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When I wrote my orginal post Show Me The Money: Six Strategies to Put Your Cash to Work, one of the strategies I included was leveraging General Electric's high-yield money market account for the cash you want to keep readily available (i.e., cash you might need to access in the next 3 to 12 months). But GE has shut that program down as an overall strategy shift away from its GE Capital business, and so I was left searching for an alternative. In this post I'll detail what corporate money market accounts are, how they work, how they differ from other types of savings or income generating accounts, and which the best alternative is. I'll also tell you what I ultimately ended up deciding to do, which was different than I expected.
Why you should care about this at all:
One of the mistakes I made in my 20s was not being curious enough about financial instruments, and how I could leverage them to reach my personal goals faster. I was so focused on building startups that I didn't pay enough attention to how to optimize my investments. I set out to change that in my 30s, and I've been blogging about it in the hopes that anyone else who isn't yet leveraging these tools can learn about and use them.
As with anything in life, from optimizing your health to optimizing your finances, you have to start with a goal. My family's financial goal is currently optimized for asset growth, with a secondary focus of passive income generation. Since we're still (relatively) young, we're willing to take aggressive stances on both. Here's how this breaks down for us:
It’s been 13 weeks since I wrote the in-depth post on my fasting experiment (read that first if you haven't already), which I originally only expected to try for 8 weeks. But the results have been so life changing that I’ve decided to continue doing it through at least the end of the year, and possibly indefinitely. Here’s what I’ve learned and experienced over the past couple of months, along with the pro-tips I recommend for others interested in trying it themselves, and answers to the questions I get most often.
The main thing I’ve learned in the past couple of months is that fasting is deeply misunderstood by people, including the reasons for doing it, the science and nutrition behind it, the actual experience of fasting, how it makes you feel, and how best to be supportive of someone in your life who’s giving it a try. Fasting just isn’t mainstream enough to make sense to people, and they often immediately respond with “I could never do that” (which is how I used to also feel before really diving into it).
From my fasting experience I’ve also become convinced that the obesity epidemic in America can be solved by integrating fasting elements into our culture. I don’t know if fasting will ever reach that level of cultural prominance, but I do now know with certainty that there’s a solution out there that works, and although fasting is a very individual thing, I’m convinced that it could be codified into an approach that could work for anyone. This also means that if you are unhappy with your current level of health, fasting is something you can do to fix it. It may not be the only thing you can do, but from experience I can tell you that it is absolutely an approach that will work. If you’re serious about trying to become healthy, fasting will work.
Elon Musk did a fireside chat (why is the fire always missing from these fireside chats?) with Steve Jurvitson of DFJ at Stanford this morning to celebrate an event called FutureFest. In the movie Back to the Future, Marty McFly went 30 years into the future to October 2015. Now that we're 30 years into that future, how does it compare to how people thought it would look? Steve also grilled Elon on what he thought the world would look like 30 years from now (except he made it 20 years to account for the increasing speed of change).
Since there was a long queue of Stanford students waiting outside to hear Elon who weren't able to get in due to space restrictions, I captured the talk on my phone. The audio's pretty poor, but if you wear headphones you can make their conversation out reasonably well.
Here's the video. And below that are some of the things Elon covered, which include:
Just a quick post to share a decision making pro-tip that I shared with a few people this week.
Anytime I need to consider a number of criteria to make a decision on something, I try to suss out what my needs are vs. my wants. (This is a framework my wife and I have been using in our personal & professional decision making for years.)
It sounds so obvious, right? But specifically writing it out brings clarity to a decision, especially when multiple people are involved.
Jazz Tigan, an insanely talented artist, is the lead designer of the 2015 Burning Man Temple of Promise.
Burning Man is a festival in the desert that's often misunderstood by those who have never been. It's not just a party, rather, it's a place to experience yourself as you truly want to be. A place without judgement. A place with incredible art and creativity. It's a place to refresh your soul and to re-evaluate your life's priorities.
The Temple sits at the center of it all. If the Man at Burning Man is the body of the event, the Temple is its soul. So when it turned out that the guy who dreamt up this year's Temple design was someone I went to school with, I had to go check out the build site, which is located in Alamedia, CA (just across the bridge from San Francisco) until mid August, when they'll ship everything out to Black Rock Desert to finish the Temple on-site.
Jazz has a special, secret project that he's looking to fund in addition to the main Temple build. He needs $5k to successfully finish this secret project. Think of it as the icing on the cake. If you're interested in donating any amount to make it happen, message Jazz on Facebook and let him know. Sue and I just donated to support it. Also, if you'd like to volunteer to help build the Temple between now & mid August, just let Jazz know. They're on-site in Alameda every day for the next 2 weeks.
