- Big Boyz Comedy Kings is coming to Yamaha Resort and Casino Saturday, December 9th with D.L. Hughley. - That sweater so tight, it look like a snap between the legs. - Cedric the Entertainer. - Once we stop running, I'll find out what it was we was running about. - And Paul Rodriguez.

- What is it about old Mexican men? They could be missing a leg, they still want to get into a fight. - Hosted by my man Eric Blake and a special performance by Mario. Big Boyz Comedy Kings, December 9th at Yamaha Resort and Casino. Tickets can be purchased at AXS.com.

This is a 21 and over event. - Anarchy and Yaks? - Who does he think he is? - Get off the couch. - With tasty philosophy and deep Yaks, this is Nick Hazelton with the Narco-Yakitalist. ♪ ♪ - Hey there, guys. This is Nick Hazleton, the Narco-Yakitalist with the 62nd episode of Narco-Yakitalism.

You guys will like what I've got today. This guy is great. I really dig Bash in school. Wax and philosophy is fun too, but nothing gets me fired up more than somebody talking about how to run a business. So without further ado, here it is. Joshua Sheets back on.

I'm super excited. I had Joshua on to talk about how to... I think it was...basically, the show was how to get rich as a young person. And it was an awesome show. I think it was one of the best, if not the best shows I've put out. And that was a while ago.

So I'm really happy to have you back. How are you doing? - Yeah, I'm good. And I'm glad to be back. And I'm more glad that you've actually done it. I think it's what we talked about at that. In and of itself, automatically, it takes you out of the bottom 80% and moves you into the top 20% because the vast majority of people listen to a tremendous amount of advice and do nothing.

So I'm glad to see you following through. That was the only reason I was willing to come back. - Well, I appreciate that. And I didn't mention this, but you're from the...you run and host the Radical Personal Finance Podcast, right? - Absolutely. Yeah. - So you have some ethos to speak on when we talk about finances.

- It's kind of been a long-time hobby and a long-time profession as well. So hopefully, at this point, I have some ideas that can be useful to people. If not, then I don't know what I'm doing. If the amount of time that I've spent studying and thinking about these things can't be useful to some people, then I've done something drastically wrong.

But the audience says that the content is useful, so I'm glad to have it. - Yeah. Well, I love it. I love your show. I haven't listened in a little while, but I always...when I listen to any of your shows, I'm like, "Yes, this is great." Even if it's about retirement and I don't need to think about that for another 50 years, I still do.

So I appreciate what you're doing, and I appreciate you coming on to talk about my self-education plan. - Yeah. One of the keys to any kind of life success is having a long time horizon, thinking far in advance. And it's a big difference between even the classes. You can segregate in our modern society, you can segregate people based upon lower class, middle class, and upper class based upon their length of time horizon.

The upper class people are planning generations in advance. Just think of the people who rule the world. They've planned out generations in advance. They've thought things through. My favorite story of that is Rothschild. You know, he sends his five kids, the original Rothschild patriarch, he sends his five kids out to set up a banking empire in five different countries knowing that for the rest of his life, he'll never see them again.

But to this day still, the Rothschild family has an incredible amount of wealth and power, and much of it was due to the foresight of the original founder. And you can pass through each of the classes of society. Middle class people think about planning to make sure they have some money saved for their down payment on their house.

They think forward about retirement. And so middle class people think in the context of their own lifetime. And then lower class people are often thinking about just the next step. And sometimes that's due to just simply simple circumstances. You know, if you've got a hungry belly, you can't afford to be thinking about how am I going to do generationally?

You've got to be thinking about where's my next meal going to come from? Some of it is due to just simply ignoring the opportunities that are available to them. But the longer your time horizon can go, the more you can move up through the classes of society. I do try to think beyond myself as well.

My dad has done this with our work here on the farm. So I had you on to come talk about this self-education plan. I had Brett Vannott from the School Sucks podcast on to talk about this from an educational standpoint. And we got into a little bit of philosophy, I think, too, on why am I doing this.

And I wanted to have a financial standpoint on this. And you also gave me some good tips here. And I believe I added this on to everything. I listed out on all of these things I wanted to do. So like the yak dairy. I had my materials and what I would get the material skills and then how I need to do it and then what I'd learn.

And then you told me, "Well, you should also add in why is it important to you?" So I think I can't remember exactly what you said, but I'm thinking that this is because it brings it more personal. It makes it more personal. It puts it in a great perspective.

If your why is strong enough with anything, you'll figure out the how. So think about the example that I've never heard of a better one. The example of if you -- how old are you at this point, Nick? I'm 17. Okay. So you might be able to answer this, but if your listening audience were a little bit older, you can at least appreciate the example.

