How to Make $1 Million in Four Years After University

There’s an amazing answer on Quora in response to a question of how to make $250k/year in income.

Anonymous writes:

2010 (90k/yr):
Graduated from uPenn and went to work for Bloomberg (80k base and 10k bonus). Decided that was not enough at all so I started creating websites on the side. One site I made was called biteads.com, barely made anything out of it but the site introduced me to affiliate marketing.

2011 (105k/yr):
Quit my job in Bloomberg and went to Amazon (85k base and 20k bonus) because I was sick of fortran (30% of bloomberg’s code base). Bought a half completed vacant wreak house for dirt cheap with the intention of finishing it up and selling it.

2012 (200k/yr):
Still at amazon (90k with 20k bonus). Still building the house. Continued making websites, I used my affiliate marketing experience in biteads.com to make another site called mutex.me. Mutex was a small hit generated (5k-8k) a month which added up to around 90k a year.

2013 (215k):
Still at amazon (100k + 25k)
Mutex still making money (90k)
Finishing up the house.
Bought another house to finish and sell.

2014 (1.18MM)
Still at Amazon (110k + 30k)
Mutex still making money (90k)
Selling house with projected profit of 250k.
Nearly completed 2nd house with projected profit of 700k.
Using that money to buy/build 3rd house. Which based on the market should make around the same as the 2nd house.

It’s a great answer because of how frank he is revealing his path to creating wealth. These are relatively clear action steps that others can take themselves to replicate it. Obviously it takes a great deal of time to learn how to actually execute on them, but anyone could theoretically learn how to. Under this light, making $250k/year, which very few people ever do, seems much more attainable.

It’s worth the note that he did this all while maintaining his full-time job, which I think is great. Our society seems to admire the “all or nothing” approach to success. We love hearing stories of college dropouts who went on to achieve great success. We revel in stories of those who laid it all on the line by quitting their full-time job or mortgaging their house to start their entrepreneurial journey.

What’s hardly ever touted, arguably the less sexy route, is holding your full-time job while working on a side hustle. I’d argue that this route, however, is probably better suited for most people. The job provides you with a source of income that you can use to reinvest elsewhere (paying for the down payment of real estate, for example). It gives you much needed time to validate your idea, test the proof of concept, and acquire early leads and pre-sales, all while maintaining your current lifestyle. This mitigates risk early on in the business, which is conceivably when risk is highest.

The problem with working full-time and managing a side-hustle is if holding a safe corporate job inhibits you from taking any further risks or trying new things outside of work. We all know people who continue working jobs they hate while doing nothing about it because they’re complacent with their steady paycheck. I experienced this through a drop in dedication on my side projects immediately after I began work (although I’d like to think I’ve picked it back up now).  All else equal, the person with the job providing a steady income is going to work less hard on his time off than the entrepreneur who has to work just to pay the bills. This increase in risk-aversion can be profoundly  negative to future success. As late billionaire Felix Dennis said, the ability to live with and embrace risks is what sets apart the financial winners and losers in the world.

So the way around this complacency is to view your full-time job as a means to an end, rather than a permanent position. This doesn’t mean you can slack off at work. Ideally you’d work as hard as you can in your job, and then work just as hard at home (I’ve found that laziness has a way of easily seeping into everything you do, so it’s best to be avoided in general). But the idea is to one day have the freedom to quit the job and work full-time on your side-hustle-turned primary business.

This approach will essentially require you to work two jobs, resulting in 60-80+ hour weeks. This is what it’ll take if you want financial freedom though. Nobody ever gets rich working forty hours a week. Nobody ever gets rich complaining they don’t have time or don’t feel like working after a long day. While everyone else heads home from their 9-5 and turns on Netflix, people like Anon spend their nights coding side projects and closing real estate deals.

It’s a great story of hustle and one worth emulating.

What Reading 80 Books in 2014 Taught Me About Reading

This past year, I decided to instill a new habit to my life: reading. I realized it was probably the most important improvement I could make that would pay the greatest dividends. I started the year off at a frenetic pace, reading upwards of ten books a month to start, but gradually found a happier medium settling at 5-6 books a month (I was also still in school for the first half of the year, giving me more time to read). In total, I read 80 books in 2014 and more non-fiction books than I’d read in my entire life previously.

You can see my reading list here along with my thoughts on some of them.

Here are 10 things I learned about reading this past year:

1. It’s OK to give up on a book
I finished 80 books this year, but I also dropped 20-30 other books because I wasn’t getting any value from them. I used to feel guilty about doing this, following the mantra I had to finish what I started, but I quickly realized this was a waste of time. I accepted that it’s fine to quit books you don’t like or aren’t doing anything for you.

The timing of when you read a book is sometimes everything – there’s no shame in shelving it to read later, when it may be more applicable to your life. I felt this way while reading many business books. Such books were often targeted towards senior managers or people who were already at the helm of thriving businesses – not so relevant for my present situation. Some books I picked up were simply bad. For these books, I generally gave it 50 pages, then skipped ahead to see if there was anything useful I could pick up from skimming it. No one says you have to read a book from start to finish, either.

Read moreWhat Reading 80 Books in 2014 Taught Me About Reading

The Importance of Keystone Habits

Habits create the foundation of our lives and shape who we are. They either lead us to success or detract us from it.

Some habits, however, are considered more important than others. They have the ability to start a chain reaction of other good habits. They influence other actions and routines such as how we sleep, eat, live, and think.

These habits are aptly called “keystone habits,” because they lock all the other habits in place.

It’s clear upon reflection that for me, exercise is my keystone habit.

I’ve noticed that following workouts, I eat more (I’m trying to gain muscle), eat healthier, sleep better, feel calmer, and am even more productive. Everything else seems to fall into place easier. On days where I don’t workout, or don’t exercise at all for multiple days in a row, I feel sluggish, eat terribly, and feel like my head is clouded with fog.

Read moreThe Importance of Keystone Habits

Cultivate Your Gratitude Muscle

Be thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.
-Oprah Winfrey

It’s Thanksgiving here in the US, and that means there’s an air of gratitude and thankfulness.

It’s one of the best holidays, but being happy and grateful shouldn’t be limited just to Thanksgiving. Gratitude and thanks should be given year-round.

The gratitude muscle is like any other muscle. If you don’t use it often, it’ll wither and be weak.

Focusing on the negative is easy. The average person supposedly complains 30 times a day. It’s like this Louis C.K. video where he says “everything is amazing and nobody’s happy.”

It helps to take a step back in these situations and look through a different perspective.

  • Unhappy with the taxes you pay? Be thankful, it means you’re employed.
  • Unhappy with the alarm that goes off in the morning? Cool, it means you’re alive for another day and your ears work.
  • Unhappy with the rain outside? Great! You live in a place where water is abundant.

Gratitude is one of those things that sound wishy-washy, but I’ve noticed when I write down or think of things & people I’m grateful for, I’m noticeably happier after. I feel more present when I do so, and it’s given me the inner perspective to treat others with more kindness and respect. There’s some science to support this, too, as gratitude has been linked to the feel-good hormone oxytocin.

Wherever you are in the world, even if it’s not Thanksgiving, take some time today to exercise your gratitude muscle. Think of five people you’re grateful for right now. Better yet, let them know.