I'm turning 40 this December, and that's caused me to deeply re-evaluate my health. In high school I had wrestled at the 152 lb weight level and was a gymnast. In my 20s, I ran two 50 mile ultra-marathons and a half dozen marathons. I had a 33 inch waist and weighed 185 lbs. I could eat whatever I wanted and stay in good shape. But after a decade of doing startups, I found myself in my late 30s in much worse shape. My metabolism hit a wall when I turned 30, and although I didn't eat terribly, I also found it hard to figure out exactly how to get back to where I was in my 20s. My waist was 38 inches and I weighed 245 lbs; 93 lbs over my wrestling weight. My triglycerides were 33% above where they should've been. I'd imagine this happens to many of us as we get older, and I felt helpless as I watched all of this unfold, almost like it was happening according to some script that I wasn't in control of. Most of all, I was really disappointed in myself for not staying on top of my health, but I couldn't find the right balance of eating and exercising to change the path I was on. It felt like I was on a slow motion slippery slope as I got older and more out of shape.
When my daughter was born in 2013, I made myself a promise: I would be in as good of shape when I turned 40 as I was when I turned 30. I didn't want to have a hard time keeping up with her as she grew up. I started doing CrossFit twice a week that year. I signed up and completed a few triathlons. But my weight still wouldn't budge from 245 lbs, and my triglycerides, although lower, were still 15% above the max recommended range. CrossFit was making me much stronger, but that was only part of the puzzle. I had to figure out the rest, and I hadn't quite cracked it.
In December of last year, I realized I was running short on time: I'd really have to hump it to get back in shape within the next year, before my 40th birthday in December 2015. By this time I had upped my CrossFit schedule to 3x per week and I started rowing for 15 minutes before CrossFit started in the mornings. But that still wasn't enough: By April I knew I was going to have to take some much more drastic measures to reach my goal.
This blog is a story of those drastic measures, and how they're going. It's a deep-dive into the rabbit hole that we call 'health' as I see it. It's a journey that I invite you to take with me as we all get older, together. I am only starting to unlock some of the things that affect my body and I would love your thoughts and opinions as well in the comments below.
Let me also caveat this entire blog by saying that some of what I write about below is contrary to the things we've been told to believe, and I fully recognize that. I'm not a medical expert and I'm not telling you to throw away what you believe to be true. But just walk into all of this with an open mind, as I'm trying to do, and more importantly, be willing to try some of these things yourself if you also want to experiment a bit to try to find a better path than you've found so far.
About a year ago, I wrote a blog called "Show Me the Money: Six Strategies to Put Your Cash to Work," where I talked about two new(ish) investment strategies my wife and I were using. I wrote a followup blog about the first strategy, Electronically Traded Funds (ETFs), where I compared Betterment vs. Wealthfront. Now here is a followup on the second newish strategy that you're probably not yet trying out, but absolutely should be: Peer to Peer lending... or put another way: Lending money to complete strangers as an investment strategy.
I'm going to write this blog as a step-by-step how-to guide on trying P2P lending. Don't think you have enough money to become an investor? Wrong. Just set aside $25 to invest in each of the 2 biggest platforms. Seriously, who can't part with $50 to try something that will change your perspective on lending?
First, more on what P2P lending is:
I'm going to share a story about the forest vs. the trees. But it's not the story you're expecting to hear.
My last blog post was about Doing Less, Better, which is my theme for 2015.
A big part of doing less, better is achieving focus. But that very word is often misunderstood. Focus means the elimination of distractions, not the mitigation of distractions. Let's dig into that more deeply:
The first hard thing in a startup is knowing what to focus on initially. When you first start, you don't have strong product/market fit in anything, so like any good LeanStartup you might start with a hypothesis and work through the build --> measure --> learn cycle as quickly and effectively as you can. The key is to find some early area of traction & demand that you can build off of.
There's a great article in the NYTimes about Slack, a new startup that the Valley is buzzing about. Slack is a business messaging & collaboration app, and it's really, really good. The reporter in the article questions whether this year-old company is really worth $2.8 billion.
Slack is not good because it has a ton of features. In fact, it's missing the things that I would expect it to have.
It's good -- and worth its valuation-- because it does less, better.
The things Slack chooses to do, it does insanely well.
This new startup, Jet.com, is looking to be the Costco of the web, and to undercut Amazon's prices by an average of 10%. They won't focus on speedy 2 day "prime" delivery. Instead, by being a member and paying a $49 annual fee (like you do with Amazon or with Costco), you'll get access to discounts, but the products will take longer to ship to you. This is a great model for non-time-sensitive things, like re-ordering diapers.
But the best part of it is how they're building a pre-launch interest list: When you sign up, they give you a unique sharing code. For example, mine is https://jet.com/#/ji/cj2tx and I'm currently member 124,837 of 124,877 on their interest list. The more people sign up based on your code, the more rewards you unlock. That's not all that new or innovative -- but the part that's great is that they're offering lifetime memberships and even stock options to their top sharers. Which is a great marketing move, although the reality is that getting 100k options doesn't mean much unless you know how many total shares are issued, and what the strike price is. But it's marketing genius!