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.

Outlines

00:00

💰 Journey to $3.3 Million Income

The speaker reflects on their financial journey, revealing they made $3.3 million in the previous year. They express the surreal nature of this achievement and outline their intention to discuss their income streams, personal expenses, business overheads, tax strategies, and the reality of such earnings. The speaker emphasizes their entrepreneurial path, detailing the evolution from 9-to-5 jobs to multiple business ventures, including Appsumo, which contributed significantly to their income. They also mention the importance of not just making money, but doing meaningful work that one enjoys.

05:00

📊 Breakdown of Earnings and Expenses

This paragraph delves into the specifics of the speaker's income, including their W2 salary from Appsumo, sponsorships, and investments in real estate and equities. The speaker discusses the fluctuation in income, particularly the significant drop from Appsumo in 2021 due to poor decisions and excessive spending. They also provide an overview of their expenses, highlighting taxes as the primary cost, followed by team expenses, housing, insurance, and wealth management. The speaker also touches on tax optimization strategies they've considered or used, such as conservation easements and art donations.

10:00

🚀 The Philosophy of Wealth and Spending

The speaker shares their perspective on wealth, emphasizing the limitless potential of entrepreneurship compared to traditional employment. They discuss their approach to tax optimization and personal finance, including the absence of strict budgets due to their substantial wealth. The speaker also explores their spending habits, focusing on areas where they are willing to splurge, such as hiring assistance, technology, and commemorating significant life events with luxury items like Rolex watches. They contrast this with areas where they remain value-conscious, like everyday purchases. The speaker concludes by advocating for a life where money supports one's desires and lifestyle, rather than being the sole focus.

Keywords

💡Entrepreneurship

Entrepreneurship refers to the process of designing, launching, and running a new business, which typically involves taking on various risks in order to make profit. In the video, the creator emphasizes the importance of entrepreneurship as a path to financial success, citing his own journey from a series of business failures to eventually making $3.3 million. The term is used to inspire viewers to consider self-investment and the potential for high returns on personal endeavors.

💡Tax Report

A tax report is a document that summarizes an individual's or a business's financial activities and tax obligations for a specific period. In the script, the creator discusses his 2023 tax report, highlighting the significant income he made and the taxes he had to pay, which is a crucial part of understanding the financial reality of high earners.

💡Income Streams

Income streams refer to the various sources through which an individual or business generates revenue. The video script details the creator's multiple income streams, including his W2 salary, YouTube sponsorships, and investments in real estate and equities, which collectively contributed to his total income of $3.3 million.

💡Tax Strategies

Tax strategies are methods used to minimize the amount of tax owed or to defer tax liabilities. The creator mentions tax optimization techniques such as conservation easements and art donations, which he explored to reduce his tax burden, illustrating the proactive approach some individuals take to manage their finances.

💡Expenses

Expenses are costs incurred to generate income or maintain a certain lifestyle. The video script breaks down the creator's significant expenses, including taxes, team costs, and the upkeep of his home, which collectively reduce his net income and affect his financial planning.

💡Wealth Management

Wealth management involves the investment and protection of assets to grow and preserve wealth. The creator discusses working with wealth managers to ensure he has enough cash to live comfortably without needing to earn more money, showcasing the role of professional advice in managing significant wealth.

💡Investment

An investment is an asset or item acquired with the goal of generating income or appreciation. The script mentions the creator's investments in real estate and equities as part of his income streams, demonstrating how investments can contribute to overall wealth accumulation.

💡Salaried Income

Salaried income refers to the fixed compensation received by an employee from an employer in exchange for work performed, usually paid in regular intervals. The creator's W2 income from Appsumo, which includes his base salary and profit distribution, is an example of salaried income in the context of the video.

💡Business Overhead

Business overhead refers to the ongoing costs of running a business, such as rent, utilities, and employee salaries. The creator mentions the costs associated with running his YouTube channel and email list as part of the business overhead that affects his net income.

