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And finally, at long last, two and a half years later, the book Buy This, Not That, 00:00:09.120 |
How to Spend Your Way to Wealth and Freedom is out. 00:00:14.280 |
So I have with me my wife, Sini, who has been with me on this journey since the very beginning. 00:00:20.560 |
She has edited and reviewed the book multiple times. 00:00:24.640 |
How many times would you say you have read the book? 00:00:28.040 |
We went through it about four different times during the whole process. 00:00:32.160 |
Right, four different times, and it's a 300-page book, about 110,000 words. 00:00:38.560 |
So it was a long, long process, but I truly believe Buy This, Not That will be the best 00:00:50.480 |
It's an incredible feat and accomplishment that you have put together. 00:00:56.840 |
Well, you did, obviously, the bulk of the work with all the writing. 00:01:02.200 |
And I'm glad I was able to contribute to helping with the editing process and fact-checking 00:01:08.080 |
and looking at numbers and formulas and all that stuff throughout the book. 00:01:26.880 |
I would say a couple dozen revisions, and each revision was more polishing, getting 00:01:33.760 |
better, more inclusive, thinking about new ideas, thinking about things we missed. 00:01:38.840 |
And despite all the editing, all the grammatical error changes, the formula fixing and all 00:01:46.120 |
that, there are still some errors in the first edition of Buy This, Not That. 00:01:53.920 |
It was crazy because I was, you know, after I sent my last pass, which is supposed to 00:01:58.320 |
be the last, last pass where we don't get anything back, it goes to the copy editors, 00:02:05.100 |
About a month later, I was like, "You know what? 00:02:07.000 |
I'm going to go read the book again in the hot tub." 00:02:09.880 |
And I was reading the book, and I was like, "Wait a minute. 00:02:14.760 |
And the spelling error was made four times in four subtitles. 00:02:22.920 |
I was like, "What was the point of spending dozens of hours?" 00:02:30.160 |
And it's hard when there's so many people involved. 00:02:31.160 |
And publishers have a system, a way that they do things for a good reason. 00:02:36.200 |
You know, they've been doing it for decades and decades. 00:02:38.680 |
And it was a new process to us, and we sent through, you know, a lot of fine-tuning in 00:02:49.280 |
And there were some changes that happened between that time and when it actually went 00:02:54.120 |
And we didn't get to see the final final before it went to print. 00:02:58.800 |
And somewhere along the line, there were some goofs that happened in that last bit. 00:03:08.360 |
It seems to be very common with any book that goes to print. 00:03:12.600 |
So true to Financial Samurai fashion, we always look at silver linings. 00:03:18.040 |
Silver linings, when bad things happen, we think, "Ah, thank God I didn't break my ankle 00:03:25.920 |
Thank God I didn't drive off a cliff and I just blew a tire." 00:03:30.640 |
And the one positive that I thought, it's actually a huge positive because I've been 00:03:34.280 |
a collector of awesome things like Chinese coins, baseball cards, comics, and rare books, 00:03:41.840 |
is that a first edition book that becomes a bestseller, which I believe Buy This, Not 00:03:48.720 |
That, will become – it's actually already an Amazon number one bestseller in the retirement 00:03:53.800 |
But first edition bestsellers with errors actually are more valuable on the secondary 00:04:04.280 |
I mean, there's this one – I was doing some research for this post and it was called 00:04:10.480 |
It was just printed upside down and it sold for over a million dollars. 00:04:14.840 |
It's a classic collectible that's known for being printed funny. 00:04:21.760 |
So Buy This, Not That first edition has just a small spelling error but it is still an 00:04:29.560 |
And I think less than – maybe about 15,000 first edition copies will be sold in the United 00:04:36.000 |
And what I'm going to do is I'm going to sign and have a special stamp. 00:04:42.400 |
I'm going to have this special stamp and I'm going to sign and special stamp less 00:04:48.840 |
So it's kind of going to be like the golden ticket in the Willy Wonka factory where if 00:04:53.760 |
you can get your hands on one of this signed and special stamped version, it could be worth 00:05:04.200 |
So writing and editing a book over two years is one level of hardness. 00:05:10.040 |
I would say it's, I don't know, 10 out of 10 in terms of level of hardness. 00:05:17.840 |
Well, I didn't do the writing so I would – I can't give a complete answer but based 00:05:23.800 |
on the amount of work that you spent writing, I would say definitely 10 out of 10. 00:05:28.360 |
The editing process was intense to say the least just due to the volume. 00:05:34.600 |
The back and forth, literally probably a thousand plus emails. 00:05:39.280 |
