Intro to Too Much Money

I’ve written a book on Dividend Growth Investing that covers my strategy and tactics for setting up a brokerage account, researching companies, automating income, and waiting for dividend income to roll in.

It’s called “Too Much Money”. In the intro excerpt below I explain why I called it that and more on why I think Dividend Growth Investing is so great. If you agree, please check out the book!

Introduction: The Financial Industry is Selling a Dream

Do you think different?

That is an Apple tagline, that always gets me. It’s jarring, and grammatically incorrect, but it hits home when you think about the way you approach certain things. In personal finance, if you are like me, you’ll have had some thoughts about the typical 9-5 and may have heard about passive income. You’ve tried some side hustles like blogging, creating a YouTube channel, selling products, etc. But for whatever reason it just doesn’t hold. Maybe you have a cap on talent, skill, or time to learn about how to compete and do those things so much better than the others out there to gain that marginal reader or consumer’s eyes and dollars.

I know I am stretched for time, especially with 4 kids! On top of that I make a solid income and have a passion for writing software. I’m at peace with that, but I still have a crazy desire to expand my financial strength and run into the problem of “Too Much Money” as described by Robert Kiyosaki in Rich Dad Poor Dad. If you’re not familiar with “Too Much Money”, essentially it is having an income greater than you really know what to do with. Note that it says “income” rather than “net worth”.

The modern financial industry focuses on Net Worth. It is sexy and easy to sell, and most importantly, they earn their revenue off of net assets! So it is most important for them to be able to sell the dream of being a millionaire rather than to sell the reality of “I need $50,000 per year in investment income on an inflation adjusted basis for the next 30 years after I retire.” Wall Street has nearly always sold the idea of speculation. Speculation is the net increase of value in an asset. When you read stories in the news about success, it usually is something along the lines of “Apple has gained 53,000% since its IPO!”. Wall Street stokes the fear of missing out (FOMO) and uses the psychology of fear to get you to try to find the next big thing in order to grow your net worth. And yes there is a place for that. However, it’s a small place for people like you and me who know there is something better for the here and now.

Instead, we know we should focus our efforts on increasing current income. There are lots of ways to do that as I’ve mentioned before, but despite what your internet marketing guru tells you, they are very hard to do and don’t take 4 hours a week to do well enough to make a decent living. Here’s a list of things I’ve tried in the past:

  • Made a Paleo food list app: $250/month at its prime but eventually cratered
  • Blogging: $50/month in advertising income, but atrophied
  • Create a product to sell online: Failed 2x
  • Dropshipping: Failed
  • Real Estate Investing: Lost $20k

On the other hand, I was very successful at switching from a career in finance and banking to software. After getting roughed up in software and getting a life-changing sickness, I co-founded a startup, sold that startup to a bigger company, grew a team of 20+ people, then the bigger company was sold. And I want to do it again.

I’ve realized that I just don’t have the combination of passion, talent, or time to make those side hustles work. My passion is writing software and I get to make a very good living doing it. I also enjoy spending my evenings and weekends with my family instead of burning the midnight oil side hustling. Maybe if I was still in my early twenties, childless, and marriageless! But I’m almost 40 now, married, 4 kids, mortgaged and addicted to creating risky startup SaaS companies. I will nearly always want more income, but I only need one risky thing in my life! Hence this book.

The focus on this book is not to create a side hustle to eventually replace your current job, although I would be fully supportive of that. Plus, there are plenty of other books that can show you how to do that given your talent and passions. Instead, this book is about how to create an ever-growing, nearly automated way to invest and grow your income now. It is a timeless approach combined with new technology that makes the process of investing your money to depositing cash in your bank account nearly seamless.

I’ll outline two approaches. One is about the simplest you can get that requires nearly zero time or effort, but yields less income. For the busiest and career-happiest of us, this may be enough. The other will take some effort to research and select the things you want to invest in, but it’s possible to double or even triple the amount of income available to you. Both are good choices, and they are personal to your situation so don’t feel pressure to do one vs the other. Evaluate your time commitment requirements and make the decision accordingly.

So without further ado, let’s start building our Perpetual Income Machine.

Read the Rest

The book is available at an introductory price of $5 on Gumroad. Please check it out to get improve your dividend investing strategy and be sure to send me feedback here or on twitter!

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