💡Personal Expenses

Personal expenses are costs incurred by an individual for their own use or benefit, not related to business operations. The video script includes the creator's personal expenses, such as his home and lifestyle costs, which are a part of his overall financial situation.

💡Financial Goals

Financial goals are targets an individual sets for their income, savings, investments, and other financial activities. The creator talks about his financial goal of having enough cash to live comfortably without the need to work, which is a key aspect of his personal financial planning.

Highlights

The speaker made $3.3 million in 2023 and shares a detailed breakdown of their income streams, personal expenses, and tax strategies.

The journey to financial success included multiple business failures and strategic investments.

The majority of income, around 80%, comes from entrepreneurship, emphasizing the high returns on self-investment.

In the first year of Appsumo, no profit was made despite generating $300,000 in revenue, highlighting the importance of reinvestment.

The speaker's base salary from Appsumo is $250,000, with additional profit distributions based on company performance.

Sponsorships from Appsumo for YouTube content generated an additional $1 million in income.

Diversified income included real estate equities and investment distributions, showcasing the importance of multiple revenue streams.

A significant portion of income, approximately 40%, went to taxes, illustrating the financial impact of tax liabilities.

The cost of running a YouTube channel and email list through an LLC is around $500,000 annually.

Living expenses, including housing, insurance, and wealth management, add up to significant annual costs.

The speaker discusses tax optimization strategies, including conservation easements and art donations, to reduce tax liabilities.

A personal finance approach is shared, focusing on having enough cash to live comfortably without the need for further income.

The importance of finding work that one loves and the potential for it to become lucrative is emphasized.

The speaker reflects on the psychological aspects of wealth, including feelings of worthiness and the relationship with money.

Splurging on experiences and items that bring personal joy, such as Rolexes for commemorating milestones, is discussed.

The speaker chooses to invest in convenience and time-saving measures, such as hiring staff, rather than material possessions.

A reflection on the transient nature of external success and the enduring value of finding internal fulfillment and purpose.

The speaker encourages viewers to pursue entrepreneurship and to live the life they want, supported by money, not dominated by it.

The long-term growth of Appsumo is highlighted, showing that success was not immediate but a result of persistence.