There were a lot of questions that we were answering back and forth. 00:05:45.200 |
Obviously, there's a whole team at Portfolio that was doing it. 00:05:48.720 |
I was just assisting and it's an intense process to edit an entire book. 00:05:58.480 |
The marketing, the marketing of the book is even maybe more intense. 00:06:06.280 |
It's actually – it's really difficult, folks. 00:06:09.080 |
So I started marketing Buy This, Not That three and a half months before July 19th, 00:06:16.360 |
What happens is you put your hopes and dreams of the book, everything you have into this 00:06:21.200 |
book, you think it's the best thing you've ever created and it's been polished and 00:06:26.200 |
looked over dozens of times by five, six people, right? 00:06:31.480 |
And then so because you have worked so hard and you believe so much in the book, you want 00:06:35.680 |
everybody to read it and therefore you believe with all your heart that other people should 00:06:43.960 |
But the problem is people will say no and it's those no's that I was reminded over 00:06:52.000 |
It was either no, I'm not interested in marketing your book or just no response. 00:07:00.800 |
Yeah, it's definitely hard to feel like you're – when you're reaching out about 00:07:06.680 |
something you're so excited about and then you get nothing back. 00:07:14.280 |
And so it's an expectations game where you think some people will help you but then they 00:07:21.520 |
And these are the people you've helped before in the past. 00:07:24.400 |
I've allowed them to do a guest post on Financial Samurai and help them build their 00:07:33.720 |
So that was pretty disappointing and that reminded me one of the reasons why I left 00:07:41.320 |
In any job that pays well, a lot of it has to do with selling. 00:07:46.880 |
You have to sell yourself and you would just get no's or ignores, I would say most of 00:07:53.840 |
But if you have a 10% hit rate, that means you better ask 10 people before you get a 00:08:01.120 |
success otherwise you're not going to make it. 00:08:03.640 |
And so this whole marketing process of the book has really reminded me why I left my 00:08:09.600 |
day job and why I actually don't want to go back. 00:08:15.220 |
The other interesting thing I learned is how to deal with anxiety. 00:08:20.480 |
So I now firmly know why people don't try to do hard things or to create anything new. 00:08:27.400 |
And the reason why is you put your heart into it, people say no, people reject you, they 00:08:32.600 |
don't return your emails and calls and whatever you do create turns out to be a big flop. 00:08:40.000 |
And so for a while, one of the funny things is I talk to a lot of editors who have edited 00:08:47.700 |
I've talked to you, I've talked to my father, I've talked to other people who have great 00:08:54.260 |
Make me feel like English is a second language, I guess that's how you write it. 00:09:00.900 |
And I always ask the editors with such great editing ability, why not create some amazing 00:09:12.980 |
And my take is that they're two very different skills. 00:09:18.260 |
I do enjoy writing and I have written a couple posts, well, not a couple, more than a couple 00:09:29.260 |
It takes me a really, really long time to put together an article. 00:09:33.960 |
I enjoy it, it's just not my strength in terms of efficiency. 00:09:46.500 |
You don't need speed to write unless you're like a production factory, like you're on 00:09:50.300 |
a deadline, you work for a newspaper or whatever, right? 00:09:53.980 |
This is Financial Samurai, we do whatever we want. 00:09:57.460 |
There comes a point where maybe it takes too long. 00:10:01.900 |
And if you look at word count, for example, let's say it takes you an hour and a half 00:10:11.260 |
If I were to try and write something of that same length on the same or similar type of 00:10:16.220 |
topic, it might take me anywhere between five to eight hours, you know, significant amount 00:10:25.140 |
Whereas, you know, maybe I could have put those hours towards something else that I 00:10:34.460 |
Because unfortunately, we all have a limited amount of time. 00:10:37.220 |
And given we're parents of a five-year-old and a two-year-old, you know, you're not sleeping 00:10:50.940 |
And you know, Buy This, Not That is about opportunity cost at the end of the day because 00:10:55.020 |
we're trying to choose between two decisions, the most optimal decision and to avoid those 00:11:04.820 |
You've had a lot of posts on Financial Samurai do really well, really connect with other 00:11:16.540 |
And so we better utilize our time the best way we can. 00:11:19.700 |
Yeah, and I think, you know, in terms of editing, I'm obviously not a professional editor, but 00:11:27.980 |
It's something that I can do fairly quickly, especially in comparison to writing. 00:11:33.580 |
And I'm a detail-oriented person, so I like catching the little things. 00:11:40.060 |
