🔑 #1

Money has a cost.

If you’re an investor, the cost of money is quite high. You could invest that money, and make a lot more of it. Thus every purchase should consider that cost.

How can you apply this in your life?

You should consider every purchase you make along with capital cost. You’re taking money from your future self to make a purchase today.

Let’s consider the cost of buying a nicer car.

Say you buy a $40,000 car instead of $20,000 car. Well, if you had invested your $20,000 savings in the S&P 500 over 30 years you would have had $100,000! (assuming 8% compounding based on the historical performance of the S&P 500)

By getting a fancier car, you stole $100,000 from your future self! 💰

Lesson: be nice to your future self, get a used Toyota and invest your money wisely.

Better yet, save your money, and purchase a cash flow producing asset (real estate, a small business, a stock with dividends…etc).

How to calculate compound interest:

If you’re considering making an expensive purchase, put it in this calculator. Set your interest rate to 8% and your timeline to 30 years. See how much you’re stealing from your future self.

**Question for readers** - have you made any investments recently? If yes, where are you investing your money?

🔑 #2

The distributor business is an interesting one.

On one side a distributor builds relationships with manufacturers. Ideally, these are exclusive sales relationships.

On the other side, distributors build relationships with the end buyer, ideally locking them into long-term exclusive contracts.

Then the distributor gets a resale fee.

Given that we own a large swimming pool builder in Phoenix, AZ, we interact weekly with our distributor (called SCP). They provide everything we need to build a pool, including pumps, lights and filters…etc. They love to incentivize us with exciting “kickbacks” when we hit certain sales goals.

Another business you can think of as a “distributor” is Costco. Food manufacturers send them loads of products at low prices. Then small business owners buy everything they need directly from Costco, and pay Costco a membership fee.

**Question for readers** - In next week’s newsletter, do you want to learn about?

1. Costco (and why it’s my favorite business)
2. Group Buying Companies (also similar to distributors, very common in the medical field)

Reply to this email to let me know.

🔑 #3

I have a deep appreciation for the power of Copywriting.

Why?

I think the most powerful skill you can learn is ‘sales’.

Everybody is a salesperson. The sooner you get comfortable with it, the better off you’ll be. Some examples…

Want to get into college? - you need to sell yourself

Want to get a job? - you need to sell yourself

Want to meet a partner? - you get my point…

Copywriting is a “sales” tool in written form.

Now, thanks to the internet, your writing lets you reach anyone.

Thus, good copywriting gives your sales unlimited reach and power. And the beauty is anybody can learn this skill…

Reply to let me know if you liked Tweet 1, 2 or 3 most. Also, you can check-out last week’s newsletter here.

Have a glorious week,

~ Sieva

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