If you were a parent and you had a son or daughter that you really cared about or if you had a niece or nephew that you really liked and you found out that your son or daughter, your niece or nephew was diagnosed with a terminal disease, but that there is a vaccine available for that disease that can cure them and they're going to die one year from today without the vaccine, but with the vaccine, they could actually live.

That vaccine costs $10,000 and you've got to earn and save the money to do it. I ask people as a mental image, I say, "If you had to, could you earn and save $10,000 in the next year to save the life of your child or a child that you like?" And the answer 100% of the time is yes.

And so I learned that example years ago from a Dave Ramsey class that I went through and it just stuck with me as being the perfect example of how if your why is strong enough, you'll figure out the how. Now, nobody knows how they would do it. They just know that if they needed to, if the stakes were high enough, they would do it, whether it meant they got extra jobs, whether it meant they sold something, who knows, but they would figure out a way to do it.

So the key to good goal planning is getting very, very clear on why something is important to you and the more reasons why something is important to you that you can stack up, the better. As you stack those reasons up, you will follow through if the reasons are enough.

And then also to think through the how. If you just think through the how and you don't think through the why, you might not have the emotional strength to follow through when times are tough because the how isn't actually going to work. If you look at business planning, there are studies that I've read and articles that I've read that talk about the percentage of businesses that actually succeed who have started with a good business plan and it's much, much higher.

One of the things you want to think about whenever you're starting a business is constructing very carefully an excellent, carefully thought through business plan that provides for as many eventualities as you can consider. But when they've done research with those business owners who have actually followed through and built those businesses, they ask them, "How often do you refer to the plan?" The surprising answer is, "Well, not very often." And so what seems to be the case is it's not so much having the plan that makes the difference.

It's having thought through the plan and thought through things in advance that makes the difference because once you're out in the war, so to speak, you've got bullets flying at you. You don't have time to go out and dig out the manual and see what to do. You just pull the gun and fire.

That's what business owners often are doing. But if they've thought through in advance where they're going, then they're probably going to take better shots. Most businesses will follow a path of change where somebody will set out with an initial vision and then they'll move forward, but that vision will change, but still it's the planning.

So when you combine those two things together and you've thought through very careful plans for how something can be achieved and you have very important reasons why, then you bring a lot of energy and a lot of clarity to your goals. And then perhaps the most important thing behind the why is you might find that you've set a goal, you've built a plan, but you don't really have any compelling reasons why something is important to you.

So in that case, after a while, you might work on it and then after a while, you realize, "I don't care about this. I don't have any why for it, so why am I wasting my time?" and you just quit. That's the best thing in the world because you quit doing something that's not important, which frees you up to do something that you do care about.

So it's also a good test to know, "Am I working on the right goals if I have enough really emotionally strong whys?" Yeah, I like that. I've never really thought that through, but I think you're totally right and I do try to do that kind of consciously. My main goal is I want to be comfortable.

I want to be happy and I want to make sure that I'm going down a path that's going to most benefit me, not necessarily financially, but in the long run, I'm shooting for happiness and content with my life. So whatever that means, that's where I'm going for. So yeah, I like that.

I think that's exactly right and I have expressed that on the show, goals-oriented decision-making and looking at the long-term goal, like where do you want to be and how do you want to feel and is this going to help you out get there? And if it isn't, then don't do it.

Right. The biggest waste of time is to do something well that doesn't need to be done at all. That's a good quote. It's not original with me. I don't know who to cite or I would cite them, but it's not original, but it is an apt quote. Okay. Well, all right.

So let's dive into this plan. So the first thing I set out with was let's make a statement. Why am I doing this and what am I supposed to be doing in a very broad sense? And so I wrote, this is what I plan to do outside of school because this was the alternative to going to school.

So I decided I'm going to list all the responsibilities, goals and actions that I plan to have and take to become a self-educated and independent entrepreneur, which is something that I didn't think I could do in school. So this is exactly what this plan is, is how to become a self-educated, independent entrepreneur and being the main goal here is to live a good life.

And I've explained that in other shows what that means to me. So that's mainly what I'm thinking. And do you think that kind of fits in with why I'm doing this? Or do you think I could get into more depth with it? You will be able to get into more depth as you start to work into this and experience it.

So the key to planning is not the actual plan. The key to planning is the process of planning. So taking an initial step starts to transition you from a non-planner into a planner. So what you'll find is as you work towards these goals, some of these goals will change.

Some of them are exactly what you'll wind up doing and they're important and you'll achieve them. Some of them will change and you'll realize that, for example, in order to live a good life, that's kind of a vague and nebulous thing. It doesn't mean what is a good life, but you may not know right now.

I probably have a little bit more of an idea of what a good life is than you do because I have a few more years of experience. But even me, I'm still working on my vision of a good life. So be as specific as you're able to be, but don't stress out about it.

