The turn of a new year often brings a moment of quiet introspection, a pause to reflect on what was and what could be. For me, the close of 2016 was precisely that - a candid, sometimes uncomfortable, assessment of shortcomings. I found myself asking, "Why did I fall short in so many areas?" The consistent, undeniable answer echoed back: I simply wasn't pushing myself hard enough. I wasn't embodying the spirit of persistent effort across all facets of my life.
Whether it was the extra five pounds I gained instead of losing, my lackluster performance in tennis leagues, or the marginal growth of my online platform, the root cause was the same: a lack of consistent, dedicated "grinding." This wasn't about simply showing up; it was about the intensity, the intentionality, and the relentless pursuit of improvement that had waned. This realization sparked a renewed commitment, a powerful drive to embrace a philosophy of "Always Be Grinding" for the year ahead.
The Imperative of the Grind
Looking back, my failures weren't due to a lack of talent or opportunity, but rather a deficit of sustained effort. My fitness goals faltered because I rarely visited the gym and ignored nutritional discipline. My tennis game suffered not from insufficient play, but from a lack of deliberate practice on fundamental skills like serves and volleys. Even my online platform's growth stagnated because I settled for the status quo instead of innovating with new content, mediums, or an updated publication.
This self-assessment led to a stark conclusion: I had become complacent. In a world that often rewards comfort, it's easy to lose the edge that drives progress. This philosophy, the essence of always be grinding! financial resilience, is a powerful antidote to complacency. It demands consistent, focused exertion across all aspects of life, whether it's neglecting a passion project like learning to code or mastering a musical instrument, or simply not pushing the boundaries in one's professional sphere. My theme for the upcoming year became clear: "Always Be Grinding," or ABG for short.
A Shifting Economic Landscape: Opportunity Beckons
A palpable shift in sentiment has ignited a new level of excitement, a feeling reminiscent of youthful ambition where the sky truly felt like the limit. For years, the motivation to work intensely was often overshadowed by concerns about diminishing returns due to heavy taxation. However, the prospect of potential tax reform has injected a thrilling sense of renewed purpose into the equation.
It's a stark reminder that personal financial discipline is paramount. Everyone should aspire to achieve a savings rate that surpasses their effective tax rate. Imagine diligently saving a mere 10% of your gross income while simultaneously surrendering 20% to taxes - a scenario that highlights a significant imbalance. The historical disconnect between effort and reward, often exacerbated by governmental inefficiencies, inadvertently nudged me towards a more leisurely lifestyle and the creation of a lifestyle business.
My intentional departure from traditional employment in 2012, driven by these factors, significantly reduced my tax burden and stress levels. Yet, with a tightening correlation between effort and reward now on the horizon, the window of opportunity feels wide open once more. It's time to re-engage with a relentless drive, to "grind" with renewed vigor until this advantageous period potentially shifts again. My goals for the year ahead are structured into three key categories: Business, Personal Financial, and Personal.
Ambitious Business Horizons
Broadening Reach and Impact
Feedback consistently points to a need for content that resonates with a broader audience. While sound financial principles apply universally, regardless of the scale of one's investments, many readers struggle to relate to larger figures, leading to disengagement. My commitment to authenticity means sharing first-hand experiences, even if they involve significant sums, but growth necessitates wider appeal.
To address this, I'm thrilled to welcome Sydney from Untemplater as a regular contributor. She will focus on accessible personal finance topics, family finances, and women's financial issues, and co-host our "Dojo Talk" podcasts. Sydney brings invaluable perspective, having engineered her own layoff and built a successful freelance career. Her background, including growing up in a low-income household, will introduce a fresh and relatable flavor to the platform.
Publishing a Flagship Ebook
Despite fluctuating interest rates, generating substantial passive income from traditional investments still requires considerable capital. The realization struck that dedicating effort to a new ebook could yield significant passive income with virtually no downside. Therefore, a new, unique book on real estate investing is slated for publication by July 18, 2017.
