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Learning how to better yourself is something we can all work on. Even small adjustments and improvements can have long-lasting effects on your life.

Improving yourself can change your financial situation, your relationships, your self-esteem, your health, and more.

But, learning how to better yourself can feel like a very difficult thing if your life isn’t going the way you want.

Maybe you had a different plan but things don’t seem to be going your way. Maybe you just want a change because anything is better than how things are currently going.

Each of those things can leave you feeling overwhelmed, stressed, or like everyone is doing better than you. Those feelings can be hard to escape, but my goal is that you’ll find at least one thing on this list that will start to change your mood and your life for the better.

No matter how you’re feeling, I do believe that everyone is in charge of their own destiny.

If you feel that things are not going the way you want them to go, then change it! 

Trust me, I know it can be hard – focusing on how to better yourself can be one of the biggest challenges you face. You may fail sometimes, but you’ll never improve your life if you don’t start trying. 

Instead of looking at how to better yourself as one big and overwhelming challenge, there are lots of smaller challenges and ways to better yourself that will start to change how you see yourself and how you see the world around you. 

Despite your fears, challenges can change the way you think because they open you up to new ideas that you may have never experienced or realized before. By making yourself “uncomfortable” or putting yourself in a position that you are not used to, you will truly learn how to feel better about yourself.

I know that the ideas on this list below will look like a lot and can be overwhelming. You don't need to work on everything, and especially not all at once. Simply choose one or some of the ways to better yourself and go from there.

Living a better life starts with small steps and changes – just start with something small on this list of challenges. Get out of your comfort zone a little and see how it feels to succeed.

As you keep working on how to better yourself, you’ll start to see your life changing around you.

Content related to how to better yourself:

• 4 Mindsets That Will Rob You Of Your Dream Life
• Don’t Compare Your Beginning to Someone Else’s Middle
• How To Stay Focused, Get Stuff Done, And Be Successful
• For Those Who Want Life To Speed Up – Are You Dreaming Too Much About Tomorrow?
• Create a Life You Don’t Need To Escape From

How to better yourself – 23 challenges that will change your life.

 

1. Be thankful for what you have.

The next time something negative is bringing you down, I suggest you try to remember all of the good things that you already have in your life. You already live a great life, and to live life to the fullest, you just need to remember that.

This is the power of positive thinking at its best, and it’s one of the best ways of how to better yourself. 

You can be thankful for your family, friends, your job, a past experience, opportunities, and more.

Thinking about everything you are thankful for can make something negative seem very trivial. You may even laugh at yourself for being so negative!

Challenge: Once a day, or whenever you're feeling down, think about all of the things you are thankful for. You can even write each of them down on little pieces of paper and put them in a jar to read at a later time.

 

2. Travel to a random place.

There are many wonderful places in the world. Traveling to a random place can help improve your confidence, open you up to new experiences, and may even make you a little uncomfortable. These are all things that will help you reevaluate what you may want to do in life.

You don’t have to go far from home to explore and have new experiences. Traveling to a random place can even be done in your own state or a nearby one – I bet there are lots of things close to you that you haven’t even tried yet.

Challenge: For your next vacation, why don’t you throw a coin on a map and see where it lands?

 

3. Don’t be afraid of what other people think.

If you want to live life on your own terms, then stop caring what other people think of you and your life. 

This can be one of the hardest challenges if you want to learn how to better yourself, and I know because I used to really care about what other people thought of me. It took me a long time to gain the confidence to let go of that, and now I couldn’t be happier. This has really helped me learn how to live a great life.

You shouldn’t let the opinions of others affect you, drag you down, control you, and so on. Like I always say, “Who cares what others think!?”

The only person who should get to tell you what kind of life to live is you.

Challenge: The next time you start worrying about what someone else might think of you, stop and ask yourself, “What will happen if they are judging me?” Unless you’re doing something illegal, nothing will happen. This can be hard to practice, but you are slowly retraining yourself.

 

4. Take a risk.

Have you ever thought about doing something particularly risky so that you could live life to the fullest but you were too afraid to go for it? Doing something risky every so often can get your heart beating and your adrenaline rushing. If you want to learn how to better yourself, this can really make you feel alive and like you are in charge of your life.

This is something that I am trying to get much better at because I realize that fear might be holding me back from being able to live life to the fullest.

Now is the time to get over our fears and take more risks!

Challenge: Next time you are faced with a risk, think about the pros and cons instead of automatically turning the idea down.

 

5. Say yes.

When you want to learn how to feel better about yourself, you may also be hiding from everyone and feeling like you are stuck. In this case, you may want to try branching out and saying yes more often. Saying yes can open you up to more situations, more challenges in life, and so on.

It’s easy to avoid new situations when you’re feeling stuck, but trying something new can show you that there are so many exciting or fun things around you.

Challenge: Next time someone asks you to do something (that is legal, of course), say yes, no matter what.

 

6. Say no.

I know I just told you to say yes to new things, but always saying yes to everything is an easy way to spread yourself out too thin. You might feel like you never have a minute to yourself, that you’re ready to pull your hair out, or that you don’t have enough time to do the things you want/need to do.

If that sounds like you and you want to learn how to better yourself, it might be time to start saying no to some things. Saying no may allow you to have more time and energy to focus on what you truly want to do in life.

Challenge: Next time someone asks you to do something that you honestly cannot fit into your life, just say no. It’s really that easy.

 

7. Exercise.

Whenever I’m feeling a little stressed out, tired, or even grumpy, I try to fit in a workout. I know that even a small workout is better than none. It can be a short walk around the block, a bike ride, or hike.

Exercising is great and it can improve your life because it can make you healthier all around. You will feel more confident, your mind will be clearer, you will be able to better cope with stress, and more.

You can work out in whatever way you prefer. I’ve never been the type of person to go to the gym or go for a run, but I do like to go rock climbing and hiking. It’s whatever fits you and your situation best – remember, learning how to better yourself is about challenging yourself in a way that works best for you

Challenge: At least a few times a week, try to get in a good exercise session, even if it’s a 30 minute walk or bike ride. Make this a regular thing and fit it in no matter what.

 

8. Spend less time watching TV.

I talk about cutting back on TV a lot on Making Sense of Cents because the average person spends too much time watching television, 35 hours in fact!

35 HOURS! Can you imagine what you could do with even half of those hours every week!?

TV can be a big time waster and can be detrimental if you want to learn how to better yourself.

We currently don’t have a TV at all, and it’s been months since we have sat down to watch anything. We’ve been more productive, have spent more time exploring, and more!

Instead of turning on the TV the next time you are bored or looking for something to do, you may want to do something more worthwhile, such as working out, spending time with friends and family, reading a book, and so on.

Our minds are greatly influenced by what we see on TV and on social media. Plus, it can be a huge waste of time.

Challenge: Every so often, try to completely cut out TV for the day or even longer if you prefer.

 Related to how to better yourself by cutting out TV: 59 Things To Do Instead of Watching TV So That You Can Take Your Life Back

 

9. Spend less time on social media.

The average person spends many, many hours on social media each week. It can prevent you from finding ways of how to better yourself because social media can cause you to compare yourself to others in a negative way.

Between Pinterest, Facebook, Twitter, Instagram, Snapchat, and many others, it’s also quite easy to waste your entire day.

If you find that you are spending too much time on social media and are thinking badly about yourself, you may want to shut down some or all of your social media accounts. You can delete apps from your phone, create a time block so you can’t access your accounts during certain periods of the day, and so on.

For me, I actually deleted Pinterest and Twitter off my phone a few years ago, and it's been great. I decided to do that with Facebook too, and it’s allowed me to be more present and happier overall.

Challenge: Try deleting one or all social media apps from your phone for just one day. You can always download them again, but you may find yourself not missing them at all.

 

10. Have regular family money meetings.

Talking about money and conducting regular budget meetings is an important task for every family and serious relationship to take part in. A family who has regular money talks and budget meetings is more likely to be financially successful and happier than a family who doesn’t.

Regular money meetings can lead to better communication between family members, a more unified financial goal, family members being more involved and motivated, and more. This is how to better yourself for your current and future financial life.

Read more at Family Budget Meetings – Yes, You Need To Have Them.

Challenge:  Set aside 30 minutes this week to talk about a financial issue that you’ve been wanting to address. It could be creating a budget, saving up for something, or just talking about your long-term goals. Remember, go in with an open mind!

 

11. Think positively.

I say this often and I still believe it. Thinking positively is one of the best ways of how to better yourself because it can completely change your outlook on life. Being positive can give you motivation, it can help you to not waste time on regret, and more.

Challenge: Every time something may bog you down or make you unhappy, try to think of a positive outcome that may come from it.

Related article: Why I Believe Being Positive Can Change Your Financial Situation And Your Life

 

12. Be kind to others.

Being kind can improve your life because you will feel better about yourself and you will be making others feel better as well. When you are kind to others, you are not just learning how to better yourself, you’re improving the lives of people around you.

Challenge: There are many daily challenges you could do to take part in this, such as:

• Say hello to every person you walk by today
• Open doors for others
• Smile at strangers
• Help someone with their groceries
• Volunteer somewhere

 

13. Look for new ways to save more money.

Looking for ways to save more money may allow you to pay off your debt faster, improve your financial habits, help you reach your dreams sooner, and more. If you want to learn how to better yourself and your finances, finding new ways to save will help you feel less stressed out by your finances and help you work towards big money goals.

