On October 4, 2015, in Finance, by Early Financial Freedom

My wife/business partner and I have been discussing a new business idea for a few days now. I was looking for some tips on how to verify a business idea and found some (three to be exact) practical articles about the topic, below.


3 Steps to Validate Your Business Idea For FREE…almost

Step 1 – Create a Landing Page

Step 2 – Run an Adwords Campaign

Step 3 – Winner Winner Chicken Dinner! … or Try Again

Now you get to see what happens…


Validate Your Business Idea — Quickly — With These 5 Steps

  1. Look for it, do a Google search
  2. Seek feedback. Talk to others about your idea, especially people you trust. At this stage, what you want is brutally honest feedback.
  3. Build an MVP. If your idea has support, then consider developing an MVP, or minimum viable product, to determine if it is a product you and others would really use
  4. Start building your identity. If your testing goes well and you feel that you might have a winning idea, start building a brand around it now.
  5. Hash a customer acquisition plan. Before you dive into a lengthy business plan, which more than likely will be obsolete before you even launch, focus on two questions:

“How do I get my first customer?”

“How do I get my n-th customer?”


Think Your Business Idea Rocks? 10 Ways to Know

  1. No one else is doing it
  2. Someone else is doing it … but not like this
  3. It solves a problem
  4. It’s fundable
  5. It fills a niche
  6. If your idea for a business solves a very specific problem— one that only a select group of people need solved— you might be onto something big
  7. People you don’t know say it’s a good idea
  8. People you trust say it’s a good idea
  9. It does well at trade/consumer shows
  10. It’s easy to understand
  11. Your heart is in it

Where Does Money Go?

On July 14, 2015, in Finance, by Early Financial Freedom

Have you ever wondered how your annual spending compare to the rest of the country? I sure have and The U.S. Bureau of Labor Statistics have a good answer for it.

According to the latest data, which is from 2013, Income before taxes was $63,784 and Average annual expenditures were $51,100.




The lion’s share of the expenditures were Housing ($17,148 or 33%) followed by Transportation ($9,003 or 17.6%) and Food ($6,602 or 12.9%).  In other words, Housing, Transportation and Food accounted for 64% of the total expenditures of an average family in 2013.

Income before taxes $63,784
Age of reference person 50.1
Average number of people in consumer unit 2.5
Average annual expenditures $51,100
Housing: Shelter $10,080
Housing: Utilities, fuels, and public services $3,737
Housing: Household operations $1,144
Housing: Housekeeping supplies $645
Housing: Household furnishings and equipment $1,542
Total Housing $17,148 33.6%
Transportation: Vehicle purchases (net outlay) $3,271
Transportation: Gasoline and motor oil $2,611
Transportation: Other vehicle expenses $2,584
Transportation: Public and other transportation $537
Total Transportation $9,003 17.6%
Food at home $3,977
Food away from home $2,625
Total Food $6,602 12.9%
Pensions, Social Security, Life insurance $5,528 10.8%
Healthcare $3,631 7.1%
Entertainment $2,482 4.9%
Cash contributions $1,834 3.6%
Apparel and services $1,604 3.1%
Miscellaneous $1,420 2.8%
Education $1,138 2.2%
Personal care products and services $608 1.2%
Reading $102 0.2%
Source: U.S. Bureau of Labor Statistics



Living Overseas: How to Hedge Inflation Risk?

On May 30, 2015, in General, by Early Financial Freedom

Our current situation, in a way, is a little unique. We live in Turkey so we spend money in the local currency, which is Turkish Lira. Our business is in the US and we earn in dollars. Inflation in the US has been tamed at about 2-3%, but the local inflation is about 8-10%, local currency. Another wild card in the game is the exchange rate; it has been favorable for the dollar for a few years but there is no guarantee it would continue this way; if the history is any guide!


So, our dilemma is: what would be the best way to hedge the local inflation risk?


Below are some ways I though/research about:

  • Stay in dollars as long as possible
  • Move a large portion of your assets onshore into local currency investments that produce income
  • Buy local real estate that would generate income and capital appreciation


Please do let me know if you have any other practical ideas for this situation.