This book promises to be an exceptionally entertaining and comprehensive guide, offering actionable strategies for investors at all levels. From beginners seeking to build wealth and passive income to experienced investors aiming to avoid costly errors, the content will be delivered in my signature, no-nonsense style.
Strategic Partnerships and Core Focus
Managing numerous business partnerships can lead to being spread too thin, detracting from core writing and business development. The strategy now is to narrow focus to three primary passions: entrepreneurship, real estate crowdsourcing, and family finances. This allows for deeper content creation and the identification of synergistic product partnerships.
My eight years of entrepreneurial experience offer a wealth of insights into building side income and embracing the limitless upside of working for oneself. Many hesitate, believing they lack ideas or ability, but the truth is that successful ventures often begin with a leap of faith, followed by continuous learning and adaptation (Harvard Business Review, 2022). Real estate crowdsourcing presents an ideal solution for investors seeking exposure to real estate without the direct management burdens of physical properties, especially as I prioritize a less hands-on retirement. Finally, family financial issues, a topic I've explored with positive reception, will be a central theme, with Sydney's expertise proving invaluable.
Enhanced Audience Engagement
For too long, a valuable resource has been underutilized: my email newsletter. Paying a monthly fee for infrequent dispatches is inefficient. The previous belief that emails needed to be lengthy and "meaty" to provide value was a limiting factor. The new approach will involve sending two to four shorter, more direct emails each month, fostering a stronger connection with the tens of thousands of subscribers.
The goal is to establish a consistent routine, identify recurring topics, and prioritize genuine connection over an attempt to constantly impress. This shift will ensure subscribers receive valuable updates more regularly, enhancing engagement and strengthening the community.
Strategic Personal Financial Milestones
Targeting Significant Wealth Creation
Last year's net worth growth target was $500,000, reflecting a cautious outlook. With a renewed bullish perspective on my business, the aspiration has escalated to creating a million dollars in wealth. In a robust business environment, enterprise valuations can expand significantly, making wealth accumulation more achievable through growing earnings and valuation multiples.
The equity built in one's own business is a powerful engine for wealth. Beyond monthly income, a business offers the potential for a lucrative sale based on revenue or earnings multiples. This entrepreneurial mindset, a testament to the power of always be grinding! financial independence, is a path many can forge. Initial discussions with potential acquirers have provided a clear valuation benchmark, indicating that focused growth in brand, traffic, search rankings, and revenue will position the company for substantial value creation. The ultimate vision is not necessarily to sell, but to build something so valuable that the option always remains viable, allowing for the pursuit of new ventures - a true American dream.
Consistent Investment Discipline
A non-negotiable goal for the year is to invest a minimum of $20,000 each month. This commitment isn't confined solely to the stock market; it encompasses a diverse range of assets including bonds, real estate crowdsourcing, private equity, private debt, or accelerated mortgage payments. A detailed review of past investing habits highlighted a common discrepancy between perceived and actual investment levels. By adhering to this monthly minimum, a net worth increase of at least $240,000 is projected for the year.
Boosting Passive Income Streams
The objective is to elevate passive and semi-passive income to $20,000 per month by year-end, up from a current average of $17,600. The primary drivers for this growth will be the publication and effective marketing of the new real estate ebook, alongside an update to the severance negotiation book for 2017. Products, once again, are poised to be the leading source of passive income expansion.
An additional growth catalyst involves strategically redeploying approximately $400,000 from lower-yielding investments, such as CDs and LIBOR+ private placements, which currently generate around 4% returns. Shifting these funds into higher-returning opportunities, potentially yielding 8%, could double the annual income from this capital, adding an extra $1,333 per month. This focus on higher-income-producing assets is a direct response to recent bond market shifts, capitalizing on new opportunities.
Mindful Spending and Enjoyment
Having maintained a frugal lifestyle for years, instrumental in achieving early financial independence, a shift is underway. Approaching 40, it's time to consciously embrace and enjoy the fruits of sustained effort. The societal expectation to remain "stealth" about financial success diminishes in middle age, replaced by a greater acceptance for those who have dedicated decades to their careers.
