Welcome to the January 2019 income, cash, and debt report here with me, Jerry Banfield. For the first time in years of doing these, we go into more detail than ever, revealing my personal finances including balances in my bank accounts and credit card balances and even student loan balances.
Jan 2019 Income, Cash, and Debt Report ft Skillshare, Anchor.fm, and GoFundMe!
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I’m grateful I have the courage to just put this out there and share this with you today because I love seeing the same thing when it’s not me.
To begin, let’s take a look at first, the business in 2019, January 1st to January 31. We will take a look at the numbers here. I’m very grateful with everything you have done to help, especially $7,337 in income, which that looks pretty good to start.
But when you look at my expenses, those are big expenses, $9,889 in expenses.
That comes out to -$2,552, which means in the month of January, if you just look at it from this angle, I actually lost money doing my business online, that is like the opposite of working.
So, imagine you went to work for a month and they said, “All right, we would like you to pay us $2,552 to work this month.”
You would say, “What?”
That’s what actually happened and I’m grateful to have the courage to share this today after so many income reports with other big numbers, and I will describe to you the income and the expenses.
Of course, you might ask, “What did you spend so much on?”
Contract labor this month, I spent $3,000 or more to my number one contractor Michel Gerard. He is the right-hand man in my business, that is hundreds of hours working with him and that’s enough to work with him for a month or two.
I also paid another contractor a thousand dollars, Denis, for my transcripts, for all those videos to blog posts that help build content on my website, that brings in organic search traffic indefinitely, and then I had some smaller payments to other contractors.
In the advertising, I spent a few hundred on Facebook ads. I spent a few hundred on Facebook stars and Twitch bits to make donations to streamers, which then is advertising because it’s promoting my stream when those little donations come up. I also have all my web hosting, all those expenses like that included in advertising as well.
That’s the majority of the expenses as you can see, and we will continue on now to what I think is the real interesting part of this.
These are my balances in my bank accounts.
So, I’m showing these for the first time.
I’ve got $12,839 in personal checking today, $6,680 in business checking, then $2,871 in personal credit that will automatically be paid in full out of the checking balance.
Then, the business credit $8,655, which will automatically pay in full in a few days.
Now, the statement last month was five thousand dollars and something on the business checking, so it won’t overdraft.
Those are my current balances.
So, total balance plus a couple of smaller checking accounts thrown in there, $20,708 in cash, $11,527 owed that will automatically be paid out of the cash leaving me with a net of approximately $9,000 and that’s enough money for all the bills this month at least, so that’s good enough.
Let’s show you some of the student loan balances because these are whoppers. My wife’s student loans, $171,773 is the current balance on these. Automatic payments of $1,495 a month.
One of my student loans, $7,692 principle balance on that one.
This is a consolidated student loan. This was really helpful to consolidate, get this down to a lower interest rate.
I’m still hoping to consolidate on my wife’s loans right now. It’s too big of a balance to consolidate and be facing a five-six-seven thousand dollar a month payment on them.
But I was able to consolidate these of my loans down to fourteen thousand on these loans at a 3.8% interest rate down from 7%, and these will actually be paid off reasonably soon.
This is the link for this student loan consolidation, which is an affiliate link where you can help me out if you use it.
Those are the cash and debt reports straight from the accounts.
Then, we will go back over here and look at some individual specifics you might be interested in.
One of the things I’m very excited about that has big growth is my podcast. I’ve just switched my podcast to Anchor.fm hosting and my podcast is named “The Jerry Banfield Show.”
This actually earned over a hundred dollars in the first month I had it from ads.
Now, I’ve been doing a podcast for five or six years. I have seven hundred and eighty something episodes. I’m very grateful I have forty thousand plays on my podcast in the month of January 2019 with most of the podcast plays coming off my website player at Jerrybanfield.com/podcast.
I’m very excited about this because this is one of the biggest growth areas I’ve seen lately and this is a balance of passive and active income. I just put the episodes up and earn ad revenue, and that’s really good. So, thank you if you are listening to this on my podcast. Thank you for being here on my podcast today.
Also, Skillshare income has been growing pretty good lately with more students coming in and me putting courses up and making more referrals to Skillshare.
If you have signed up on Skillshare, thank you for that. I get $10 every time you sign up, and then I earn based on minutes watched.
The Skillshare payment, the highest it has been in nearly a year last month and at this rate, it should be around $1,000 in February.
I’m excited about that.
However, the number one thing I’m most excited about is my new online course platform.
“The power of an educational marketplace with a freedom of self-hosting.”
Right now I have not seen anything like this that exists.
Basically, the short version is, collective self-hosting with integrated email marketing.
If others are anything like me, our businesses are fragmented. Before I got banned we had courses on Udemy, Skillshare, Stack Skills, audiobooks, Kindle books, free offers, and what happens with many of us trying to make businesses like this, our businesses are fragmented all over the place.
