unwavering intention.

Lou is constantly learning. During one scene Lou is talking to Nina, the news executive, about a business course he took. He said the most important lesson he gained was that there is so much to learn in this world, but those that learn are the ones that look hard enough to find it. This hit me. In this day and age we have an unlimited source of information at our fingertips, but the search for the knowledge we need requires stamina and persistence. A large part of being successful is having access to the information necessary to be prepared in any situation. Whether it is the information you need for an interview, a meeting or pitching new ideas to clients. What you need is all around you, you just have to want to find it.

Lou is a negotiator. Throughout the film, Lou has to negotiate many situations. Whether it be deciding on the cost of his footage or figuring out the salary for his first employee. Althogh negotiation is a two way street, Lou never begins the process before solidifying a number in mind. He will either stick with that number or settle on a better price. His most powerful technique is the will to walk away. He was fully willing to deny his partner a spot in his company or ready to bring his footage straight to another company. He always remained confident in the worth of his company and his work. He won’t settle for less without being unrealistic. Deep down, all of us has an assessment of our capabilities. Settling for someone else’s assessment of your worth will only make you unsatisfied and unhappy. A good entrepreneur is constantly evaluating their worth and sticking to this method in everything they do.

Lou is detail oriented. He thinks and plans out everything about his company and its future, down to how he wants to be addressed to the language his employees will use when they communicate within business contexts. When Lou is negotiating with Nina, he tells her exactly how he wants to be presented with other executives of her company, and exactly how he wants to appear on Live TV. This is a tedious, but valuable characteristic of any successful entrepreneur because the little things really do matter. Details are key because even the smallest overlooked details could compromise a business’ reputation.

Lou finds his passion. Lou emphasizes the importance of finding work that adheres to his personal strengths and interests. However, he is also not quick to judge new opportunities that cross his path. Sometimes it is the random opportunities in life that can become the work that makes you the happiest. As Lou becomes a Nightcrawler, he realizes it is an occupation that he has not only become very good at, but very passionate about as well. So I want to conclude with this; it is easy to write off new opportunities for fear of the unknown, failure, etc. But you must remember to alway keep your mind open for exploration because it is those  new things that you are unsure of that might just become your next passion!

Alright, enough from me. Now go watch ‘NightCrawler.’

Treat Your Life Like A Business With These 3 Statements

Businesses, like people come in all shapes and sizes. From big corporations, partnerships to sole proprietorships and LLC’s. These companies can range from businesses like Apple or Google to your sisters haircutting service or the local popcorn salesman on Main Street. You are a business, every day you make financial decisions and transactions with your finances to better yourself. You are constantly mirroring the acts of businesses all around you. Therefore, in order to be financially successful in your life you should always be thinking and acting like a business would, except instead working for a  product or service, you are in business for yourself and your product is a fulfilled life and financial security.

Budgeting with a ‘business sense’ is one of the tools that will get you there. A budget can be created by using the information from 3 different statements that businesses use everyday.  Like any business, you need to keep in touch with your accounting and finance department regularly in order to make smart life/financial decisions. This way you are aware of where your money is going and how you can make it work for you in order to get the best possible return. Using these statements or a financial tool like mint.com will help you keep track of your finances and how much you are spending and are going to spend on your “business”.

Income Statement

This is the statement that shows you your income in relation to your expenses. This statement usually is a single column report with income at the top showing your personal revenue. It doesn’t matter if the money is coming in from your job or other alternative sources of income., this just shows your inflow. The expenses are your outflow. The report will give you your NOI (net operating income) which is basically your personal profit. This will let you know if you are spending too much money. This way you can tell if you need to stop shopping in SoHo on Saturdays or buying too much late night pizza on the Lower East Side at 4am.

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(Click to Enlarge)

Balance Sheet

The balance sheet is your statement that tells you your net value at any given time. This statement breaks down your assets and your liabilities and what you physically own (equity). Here you will show your assets on the left column. These are things  like your cash, money that people owe you, your car, house, value of your investments etc. The right side has your liabilities. These are your debts, such as loans that you have yet to repay for a house or car, and/or your credit card debt. The left side is also where you put your equity. This is essentially your value or ‘net worth’. Your assets are going to equal your liabilities plus your equity. So the right side should equal the left. See below for a visual representation.

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Statement of Cash Flows

The statement of cash flows is important because this is where you are able to financially model where you will be at any given point in time.  this future value is based on certain assumptions such as how much you predict you will be making and how much you will be spending at a future point. This shows on a scale of time your income minus expenses.  It is usually a good idea to stay on the more conservative side because the future is never certain.  So it’s good to not overestimate income and underestimate expenses. Using this statement is helpful because you can see where in the future you will be able to afford more expensive things like a new car or vacation. This will keep you prepared. Click on the visual to see how this works.

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Even if you’re personal versions of these statements are on the more basic level that is okay. You are still making progress and will be more financially informed about your money. These are just power-ups to bring your budget to the next level. I would recommend updating them once a month, so you can always have an accurate sense of where you are. When finances are constantly on your mind you will be more self-aware when spending and save more money.