Transcripts

last year I made $3.3 million and this

is my 2023 tax report that I'm going to

break down with you it's insane it's

insane to even say that number out loud

it feels surreal I'm like who are we

talking about I want to go into detail

on my income streams personal expenses

business overhead some Tax Strategies

and the overall reality of what it feels

like to make $3.3 million so that you

can do it too it still feels crazy to

say this but when I think about my

journey of my 9 to5 jobs building

multiple businesses tons of business

failures strategic Investments bad

Investments that got me to this point

makes me smile like I made it but I'm

not making this video to brag I didn't

have some special VIP Lane to get to

this point and I would say for a long

time it felt like everything that I got

close to was taken from me Google job

Microsoft job Facebook job mint exit I'm

making this video to inspire you and

show yall what is possible if you go

down the path of Entrepreneurship

because there is no better return than

on the investment of yourself and

Entrepreneurship you can make three .3

million or more let's break it down my

first year I made nothing from appsumo

even though we generated $300,000 in

Revenue all of it went back into the

business or hiring people and so forth I

just wanted to make $3,000 a month so I

could work on the beaches of Thailand

that is all I wanted I could live I

could eat and I could save a little bit

to live my dream life doing work that I

wanted to do I was able to stick with

the business for 15 years to be able to

get to this point where I took home $3.3

million now but I don't actually have

$3.3 million in cash let's just say

right here and we're going to talk about

taxes we're going to talk about expenses

uh and things of that nature but it's

been it's been a long fun Journey could

I ever imagine making this amount of

money no but it's sure as hell sweet and

you can do it too so let's do a revenue

breakdown show me the money show me the

money Jerry you guys are way too young

to know about that

movie show me the money so first off I

made $1.7 million in my W2 salaried

income from appsumo it's not as

straightforward as that my base salary

is 250,000 which is really good now only

if we have profit at the end of the year

do I get a distribution and so we pay

everyone in the team we pay the

leadership team we take everyone all

expenses paid to Mexico we invest in ads

we buy servers and then if there's stuff

left me and my partner Chad get a

distribution and so my distribution was

around $1.5 million now next up I get a

million dollar from appsumo to sponsor

all the content you're seeing here on

YouTube so that's another million now

the other $600,000 that I made last year

is a combination of real estate equities

and some distributions from Investments

I don't think it's as important in this

video I think if you look at the numbers

like the majority 80% is from

entrepreneurship so we'll we'll focus a

little bit more on that so that's where

the $3.3 million comes from now the

revenue streams have been interesting

appsumo money is all over the place

right so what does that mean in

2021 I made 97 ,000 so that's that's a

big decrease from the almost $3 million

that I got last year uh from appsumo so

what happened Co happened a lot of bad

decisions happened we hired a lot of

people we spent a million dollars on

Black Friday marketing which was a total

waste and it was my idea I would say the

maintainance is more of a thought about

opportunity cost and what is the best

use of your life for generating Revenue

doing what you want to do I I've noticed

with the real estate stuff you can get a

5% return a year on this real estate or

maybe it appreciates 10% ABS suumo

started with $50 and I was able to

generate almost $3 million cash for

myself and I'm not taking as much as I

can and and I don't say that arrogantly

I could definitely take more but I think

I'm taking a pretty great amount uh and

everybody else at the company is doing

well whereas in real estate a lot of

that stuff is capped all right expenses

break down the number one expense you

guys can all guess it it is Mr

government a lady would never be so rude

taxes number one that's 40% of around 3

million so that's $112 million just in

taxes then I have half a million dollars

in the team cost I told you appsumo

sponsors into an LLC that all the money

that takes to run this YouTube channel

or my email list at noah.com or all the

social content that's

$500,000 a year so now you're like holy

so that 3.3 is now down to about

1.5 then this house I live in a $2.5

million house this house alone without

water without internet without the

cleaner without the gardener without the

pool person uh is $120,000 a year the

costs add up you have insurance costs

for when you get to different levels of

wealth you have umbrella insurance so I

have insurance that covers if someone

trips in my house right there's there's

more costs for that that go up I have a

wealth adviser that's in the five

figures a year I have a personal

bookkeeper that's another five figureure

expense a year I would say that there

definitely a significant amount of

expenses that just go up uh when you

start making more money and and you want

to have more conveniences and comfort uh

it makes me feel sad and and really

tough for a lot of people people out

there but it also makes me feel

optimistic that through entrepreneurship

and through starting your own businesses

there's no cap to your income there is

unlimited income for entrepreneurship