We have got our own self-hosted courses, but we don’t send anybody to them because we try to rank up on these third-party platforms. We send people over there, but we lose track of our students then.
We have got all our stuff on all these different places and we are freelancing on websites that then if you are on the freelancing website, you can’t cross over very easily to the courses. Our businesses are scattered all over the place and the third party platforms benefit from this, and almost all of us as individuals suffer.
I’m doing a huge pivot for this and focusing my efforts on Uthena.com going forward. This is my big vision, my big earning income idea, the place where you get an educational marketplace with a freedom of self-hosting.
So, instead of there just being my courses as it was on the University of Jerry Banfield, this is becoming a platform where you can use it alongside me as an instructor, where you can teach your courses on here and you can offer everything else.
I’ve already got a membership program, but I beefed the membership program up and I’ve got my services on there.
I’ve got my free offers on there where I’ve got my entire business and I don’t need to send people on the third party platforms to buy my courses.
I don’t need to use some lead page tool to get emails. I don’t need to send somebody over somewhere else or get any other kind of email marketing software. I don’t need to send people over to Fiverr or Upwork to go get my freelancing gigs or my services. I don’t need to then have another page for coaching.
All of it done right here in one place and this in my mind, is just blowing up because there is a massive need for this in the market.
I’m imagining thousands of entrepreneurs online, not all at once, but as a few see how this gives us a simple business system and allows us to really work together effectively, I’m seeing this absolutely blowing up.
And of course, the people who get in on it early just like if you started teaching on Udemy early like I put up a Facebook Ads course, there was almost no competition when I started in 2014, I got the top Facebook Ads course, and it made me over a hundred thousand.
You put up something a year or two later on it, not nearly the earning potential, ferocious competition.
So, I’m building this out to show myself as an example. I am redirecting all of my promotional efforts over to this.
To support this big transition, I am now accepting business loans. I’ve done a whole video about this, but long story short, you can send $500 or more in even $500 increments, which means five hundred, a thousand, fifteen hundred, two thousand, five thousand, etcetera.
You can send this to PayPal.me. You need to send at least that much. I’m not taking smaller amounts. Simplicity of accounting.
You send at least $500 or more and I am assuming that is a business loan, and I’m paying you back 25 payments at 5% per payment.
So, you send $1,000 you get $50 back immediately to confirm your loan started, then over the next two years, you receive 24 more of those payments.
You send $10,000, the total you would get back out of the loan is $12,500 within two years.
Now, this gives me the capital to build out Uthena. I can see there is a lot of investing and things to do with this, mainly for me to build and build out courses that are in demand.
Then, I get all the income from those which are very good and hot to sell on the website, and when I’ve got that on there, it does well for me and if it’s already doing well for me, it has a lot of traffic available for everyone else.
So, I’m accepting business loans.
If you would like to help me, this GoFundMe campaign I’m doing, this is the best way to help. If you just are really grateful for the videos or whatever and you just want to give me a gift, this GoFundMe I’m doing is also a passion project.
As I’ve shown you, my family has got a fortune in student loans.
I’ve talked to so many other people recently who also have a fortune in student loans and almost everyone is just trying to slave away on it, work on it themselves, do things like work for a public nonprofit or for a government agency to get the loans forgiven, trying to hustle and earn more, be frugal, missing out on a lot of living, hustling and struggling silently by themselves a lot on student loans, and I’m imagining that there is a better way to do this.
We can help each other out and I’m agreeing to pay forward every donation I get five times. That means, I’m agreeing to pay forward at least $3,000 out of the donations we have got for $670 on this already, to help other people pay their loans down faster.
I made a video about this comparing it with sex, that it is better to do it with someone else than to just do it by yourself, and I think student loans fall into this same thing.
I’ve got two big passion projects right now:
Uthena, which I see ridiculous income earning potential for everyone participating in Uthena, and then this GoFundMe project, where I see a chance to show people there is a different way to go about student loans, that we can help each other, and to therefore educate and say, “Look! Don’t borrow $200,000 to go to school.”
Laura and I have been paying on our debt. I’ve been borrowing and paying 17 years.
17 years, and there is no end in sight apart from divine intervention of having you make a generous contribution to the fundraiser.
Apart from that, there is no end in sight.
At this rate, doing it alone, without something like Uthena to just pour in a whole bunch of money at once, which I’m projecting, and I’m actually planning my finances.
Some of you might say that I’m delusional, as you can look at my finances right now, look at the income and expenses, and you could say, “You lost $2,500 last month. You barely got enough to pay your own bills for a month or two. You’re delusional imagining that your challenge in the future is what to do with all the money you’ve gotten.”
Believe it or not, having a bunch of money is a challenge.
What do you do with all of it?
How do you really make it useful?
Look at any big organization, government and you will see a struggle to not waste the money because our human minds can handle so many significant digits.
Getting over six significant digits, our decisions start to lose those first few digits. I’m imagining, therefore this loan project I’m doing, this is giving me a very concrete way that I’m planning to give back in the future because I intend to have millions of dollars to give and help other people with.
