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The financial principle that changed this 4x founder’s career
a 4x founder and 2x public company CMO shares the financial principle that changed his life and Podcaster Danny Miranda shares his thoughts about investing, money, and advice.
Hey there! Welcome to the Independent Money newsletter 👋 We’ll be exploring the latest financial news and discussing how it affects entrepreneurs like you. Plus, we'll share some awesome wealth creation insights from successful entrepreneurs that you won't find anywhere else.
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In this newsletter, we’ll discuss:
Financial Philosophies: Kevin Dahlstrom is a 4x founder, 2x public company CMO, and has 70 active real estate and PE investments. Here is the financial principle that changed his life ten years ago.
An Entrepreneur’s Journey: Podcaster and content creator Danny Miranda shares how he’s thought about investing, a money rule he lives by, and the best advice he’s learned interviewing highly successful people.
What’s Happening at Carry: We’re hosting another Personal Finance 101 Workshop for Business Owners and come see us IRL at NY Tech Week.
Financial Philosophies 💸
Kevin Dahlstrom is a 4x founder, 2x public company CMO, and has 70 active real estate and PE investments. He tweeted about a financial principle that he claims had a massive impact on his life.
💰Know Your Number
10 years ago I stumbled into a simple but powerful financial principle I'd never seen before.
It changed my life & it can change yours too—financial freedom is isn't as far away as it may seem.
Here are 3 simple (but not easy) steps to get there...
🧵👇
— Kevin Dahlstrom (@Camp4)
7:24 PM • Apr 14, 2022
Here is a brief summary of those three steps:
Step 1: Know your Number
Your “number” is the net worth you need, invested in assets (stocks, your home, etc.), to no longer need a full-time job.
To get to that number, he uses the 4% rule, which basically means that you need assets equal to 25 times your annual living expenses to achieve financial freedom.
For example, if your family’s living expenses are $6k/month ($84k/year), then your number would be $72k x 25 = $1.8 million.
Before you get discouraged at the size of your number, here are some ways to reduce it:
Maybe you’ll start a side hustle or keep a part-time job or find a more fulfilling—but lower-paying—full-time job.
You may have some passive income sources
Cutting expenses reduces your number: Because of the way the math works, for every $500 you cut from monthly expenses ($6k/year) your number goes down by 25 times that, or $150k!
Step 2: Know Your Net Worth
There’s an old saying in business:
You can’t manage what you don’t measure.
So use this spreadsheet to track your net worth.
He updates this sheet each month and at the bottom, it calculates his allowable living expenses (if he were to stop working) based on the 4% rule (25 multiplier).
Step 3: Know Your Plan
Now that you have a clear and measurable goal, it’s time to execute.
Reorient your financial life around accumulating assets (the #1 money move of the rich).
Take a hard look at every expense and also things you can do to increase income.
Consider radical changes. After all, the reward you’re working toward is massive!
Change jobs?
Relocate somewhere with a better economy or lower cost-of-living?
Start a side hustle?
Share one car?
Cut “nice to have” expenses?
Spend your money on things that grow in value (e.g. stocks or your home), not on things that lose value (new cars, fancy clothes, etc.).
Trust me on this—buying tiny assets feels way better than the short-lived thrill of buying things.
You can read his full thread here.
An Entrepreneur’s Journey 💬
Danny Miranda started The Danny Miranda Podcast 3 years ago. He’s posted more than 400 interviews with some of the most remarkable entrepreneurs and thinkers in the world. People like Gary Vaynerchuk, Alex Hormozi, Robert Greene, Colin & Samir, Sahil Bloom, and Carry Founder Ankur Nagpal!
As you’ve been on your journey as a creator, how do you think about investing your money and how has this changed over time?
I imagine myself playing a 50+ year game with the podcast. Because of that, I invest almost every penny I make back into the podcast. It's the thing I love doing the most which gives me the most fulfillment that is progressively growing. Alex Hormozi talks about how early in your career, there's no use in investing in the S&P 500. Instead, invest in the S&ME 500.
You’ve interviewed a lot of highly successful people – what’s one piece of advice that’s stuck out to you as you’re on your entrepreneurial journey
In episode 39, Gary Vaynerchuk said something important. When I asked him if he knew Wine Library TV was going to be successful (his first content series), he said yes. Because "the learnings from the process were going to be valuable enough for the entire commitment of time." That idea has fueled the show. And it's been true. Since episode 39, I've become so much more comfortable on camera, asking questions, and connecting with human beings. Those skills and connections will be the base for the rest of my life. The learnings from the process have been more valuable than any financial reward. And it hasn't even started yet.
What’s one “money rule” you live by?
I have given myself a virtually unlimited budget for books and fitness.
Find Danny on his Podcast(Apple/Spotify/YouTube), Twitter, and check out his new course Art of Interviewing where je breaks down everything he’s learned from 400+ episodes.
What’s Happening at Carry?
Here’s what you can expect in the coming weeks
See the full list of events here. ⏰
Personal Finance 101 for Business Owners
Being a business owner is the best tax hack in America. One of the best parts of owning a small business is the tax write offs and deferral opportunities that aren’t available with just a W-2 income.
We’re hosting a workshop that’ll cover all the strategic ways business owners can save on taxes by paying for more things with their business.
📆 Tues, Sept 26
⏰ 11am PT / 2pm ET
Sign up to save your seat or get the replay here: https://streamyard.com/watch/zZ93qKeincW6
Come see us IRL at NY Tech Week
We’re hosting a panel on Founding, Investing, and Going Viral - bringing in some of our favorite experts to share their experiences and answer your burning questions.
📆 Tues, Oct 17
Sign up here: https://partiful.com/e/3wWE4HAoCD2w0LnIohvj
And let us know you’re coming from this newsletter by commenting Independent Money as you sign up!
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