After, you know, as a writer, after you write something, a lot of these errors just fly 00:11:44.740 |
through your – fly over your head, fly over my head. 00:11:47.700 |
I just can't see it because I've written it and read it so many times. 00:11:55.280 |
For the past three months marketing the book, I have felt this consistent low level of anxiety. 00:12:03.300 |
And it's kind of annoying, actually, and it's kind of weird because I'm generally not an 00:12:09.700 |
I like going to battle in USTA tennis because I like the feeling, the nervousness, the adrenaline 00:12:21.500 |
But now, you know, as an older guy now, I'm like, "Oh, whatever if I lose." 00:12:27.260 |
You have some anticipation up till the match. 00:12:42.420 |
Like, the anxiety before a match will last a couple days before. 00:12:46.660 |
Anxiety right before the match, definitely a warm-up. 00:12:49.540 |
And then during the match, I kind of have an out-of-body experience sometimes where 00:13:09.940 |
It's like a three-month anticipation of the match where you're just working hard, reaching 00:13:15.140 |
out to people, calling local bookstores, "Hey, do you have Buy This, Not That available this 00:13:25.500 |
Well, you also had marketing on your mind even before we finished the editing process. 00:13:32.540 |
Just kind of lurking in the back of your mind knowing that it was coming. 00:13:39.420 |
I tried my best over these three months to not make Financial Samurai and the podcast 00:13:51.220 |
But I also wanted to have a balance where I would continue to provide value in the newsletter, 00:13:57.580 |
But at the end of the day, this is maybe a once-in-a-lifetime opportunity for me. 00:14:03.300 |
I don't know whether I want to write another book, which will make the first edition of 00:14:07.340 |
Buy This, Not That more valuable with the air. 00:14:09.900 |
And so I just have to make it count when it counts the most. 00:14:14.860 |
But I will share with you how I have dealt with this anxiety of this book launch and 00:14:21.500 |
the worry of whether everything will go smoothly if you're trying to do something hard or if 00:14:28.460 |
So the first thing I did was focus on a process. 00:14:32.980 |
I came up with a game plan, a marketing game plan, and I followed it. 00:14:37.120 |
Every week I would write a post that related to Buy This, Not That. 00:14:40.860 |
Every week I would release a podcast episode that would be related to Buy This, Not That. 00:14:45.460 |
And I would have a list of people, blogs, media outlets that I would contact, and I 00:14:58.500 |
For example, the Financial Samurai newsletter at financialsamurai.com/newsletter has about 00:15:07.780 |
So that sounds pretty good, but it's actually not that big based on when I started in 2009. 00:15:13.580 |
And I told myself, well, I did some research and I know this, that the average conversion 00:15:18.500 |
rate for someone to buy anything from your newsletter is about 2-3%. 00:15:24.460 |
So you could take 2-3% times 50,000 is 1,000-1,500 buyers of Buy This, Not That the book. 00:15:35.020 |
Okay, if I'm the average, then maybe I'll be able to sell 1,000-1,500 copies, hard copies. 00:15:45.420 |
And if I am over that, and I'm glad to say I'm over that, then it's like, okay, you're 00:15:50.660 |
doing your job and you're doing better than the average. 00:15:54.820 |
Another way to deal with anxiety is to just say, you are doing the best you can with what 00:16:01.900 |
Always tell yourself you're doing the best you can with what you have. 00:16:06.260 |
And what will happen is you'll end up working harder, thinking about more things, leaving 00:16:11.140 |
no stone unturned so that when your product is finally out, you won't have any regret 00:16:21.860 |
Another strategy for reducing anxiety and just keeping the motivation going is to diversify 00:16:28.160 |
So I have been writing, waking up at 5 a.m., 6 a.m. to write for a couple hours, you know, 00:16:36.300 |
And it was my necessity because the kids would wake up by 8 and I just can't concentrate 00:16:42.940 |
And so I diversified my activities through physical activity, namely tennis and softball, 00:16:48.900 |
talking to other people in different industries who have different interests. 00:16:52.500 |
And this was really, really helpful for mental health. 00:16:56.520 |
And the final thing I did to manage my anxiety was to put things in perspective. 00:17:03.100 |
Ten years ago, I tried to get a literary agent. 00:17:05.820 |
I reached out to at least a dozen and I got rejected or no word from anybody. 00:17:12.780 |
I'm not going to take the rejection sitting down. 00:17:16.060 |
And you and I created an e-book called How to Engineer Your Layoff. 00:17:25.420 |
And since the e-book was published in 2012, it has been purchased and read by thousands 00:17:30.360 |
of people and it has generated over $500,000 in net profits. 00:17:41.020 |