Plus, there are many, many different ways to save money. You don't need to sacrifice your favorite things or live an unhappy life in order to save money.

It's all about being realistic and finding a good balance between saving and spending.

Challenge: Find something on this list to try: 30+ Ways To Save Money Each Month.

 

14. Learn a new skill.

When I was in school I used to tell myself that I hated learning new things. I was like most teenagers who thought I already knew everything. However, I was completely wrong – there is so much to learn! 

In fact, I’ve been learning how to play chess and Wes and I have spent many hours over the past couple of weeks playing chess together. I finally beat him for the first time, and it felt so good to finally reach that point! Learning how to make jewelry is next on my list.

If you want to figure out how to better yourself, continuing to learn new things can improve your confidence as you work on building a new skill. 

There are so many different things you can learn, including:

• A new language
• How to do a craft, like jewelry making, knitting, painting, and more
• How to cook, like if there are recipes you’ve been wanting to master
• How to start a blog
• How to play a new game or sport

And more! 

Challenge: Think of something you’ve been wanting to learn how to do and start researching how you can make that happen.

 

15. Learn how to make passive income.

Building passive income is something that I’ve been working on for the past several years. I want to continue to bring in an income while being able to focus on other goals of mine, like doing more hiking or biking (which will most likely never generate income). I also want to diversify my income so that I’m not too reliant on one source.

For me, finding passive income sources is great because I can focus more on life instead of just my business, and I can do it while continuing to earn a great income.

Unfortunately, many people think that passive income simply isn’t real, that it must be luck and not work, that you’re a trust fund kid, or something else.

But, that’s not true at all! There are small sources of passive income that hardly take any work at all, like opening a high yield savings account.

Now, there are many other sources of passive income that do take a lot of work to start (it's not a get rich quick scheme) – there's probably going to be some effort to get the passive income stream started, and perhaps some effort to maintain it for years to come. 

It can take time or money to start on most passive income ideas, but that investment is worth it.

Here are the reasons why earning passive income is one of the best ways of how to better yourself:

• You can make money with little work to maintain it. This is a huge positive of passive income! Who wouldn't want to find an income source that didn’t take much work to maintain?
• You can diversify your income. You want to diversify your income because one source of income may not last forever, and you may be able to lessen your risk by having multiple income streams.
• You can do what you love while still making money. This will help you to always have money for your bills and other necessities.
• You can retire and feel a little more comfortable knowing that you’re still bringing money in.
• You can start a family, and earning passive income can help you devote more time to your family since you may be able to work less.
• You can travel extensively and enjoy wherever you are exploring. Passive income can support you while you travel.

Challenge: Make a list of things that you want to do with your life and write down how earning passive income will help you make those goals happen. Finding motivation for a change can be a challenge in itself!

Learn more about how to better yourself with passive income at 12 Passive Income Ideas That Will Let You Enjoy Life More.

 

16. Increase your credit score.

If your credit score isn’t that great, then it’s important that you start trying to increase it. Your credit score is important because it can affect your interest rates, your ability to get some jobs, whether or not you are approved for a loan, and more.

Fortunately, there are easy things you can do to increase your credit score. You should watch your utilization rate on your credit cards, pay your bills on time, watch the amount of hard inquiries on your credit report, and so on.

Just a few percentage points can mean the difference of hundreds of dollars each month.

That means you can wind up saving THOUSANDS each year just by increasing your credit score. You can check your credit score for free with Credit Sesame.

Challenge: Start simple here and check your credit score if you don’t know what it is. Once you do, find out what’s hurting you and try to make a plan to improve your score.

 

17. Practice self-care.

Self-care is simply doing something to protect your mental or physical health. It can be something like taking a nice long bath, meditating, drinking more water, etc. It’s spending a little bit of time to put yourself first, which is really what learning how to better yourself is all about.

When you are busy or overwhelmed with other aspects of your life, self-care is one of the last things you think you should do. But, when you take a small break to take care of yourself, the effects can ripple through the rest of your life.

You may find that your stress is reduced, you’re more productive, happier, and more.

Challenge: Find a simple self-care practice that you can start doing today. 

 

18. Keep a journal.

While I don’t have a journal, I do have this blog, which acts as a journal in a way. Keeping a journal can help you reflect on your past and lets you check in to see how you’re progressing as you learn how to better yourself. Plus, spilling your heart out every so often is great for the mind and for the soul.

Challenge: Write in a journal once a day, once a week, or whenever you want. Just keep it regular and be completely honest with yourself.

 

19. Cherish moments with loved ones.

You should never take a moment for granted with those you love. Take time to see your family and friends, talk to them on the phone, tell them you love them, and let them know that you are there for them.

Your loved ones offer you some of the most amazing moments we have, and you just never know what may happen to you or them.

This is one of the best ways to better yourself because it feels good for both you and your loved ones.

Challenge: The next time you think about someone you love, send them a text or call them to tell them that you’re thinking of them.

 

20. Pay off debt.

If you have debt and want to learn how to better yourself, now is the time to make a plan to change your life. Paying off your debt can lessen your stress levels, allow you to put more money towards something else (such as retirement), stop paying interest fees, and more.

Debt might be the thing that has been holding you back from being able to live life to the fullest, so let’s make 2019 the year that you finally start eliminating your debt!

Read more at How To Eliminate Your Debt.

Challenge: This can be hard, especially if you have been avoiding your debt, but look at your total amount of debt. It will feel like you’re pulling the bandaid off so you can start making a plan to pay it off.

 

21. Sit silently.

When was the last time you just sat down in complete silence with no distractions? For the average person, this is probably a rare occurrence.

Sitting silently can help you reflect on your life and what's going on in the world around you. It can also help you relax, destress, and clear your mind.

Challenge: Every day or as much as you would like, try to sit down for anywhere from 10-30 minutes with no distractions whatsoever, not even music playing in the background

 

22. Read as much as you can.

Books are one of the best ways to learn more and explore the world around you. Spending just a little time everyday with a book is great for many reasons, such as:

• Providing knowledge
• Improving your memory
• Opening your mind
• Bringing out your creative side
• It is affordable entertainment

And more!

Challenge: Go to your local library and borrow a book you’ve been wanting to read.

 

23. Get enough sleep each night.

According to the National Sleep Foundation, the average person needs around 7.5 hours of sleep in order to “function at their best.” However, the average person actually only sleeps around 6.5 hours.

Lack of sleep, according to HealthLine, can lead to issues such as:

• Impaired brain activity
• Memory problems
• Moodiness
• Depression
• Cold and Flu
• Type 2 Diabetes
• Weight gain
• High blood pressure
• Heart disease

So if you want to learn how to better yourself, you should aim for 7-8 hours of sleep every night. It will help you be more productive, become healthier, and live a better life.

Challenge: Start a routine of going to bed at least 30 minutes earlier than you normally do.

Have you ever taken part in any of these daily challenges? Do you believe that taking part in daily challenges can help you learn how to better yourself? Why or why not?

The post How To Better Yourself – 23 Challenges That Will Change Your Life appeared first on Making Sense Of Cents.

from Making Sense Of Cents


via Finance Xpress

Looking to up your investment game in an easy way? If you have the money, the CrowdStreet platform is a foot in the door of commercial real estate investing.

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If you’re looking to spread your investments into sophisticated commercial real estate, CrowdStreet is a platform you need to check out. It’s only available for larger investors, and you will have to be considered an accredited investor (more on that later) in order to participate. But if you are, this platform offers above average returns, and can be an excellent complement to a portfolio otherwise dominated by stocks and bonds.

About CrowdStreet

Launched in 2014, and based in Portland, Oregon, CrowdStreet is a real estate crowdfunding platform that invests in commercial real estate. Since its founding, its investor community–which numbers over 100,000–has invested over $350 million in 250 offerings, secured by real estate with the value of more than $8 billion. The platform combines commercial real estate investment expertise with technology, enabling management to fully vet institutional quality investment opportunities.

The company claims some investors have earned returns in excess of 22%. It also claims to be the largest and most diverse direct investment marketplace for commercial real estate opportunities. That means while the platform is an intermediary, your investment is directly with the project sponsors.

Real estate crowdfunding platforms are peer-to-peer (P2P) marketplaces, that bring both real estate developers (sponsors) and those who want to invest in their projects together on the same website. By eliminating the middleman–the banker–developers pay lower interest rates, while investors get higher returns on their money.

Though the company is not Better Business Bureau accredited, the agency nonetheless gives CrowdStreet an A+ rating on a scale of A+ to F.

How Do You Qualify to Invest with CrowdStreet?

To invest with CrowdsSreet, you need to be an accredited investor. This is true of most–but not all–real estate crowdfunding platforms.

The requirements to be an accredited investor are as follows:

• You must have an income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expect the same for the current year, OR
• You must have a net worth in excess of $1 million, either alone or together with a spouse, and that amount cannot include the value of your primary residence.

This requirement restricts participation to larger investors. (Three real estate crowdfunding platforms that don’t require being an accredited investor include Rich Uncles, Fundrise, and Realty Mogul. You can get started on those platforms, then move onto CrowdStreet if and when you reach accredited investor status.) But if you are an investor who qualifies as accredited, please read on.