whereas in a salary job it it can be

limited taxes uh so I put out a book

maybe we'll make it free for this video

how do I approach tax optimization my

tax liability in 2022 was 300,000 my tax

in 2021 was 1.1 million I think

government's inefficient so I'm not as

excited to give them my money I'd give

it to private businesses when I had more

free time I was doing a lot of tax

optimization so conservation easements

it's when you buy land and then you say

you're not going to build on it and the

government gives you a tax credit and

then I did Art donation so you buy art

you donate it somewhere you get another

tax credit those are little gray zones

uh there's new ones that I've considered

which is like uh box options Boxx so if

you buy t- bills you get taxed at

ordinary income but if you buy box

spread you can get taxed at a lower

income rate rate other ones I've

considered is Energy Credit buying so

you can buy energy credits today yes

look that up you can buy them for 80 but

you get $100 worth of tax credit so you

get a 20% uh discount on your taxes now

I just don't have time for all that

stuff you know I'm married I'm trying to

do be a good father good be a good

husband I'm trying to make sure I have

time to do this content run app suumo

and the amount of money I'm saving to me

doesn't seem worth it but there's tax

strategists out there I think in my

personal life and this is a f

fascinating point in my personal life I

don't really have budgets which is is

luxury I don't have a lot of modeling or

how am I trying to retire and these

certain things cuz I just have so much

money honestly and I don't mean that

bragging but you can get to that point

too whereas in our business at appsumo

we have models and budgets and a whole

team dedicated to every single penny and

I like the fact that I can not have to

worry about that or have to figure out

how to optimize my taxes with you know

more questionable activities I don't

know I guess I'm rich I never thought

I'm I'm a rich person or not a rich

person I I think what I I try to think

about is like when I'm at the restaurant

just treating everyone equ and I will

say there are times candidly where I

might go on YouTube and I look and

they're like here's what top 1% make and

I go there and it makes me feel worthy

when I feel like wow I'm making in the

in the top 1% cuz I think I've felt So

Unworthy in this whole journey for so

long like oh I don't think I'll be able

to do it how do I finally make money I'm

going to ruin it all and so it is it is

a form of of comfort I think what I'm

thinking about is like how much do I

really need and what do I really want to

spend my days doing and I think this is

kind of the counterintuitive thing about

entrepreneurship whereas if you actually

do the thing you really like doing and

you you keep getting better over a long

period of time you'll actually end up

making the most amount of money so I'm

really trying to dial back in less how

do I get more views here how do I get

more Revenue there just like what do I

think is good for me what do I think is

good for our customers good for the

audience good for our team and we enjoy

and I think that will benefit uh a lot

of people down a longer period of time

the way that I thought about my finances

and you know personal spending is that I

want to basically have like enough cash

I want to have enough cash to live

forever and so I did analysis with uh

with my wealth managers and I basically

never have to make another dollar and I

can spend 20,000 a month until I'm 90

and that that actually gave me that was

really relieving think about for

yourself like what is your spending

habits and then if you mapped it out to

90 you know I think there's a great book

die with zero by Bill Perkins and he's

talking about like don't spend it at 90

when you can't really enjoy it as much

as you can enjoy it today and so really

finding that right balance where can you

save yourself time can you pay for

convenience can you enjoy the experience

now whereas when you're 65 retired

finally being able to tap into your 401k

you really physically can't do stuff

like my back is hurting I'm 42 you know

like I have to go to physical therapy

and all and it's like oh man this

is what they talk about and when you're

when you are younger you don't give a

about it when you are older you're

like oh I should have spent it then so

thinking about our my priorities in my

personal spending getting out of the tax

stuff it's easy for me to gift give I

think that was my dad's love language

and uh I love like spoiling my wife I'm

excited to get my daughter the nicest

things possible I'm happy to treat my

brother to things take my I took my

parents on a nice vacation last year I

think I'm still value conscious right

I'm still like oh that those glasses are

10 bucks or let me try to find a coupon

just more now I'm more aware of how much

time I'm spending looking for that

discount like heck think about it I got

most of my money from a deal website

check it out abs.com I love saving money

I I love being value driven uh it

doesn't mean I want to just go waste it

what areas am I willing to splurge I

probably Splurge more on hiring people

right cuz I think I run a company we

have 100 people there and so I'm kind of

used to hiring and and having people

help me so like an EA Two Chiefs of

Staff I'm trying to get a PA you know

just having more assistance I I'm

willing to spend because it saves me

time and and peace of mind I I think

food I'm not really splurging but I

don't really look at the menus as much

technology like I just buy the latest