Recognize that it's going to change. The most important thing about doing a process like this is not what you achieve, but it's who you become. I remember years ago I heard Jim Rohn talk about that. He said, "The most valuable thing of becoming a millionaire is not having a million bucks, but it's becoming the millionaire," or to clarify it, becoming the type of person who can save and accumulate a million dollars.

Once you're the type of person who can save and accumulate a million dollars, you could take the million dollars away and you'll still be that person until you'll get another million dollars. That's one of many reasons why the rich get richer and the poor get poorer. The richer rich, they become the type of people that get and stay rich, so they're going to keep on getting richer as they express those characteristics and character qualities that help them to be rich.

Poor people, for the most part, are poor people and they do the types of things that poor people do, so they continue to be and to maintain their poverty. You could take all of the money away from everybody in the world, split it all up equally based upon the number of people that are alive, and after a year, you'd see some major changes.

After 10 years, I can't imagine anything less than 10 or 20 years that all of the money wouldn't be right back in the hands of everybody who has it now because the type of person who is rich is the type of person who is going to get rich again.

The important part of this planning is becoming the type of person who is proactively planning. For right now, you've got a really great start and then next year as you revisit this, you'll get better and better and better and better at actually clarifying the plan and your plans will get better and better and better and your results will start to multiply over time.

>> Trey: Okay, yeah, I like that. That's something I try to keep in mind. Yeah, my plans are going to change and they have actually. I hadn't visited for a few months before I talked to Brett Panot about this and I was going through it. I'm like, "Well, I don't want to do that anymore.

I haven't put as much energy as I thought I would and I don't think I'm going to put as much energy in there because I don't really want to do this right now." So I took it out and yeah, I think you're exactly right, keeping that in mind and I do try to keep that in mind.

Okay, so yeah, I like your feedback there. Then going on, moving on to the goals here. So I picked this goal that I want to be financially independent by 25. I decided that that's what I want to do and this is one of those things that could absolutely change, right?

I'm not going to say, "I'm going to do this by 25" because I don't care that much at what age I become financially independent. It'd be nice to be by 25 and I think I can do it. So I chose that and then that was the main goal and then to do that and well, I guess it's not all to do that but some of the things I decided also along with that is I want to have the first commercial yak dairy and I said the next two years and that was earlier this year and I found that that's much harder than I thought it would.

So I changed my goal for the next four years because I do think I can do it in four years but next two years will be very difficult. So I changed that and then I also want to have a live show, take my podcast and turn it into a live show in the next couple of years to be on the Liberty Radio Network and then I want to have some several side businesses set up in the next couple of years too.

I decided I want to put the once a week restaurant on hold. That would have been having the produce and the meat from the farm being used as a once a week restaurant. I had a decent plan set up for that and I just lost interest. So I put that on hold for now and right now, I'm doing this, selling meat from pigs and yaks.

I don't have any poultry of my own to slaughter but I just recently slaughtered a yak in the last few months. I'm selling meat currently. I'm always selling pigs and so that's working out really well and then I'm not growing any produce right now and I will be selling fibers from yaks.

So those are my side businesses. Do you have any feedback on those goals? Probably the most useful feedback would be helping you clarify a plan toward financial independence. So when you say that you have a goal of being financially independent by 25, what does that mean? I want to be able to sustain myself and my lifestyle while being comfortable, I guess financially.

So sustain yourself and your lifestyle. So clarify what the lifestyle means. Are you living that lifestyle currently? I don't know. I don't have a plan for my lifestyle. I kind of do. I'm shooting for something very simple on the farm. I'm not looking for extravagant cars and houses. My plan is to live in a trailer that I'm fixing up and yeah, so that's about as far as I've gotten with that.

So the starting place is to clarify the lifestyle and I'm glad you're thinking about this because too few young men spend time thinking about this, but you want to just get clear on the lifestyle. What is that lifestyle and if possible, you want to write that down. So if you're living on the farm where you want to live, that helps.

So to be financially independent, if you're fixing up a trailer, then your initial stages are, "Well, I need $3,000 of materials to fix up this trailer," and you want to consider any costs or questions that are going to be associated with your lifestyle. So if you've got the trailer, then you've got a place to live that's paid for.

You're going to need some electricity, so there's $50 a month for your electric costs or whatever the costs are that are going to be associated with your lifestyle. You want to build out a budget. When you're a young man, you want to start by saying, "Okay, what's a budget for me?" and then you also want to say, "Well, what would be a budget that would be me plus a wife?" and if you are able to clarify that, it'll help you to plan a little bit because the budget that you are able and willing to live on would probably be different than the budget that you are able and willing to support a family on, so it's good to plan ahead for that.