Learn more: Real Estate Crowdfunding with Fundrise

Find out: Is RealtyMogul the Easiest Way to Invest in Commercial Real Estate?

How CrowdStreet Works

When you sign up for the CrowdStreet platform, you’ll have access to professionally vetted investment offerings. That will make it easier for you to engage in commercial real estate investing, even if you have no experience doing it in the past.

CrowdStreet puts each deal through a rigorous 26-point review process before making it available to investors on the platform. For example, less than 3% of the deals reviewed are accepted for investment. CrowdStreet is serious about participating only in the highest quality investments.

The vetting process works like this:

They then do an investigation through Thompson Reuters, verifying business address, bankruptcy and lien search, criminal and lawsuit record search, UCC filing search, and professional licenses search.

They review each individual deal to make sure that it’s consistent with the sponsors background, and that they have a track record of successfully managing that type of deal. They also make sure the deal itself is compatible with CrowdStreet marketplace investors preferences.

They perform a number of other reviews, including whether or not the deal assumptions are supported by market data. That includes analyzing rent rolls, lease and sale comparables, appraisals, and other data.

This saves you the trouble as an investor of having to go through these complicated review processes.

Types of Deals You Can Invest In with CrowdStreet

CrowdStreet is somewhat different from other real estate crowdfunding platforms that may invest in single family properties, such as fix-and-flips. Instead, the deals offered are strictly in commercial real estate.

Criteria for investment deals is as follows:

• Property type: Retail, office, industrial, mixed use, multifamily (apartment houses), hospitality, senior housing, and storage facilities. Some investments are in individual properties, while others are real estate investment trusts (REITs) that invest in a group of similar properties.
• Property value range: CrowdStreet looks to invest in projects with a value range of between $5 million and $30 million, but there is no set maximum property value. Against those property values, they typically look to provide total funding of between $500,000 and $3.5 million.
• Minimum investment: Each deal has a required minimum investment ranging from $10,000 to $50,000.
• Expected investment returns and terms: Targeted investment returns range from 7.6% to more than 23%. Investment terms range between two years and 10 years, with most falling right around five years.
• Target markets: CrowdStreet targets primary, secondary, and tertiary markets in all 50 states. Each market must demonstrate positive economic and demographic trends. This means you will be able to diversify your holdings geographically, as well as between different property types.

Most deals on the platform are set up in the following format:

• Common or JV equity
• Preferred equity
• Mezzanine or second position debt

Signing Up with CrowdStreet

You start by creating an account. You can register using either Google or LinkedIn, or by providing information on the platform. This includes your first and last name, your email, and a password which you will create. You must then accept their terms of service.

You will have to qualify as an accredited investor, so you may be asked to fill out a certification and provide necessary documentation as proof of your income and or net worth.

Learn More: Calculate Your Net Worth with Personal Capital

Once you’ve registered for the platform, you’ll be able to monitor the investment performance of your holdings by using the dashboard. It will provide project updates, track investment performance versus targets, and download project documents.

Browsing Investment Opportunities

Once you sign up for the platform, you’ll be able to browse the various investment opportunities available. Some are existing, while others are brand new projects.

As you browse through individual deals, you will even be able to determine how much money has been raised for each particular investment, as well as the number of investors participating in funding.

CrowdStreet even has a page that provides marketplace performance of completed deals so you can see the results of investments from start to finish. Notice that many of these investments have easily exceeded the returns on the S&P 500, as well as their targeted returns.

Once you decide on one or more deals you want to invest in, choose a dollar amount, and submit your investment offer. Since CrowdStreet is a direct-to-investor marketplace, you’ll be investing directly with the project sponsor.

You should assume that the deals listed above produced returns that are above the norm for commercial real estate investments, but it is an indication of the returns that are possible with this type of investing.

Customer Support

Customer service is available by both phone and email. You can also contact the company using the online customer contact form. Customer service is available from 8:30 AM to 5:00 PM, Pacific Time, Monday through Friday.

Why Invest with CrowdStreet?

Two of the major reasons to invest with CrowdStreet are common to all real estate investing, including real estate crowdfunding.

The first is diversification. By investing through a real estate crowdfunding platform like CrowdStreet, you’ll be diversifying your portfolio out of strictly stocks and bonds, and into real estate. That will give you a greater level of diversification than you’ll have with a portfolio comprised entirely of paper assets.

What’s more, commercial real estate runs on different investment cycles than stocks and bonds. Where stocks and bonds might fall together, due for example to rising interest rates, commercial real estate can continue to pay income distributions, and even rise in value as investors flee financial assets in favor of real estate.

The second reason is investment performance. There is some evidence that commercial real estate outperforms both stocks and bonds over the long term.

As the graph below indicates, commercial real estate has outperformed both the S&P 500 and the return on bonds at least since 2000. That’s a significant time frame, because it includes two major bear markets in stocks. As you can see, the value of a $50,000 investment in commercial real estate in 2000 has more than quadrupled to over $215,000.

CrowdStreet Pros and Cons

Pros

• Signing up is free: CrowdStreet charges no management fees.
• Investments are IRA eligible: You can choose to fund your investment using a self directed IRA account. It’s relatively simple in most cases but if you’re curious how it works, CrowdStreet walks you through this process in their FAQ section.
• Availability: CrowdStreet is available in all 50 states.
• High return history: Returns on commercial real estate investments have shown some evidence of outperforming other asset classes, like stocks and bonds.
• Portfolio diversification: Adding commercial real estate to an investment portfolio will provide a greater level of investment diversity. Since commercial real estate is centered on cash flow, it will often continue to perform well even when stocks and bonds are in a bear market period.

Cons

• You must be an accredited investor: Which excludes small and medium sized investors.
• Large minimum investment: The minimum initial investment is $10,000, which is high in the real estate crowdfunding space. However, that’s just the minimum initial investment. Some deals may require a minimum of up to $50,000.
• Commitment time: Investments can run as long as 10 years.
• Limited liquidity: As is typical of real estate crowdfunding platforms, liquidity is very limited. Investments are long-term, and you must generally expect to remain in each deal until it’s completed.

FAQs

Question: Why does CrowdStreet require that I be an accredited investor?

Answer: Investing in commercial real estate is not only more complex than more typical investments, like stocks, bonds, mutual funds, and exchange traded funds, but they also have stiffer investment requirements. For example, you’ll need a minimum investment of $10,000 in any single investment on the platform. Even if you stay with the lowest minimums, you would still need $100,000 to spread your investment across 10 different properties. You would need to have a substantial net worth in order to do that.

Commercial real estate deals are also longer terms of duration, running as long as 10 years. It will be very difficult to liquidate your position early, if you even can. That type of investing is better suited to people who have a larger asset base.

There’s also the fact that commercial real estate does not provide a guarantee of either investment principle or returns. And your funds are not covered by any type of government insurance, like FDIC. Presumably, a larger investor would have sufficient assets to have most of his or her funds invested in asset classes other than commercial real estate.

Question: Why does CrowdStreet concentrate on commercial investments only?

Answer: The platform is looking to be involved in larger deals, that also have the potential to offer greater security, both in terms of the properties themselves, as well as the tenants that occupy them. Investments in smaller properties, like single family properties, are a very different type of investment from commercial real estate, and often better suited for direct individual investment.

Question: How might commercial real estate be a better investment than stocks?

Answer: Stock returns are largely based on price appreciation, which can be unstable during certain times, and sometimes for years. Commercial real estate also holds the potential for future price appreciation. But the primary attraction is that it provides a generous source of stable income through the end of the project. That can make commercial real estate an excellent investment for those who prefer more stable returns, such as income during retirement.

Question: Do I need to have experience investing in commercial real estate?

Answer: Obviously, it will help to have some experience in the field. However, since deals on the platform are so carefully reviewed and analyzed, you hardly need to be an expert yourself. It’s also a perfect hands-off investment, since all you need to do is fund your investment, and CrowdStreet handles all the mechanics of the investment for you. From there, you begin receiving your income payments.

Also, CrowdStreet has a comprehensive FAQ page that will provide you with a wealth of information. Even if you know nothing whatsoever about commercial real estate, you’ll find plenty of information there that will give you the basics.

Question: I get that I’ll be receiving income from the investments. But what happens to my principal?

Answer: Depending on whether a deal is structured as debt, equity, or a hybrid, you’ll receive a payout at the end of the term. On a debt-based deal, your invested principal will be returned. With an equity deal, you’ll receive your principal, as well as any additional investor returns as determined by your investor agreement. With a hybrid deal, you get a return of your invested principal, plus a predetermined share of additional investor returns.

But once again, it is possible you will lose some of your invested principal should a deal not fully materialize as expected.

Alternatives

We mentioned some great alternatives for non-accredited investors at the beginning of this article so for this section, we’ll focus on alternatives for the accredited investor.

First is PeerStreet, where the minimum investment is $1,000 and you can select vetted real estate loans to invest in. Your investment buys a note that represents a piece of a whole loan. So if you have $5,000 to invest, you can put your money in five different loans to further diversify your portfolio. Want to learn more? Read our PeerStreet review.

Or, you could take your $5,000 and put it into EquityMultiple, where you can purchase ownership interests in a commercial real estate project. The minimum investment here is $5,000 and your purchase means you’ll also share the profits or any losses for a project. You can read more about EquityMultiple in our review.