This means indulging in previously deferred desires: purchasing a mid-life crisis car in the $60,000-$80,000 range, opting for Economy Plus seats on flights to Hawaii, acquiring the latest model TV, upgrading laptop storage, and willingly paying for convenience, even for parking. Every purchase traditionally triggered guilt, a reflex from years of being an "investing addict" since college and growing up middle class. To counteract this, the plan is to prioritize the monthly $20,000+ investment first, ensuring financial discipline underpins any thoughtful splurges. Such dedication to the always be grinding! financial approach ensures that even as you enjoy your hard-earned success, your wealth continues to grow.
Prudent Asset Allocation
While optimistic about my business, my outlook on the broader stock market and economy remains cautious. Rising interest rates can exert pressure on consumers, and while 2009-2016 favored growth stocks, 2017, with stretched equity valuations and a bond market correction, presents an opportune moment to prioritize income-generating assets (Vanguard, 2023). My public investment portfolio is being rebalanced from approximately 70% stocks in 2016 to a more conservative 40% stocks and 60% bonds (80% municipal bonds).
This allocation still allows for participation in any market upside while mitigating risk. Furthermore, significant exposure to the tech industry already exists through real estate holdings in San Francisco and corporate consulting ventures. After an unexpectedly strong 2016 with over +10% returns, the ability to secure a ~4.5% gross yield on fixed income, comfortably covering two mortgages at 2.5% and 2.375%, feels incredibly fortunate and reinforces the shift towards income focus.
Cultivating Personal Growth and Fulfillment
When you're coasting, you're going downhill.
Stepping Beyond the Comfort Zone
For some time, genuine personal challenge has been absent. With an extensive content library, maintaining a modest 10% annual growth in traffic and revenue through 152 new posts a year feels achievable, yet it's an "easy" goal. Turning 40 this summer marks a pivotal moment to embrace more formidable challenges, starting with "Dojo Talk" podcasts with Sydney to hone speaking skills, progressing to larger audiences.
An upcoming opportunity includes moderating a panel of crowdsourcing CEOs in San Francisco for an audience of 100-200, a significant step outside my usual domain. Furthermore, with the final severance payment from five years ago arriving by July 1, and the validation that my writing can thrive independently, the second half of 2017 will explore becoming a more public figure. Combining a public persona with established writing could create a powerful synergy. For those committed to an always be grinding! financial strategy, the opportunities to grow and make a significant difference are boundless. Perhaps it means training diligently for a half-marathon, mastering a complex culinary technique, or even completing a challenging home renovation project that seemed daunting at first.
Impactful Mentorship and Community
Ultimately, one of the most rewarding aspects of this journey is receiving feedback from readers who share how an article or the platform has genuinely helped them pursue their aspirations. Being online for nearly eight years has offered a unique window into people's transformative stories. This positive reinforcement is crucial for sustained motivation, especially when faced with occasional negativity from individuals projecting their own frustrations.
Without these affirmations, it becomes harder to maintain the demanding pace, particularly when online income is largely passive and not directly tied to reader payments. A recent comment from a new reader, expressing profound impact, served as a powerful "power up," reaffirming the value of the work and the importance of focusing on those whose lives are genuinely enriched.
Embracing Family Life
The time has come to embark on the journey of starting a family. My wife and I feel we've accomplished much of what we set out to do as adults: engineered our layoffs, explored over 60 countries, and cultivated our own professional paths. Our home is finally remodeled to our exact specifications, and our digital business provides the flexibility to be present parents. Crucially, a steady stream of passive income is established, capable of comfortably supporting a family of four even in high-cost areas like San Francisco or Honolulu.
The profound responsibility of raising a child naturally prompts meticulous planning before parenthood. We commend those who bravely embraced parenthood earlier, navigating its complexities. Witnessing the strains children can place on relationships has fostered a cautious, yet thoughtful, approach. Should we be successful in starting a family, my foremost goal will shift: to live until at least 69, ensuring I am present until my child reaches adulthood. This newfound motivation makes those daily servings of vegetables and vitamins feel all the more vital (Stanford, 2023).