Once you start by clarifying the lifestyle, then that gives you a starting point. So when you get to the word "sustain," so you said, "I want to be able to sustain myself and my lifestyle," then what does "sustain" mean? So there are different stages of financial independence. So one stage might be, let's say that you work out that you need a budget of $3,000 a month.

That would be about a median budget. Many people in the country are living on about that much, and so if you are frugal, you're living in a trailer, that would give you plenty of excess spending money to be able to do things. I'm not talking about improvements that your farm needs here.

It would be a fairly comfortable lifestyle if you have plenty of spending money, again, if you're living in a trailer and living a simple agrarian lifestyle. But $3,000 a month could be a goal initially for you to make and profit from your dairy or from your overall farm operations.

So once you have a target of a number, then what I'd recommend to you is that you take your approach in stages. So the first thing that I would have is a goal that says, "I want to earn my income in a way that aligns with my vision for the things that I enjoy and the things that I like to do." So for you, that is the agrarian farming lifestyle.

So you want to figure out, "How much money do I need to earn from that? I'll use $3,000 a month. Is that an okay number or you think it should be less? You think it should be more?" Any guess on that at this point in your opinion? I think it would be less, but that's fine.

Let's work with $3,000. So the number doesn't matter. It just matters that it's a generally appropriate number. And there's a balance between how little you can spend on and how much you can spend on. You're a pretty hardcore young man, so you could live on $5,000 a year if you needed to.

You could live in the trailer. You could have $20 of electricity. You can live a Jacob Lund Fisker lifestyle. I think you're a fan of his. He would be a great role model. So you could live that lifestyle. I'm using a more comfortable number just in case you find that you'd like something different, but that number ultimately is up to you.

So if you pick a number, $2,000 or $3,000 a month, then your first goal is to say, "How do I get to that?" So let's use $2,000 a month. On a yak dairy, what would you estimate is your profit if you could run, I don't know how big your commercial yak dairy would be, but if you could run with yaks producing the amount of milk they produce, the sales price, and let's say you had 10 milking milk yaks, how much profit would that produce for you on a monthly basis?

I honestly have no idea. This has never been done before. So I'm totally pioneering that and I don't know. So it's an exciting thing to pioneer it and I love that you're doing that at this stage of your life because if you can live on $5,000 a year, you're at a place where you can pioneer this and see if it works or see if it doesn't.

If you were at a stage of life where I am, I'm 30 years old and I have two young children and a wife that I support, I'm not able to be quite so flexible as you are. So it's awesome that you're using this time of flexibility to pioneer this.

So you want to start by just taking some guesses and you figure out, "Okay, what is the local market for milk?" So what I would do is in building the business plan for something like that, look around and see what does organic goat's milk sell for, what does raw cow's milk sell for, does anybody sell sheep milk in your area for people who have allergies to cow's milk?

So you look around and you try to figure out what their prices are and you look at that yak milk and you say, "Does yak milk have any extra benefits or any extra disadvantages that are a real benefit or problem?" And you look at that and you start to figure out, "Okay, here's what I think I could sell it for.

I'm going to make up a number, $5 a gallon." So you could sell your milk for $5 a gallon. Then you look and say, "Well, how much?" I'm sure you have one yak at this point that you could milk, so you say, "How much could each one produce?" And you start to run these numbers on it and you just play with the calculations and start to figure out, "Could I make any money at this?" And you may not know.

Maybe you need $15 a gallon of milk to break even. So in building the concept of a dairy, what would be a mistake would be to set out and to build a big building, a beautiful milking barn, buy milking equipment, etc., and then go ahead and hook up and then go ahead and get your yaks lined up and start milking.

That would be a mistake. The better thing is to see, "Can I develop the market for my product first and what price can the market bear?" So then if you say, "Okay, I can sell some milk for $15 a gallon. I can sell it illegally to my neighbors just off the record.

Okay, so there is a market. Now you can go ahead to process and you can start running out in business." They're called a pro forma financial statement, a projection. You can say, "If I had 10 yaks, I'm going to make up some numbers here. I could sell my milk for $10 a gallon.

Between my 10 yaks, I'm going to have 5 gallons per day. That's $50 of revenue per day times 365 days per year. That's $18,250 of gross income based upon the sale of the milk." So then you pull off of that your transportation costs. Are your customers going to come to your farm and pick it up or are you going to deliver it?

You pull off of that any cost of maintenance. What is the rent on the land that my yaks are grazing on? What's the cost of the building? Do I need to buy milking equipment? Is there going to be an electricity cost? How am I going to do this? Do I need to hire a farm hand to help me?