Bottom Line

CrowdStreet offers a serious investment diversification away from stocks and bonds. Since it has the potential to perform well when financial assets are in decline, it can improve the long-term performance of your portfolio when it occupies a generous position in your investment mix.

Since it provides a steady rate of return that’s well in excess of traditional safe investments, like certificates of deposit and U.S. Treasury securities, it can be an excellent choice for retirees.

The major downside of CrowdStreet is that it’s designed for large investors. Unless you are an accredited investor, you won’t be able to participate on the platform. However, as noted above, there are other real estate crowdfunding platforms you can invest in that don’t require being an accredited investor, and some have required investment minimums of just $1,000.

But if you are an accredited investor, and you’re looking to spread your portfolio beyond traditional financial assets, real estate crowdfunding through CrowdStreet is well worth investigating.

If you’d like more information, or if you’d like to sign up to begin investing, visit the CrowdStreet website.

Topics: Investing • Reviews

The post CrowdStreet Review – Commercial Real Estate Investing appeared first on The Dough Roller.

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Do you ever wish there was a handbook for life? A handy guide to help you reach your dreams and goals? Your wish has been granted. Below we’ll tell you about a new book that just hit the shelves titled, Retire Before Mom and Dad. Pick up this book and you’ll find financial freedom is literally in the palm of your hand.

I met Rob Berger for the first time just last year. He was winding down his work on Dough Roller, the website he built from the ground up way back in 2007, and I was taking over the editorial reigns. We bonded immediately over our shared passions for personal finance, publishing, and most importantly, chess.

That day I laid out a chess set. I thought this would be a great opportunity to pick his brains–how did he become so successful, what tips and tricks did he have to impart, and how could I–a 30-year-old millennial trying to make his way in the world–emulate him?

I’ll admit it, I also thought the conversation would be a great way to distract him into making suboptimal moves on the chess board. Don’t judge–I needed every advantage I could get!

In the span of just a few short hours, in between moves, Rob shared with me bits and pieces of priceless financial wisdom. He told me about the Money Multiplier–my very own superpower that can turn me into a millionaire young; he shared his thoughts on autopilot investing and why he thinks it’s the simplest, most stress-free way of putting my money to work; taught me about stocks, bonds, and the right investment allocation for my personal situation.

Related: Want to Start Investing? These Apps Will Make It Easy

I walked away from the chess set that day feeling like I had just lucked into the most valuable advice I could find anywhere–the kind of advice people try to get when they fork over thousands of dollars for on-the-clock meetings with expensive financial advisors. And I also walked away with the feeling that it’s too bad not everyone can experience this.

But now, it seems, everyone can. Rob’s new book, Retire Before Mom and Dad, is the extended version of the conversation I had with Rob over the chess board that day. The book is filled with nuggets of wisdom wrapped in witty sentiment. As I knew he would, Rob has tackled the complicated subject of personal finance in a playful yet powerful way.

Oh, and before I dive deeper into the book, I figure I’ll tell you who won the chess game.

It was a draw. But to this day I have the nagging feeling that he had a winning position but let me off the hook on purpose.

How it feels reading Retire Before Mom and Dad

Right off the bat, Rob kicks off his book dispelling the myth that financial freedom is a luxury that can only be afforded by the elite few. His writing is informal, and he speaks directly to the typical American consumer, the average Joe, the you’s and me’s of the world.

The book is broken down into short, easily-digestible chapters. I’ve found that many books of this ilk are long, unnecessarily complicated, and incredibly dry. Rob’s taken pains to write a different type of book. With famous quotes at the start of every chapter to key concepts at the end, and fun little tips interspersed in between, Retire Before Mom and Dad is a surprisingly easy read.

Even the chapters that are filled with math–calculating the effects of the Money Multiplier or savings rates for emergencies–are understandable and dare I say it, even fun.

I’m personally not bad with numbers–I have an MBA and I’ve worked the past few years in various financial sectors. But reading these chapters, I could imagine that even people less in tune with their quantitative side would be comfortable with the material. No small feat, really, for a personal finance book.

The Self-Help Rhetoric

Those of you who have read self-help books in the past will be familiar with the type of over-the-top rhetoric that promises a quick and easy turnaround with little to no effort. I have to say, when I read the title of Rob’s book–Retire Before Mom and Dad–I thought I might be getting more of the same. It’s the kind of title that I imagine could sell but might lack on substance.

To get specific, I was worried that Rob would get stuck in the same kind of platitudes that make me roll my eyes when I read them online. Just save 50% of your income now and you’ll be a millionaire tomorrow. Invest in the market, earn a 12% return, and put up your feet, margarita in hand, before you hit 40.

Although the title of his book is ambitious, Rob doesn’t rely on the same stale advice you’re used to. He uses realistic assumptions throughout–he sets your expected rate of return on your investments at 9.3%–which is still a bit high for my liking (though that might just be because I’m a bad investor). He also plays around with hypothetical savings rates, so you can see how you’ll fare in the long run depending on how much you’re able to put away now.

Related: The 9 Best Investment Strategies for Short Term Savings Goals

The Latte Factor

Which leads me to his discussion of the latte factor, which I personally really connected with. Let me set the stage here: The Latte Factor explains that even small savings made early on in life can have major impacts later. The idea is that you should consider skipping your daily cup of coffee and invest the money instead. Here’s a quote:

Assuming our beverage of choice costs $5, that frees up about $150 a month to save and invest. If we earned a 9.3% return over 45 years, we’d accumulate…

$1,231,783.24.

This concept is not new, but it is controversial. In 2017, an Australian millionaire got absolutely hammered for espousing a variation of this concept–that millennials couldn’t afford to buy homes because they spent all their money on avocado toast. The internet responded with a vengeance–what a crazy insinuation that saving $5 here or there could have any sort of meaningful impact on a person’s ability to reach important financial milestones.

But Rob has made the best case I’ve seen so far to take this concept seriously. The math he presents just doesn’t lie. Freedom first, as he says, lattes second.

Listen: Dough Roller Podcast – The “Latte Factor”

Levels of Financial Freedom

Without getting into too many specifics, I want to make one more quick mention of a core concept in Rob’s book, one that is introduced at the start and accompanies the reader throughout.

In Rob’s estimation, there are 7 different levels of Financial Freedom.

There will be a broad spectrum of people buying and reading Rob’s book, all of them dealing with their own unique financial situations. Some will be dirt broke, struggling to break their bad financial habits and get themselves out of their monthly deficit. These readers will be working towards Level 1 of Financial Freedom–putting together one month’s worth of financial expenses.

Others will have hundreds of thousands in their savings and investing accounts–these readers will be working to get to Level 7 of Financial Freedom–putting together 25 years of expenses saved (don’t get spooked by that number–I promise you, Rob explains how everyone can get there with hard work and sacrifice).

Listen: Dough Roller Podcast – The Progress Principle

By breaking up Financial Freedom in this way, Rob makes the concept seem more attainable. So no matter your financial situation when you first pick up the book, Rob will describe what it takes for you to level up.

Related: The 7 Most Important Habits of Wealth and Financial Freedom

Bottom Line

I don’t want to get too bogged down with specifics. Suffice it to say that I not only learned a lot from Rob’s book, I actually enjoyed it as well. If you’ve ever had the pleasure of meeting Rob, as I have, or have listened to or watched his podcasts, you’ll enjoy the book even more. That’s because you’ll notice his little idiosyncrasies every time you flip the page.

When you read the chapters discussing financial freedom, you’ll hear the echo of Rob’s voice signing off every podcast with the familiar refrain of “and remember folks, the best thing money can buy is financial freedom.” You’ll be able to tell that although he understands the material on a much higher level than you or I ever will, he’s presenting it in a way that’s understandable because that’s the kind of guy he is–exceptionally smart but is also humble and down to earth.

And you’ll be able to feel how he genuinely wants to help you, even if he barely knows you or doesn’t know you at all. The kind of guy that would let you draw him in chess, just to get your confidence up. The kind of guy who has enough money to not work another day in his life but instead takes the time to write a book about personal finance because he wants everyone, even strangers, to succeed.

All in all, I highly recommend the book. If you’re interested in purchasing it, you can find the link here.

Yoni Dayan is the former chief editor of Dough Roller.

Topics: Book Reviews • Money and Life • Personal Finance • Personal Finance Tips • Retirement Planning • Reviews • Smart Money • Tools & Resources

The post Retire Before Mom and Dad – Book Review appeared first on The Dough Roller.

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Global demand for beef, chicken, and pork continues to rise. So do concerns about environmental and other costs. Will reconciling these two forces be possible — or, even better, Impossible?

Listen and subscribe to our podcast at Apple Podcasts, Stitcher, or elsewhere. Below is a transcript of the episode, edited for readability. For more information on the people and ideas in the episode, see the links at the bottom of this post.