I mean, that's almost livable income for us in San Francisco. 00:17:44.880 |
And so to count your wins, even though you get rejected, is a good thing. 00:17:50.340 |
And also to look at the perspective and say, well, I have this book. 00:17:55.000 |
If it becomes a bestseller or not, it's okay. 00:17:58.120 |
Because I was able to get a book deal with a reputable, one of the best imprints in the 00:18:03.240 |
nonfiction space, which is Portfolio Penguin Random House. 00:18:08.780 |
Now I was able to skip the literary agent and go straight to the top with a great publisher. 00:18:14.580 |
And so I just want to feel proud of the work that I've done and whether it becomes a 00:18:20.200 |
nationwide bestseller or not is less important than being able to get the work done and not 00:18:26.520 |
quitting, not quitting during a pandemic with two kids. 00:18:32.080 |
I mean, when we look back, our kids are going to ask, so how was life like during the pandemic? 00:18:41.380 |
We worried about you constantly, but we provided as much love and care as possible. 00:18:46.560 |
And we created this book that you could be proud of. 00:18:49.920 |
I mean, you really did not waste a minute in the last two and a half years. 00:18:59.520 |
You've encountered something bad and you can take it sitting down or you can say, you know 00:19:07.360 |
I'm going to make the most out of this situation. 00:19:10.120 |
So when we got married in 2008, it was the global financial crisis right in the heart 00:19:21.680 |
All I remember from December 2008 was our beach wedding. 00:19:34.160 |
I had my Aloha swap meet shirt that cost like several dollars and our flip flops. 00:19:41.960 |
And it was a simple life, but it was really good memories. 00:19:46.240 |
And so this defiance about not letting a bad situation or a nervous nerve wracking situation 00:19:55.100 |
And I hope everybody takes that into consideration and helps cultivate their own defiance. 00:20:02.640 |
Well, it's getting late in the episode here, but the final thing I want to talk about is 00:20:21.040 |
We're not out there, but we can still fight to create an amazing book with the resources 00:20:29.120 |
And we can still fight to make Buy This, Not That a bestseller. 00:20:34.340 |
And you and I know we've known each other for so long, right? 00:20:40.400 |
And I think you have felt you've been an underdog as well. 00:20:46.400 |
So what are the things that make you keep on going no matter what? 00:20:52.840 |
Well, competition helped me when I was younger. 00:20:57.000 |
I had some rivals in my day, nothing serious, but wanting to do better and have that sense 00:21:07.200 |
of competition helped keep me going, and also just wanting to be independent. 00:21:13.920 |
And my parents had a lot of struggles, and I knew that they wouldn't be able to comfortably 00:21:19.720 |
So I knew that I needed to study hard, and I knew I needed to get a job that I could 00:21:24.800 |
count on that would give me a steady paycheck that would provide opportunity for me to succeed 00:21:33.360 |
and do well and learn and grow through my career. 00:21:37.520 |
And that really, really got me going in my younger years, and it just continued to give 00:21:44.640 |
me the fuel and motivation to make them proud, make myself proud, make you proud, and build 00:21:54.520 |
Yeah, there's a saying that it's an internal motor that I have, and that's, "Why give up 00:22:07.280 |
And I think since our children came in 2017, it's just added more motivation to keep on 00:22:12.120 |
going because not only do we want to provide for our children as any parent would, we also 00:22:24.020 |
So it's been a great, great journey, folks, and thank you so much for supporting Financial 00:22:28.660 |
Samurai and picking up a hard copy or an audio copy or digital copy of Buy This, Not That. 00:22:35.360 |
You can buy it at any bookstore you'd like, or you can go to financialsamurai.com/btnt. 00:22:43.680 |
I'm really excited about one thing over the next couple of weeks, and you know what that 00:22:54.660 |
This is the most excited I've been in a while. 00:22:57.000 |
And that is to pick up our son from school and go to the bookstore. 00:23:04.040 |
We're going to do a treasure hunt for the book, and we're just going to have so much 00:23:09.320 |
fun and we're going to find it and we're going to talk about it. 00:23:13.560 |
So if you want to support your local bookstore, which I definitely will be, go to your local 00:23:18.960 |
bookstore and ask if they have a copy of Buy This, Not That. 00:23:22.960 |
Barnes & Noble should have one, but that's like the big conglomerate. 00:23:27.800 |
They might not have a copy, but you can always order one as well to support and just tell 00:23:36.480 |
That'd be great for us and it'd be great for everybody. 00:23:39.720 |
So again, thank you so much for supporting us and we will talk to you later.