Am I going to milk them by hand or do I need to buy the equipment? You start pulling your expenses off of that and you try to figure out, "Do I have a reasonable business that could be created?" So with those numbers that I just totally pulled out of thin air, you could start to see, "Okay, there's $18,250 of gross revenue." So then you can rerun that and you can say, "Well, if I could get 15 milking yaks under those numbers that I used, then I could get to $25,000 of revenue, pull off a few thousand dollars of expenses, then I could anticipate $2,000 of profit to compensate me for my time." And so that would be, if I were in a situation like yours, that would be one of my initial goals to say, "I want to spend $2,000 a month.

I believe that a herd of 15 yaks could get me there." And that gives you a game plan to start with. You figure out how much land do I need, what's the equipment, etc. and that's how you meet that initial stage of funding your expenses based upon the net profit from your business.

Okay. Yeah, I like that. I think that's something I should be looking into and I will be doing that. So basically, I'll explain my plan so far. It's not as detailed as you're suggesting but my plan is that the next heifer calf that I get, the next female yak calf I get, I'm pulling it at whatever age from its mother and I'm bottle feeding it so that it's very friendly with me and that way I'll be able to milk it when it's mature and it has its first calf.

That's so far what I'm going to go for right now. So I'll be milking it. I'll taste the milk, make sure it tastes all right and then I'll start experimenting it with myself. Can I make cheese out of this? Can I make yogurt out of this? As soon as I do it, I know there's a market for it because people want it.

People want to try it. I've had many, many people saying, "Yeah, yeah. Get me yak milk as soon as you can. If you do it, give me a call," because people really do want it. So that's my plan right now is to see if I can even milk a yak and then I'll try and sell it and then expand from there.

That's right what I'm thinking. That's perfect because it's a very unique idea. It's a very unique product and you're going to have to build the market for it. So the reason I talk about building out the � again, to use the technical accounting term � the pro forma financial statements is, this is the same thing you do with any business and what you want to figure out is could this be a viable business?

With those additional details that you've now given to me, let me give you a couple of scenarios. If you need to raise a heifer yourself from your herd and you expect one female yak each year going forward, then you now know that there's no possible way � if that's your source of milking cows � you now know that there's no possible way for you to be sustaining yourself four years from now if you only have three milk-age heifers and one little one that you're raising to that point in time because you're just not going to be able to have the volume of milk that you could actually build a business off of.

So it's no problem. That doesn't mean you abandon the goal. What it does mean is that you're going to have to figure out how am I going to support myself for the next ten years until I can build up my herd enough to have my 15 milking cows if this works.

And so now that's going to focus your attention over on your established business. It's going to focus you over on your pigs. It's going to focus you over on your pastured poultry. And it's going to focus you on your vegetable production. And so now you're going to put together a plan to say, "Well, I've got this amount of land available to me in my current situation.

I can run on this land this number of pigs. I can run this amount of poultry. I can farm this over here and produce these vegetables. With my time, this is going to support me while I'm building up my yak herd towards the goal of this commercial dairy." So the reason that we have to put numbers on paper is to see could my plan work in theory.

If it can't even work in theory as far as supporting me and my family, then I don't abandon the plan. I just build a new plan that's going to wind up in me supporting myself. And so if you've got to grow your dairy one cow at a time, it's not going to be supporting you two or even four years from now.

So it might fulfill your goal of having a first commercial yak dairy in four years because you might have four milking cows at that time, but it's not going to make you financially independent. So that's where you're going to need to add those other products to your product line as you build out your plan.

Okay, yeah, that makes sense. So one thing that I've been talking about with my father is that maybe I should just buy a trained heifer already or a trained cow right now. The only problem is that's like $3,000 and I can't afford that right now, but I could obviously take out a loan with him or somebody else to make that happen and that would make it more immediate instead of waiting for that calf.

And then if I decide, "Hey, this is going to work, I'll buy more." I could possibly do that. So how would you analyze that decision to decide which is the better course of action? That is an interesting question. I have not thought about that. So how I would do it is I would, again, come back to some projections.

I'm making this sound more complicated than it is. You're already used to doing this every day. We're already used to weighing pros and cons of decisions. I'm just clarifying it and trying to present it in a structured format so that the listeners are able to apply this to their own life.

So let's say you look at your cow. Well, number one, you need info. Do you know how much milk, if you were to buy a heifer that someone else is milking, do you know how much milk she would produce monthly, annually, or on whatever basis? I don't have that figure off the top of my head, but I know I could figure that out pretty quickly.

So that would be the first thing to do. I don't know how much milk a cow produces, a Holstein or whatever. So you would start with figuring out what is that dollar figure. What is that amount of milk figure? Number two, you look to see what percentage of the year is the cow dry.

Does she have milk all year round or is she dry at some point of the year? Then that figures out on an annual basis how much milk you can expect. Next, you find out what is her expected lifespan for being a good milk producer. Can she produce milk for two years, five years, ten years?