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This week’s episode, “The Future of Meat,” was first published in February, and quickly became one of our most downloaded episodes ever. Why? Is it because so many of you love to eat meat? Maybe. Or is it because so many of you don’t love to eat meat? Also maybe. Let me explain. There’s a movement happening right now, a really large movement, around meatless meat — that is, meat-like food that doesn’t come from living animals. The California company Beyond Meat had one of the hottest I.P.O.’s in recent memory, and it’s barely slowed down: their market cap now is over $9 billion. Impossible Foods, the company you’ll hear about in today’s episode, also appears to be headed for an I.P.O. and perhaps a similar success. Is it possible that 50 years from now, or even 20 or even 10 years, most of the “meat” we eat won’t come from animals? I don’t know — let’s check in then. But for now, here’s our best attempt at describing the future of meat.

*     *     *

Let’s begin with a few basic facts. Fact No. 1: a lot of people, all over the world, really like to eat meat — especially beef, pork, and chicken.

Jayson LUSK: If you add them all together, we’re actually higher than we’ve been in recent history.

That’s Jayson Lusk.

LUSK: I’m a professor and head of the agricultural economics department at Purdue University. I study what we eat and why we eat it.

Stephen DUBNER: In terms of overall meat consumption per capita in the U.S., how do we rank worldwide?

LUSK: We’re the king of meat eaters. So, compared to almost any other country in the world, we eat more meat per capita.

DUBNER: Even Brazil, Argentina, yes?

LUSK: Yes, and part of that difference is income-based. So, if you took Argentina, Brazil, and adjusted for income, they would probably be consuming more than us, but we happen to be richer, so we eat a little more.

The average American consumes roughly 200 pounds of meat a year. That’s an average. So, let’s say you’re a meat eater and someone in your family is vegetarian: you might be putting away 400 pounds a year. But, in America at least, there aren’t that many vegetarians.

LUSK: I probably have the largest data set of vegetarians of any other researcher that I know.

DUBNER: Really? Why?

LUSK: I’ve been doing a survey of U.S. food consumers every month for about five years, and one of the questions I ask is, “Are you a vegan or a vegetarian?” So, over five years’ time and about 1,000 people a month, I’ve got about 60,000 observations.

DUBNER: Wow. And is this a nationwide data survey?

LUSK: It is. Representative in terms of age and income and education. I’d say on average, you’re looking at about three to five percent of people say “yes” to that question. I’d say there’s a very slight uptick over the last five years.

So, again, a lot of meat-eating in America. What are some other countries that consume a lot of meat? Australia and New Zealand, Israel, Canada, Russia, most European countries. And, increasingly, China.

LUSK: One of the things we know is that when consumers get a little more income in their pocket, one of the first things they do is want to add high-value proteins to their diets.

DUBNER: What is the relationship generally between G.D.P. and meat consumption?

LUSK: Positive, although sort of diminishing returns, so as you get to really high income levels, it might even tail off a little bit. But certainly at the lower end of that spectrum, as a country grows and adds more G.D.P., you start to see some pretty rapid increases in meat consumption.

Meat consumption is of course driven by social and religious factors as well; by health concerns, and animal welfare: not everyone agrees that humans should be eating animals at all. That said, we should probably assume that the demand for meat will continue to rise as more of the world keeps getting richer. How’s the supply side doing with this increased demand? Quite well. The meat industry is massive and complicated — and often heavily subsidized. But, long story short, if you go by the availability of meat and especially what consumers pay, this is an economic success story.

LUSK: So prices of almost all of our meat products have declined pretty considerably over the last 60 to 100 years. And the reason is that we have become so much more productive at producing meat. If you look at most of the statistics, like the amount of pork produced per sow. And we’ve taken out a lot of the seasonal variation that we used to see, as these animals have been brought indoors. And you look at poultry production, broiler production: the amount of meat that’s produced per broiler has risen dramatically — almost doubled, say — over the last 50 to 100 years, while also consuming slightly less feed.

That’s due largely to selective breeding and other technologies. The same goes for beef production.

LUSK: We get a lot more meat per animal, for example, on a smaller amount of land.

As you can imagine, people concerned with animal welfare may not celebrate these efficiency improvements. And then there’s the argument that, despite these efficiency improvements, turning animals into food is wildly inefficient.

Pat BROWN: Because the cow didn’t evolve to be meat. That’s the thing.

Pat Brown is a long-time Stanford biomedical researcher who’s done groundbreaking work in genetics.

BROWN: The cow evolved to be a cow and make more cows and not to be eaten by humans. And it’s not very good at making meat.

Meaning: it takes an enormous amount of food and water and other resources to turn a cow or a pig into dinner — much more than plant-based foods. And as Pat Brown sees it, that is not even the worst of it.

BROWN: The most environmentally destructive technology on earth: using animals in food production. Nothing else even comes close.

Not everyone agrees that meat production is the environment’s biggest enemy. What’s not in dispute is that global demand for meat is high and rising. And that the production of meat is resource-intensive and, at the very least, an environmental challenge, with implications for climate change. Pat Brown thinks he has a solution to these problems. He’s started a company—

BROWN: —a company whose mission is to completely replace animals as a food production technology by 2035.

The meat industry, as you can imagine, has other ideas:

Kelly FOGARTY: We want to keep the term “meat” to what is traditionally harvested and raised in the traditional manner.

Today on Freakonomics Radio: everything you always wanted to know about meat, about meatless meat, and where meat meets the future.

*     *     *

What determines which food you put in your mouth every day? There are plainly a lot of factors: personal preference, tradition, geography, on and on.

LUSK: So, take something like horse consumption. It’s almost unheard of to even think about consuming a horse in the United States.

Jayson Lusk again, the agricultural economist.

LUSK: Whereas, you go to Belgium or France, it would be a commonly consumed dish.

But there’s another big factor that determines who eats what: technology. Technology related to how food is grown, preserved, transported. But also: technology that isn’t even related to the food itself. Consider the case of mutton. Mutton is the meat of an adult sheep. The meat of a young sheep is called lamb. I am willing to bet that you have not eaten mutton in the last six months, probably the last six years. Maybe never. But if we were talking 100 years ago? Different story.

LUSK: It’s certainly the case that back in the 1920s and ’30s that mutton was a much more commonly consumed product.

Mutton was a staple of the American diet; one of the standard items shipped to soldiers during World War II was canned mutton. But shortly after the war, mutton started to disappear. What happened?

LUSK: A sheep is not just meat. These are multi-product species and they’re valuable not just for their meat but for their wool.

Oh yeah, wool. And unlike leather, which can be harvested only once from an animal, you can shear wool from one sheep many times, over many years.

LUSK: So anything that affects the demand for wool is also going to affect the underlying market for the rest of the underlying animal.

And what might affect the demand for wool? How about synthetic substitutes? Nylon, for instance, was created by DuPont in 1935, and became available to the public in 1940. A year later, polyester was invented.

LUSK: So, you know, any time you had new clothing technologies come along, that’s going to affect the underlying demand for sheep and make them less valuable than they would have been otherwise.

So an increase in synthetic fabrics led to a shrinking demand for wool — which meant that all those sheep that had been kept around for shearing no longer needed to be kept around. Also, wool subsidies were repealed. And America’s sheep flock drastically shrank: from a high of 56 million in 1942 to barely 5 million today.

LUSK: It is amazing. I’ve worked at several agricultural universities across the U.S. now, and often the largest sheep herds in those states are at the university research farms.

And fewer sheep meant less mutton for dinner. Is it possible Americans would have stopped eating mutton without the rise of synthetic fabrics? Absolutely: if you ask a room full of meat-eaters to name their favorite meat, I doubt one of them will say “mutton.” Still, this is just one example of how technology can have a big effect on the meat we eat. And if you talk to certain people, it’s easy to believe that we’re on the verge of a similar but much larger technological shift.

Pat BROWN: My name is Pat Brown. I’m currently the C.E.O. and founder of Impossible Foods, whose mission is to completely replace animals as a food production technology.

Brown grew up in the suburbs of Washington, D.C., as well as Paris and Taipei — his father worked for the C.I.A. He studied to be a pediatrician and in fact completed his medical residency, but he switched to biochemistry research.

BROWN: I had the best job in the world at Stanford. My job was basically to discover and invent things and follow my curiosity.

Brown did this for many years and was considered a world-class researcher. One of his breakthroughs was a new tool for genetic mapping; it’s called the DNA microarray—

BROWN: —that lets you read all the words that the cell is using and effectively kind of start to learn the vocabulary, learn how the genome writes the life story of a cell, or something like that. It also has practical applications, because — what it’s doing, in a sort of a deterministic way, specifies the potential of that cell, or if it’s a cancer cell.

Some people think the DNA microarray will win Pat Brown a Nobel Prize. When I bring this up, he just shakes his head and smiles. It’s clear that his research was a deep passion.

BROWN: For me, this was the dream job, it was like in the Renaissance, having the Medicis as patrons or something like that.

But after many years, Brown wanted a change. He was in his mid-50’s; he took a sabbatical to figure out his next move.

BROWN: It started out with stepping back from the work I was doing and asking myself, “What’s the most important thing I could do? What could I do that would have the biggest positive impact on the world?” And looking at what are the biggest unsolved problems in the world? I came relatively quickly to the conclusion that the use of animals as a food-production technology, is by far. And I could give you endless reasons why that’s true, but it is absolutely true. By far the most environmentally destructive thing that humans do.