I’ve given and helped a lot in my business. I’ve just given away and donated tens of thousands of dollars in my business. I’ve paid hundreds of thousands to contractors to help me with my business. I’ve helped a bunch of other people start their own businesses and be full time online, along with a bunch more to earn better and do better part-time, and I know that karma pays forward.
There we go.
So, this is the state of my business this month.
I will show you this here, the most profitable thing. I will give you a little reward for staying this far in. The most profitable thing I’ve ever done in my business was to make a job posting for some video tutorials, and then put those video tutorials into courses, sell them and put them on my YouTube channel.
So, we are going back to the thing that’s worked the absolute best. I’ve seen tons of requests on my YouTube channel for more ethical hacking. I’ve put out for the first time in years, a job posting.
We are going to find an ethical hacker, help them earn money monetizing what they are an expert in, help me get tutorials and video courses about ethical hacking out to people on my YouTube channel and on future Uthena students who are interested in this, and I imagine I will get plenty out of that as well.
Although with as many things as I’ve seen, I pay it first. I’ve learned a very good lesson. If you want to receive, you give, and you give and give, and trust the process.
In fact, the most profitable thing I ever did in my business four years ago when I was in the worst financial situation I’ve ever been in, and today the shocking thing you might see today, this is the best financial situation I’ve been in since forming my family with Laura.
This is the lowest our debt has been since we have been together. I have no other debt, no other payments besides this. The cars are paid off.
Well, we have a mortgage, but I don’t count that the same because that’s insured and it’s a very tangible asset. It’s not like student loan debt or credit card debt.
So, we do have a mortgage, but I’m not counting that because if we sold the house, we wouldn’t have a mortgage.
We have gone into a lot of detail here for the purpose I hope this is useful for you today, to see what’s working for me online, to see my mindset.
I’ve had some entertaining conversations with people in my life that they say, “Jerry, looking at your numbers you should be panicking. You should be panicking.”
I’m not because I’m imagining that I’m co-creating with God, so to speak, we are building this reality together. I’m imagining Uthena doing extremely well because of the value it offers everyone involved, instructors, freelancers and students.
It offers everyone massive value in participating and I can see exactly how to do it. I’m walking through the steps of making this a reality today. It has been requested over and over. People have said that I should make my own Udemy, so it is time to do that and I’m willing to borrow money.
If for some reason this trend continues, I’m happy borrowing money. I will take business loans, I will borrow money, I will stop making the full payment on my business credit card and just run it up.
I will borrow personal loans. I will run my personal credit cards up. I don’t care. That’s kind of the bad thing when you have got debt, to not respect having more debt in terms of, “I already owe a hundred and something thousand on student loan debts, why not borrow more?”
I’m willing to borrow more because the upward potential that’s possible is much higher than the downward potential of borrowing. I had about seventy thousand in credit card debt four years ago. I had fifty thousand in personal loans about four years ago. I’ve since paid all those off, plus a car payment that I paid off.
I’ve seen hundreds of thousands of dollars of debt wiped out in the last few years, plus made twenty or thirty thousand in extra payments on those student loans as well.
So, I see that there is a lot more up possible than down, and I’m willing to do whatever it takes today for that.
I’m grateful I’ve got the chance to share this with you and I have linked everything in the description of the video that you might be interested in participating, all that I’ve mentioned here and I do these reports every single month.
So, if you love this, I’m doing these every month right after the end of the month, and I value your feedback on this.
Thank you for watching or listening or reading.
I love you.
You are awesome.
I imagine I will see you again soon or I will be out of business and I won’t.
Now, there’s no way.
My brother asked me four years ago when it looked absolutely hopeless, he said, “When are you just going to declare bankruptcy?”
I said, “I’m not quitting until somebody makes me. I just will borrow as much money as I can get to pay the bills and I’m not quitting until somebody makes me.”
Well, I’ve got a lot longer way we can go. Even if my business lost money every month for the rest of the year, I would be fine.
I don’t imagine that’s what will happen, but I hope this mindset is useful for you because as you can see, I don’t operate in the day-to-day reality as much as you might expect.
I operate in what I’m manifesting, what I’m bringing forth, and I’m not cutting back on my giving either.
I give generous tips.
One of my biggest personal expenses on this credit is, I get a massage and I just drop generous tips everywhere I go, and I’m not cutting back on my giving out of fear that I won’t have enough.
I will not cut back on what I’m giving to other people.
You can see it when the people get into that scarcity mindset, they start cutting giving back to other people. I see so many people that when I’ve talked about my GoFundMe project, well the idea being if you give to me, you will have that much less for yourself, and that’s not how it works.
What you give, you get back.
I will make a little reaction video for you and put it up right after I see your donation.
All right, I found a way to just go on and on.
So, all right.
I’m really ending it now.
I am absolutely done at this point.
Edits from video transcript by Michel Gerard at www.michelgerardonline.com.