I don't know those answers, and you would need to check that out with whoever the farmer is that is doing that. So that means some phone calls, some emails to other farmers, some posts in whatever the yak forum is where you participate. You try to get those details. You try to figure out what is the income that I could expect.

So what is the amount of milk that's my product that I could sell? Next, you need to look at the market and do a guess on what you could sell that for. That's where I would look at other types of organic, non-cows milk, sheep, goats, find out someone who's selling, look at the specialty products that they're making, and try to just make some guesses as to what it would sell for.

What that will do for you is that will tell you how much of an income you can expect from that cow in terms of the actual milk product. Next, look at the remainder value of the cow when her milking lifespan is done. So what do you do with her when she's too old and she's not going to be producing milk?

Can you butcher her and sell her? If so, how much could you expect to sell that meat for? Is that $1,000 worth of meat? Is it $200 worth of meat? Can she have babies that you would be able to sell along the way as she's milking? If so, how would those affect the milk supply, etc.?

So we want to figure out what's the income that we could expect from that cow. Now let's say that we ran the numbers and the cow that's going to cost $3,000, you run the numbers through and you find out that you could expect $500 per year of profit or income from her milk products for the next four years.

So that would give you $2,000 of profit. Then at the end of $2,000 of income, then at the end of four years, she's basically going to be near the end of her productive capacity and you decide that you're going to butcher her and sell the meat. You look and say, "Well, she's going to be old.

She's going to be tough, but we can sell her for and get $500 of value for the meat." Now you know that that's a losing proposition. If you have to pay $3,000 for her and you've only got $2,500 of income, then you're going to be losing money. So you're probably better off in that situation waiting a little bit and growing your own and saving the $3,000 because if you compare growing your own from your own herd where she can produce and yet it's going to be waiting two years but now let's say the same numbers, you've got $2,500 of income but $0 of outflow to buy your own calf that you're raising just the time, that's much better than $3,000 of outflow and only $2,500 of income.

On the flip side, let's say that those numbers were very different. You can sell $500 a year of milk product. You could sell $1,000 a year of milk product and in addition to that, you're going to sell some of it as straight milk, but then for some of it, you're going to create higher value artisanal products, cheeses or yogurts or something that you can mark up even more and you've got the market for that.

So in addition to the $1,000 of milk, you can add another $250 of value to the actual product. So now you've got $1,250 of annual revenue for the next four years plus at the end, you're going to butcher her when she's not too old and not too tough and instead of it being $1,000 of meat, on the flip side, she's actually going to be $2,000 of meat.

So now in those numbers that I completely made up, you've now got $7,000 of expected income. In my world, that's a pretty good rate of return. I can calculate the actual cash flow payments for you and tell you the actual rate of return. It would take me about three minutes to do and I don't want to do it on the microphone here, but you could run that in and say, "Okay, $3,000 out and over the next four years, $7,000 of income.

That's a pretty healthy profit." So in that situation, that would be a good thing to get going and in that situation, I'd go ahead, I'd borrow the money from my dad, I'd go ahead and buy her and I'd get that business going instead of just waiting for my heifer to grow up.

Okay. Yeah, that makes sense. So what I'm thinking right now, my course of action should be because my father sells goat milk right now. So using those prices of what he does, he makes cheese and yogurt. So I'm just going to, just to play it safe, I think I could totally sell yak dairy products for more than goat milk, but just to play it safe, let's say it's just not that good.

So we sell it at goat milk prices. So I can use that, take those prices. I can ask some people what the yield of a yak cow is. I can figure out all that information, the fact of that and then go from there and figure out which path is profitable, wait for the calf or go ahead and buy a $3,000 cow.

Right, right. And the key, I've made up numbers that are totally wild. The key is just to sit down and start playing with scenarios and start making some guesses. And you'll be wrong. You're just guessing. But then as you actually get into this business, you start to track your own scenarios.

And this thought process is what's more important than the actual details. I did this one time with a friend of mine who was considering establishing a valet business. And this friend came to me and they said, "I've been offered," he was working as a valet, somebody running for cars presently.

He was earning $2,500 a month doing that work. And he was considering establishing a valet business. He'd been offered a contract by a local condominium and there were certain prices involved with the contract and he knew the numbers. So we sat down and we ran the numbers. I asked him, I took the income, I took the taxes, I took the cost of insurance, and just ran some simple illustrations.

And what wound up being the case was that in order for him to make money, if he worked in the business and worked a shift just like he counted himself in as a valet, he could expect a profit of about $2,000 with him working in the actual business, which was equivalent or less to what he was making as a valet, but he had a lot more risk.

