I paid myself $3.3M last year (behind my tax report)

Summary

In this inspiring video, the creator reflects on his journey to earning $3.3 million in 2023, detailing his income streams, personal expenses, and tax strategies. He emphasizes the potential of entrepreneurship and shares insights on financial optimization, while also discussing the reality of wealth, the importance of finding meaningful work, and the pursuit of a fulfilling life beyond material success.

Takeaways

• 😲 The speaker made $3.3 million in 2023, which they find surreal and exciting to share.
• 💼 The majority of their income, around 80%, comes from entrepreneurship through their business Appsumo.
• 📈 They emphasize the importance of sticking with a business for the long term, as their significant income came after 15 years with Appsumo.
• 🏠 The speaker's W2 income from Appsumo includes a base salary and a distribution of profits, amounting to $1.7 million.
• 🎥 They received $1 million from Appsumo to sponsor their YouTube content, showcasing the value of content creation.
• 🏦 The speaker discusses the reality of not having all their income in liquid cash and the impact of taxes and expenses.
• 💸 Taxes are their largest expense, taking about 40% of their income, highlighting the importance of tax optimization.
• 🏡 Living in a $2.5 million house incurs significant annual costs, including maintenance and insurance, which are part of increased expenses with wealth.
• 🔑 The speaker values the unlimited income potential of entrepreneurship over capped returns from traditional investments like real estate.
• 💡 They share insights into tax strategies such as conservation easements and art donations, and the concept of 'box options' for tax benefits.
• 💰 The speaker reflects on their relationship with money, emphasizing the importance of feeling worthy and finding fulfillment in work rather than just wealth.

Q & A

What was the speaker's total income in 2023?

The speaker made $3.3 million in 2023.

What is Appsumo, and how much did it contribute to the speaker's income?

Appsumo is a business the speaker is involved in, and it contributed $2.7 million to the speaker's income through a base salary and distributions.

What is the speaker's base salary at Appsumo?

The speaker's base salary at Appsumo is $250,000.

How did the speaker diversify their income streams in 2023?

The speaker diversified their income streams through W2 salary income, YouTube sponsorships, real estate, equities, and other investments.

What was the speaker's main expense in 2023?

The speaker's main expense in 2023 was taxes, which amounted to around $1.12 million.

What tax strategies did the speaker consider to optimize their tax liability?

The speaker considered tax strategies such as conservation easements, art donations, box options, and energy credits to optimize their tax liability.

How does the speaker feel about their journey to making $3.3 million?

The speaker feels that the journey was long and involved many failures and strategic investments, but ultimately it was rewarding and made them smile.

What is the speaker's perspective on money and personal worth?

The speaker believes that while money can make one feel better about themselves, it does not equate to personal worth, which must come from within.

What advice does the speaker give for achieving financial success?

The speaker advises finding work that one loves and getting better at it over time, as this can lead to significant financial success.

How does the speaker view the relationship between money and happiness?

The speaker views money as a means to support the life one wants to live, rather than as an end goal, and emphasizes that happiness comes from living the life one desires, not from the pursuit of money alone.

What is the speaker's approach to personal finances and spending?

The speaker's approach to personal finances involves having enough cash to live comfortably without worrying about money, focusing on what is good for customers, the audience, and the team, and enjoying the experience rather than just accumulating wealth.