There is indeed a great deal of evidence for this argument across the entire environmental spectrum. The agricultural historian James McWilliams, in a book called Just Food, argues that “every environmental problem related to contemporary agriculture … ends up having its deepest roots in meat production: monocropping, excessive applications of nitrogen fertilizer, addiction to insecticides, rain-forest depletion, land degradation, topsoil runoff, declining water supplies, even global warming — all these problems would be considerably less severe” if people ate meat “rarely, if ever.”

LUSK: You know, there’s no doubt that meat production has environmental consequences. To suggest that it’s the most damaging environmental thing we do is, I think, a pretty extreme overstatement.

But what about the greenhouse-gas emissions associated with raising meat — especially in the U.S., which is the world’s largest beef producer?

LUSK: Our own E.P.A. — Environmental Protection Agency — suggests that all of livestock contributes about 3 percent of our total greenhouse-gas emissions. So, I mean, 3 percent is not nothing, but it’s not the major contributor that we see. That number, I should say, is much higher in many other parts of the world. So the carbon impacts per pound produced are so much smaller here than a lot of the world that when you tell people, “the way to reduce carbon emissions is to intensify animal production,” that’s not a story a lot of people like to hear.

DUBNER: Because why not, it sounds like it’s against animal welfare?

LUSK: Well, two reasons: Exactly, one is there are concerns about animal welfare, particularly when you’re talking about broiler chickens, or hogs — less so about cattle — and the other one is, there are concerns about when you concentrate a lot of animals in one place you can get all this waste in a location, that you have to think about creative ways to deal with that don’t have some significant environmental problems.

DUBNER: So, the E.P.A. number, livestock contributing three percent, does that include the entire production chain, though? Because, some of the numbers that I see from environmental activists is much, much higher than that.

LUSK: The U.N. estimate that you often hear from — originally was created in this report called “Livestock’s Long Shadow,” is something around 19 percent. But that 19 percent, roughly, number, is a global number. Actually, there was a study that came out pointing out some flaws in that, so they reduced it somewhat.

In any case, there is a growing concern in many quarters over the externalities of meat production.

LUSK: Over the last 5–10 years, there’s been a lot of negative publicity — stories about environmental impacts, about carbon emissions, about animal welfare. And if you just look at the news stories, you would think, “Boy, people must be really cutting back, given the sort of frightful stories that you see on the front pages of the newspapers.” But if you look at the data itself, demand looks fairly stable. And that suggests to me it’s hard to change people’s preference on this.

There’s something about meat consumption. Some people would argue that we’re evolved to like meat, that it’s a protein-, vitamin-packed, tasty punch that we’ve grown to enjoy as a species. There are some people that even argue that it’s one of the reasons we became as smart as we did, the vitamins and nutrients that were in that meat allowed our brains to develop in certain ways that it might have not otherwise.

Pat Brown saw that same strong preference for meat when he decided that the number-one scientific problem to solve was replacing animals as food.

BROWN: And it’s a problem that nobody was working on in any serious way. Because everybody recognized that most people in the world, including most environmental scientists and people who care about this stuff, love the foods we get from animals so much that they can’t imagine giving those up.

Brown himself was a longtime vegan.

BROWN: I haven’t eaten meat for decades, and that’s just a personal choice that I made long before I realized the destructive impact of that industry. That was a choice I made for other reasons. And it wasn’t something that I felt like I was in a position to tell other people to do. And I still don’t feel like there’s any value in doing that.

Brown makes an interesting point here. Many of us, when we feel strongly about something — an environmental issue or a social or economic issue — we’re inclined to put forth a moral argument. A moral argument would appear to be persuasive evidence of the highest order: you should do this thing because it’s the right thing to do. But there’s a ton of research showing that moral arguments are generally ineffective; people may smile at you, and nod; but they won’t change their behavior. That’s what Brown realized about meat.

BROWN: The basic problem is that people are not going to stop wanting these foods. And the only way we’re going to solve it is not by asking them to meet you halfway and give them a substandard product that doesn’t deliver what they know they want from meat or fish or anything like that. The only way to do it is, you have to say, “We’re going to do the much harder thing,” which is we’re going to figure out how to make meat that’s not just as delicious as the meat we get from animals, it’s more delicious and better nutritionally and more affordable and so forth.

In other words: a marginal improvement on the standard veggie burger would not do.

BROWN: It’s been tried. It just doesn’t work. It’s a waste of effort.

So Brown start fooling around in his lab.

BROWN: Doing some kind of micro experiments just to convince myself in a way that this was doable.

Those early experiments were fairly encouraging.

BROWN: I felt like, okay, there’s a bunch of things I thought could be useful, and then I felt like I could just go in with a little bit more confidence to talk to the investors.

“The investors” meaning venture capitalists. Remember, Brown’s at Stanford, which is next door to the biggest pile of venture capital in the history of the world.

BROWN: And basically my pitch them was very naive from a fundraising standpoint, in the sense that basically I mostly just told them about how there’s this absolutely critical environmental disaster that needs to be solved and—

DUBNER: And they’re probably expecting to hear something now about carbon capture, or—

BROWN: Yeah, that’s the thing. And most people still are. So I just told these guys, “Look, this is an environmental disaster. No one’s doing anything about it. I’m going to solve it for you.”

So how does the almost-pediatrician-who-became-a-freewheeling-biochemist build a better meat from the ground up? That amazing story after the break:

BROWN: Okay, bingo, this is how we’re going to do it.

*     *     *

It’s estimated that more than half of the greenhouse gas emissions associated with all animal agriculture comes from cows.

LUSK: And that is due to the fact that beef are ruminant animals.

The Purdue economist Jayson Lusk again.

LUSK: Their stomachs produce methane. It comes out the front end, not the back, as a lot of people think. And as a consequence — we look at carbon consequences — it’s mainly beef that people focus on, not pork or chicken, because they don’t have the same kind of digestive systems.

There has been progress in this area. For instance, it turns out that adding seaweed to cattle feed drastically reduces their methane output. But the scientist Pat Brown is looking for a much bigger change to the animal-agriculture industry.

BROWN: If I could snap my fingers and make that industry disappear right now — which I would do, if I could, and it would be a great thing for the world.

It is very unlikely to disappear any time soon; it is a trillion-dollar global industry, supported in many places by government subsidies, selling a product that billions of people consume once, twice, even three times a day. Pat Brown’s desire would seem to be an impossible one; the company he founded is called Impossible Foods. It’s essentially a tech startup, it’s raised more than $750 million in venture capital, and, as of May, was valued at $2 billion.

BROWN: So, we’ve only been in existence for about seven years and we have about 300 people. We started by basically building a team of some of the best scientists in the world to study how meat works, basically. And by that, I mean to really understand at a basic level the way, in my previous life, when I was a biomedical scientist, we might be studying how, you know, a normal cell of this particular kind becomes a cancer cell, understanding the basic biochemical mechanisms.

In this case, what we wanted to understand was: what are the basic biochemical mechanisms that account for the unique flavor chemistry and the flavor behavior and aromas and textures and juiciness and all those qualities that consumers value in meat? And we spent about 2.5 years just doing basic research, trying to answer that question, before we really started working on a product. And then decided for strategic reasons that our first product would be raw ground beef made entirely from plants.

DUBNER: Because burger is what people want?

BROWN: Well, there’s a lot of reasons why I think it was a good strategic choice: the largest single category of meat in the U.S., it’s probably the most iconic kind of meat in the U.S., it seemed like the ideal vehicle for communicating to consumers that delicious meat doesn’t have to come from animals, because it’s sort of the uber-meat for a lot of people.

DUBNER: Uber, lower-case “u.”

BROWN: With a lower-case, yes.

DUBNER: People are not hailing burgers, riding them around?

BROWN: No, thank God. And beef production is the most environmentally destructive segment of the animal agriculture industry. So, from an impact standpoint, it made sense as a choice.

So Pat Brown set about repurposing the scientific wisdom he’d accrued over a long, fruitful career in biomedicine. A career that may improve the health and well-being of countless millions. And now he got to work on a truly earth-shaking project: building a better burger. A burger that doesn’t come from a cow. An Impossible burger. So how did that work? What ingredients do you put in an Impossible burger?

BROWN: That’s an interesting aspect about the science, which is that we didn’t look for, “What are the precisely specific choices of ingredients that would work?” We studied, “What are the biochemical properties we need from the set of ingredients?” And then we did a survey of things available from the plant world that matched those biophysical properties of which there were choices.

So what are the main components of this burger?

BROWN: I can tell you what it’s made of right now. What it’s made of right now is different from how it was made two years ago, and that was different from how it was made two and half years ago and the next version we’re going to launch is a quite different set of ingredients.

We first interviewed Brown several months ago. The main ingredients at the time included:

BROWN: A protein from wheat; a protein from potatoes — not a starch from potatoes, but a protein from potatoes, it’s a byproduct of starch production. Coconut oil is the major fat source. And then we have a bunch of other small molecules, but they’re all familiar things: amino acids, vitamins, sugars. Nutrients.

But all these ingredients did not make Pat Brown’s plant-based hamburger meat taste or act or look like hamburger meat. It was still missing a critical component. A component called heme.

BROWN: Heme is found in essentially every living thing and heme in plants and human animals is the exact same molecule, okay? It’s just one of the most ubiquitous and fundamental molecules in life on Earth, period. The system that burns calories to produce energy uses heme as an essential component, and it’s what carries oxygen in your blood. And it’s what makes your blood red.