And so what came out of it was under the terms of the deal that were offered to him, it was a bad deal. And there was no rational reason for him to start that business. There wasn't enough even potential profit for it to be worth it. So his decision course was if he was only going to have the one account, he was better off just simply keeping his current job, running for cars and letting someone else take all the risk and all the hassle and he just earned the net profit.

He would have been making more as a valet than as the owner of the valet company. The flip side was the only way for him to make the business worth it would have been if he was going to take it from one account to 10 accounts because with one account, he didn't have enough scale for the business to work, but with 10 accounts, he would.

So if you sit down and put numbers on paper and start to make guesses without any commitment, but just start to look through things, you'll start to realize, "Is this worth it?" And in some cases, yes, in some cases, no. And you might find that pastured poultry is way more profitable and you're just going to go slow and easy on the yaks as a fun hobby and who knows, maybe at some point they'll make some money and maybe at some point they won't.

That's very different than saying, "This is an awesome business opportunity and if I just focus all my effort here, I'll make way more money with yaks than pastured poultry." The numbers will tell the answer. Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host of the Goldstein on Gelt radio show (Monday nights at 7:00 PM on www.israelnationalradio.com.

He is a licensed financial professional both in the U.S. and Israel. Securities offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, NFA, SIFMA. Accounts carried by National Financial Services LLC. Member NYSE/SIPC, a Fidelity Investments company. His book Building Wealth in Israel is available in bookstores, on the web, or can be ordered at: www.profile-financial.com (02) 624-2788 or (03) 524-0942.

Disclaimer: This document is a transcription and/or an educational article. While it is believed to be current and accurate, there are many logical considerations for making financial decisions. Please see the video description for a link to the entire document in your usage. If you would like to purchase a copy of this book, be sure to check out my website at www.profile-financial.com.

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This is a recorded memento. Any questions or other problems, please post them in the comments. But the one thing I would like to have your input on a little bit is my plan B. Did you read the plan B? I did. Okay. So, I mean, obviously, when I wrote this, I was like, "I don't want to deal with this.

I don't want to write this plan." So I was a little bit – I wasn't really thinking it too much through, but I have thought this plan through and I think that – I still think that I'm right here, that everything I've got going, I have a variety of business ideas and I think that it's enough diversity that I think this could work.

So I was being a little bit facetious when I say none, these, or death, but what is your thought on that? What would happen if you fell down the slope while you're out trying to find the new baby yak that was born and broke your back and you could no longer walk?

My point is – and no need to answer – just illustrative of the fact that plan Bs are valuable and important. Things can always happen that could adjust things. So I don't think necessarily at this point – you've got so many options here that are associated with it that I don't think you need plan B.

I don't think in terms of plan B. I do think in terms of if this doesn't work, then what? If this doesn't work, then what? If this doesn't work, then what? What would I do there? And in my mind, it's valuable to accumulate a list of potential other things that you could do that would be useful and fit your potential lifestyle.

So I admire the idea of these things have to work. I admire that because that's often what keeps people focused when it doesn't look like things are working. Businesses usually are tough and there's a point in time where you're like, "I just don't think this can work," and your confidence and your belief is often what will drive you through.

But also good backup plans might help you to be able to be willing to do other things. And it's not so much when you make a plan. You can always change the plan. And that's why I focused on the planning process. So in our first discussion, I really emphasized to you, "Make a plan," because most people don't make a plan.

Then now that you've made a plan and I admire that you've actually followed through, that tells me something about you. So now I want you to focus on the process of planning and really understanding the process of goal setting and planning. Because once you identify that process, then you know and you can apply it to other areas of life.

And having backup plans is valuable and is important. And as you look around at the opportunities that you face, as you look around at the things that are before you, what you might find is that there are a number of different options which are actually going to integrate with your life goals.

At this stage of your life, I would expect most of your decisions to be very binary. It's either this or that. And that's expressed in what you've written here with regard to like it's either this plan or nothing. As you continue through life, you might find that you can integrate and implement more things together and that things are not always so binary.

So you might be able to find that as you pursue different things, you might find that somebody offers you a job working as a libertarian activist and you get to travel Oregon and make $40,000 a year encouraging people in political principles that are important to you. And you might recognize because you look at the act business and say, "You know what?

This is fun and I like this, but there's very little commercial opportunity and there's a reason why there are no commercial yak dairies here where I live. I'm just going to go ahead and keep my access fund and I'm going to focus on this other thing that I really like and that's really valuable to me." And that's okay.

Your goals will change. Your situation will change. If all of a sudden your mom and your dad got sick and now you had to step up and you've got to run the goat farm and you've got to care for them and they're both bedridden, that would dramatically affect your plans.

But you would step up and you would take care and you would be the man of the house and you would take care of the household, but that would affect your plans. So I wouldn't worry so much about, "Okay, I've written out a plan B." What I would do if I were you is just keep lists of things that interest you.