laptop I don't even think I literally if

there's a new Macbook Air it's instab

maxed out it's like $3,000 and I know

that could be a lot for you but that's

literally the cheapest investment in

something that can generate Millions if

not billions I do fly mostly first class

but I use points so I I feel like when

people Flex fly first class like using

points yeah spend this $8,000 on a

ticket and you'll you'll say think

differently cuz it is it is a lot of

cash to fly first class I splurge

sporadically on Rolexes to commemorate

moments like when my buddy sold his

company when my buddy got his house when

I got my wife you know it's just moments

to kind of recognize that that makes me

feel special when I got my pilot's

license when I came back to CEO of

appsumo and you know you'll see them in

some of the videos and it's just a nice

like you know wrist tattoo there's also

things I just don't care about like I

don't have a Ferrari I could buy

Ferraris I could buy some of that stuff

I haven't really cared I think one of

the things about wealth is shame and

feeling like we have to show off which

most people who are showing it don't

have it or we need to show it to others

versus showing it to ourselves I'm

trying to think of when I finally got

like a Million Dollar Payday at the end

of the year it's definitely

underwhelming from an external success

blah blah blah it's super cool but it

just goes to the bank it's like I worked

my ass off I'm really proud of my stuff

and then like the numbers transferred to

here and I'm like that's okay so I don't

think that that's as magical as I think

people imagine I think the magical part

is finding the work that you love to do

and it turns out maybe you can get paid

to do that and I think a lot of people

don't realize that you know no amount of

money is going to make you feel good

about yourself I really wish it would

I'll tell you making a lot of money

definitely makes it easier to like

yourself more but it just doesn't you

know you're not going to feel worthy

until you feel worthy about yourself and

think about the things you do that make

you feel worthy maybe it's going for a

walk maybe it's reading maybe it's being

a good person maybe it's falling through

and making something you said you would

do maybe it's being on time uh those are

things that make me feel worthy maybe

that's a lot of what the money is about

is just feeling proud of you are and

that is the scorecard externally but

finding your internal scorecard of this

money I think everyone has a money

relationship which is really fascinating

it's not that one is better or worse and

and evolves over time evolves how much

you have it evolves what's important to

you uh evolves how where you came from I

think it's sad sometimes how much we

make money this all everything and maybe

yes I have it a little bit of it or I

have a lot I don't know it's all

relative but it just seems sad to like

separate relationships or separate

friendships or separate how you want to

be living your life and I would say the

wisest thing is find the life you want

to live and find money to be able to

support that make that your living I

think when I look around my house or I

look around my life you know detached

from the success externally detached

from having to achieve I feel really

grateful I know that I was playing

pinball earlier today but I was always

earning and making money but I never

enjoyed it I was just like you know and

I think a lot of these videos are like

how I got rich in 40 days how I have

this giant mansion ass thing but it's

like how do people enjoy it normally

like a normal real human I wish everyone

gets out there and is living the life

they want making the amount they want

seeing how money supports you not you

just working for the money the money

needs to work for you I think being

entrepreneur has been an awesome part of

making money because I think you look at

money a lot as return on investment like

when you're entrepreneur you're like how

much does it cost what does it make me

and that is sometimes harder when you're

in your personal life cuz you're like

okay what's this vegetable and how much

is it going to benefit my health really

stick with it you know like if you look

at the appsumo journey I made almost Z

for myself first year I think it's 50 to

70 the second year then it was like 100

for the next 3 to 4ish years and then

only finally in like the last you know

half of appsumo the past like six seven

years have I been making like 1 million

2 million 3 million and so it's it's

sticking with it I feel comfortable

experimenting sharing my income and if

negative things and security risk

increase then I will definitely pull

back from doing something like this the

the benefit to me is that I think it's

inspiring that people there's going to

be one person out there watching

thinking hey I can do it too maybe it's

going to be in software like Noah did

with appsumo maybe it's going to be in

car washes maybe it's going to be a food

delivery business but huh that seems

like a pretty cool life and like there's

and it is you know buying whatever

pinball machines you want or being able

to eat wherever you want or travel

whenever you want and and having those

options is is priceless and so being

able to share how I was able to get here

be able to share what it looks like it's

been amazing to get to to the point I'm

at and I I hope for you there's going to

be one of you out there that that'll

choose to take action today uh to be

able to get there and maybe beyond all

right y'all love you smooches

[Music]