And none of this we discovered — this has been known for a long time and — so animals have a lot more heme than plants. And it’s that very high concentration of heme that accounts for the unique flavors of meat that you would recognize something as meat. It’s the overwhelmingly dominant factor in making the unique taste of meat and fish.

DUBNER: Is it involved in texture and mouthfeel and all that as well, or just taste?

BROWN: Just taste. Texture and mouthfeel are really important and there’s a whole other set of research around that. Super important — it kind of gets short shrift, because people think of the flavor as sort of the most dramatic thing about meat. But you have to get that other stuff right, too.

Brown and his team of scientists, after a couple years of research and experimentation, were getting a lot of that stuff right. But without heme — a lot of heme — their meatless meat would never resemble meat.

BROWN: So there is one component of a certain kind of plant that has a high concentration of heme, and that is in plants that fix nitrogen, that take nitrogen from the air and turn it into fertilizer. They have a structure called the root nodule, where the nitrogen fixation takes place and for reasons that are too complicated to explain right now they, that has a high concentration of heme and I just happened to know this from way back.

And if you slice open the root nodules of one of these plants:

BROWN: They have such a high concentration of heme that they look like a freshly cut steak, okay? And I did a calculation about the concentration of that stuff — soy leghemoglobin is the protein, which is virtually identical to the heme protein in muscle tissue, which is called myoglobin — that there was enough leghemoglobin in the root nodules of the U.S. soybean crop to replace all the heme in all the meat consumed in the U.S. Okay? So, I thought, “Genius, okay. We’ll just go out and harvest all these root nodules from the U.S. soybean crop and we’ll get this stuff practically for free.” Well, so I raised money for the company and we spent half the money trying to figure out how to harvest these root nodules from soybean plants, only basically to finally convince ourselves it was a terrible idea.

But if you’re a veteran scientist like Brown, a little failure is not so off-putting.

BROWN: You know you’re going to be doing things that are pushing the limits and trying entirely new things and a lot of them are going to fail. And if you don’t have a high tolerance for that and realize that basically, the way you do really really important, cool stuff is by trying a lot of things and not punishing yourself for the failures, but just celebrating the successes, you know, you’re not going to accomplish as much.

And the idea of buying up all the root nodules of the U.S. soybean crop wasn’t a complete failure.

BROWN: I mean, we got enough that we could do experiments to prove that it really was a magic ingredient for flavor. But then we had to start all over, and then what we did was: we said, ”Okay, we’re going to have to engineer a microorganism to produce gobs of this heme protein. Okay”? And since now we weren’t bound by any natural source, we looked at three dozen different heme proteins, everything from, you know, paramecium to barley to Hell’s Gate bacteria, which is like this—

DUBNER: That’s a plant? Hell’s Gate?

BROWN: It’s a bacteria that lives in deep sea vents near New Zealand that survive with temperatures above the boiling point of water that we mostly just looked at for fun, but funny thing about that, the reason we rejected it is that it’s so heat-stable that you can cook a burger to cooking temperature and it still stays bright red, because it doesn’t unfold. But anyway — and then we pick the best one, which turned out to be, just coincidentally, soy leghemoglobin, which is the one we were going after—

DUBNER: So your terrible idea was actually pretty good.

BROWN: It wasn’t really a brilliant idea, it accidentally turned out to be the right choice.

Through the magic of modern plant engineering, Pat Brown’s team began creating massive stocks of heme. And that heme would help catapult the Impossible burger well beyond the realm of the standard veggie burger — the mostly unloved veggie burger, we should say. The Impossible Burger looks like hamburger meat — when it’s raw and when it’s cooked. It behaves like hamburger meat. Most important, it tastes like hamburger meat.

Alison CRAIGLOW: I would like the American with an Impossible Burger.

WAITER: And how would you like that cooked?

CRAIGLOW: Oh, I didn’t realize — I’ll have it medium … medium. Is it pink in the middle when it’s … it is?

The Freakonomics Radio team recently ate some Impossible burgers in a restaurant near Times Square.

Zack LAPINSKI: I mean, I actually can’t taste the diff —

CRAIGLOW: It tastes like a burger.

Ryan KELLY: Good day for the Impossible Burger.

Greg RIPPIN: Yeah, approved by Freakonomics.

Their meal happened to coincide with the release of Impossible Burger 2.0 — an updated recipe that uses a soy protein instead of a wheat protein and has a few more tweaks: less salt, sunflower oil to cut the coconut oil, and no more xanthan gum and konjac gum. In my own tasting experience: Impossible Burger 1.0 was really good but a little slushy; 2.0 was burger-tastic.

These are of course our subjective observations. Here’s some actual evidence: Impossible Burgers are already being served in thousands of locations, primarily in the U.S. but also Hong Kong and Macau. These include very high-end restaurants in New York and California as well as fast-food chains like Umami Burger, White Castle, and Burger King — which, after piloting the Impossible Whopper in St. Louis in the spring, has just gone nationwide. Impossible also has plans to start selling its burger meat in grocery stores this year.

BROWN: We’ve grown in terms of our sales and revenue about 30-fold in the past year. And our goal is to completely replace animal as a food technology by 2035. That means we have to approximately double in size and impact every year for the next 18 years.

DUBNER: Are we to understand that you are taking aim at pigs and chickens and fish as well?

BROWN: Yes, of course. So when we first started out, we were working on a technology platform and sort of the know-how about how meat works in general; we were working on understanding dairy products and cheeses and stuff like that. And then we decided, okay, we have to pick one product to launch with, and then we have to, from a commercialization standpoint, just go all in on it for a while.

DUBNER: As the scientist, or as a scientist, were you reluctant to kind of narrow yourself for that commercial interest, or did you appreciate that this is the way in this world things actually happen?

BROWN: Both. I mean, let’s put it this way: I would like to be able to pursue all these things in parallel, and if I had the resources I would. But if we launched another product right now, we’d just be competing against ourselves for resources for commercialization, so just doesn’t make any sense.

We put out an episode not long ago called “Two (Totally Opposite) Ways to Save the Planet.” It featured the science journalist Charles Mann.

Charles MANN: How are we going to deal with climate change? There have been two ways that have been suggested, overarching ways, that represent, if you like, poles on a continuum. And they’ve been fighting with each other for decades.

The two poles are represented by what Mann calls, in his latest book, The Wizard and the Prophet. The prophet sees environmental destruction as a problem best addressed by restoring nature to its natural state. The wizard, meanwhile, believes that technology can address environmental dangers. This is, of course, a typology, a shorthand; a prophet doesn’t necessarily fear technology any more than a wizard fears nature. That said: if there were ever an embodiment of the wizard-prophet hybrid, a person driven by idealism and pragmatism in equal measure, I’d say it’s Pat Brown from Impossible Foods.Which means his invention has the capacity to upset people all across the spectrum.

The consumers and activists who might cheer a meatless meat are often the same sort of people who are anti-G.M.O. — genetically modified organisms. And the Impossible Burger would not have been possible without its genetically modified heme — which, by the way, the F.D.A. recently declared safe, after challenges from environmental groups like Friends of the Earth. Another group that might object to Impossible Foods? The meat industry. You know, the ones who use actual animals to raise food.

Kelly FOGARTY: My name is Kelly Fogarty and I serve as the executive vice president for the United States Cattlemen’s Association. And I am a fifth- generation beef cattle rancher here in Oakdale, California.

DUBNER: I’m just curious, as a woman, do you find yourself ever wishing the U.S. Cattlemen’s Association would change their name or are you okay with it?

FOGARTY: You know, it’s funny you mention that. There’s always a little bit of a notion there in the back of my mind of, you know, of course being in the industry for so long. I take it as representing all of the livestock industry. But you know, definitely having a special nod to all the female ranchers out there would be nice to have as well.

DUBNER: And what is the primary difference between the U.S. Cattlemen’s Association and the National Cattlemen’s Beef Association?

FOGARTY: As the United States Cattlemen’s Association, we are made up primarily of cattle producers. So your family ranches. You know, cow-calf operations run by producers and kind of for producers is what U.S.C.A. was built on. Whereas National Cattlemen’s Beef Association does include some more of packer influences as well as you know some of the processing facilities as well.

DUBNER: Can you just talk generally for a moment: how big of a threat does the beef industry see from alternative, “meat”?

FOGARTY: So from our end you know, in looking at the “meat” — and I appreciate you using those quotes around that term — from our end, we’re not so much seeing it as a threat to our product. What we are really looking at is not a limit on consumer choice or trying to back one product out of the market. It’s really to make sure that we’re keeping the information out there accurate and that what is available to consumers and what is being shown to consumers on labels is accurate to what the product actually is.

In 2018, Fogarty’s organization filed a petition with the U.S.D.A. to prevent products from being labeled as “beef” or “meat” unless they come from a cow.

DUBNER: Does that mean that your organization thinks that consumers are confused by labeling? Is that the primary objection?

FOGARTY: So the primary objection from the United Cattlemen’s Association is that we want to keep the term “meat” to what is traditionally harvested and raised in the traditional manner. And so when we see the term “meat” being put on these products that is not derived from that definition, what our producers came to us and really wanted us to act on was what we saw happened in other industries, specifically when you look at the dairy industry and where the term “milk” has now been used.