Keep lists of potential ideas. Keep lists of jobs that would be fun. Keep lists of business ideas that you hear. Keep lists of lifestyle choices that you think are appealing to you. Keep lists of ideas and then reference those lists sometimes. I keep a file called "Someday Maybe." I learned this trick from reading David Allen's book, "Getting Things Done" years ago and I found it to be useful.

Keep a "Someday Maybe" list. "Someday, maybe I might want to reference this." And as you do that, you'll accumulate ideas. And then if something hits you in the face where all of a sudden circumstances have changed beyond your control, now you can look at that list and you can have something to transition into that might also be a good fit and still allow you to continue working towards your goals.

Okay. Yeah, I have no issue with that. I think this was a fantastic show. I really appreciate the input and the suggestions and the advice. It's awesome to have you on again to talk about this. This was great. I admire what you're doing. And so I'd be happy if you want me to come back in the future, I'd be happy to do it and keep in touch and keep sharing with me your progress and the things that you're doing.

I admire the work that you're doing. And I hope that in many ways, I have a two-year-old son and I hope that my son is as entrepreneurial and forward-thinking and aggressive as you are when he is at your stage of life. I really appreciate that. And yeah, I hope we keep in contact and we should do another show in the near future, especially when I get some more things rolling in.

So quickly, I guess it's your time crunch, so you can plug your show and everything you're doing. Yeah, my show is Radical Personal Finance. And so the best way to find out about that is just simply search the App Store on your phone for Radical Personal Finance. You'll find my free app that has my show.

I do it Monday through Friday, in-depth, hardcore financial planning. And my intent is to provide somebody with all of the tools and education that they need to go from financial dependence to financial independence. And on my show and also on my website, Nick, you and some of your listeners might also like to look at the stages of financial independence that I've developed.

There is a show, I can't remember it right now, the exact show that is with the growth. But I've written out seven stages of financial independence. Financial independence, we were talking earlier, is somewhat of a nebulous concept for many people. But I've broken it down into seven stages, so you could work toward it sequentially.

And it's not such a big nut, big number. So that might be something that some of your listeners who are interested in financial independence might enjoy looking at at RadicalPersonalFinance.com. I can't give enough props to Joshua. I love his show. I need to listen to it more often, but his advice is great.

Definitely check out his work, Radical Personal Finance. Look it up. I'll put it in the show notes. You'll love it. We focus on my situation mostly here, but this really can apply to any situation. The main thing I got out of this show was the planning aspect, which is mostly what we did talk about.

Having the most basic plan is super helpful, even if you don't follow it. Like I said earlier in the show, I've promoted goals-oriented thinking. Figure out what you want and go for it. If you don't know what you want, that's fine. Start at basic feelings that you want, like joy or being content with your situation.

Then build from there. It can be pretty hard, but it's so useful. I think it's fun, too. I don't have much to say other than that. I'm still moving. I did hit some irritating barriers this week for making any sort of progress. Our basement flooded a couple days ago, so I've spent the last few days like that.

I've been having a hard time practicing stoicism and nonviolent communication this week. I've been complaining like a toddler a lot lately, which I don't like. Part of it is that I want to do my own thing away from everybody else, but I have other obligations like helping my family clean up the basement, which it's unfair of me to expect that I don't have to participate.

But it's been kind of irritating me recently. The other thing is that I don't like living with my parents. I love them, don't get me wrong, but I'm ready to get out. Yeah, I know what you're saying. You're going to miss it someday, buddy, and you're probably right. I'm trying to appreciate it as much as I can.

It's just been kind of irritating recently. I'm sharing this because, like I've said before on the show, I think that I should share what it takes and the struggles I face using the philosophy that I promote. So, I mean, that's just what I've been dealing with recently. With that, thank you for listening.

I appreciate each and every one of you, especially those that help out the show. If you'd like to help out the show in any way, you can like us on Facebook, the AnarchoYachtetalism podcast page. You can share and like the post of this episode. It'd be really great. You can also like and retweet on Twitter.

You can follow me @nickhazelton. I'd love and be thankful to anybody who wrote a review on iTunes or liked us on Podomatic as well. You can find the AnarchoYachtetalism podcast on iTunes, Stitcher, TuneIn, Podomatic, and dash yacht.com. That's A-N-Y-A-C-H-T-O-M or the Liberty Radio Network at L-R-N-D-O-T-F-M. Once again, thanks for listening.

This has been Nick Hazelton with AnarchoYachtetalism. Don't just dream about paradise. Live it with Fiji Airways. Escape the ordinary with Fiji Airways Global Beat the Rush Sale. Immerse yourself in white sandy beaches or dive deep into coral reefs. Fiji Airways has flights to Nadi starting at just $748 for light and just $798 for value.

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