James Altucher is doing AMA on Reddit right now, and I think heâ??s brilliant (I subscribe to his blog).
Just wanted to note some of his answers for reference, they are great.
Q: You said you blew all your money on “expensive toys, trips, and bad ideas” What was the WORST idea?
1) Buying a house. People always forget: a.) a house is an illiquid investment so you cant get your money back when you need it most b) there’s millions of hidden costs when you buy a house c) the bank owns your house. not you. When you sell your soul to a bank, you reap what you sow. d) “choosing yourself” requires freedom. the white picket fence becomes a prison bar.
2) I put $2mm into a wireless device company that didn’t work out. But in general I kept doubling down everywhere because it wasn’t any one bad investment but a psychology that I needed MORE to be happy. Choosing Yourself requires a philosophy that LESS actually creates abundance in life.
Q: On the flip side what is the best thing you used your money to buy and the most fun thing?
The best thing I ever did with my money was just keep it in cash. Cash in the bank lets me know i can watch the river in the morning and not worry about money. Money doesn’t solve all your problems but it solves your money problems.
More important to buy memories than materials.
Q: Can you explain, in a nutshell, how to go about becoming internally healthy? I feel I’m on the bottom right now and really want to get out.
yes. i call it “the daily practice” but really its my practice. What works for you might be different. In the book I also describe a “simple daily practice” to ease into it.
- I eat well
- i sleep well. I used to never sleep. Sleeping is the key to ALL health
- i dont drink. Drinking is a depressant and has a lot of sugar.
- i dont eat junk food. junk food has jealousy in it, as weird as that sounds.
- i NEVER gossip
- i only engage with positive people. Even on this AMA i don’t engage with people trying to bring me down.
- i read every day. 2 hours. Books. not web.
- i write 10 ideas a day. Doesn’t matter what kind of ideas. The key is to get the idea muscle going.
- I am every day grateful. if i start to slip into thinking about scarcity, i change to think about abundance. It is such a pleasure to do this.
Do all of the above for six months. I guarantee its like magic what happens then. Please try it. I dont care if you buy my book or not. Try the above.
Q: Hi James, can you give a quick tl;dr about how you started your most successful business (capital requirement, type of business, length of business) and what are the most important things you’ve learned business wise since finding all the other 19 companies?
what worked, what failed, etc…..
yes: my 2 most successful businesses I will tell you the common attributes:
A) I never raised a dime B) I had a customer from the first day C) I never put the company in jeopardy D) I was always willing to sell the business. I was never foolish enough to think I could be a billion dollar company. 99.99% of successful companies sell eventually.
that’s it. Oh, and also, if you arent getting customers and revenues, shut down the biz immediately or turn it around quickly.
Q: What’s the best piece of advice in getting initial (angel) investment?
A: Get a customer first. Your cheapest money is revenues.
Q: You said one of your best skills is reaching out to people (sometimes ones you’ve never met before). What’s your best tactic on cold calling and your best intro?
I can’t cold call very well. But what I can do is one of two things:
A) idea networking. Introduce a person to ten good ideas they can use to improve their business. Give the ideas totally for free and in great detail.
B) permission networking. Think of two people who can help each other and why. Get their permission to introduce each other. Then introduce.
Just cold calling rarely works. You have to give. Or as Gary Vaynerchuk likes to say, “you have to give give give”.
Q: Where is the legal profession heading and what is the best idea to profit from it?
Lawyers are glorified secretaries who try to scare you into paying them high fees.
3 ways to profit:
A) never use lawyers. be your own lawyer. B) create more sites like legalzoom. Look at that site and see what you can improve. Create sites that are like “quora for lawyers”. C) study bitcoin. Bitcoin is NOT a currency. It’s actually a digital replacement for contract law. Study how bitcoin can be used for everything from wills to escrow agreements, etc. Make a business out of that.
And the shortest and funniest question/answer:
Q: Does money actually get you a lot of girls?
A: I hate to say it: but yes it does.