Paul began his career in tech as a product manager, climbing the corporate ladder and doubling his salary within four years. However, he quickly realized that W-2 income alone wouldn’t create true financial freedom. His turning point came when he started investing in real estate, which 7x his net worth in just 18 months.
But success wasn’t without challenges. Paul admitted:
“I was overleveraged. I had to make tough financial adjustments because I prioritized net worth over cash flow—a common mistake among real estate investors.”
This experience shaped his investment philosophy: Cash flow and liquidity matter just as much as equity growth.
Watch the full episode here:
Alternative Investments: Beyond Stocks & 401(k)s
Paul emphasized that high-income professionals (especially in tech) often overlook alternative investments because they assume they’re only for the ultra-wealthy. However, he highlighted three key asset classes:
- Commercial Real Estate – Strong cash flow, tax benefits, and equity upside.
- Oil & Gas – High cash flow (15-30% returns) and tax advantages (80-100% depreciation).
- Debt Funds – Predictable, double-digit yields with lower volatility.
“Most financial advisors only push stocks and mutual funds. But if you have $100K+ in savings, you should explore alternatives—just do your due diligence.”
The Critical Rule: Liquid Net Worth
Before jumping into private placements, Paul stressed the importance of understanding your liquid net worth:
- 3-6 months of living expenses (emergency fund).
- Annual expenses (car repairs, home maintenance, etc.).
- Only invest 25% of your investable capital in any single deal.
“I’ve seen too many people invest $100K into a deal, then panic when they need cash. Private investments are illiquid—plan accordingly.”
For Business Owners: Diversify Beyond Your Business
Many entrepreneurs pour everything into their company, but Paul advised:
“Once you hit seven figures, start investing outside your business. It reduces risk and prepares you for an eventual exit.”
He works with seven-figure business owners to:
- Increase enterprise value before selling.
- Delegate leadership (hiring a CEO/COO) to scale efficiently.
- Build passive income streams (real estate, oil & gas, debt funds).
The Investor’s Guide to Joy: Beyond Money
Paul’s biggest revelation? Wealth isn’t just about net worth—it’s about joy, purpose, and relationships.
He shared two powerful stories:
✅ Best Investment: A short-term rental he co-invested in with his parents.
“Financially, it wasn’t perfect—but seeing my parents smile more than ever? Priceless.”
❌ Worst Investment: Holding onto an Austin property too long due to ego.
“I could’ve sold at a 46% gain but waited… and lost half of it. Don’t let pride override logic.”
His advice?
- Track your “financial heart”—are you investing out of greed or purpose?
- Ask: “Who am I serving?” before making big financial decisions.
Final Thoughts: How to Get Started
Paul’s framework for smart investing:
- Educate yourself (podcasts, books, mentors).
- Start small (don’t bet your life savings on your first deal).
- Work with trusted operators (avoid “capital raisers” with no skin in the game).
Where to Find Paul:
- 🎙️ The Investor’s Guide to Joy Podcast
- 📖 Free Oil & Gas Investing Guide: InvestorsGuideToJoy.com
- 📩 Connect on LinkedIn: Paul Graham
Key Quote to Remember:
“The longer you stay in the game, the longer you can win the game. Protect your cash flow, diversify wisely, and invest with joy—not just greed.”
If you’re ready to move beyond traditional investing and explore high-cash-flow alternatives, Paul’s insights are a must-follow.
What’s your biggest takeaway? Let me know in the comments!
Disclaimer: This is not financial advice. Always conduct your own due diligence before investing.