“Almond milk,” for instance. Which comes from almonds, not animals. Which led the National Milk Producers Federation to argue that it should not be sold as “almond milk.” The FDA commissioner seemed to agree, pointing out that “an almond doesn’t lactate,” and the agency is now reviewing the labeling policy. Which is why you may soon see your grocery store carrying “almond beverage” rather than almond “milk.”

There are important differences between so-called “milk” that doesn’t come from animals and so-called “meat” that doesn’t come from animals. Almond milk has very different nutritional content than cow’s milk; the Impossible Burger, meanwhile, has a similar nutritional profile to hamburger — including the iron content, which vegans can have trouble getting enough of. That’s another reason why Kelly Fogarty and the U.S. Cattlemen’s Association might not want the Impossible Burger to be labeled “meat.”

DUBNER: I am just curious about the mental state of your industry because I was looking at your Facebook page and one post the other day led with the following: “Eat or be eaten. Be at the table or on the menu. Fight or be forgotten.” So that sounds — it would make me believe that the future of meat is one in which cattle ranchers feel a little bit like an endangered species or at least under assault.

FOGARTY: I think that speaks to a lot of misconceptions that are out there regarding the U.S. beef industry. Whether it be in terms of you know nutrition, environment, animal welfare. We’ve really been hit from a lot of different angles over the years.

DUBNER: Okay, well, according to some scientific research, meat production and/or cattle ranching are among the most environmentally damaging activities on earth, between the resource-intensiveness, land but especially water, and the externalities, the runoff of manure and chemicals into groundwater.

FOGARTY: I think one of the first points to make is that cattle are defined as what is termed as upcyclers, and cattle today, they’re turning plants that have little to no nutritional value just as-is into a high-quality and a high density protein. And so when you look at where cattle are grazing in the U.S., and then also across the world, a lot of the land that they are grazing on are land that is not suitable for crops or it would be you know kind of looking as a highly marginal type of land. And the ability of livestock to turn what is there into something that can feed the world is pretty remarkable.

Fogarty believes her industry has been unfairly maligned; that it’s come to be seen as a target for environmentalist groups and causes.

FOGARTY: I would absolutely say, the livestock industry and to that matter, the agriculture industry as a whole I think has really been at the brunt of a lot of disinformation campaigns.

Fogarty points to that U.N. report claiming that the global livestock industry’s greenhouse-gas emissions were shockingly high. A report that was found to be built on faulty calculations.

FOGARTY: So, it was really an inequitable and grossly inflated percentage that really turned a conversation.

The inflated percentage of around 18 percent was really around 14.5 percent — so, “grossly” inflated may be in the eye of the aggrieved. Fogarty says that even though the error was acknowledged, and a revised report was issued.

FOGARTY: Folks have not forgotten it as much as we wish. It’s still something that it’s hard to have folks kind of un-read or un-know something that they initially saw.

The fact is that the agricultural industry is massive and massively complex. Without question, it exacts costs on the environment; it also provides benefits that are literally the stuff of life: delicious, abundant, affordable food. As with any industry, there are tradeoffs and there is friction: activists tend to overstate their claims in order to encourage reform; industry defenders tend to paper over legitimate concerns.

But in the food industry especially, it’s clear that a revolution is underway — a revolution to have our food be not just delicious and abundant and affordable but sustainable too, with fewer negative externalities. Some startups, like Impossible Foods, focus on cleverly engineering plant matter to taste like the animal flesh so many people love. Other startups are working on what’s called lab-grown meat, using animal stem cells to grow food without animals. This is still quite young technology, but it’s very well-funded. I was curious to hear Kelly Fogarty’s view of this.

DUBNER: One of the investors in the lab “meat” company Memphis Meats is Cargill, which is a major constituent of the big meat industry. I mean, another investor, for what it’s worth, is Bill Gates. But I’m curious what’s your position on that. Because the way I think about this long-term, presumably a firm like Cargill can win the future with alternative “meat” in a way that a cattle rancher can’t. So I’m curious what the position is of ranchers on this kind of investment from a firm like Cargill or other firms that are sort of hedging their bets on the future of meat.

FOGARTY: You know it’s a really interesting point, and it’s been a bit of a tough pill for producers to swallow, the fact that some of the big three, some of these big processing plants that have been so obviously heavily focused and have been livestock-dominant are now kind of going into this alternative and sometimes the cell-cultured lab meats, alternative proteins. And it really has been a point of contention among a lot of producers who are kind of confused, unsure, feel a little bit — I don’t want to say betrayed by the industry, but a little bit so…

Others may soon feel betrayed as well. A company called Modern Meadows is using similar technology to grow leather in the lab, without the need for cattle. The Israeli company SuperMeat is focused on growing chicken. Impossible Foods is experimenting with fish substitutes, including an anchovy-flavored broth. And then there’s a company called Finless Foods.

Mike SELDEN: Finless Foods is taking the seafood back to basics and creating real fish meat entirely without mercury, plastic, without the need for antibiotics or growth hormones, and also without the need for fishing or the killing of animals because we grow the fish directly from stem cells.

That’s Mike Selden, the co-founder and C.E.O. of Finless. He’s 27 years old; he started out as a cancer researcher. Like Pat Brown, you could call him a wizard-prophet hybrid. He does take issue with the idea of “lab-grown” food.

SELDEN: The reality is, labs are by definition experimental and are not scalable. So this won’t be grown in a lab at all. It’s prototyped in a lab in the same way that snacks are prototyped in a lab. Doritos are prototyped in a lab by material scientists looking at different dimensions of like crunch and torsion and all these other sort of mechanical properties. So what our facility will look like when we’re actually at production scale is something really a lot closer to a brewery. Big steel tanks that are sort of allowing these cells space in order to divide and grow into large quantities of themselves, while accessing all of the nutrients that we put inside of this nutritional broth.

The fishing industry, like the meat industry, exacts its share of environmental costs. But like Pat Brown, Mike Selden does not want his company to win on goodwill points.

SELDEN: So, the goal of Finless Foods is not to create something that competes on ethics or morals or environmental goals. It’s something that will compete on taste, price, and nutrition — the things that people actually care about.

Right now, everybody really loves whales and people hate when whales are killed. What changed? Because we used to kill whales for their blubber in order to light lamps. It wasn’t an ethical movement, it wasn’t that people woke up one day and decided, “Oh, killing whales is wrong.” It was that we ended up using kerosene instead. We found another technological solution, a supply-side change that didn’t play on people’s morals in order to win. We see ourselves as something like that. You know, why work with an animal at all if you don’t need to?

Indeed: you could imagine in the not-so-distant future a scenario in which you could instantly summon any food imaginable — new foods, new combinations, but also foods that long ago fell out of favor. How much fun would that be? I asked the agricultural economist Jayson Lusk about this.

DUBNER: If we had a 3D printer, and it, let’s say, had, just, we’ll be conservative, 100 buttons of different foods that it could make me. Does anyone press the mutton button?

LUSK: Well, you know, one of the great things about our food system is that it’s a food system that, yes, makes food affordable, but also has a whole awful lot of choice for people who are willing to pay it. And I bet there’s probably at least one or two people out there that will push that will mutton button.

I also asked Lusk for his economic views on the future of meat, especially the sort of projects that inventors like Mike Selden and Pat Brown are working on.

LUSK: I have no problems with what Dr. Brown is trying to do there, and indeed I think it’s very exciting, this technology. And I think ultimately it’ll come down to whether this lab-grown meat can compete on the merits. So, there’s no free lunch here. In fact, the Impossible Burger — I’ve seen it on menus — it’s almost always higher-priced than the traditional beef burger. Now as an economist, I look at that and say, “Those prices, to me, should be signaling something about resource use.” Maybe it’s imperfect; maybe there’s some externalities. But they should reflect all the resources that were used to go in to produce that product. It’s one of the reasons that beef is more expensive than, say, chicken — it takes more time, more inputs, to produce a pound of beef than a pound of chicken.

So, why is it that the Impossible Burger is more expensive than the regular burger? Now, it could be that this is just a startup, and they’re not working at scale; and once they really scale this thing up, it’ll really bring the price down. It could be they’re also marketing to a particular higher-income consumer who is willing to pay a little more. But I think if the claims about the Impossible Burger are true over time, one would expect these products to come down significantly in price and be much less expensive than beef production. You know, this is not going to make my beef friends happy, but if they can do that, good for them; and consumers want to pay for, this product, they like the way it tastes and it saves some money, which means it’s saving some resources; I think in that sense, it’s a great technology.

Whether or not you eat meat; whether or not you’re interested in eating these alternative meats, from plant matter or animal stem cells — it’s hard not to admire the creativity that someone like Pat Brown has exercised: the deep curiosity, the ability to come back from failure, the sheer cleverness of putting together disparate ideas into a coherent scientific plan.

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Freakonomics Radio is produced by Stitcher and Dubner Productions. This episode was produced by Zack Lapinski. Our staff includes Alison Craiglow, Greg Rippin, Harry Huggins, Matt Hickey, Corinne Wallace, and Daphne Chen. We had help this week from Nellie Osborne. Our theme song is “Mr. Fortune,” by the Hitchhikers; all the other music was composed by Luis Guerra.You can subscribe to Freakonomics Radio on Apple Podcasts, Stitcher, or wherever you get your podcasts.

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