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Most of the people who will read this book are only
looking to make a little extra money. Others are looking to get
stinking rich, but not many people want to get wealthy. It’s
important to understand that there are major di erences
between having a lot of money and having wealth. The rst
thing to understand about this distinction is that wealth isn’t
measured in money, it is measured in TIME.
A New Map
Let us try the same example above, but let's change a few
numbers around and see what happens. Let’s say that
instead of having zero passive income, you spend your time
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acquiring additional sources of income and eventually your
passive income can cover half of your expenses every month.
Not only will you be able to cover all your expenses with
your passive income, but you will have Five hundred dollars
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extra to add to your nest egg from your passive income every
month, growing you wealthier. This is the de nition of having
your money work for you. I am not trying to in uence you to
leave your job. I am trying to in uence you to use your job.
My best friend always says, “I don’t work for Facebook, I
consult for them.” He is absolutely right, and once he started
looking at his job this way he started making almost half his
Facebook salary from his side hustle. Most importantly, he
doesn’t spend that extra money; he uses it to buy additional
streams of passive income. Eventually, he won’t need his
income from Facebook and he can decide if he wants to stay
or not.
Tip: The biggest wealth stealers are your house, car, and
entertainment.
1. Net Cash ow
in these assets and the assets give you a return at the end
of the year. It’s reasonable to expect a 5% return from
municipal bonds and a 10% return from rental real estate. If
you can successfully allocate across these assets, you can
expect an average return of 7.5%. This is why we use 13 in the
formula, because 13 is the inverse of 7.5% and I believe it is
not unrealistic to get that type of return. Based on the formula
above, all I need is $2,000,000 parked in an asset thats
yields me 7.5% a year to never have to lift another nger. This
is why I have so much purpose about what I do because I
know my exact numbers.
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An easier formula to use
4.
DIFFERENT STREAMS OF INCOME
By now you should see the bigger picture. If you want to
be wealthy and leave a legacy, it’s going to take hard work.
It’s actually a lot easier to go through life accumulating
liabilities until you die than it is to build wealth. The sad part is
those liabilities are often left for your kids or siblings. I
watched my mother have to deal with liability after liability left
by her sisters after they passed away. I promised myself that
if I don’t leave behind assets, the least I could do is not leave
behind liabilities for my family members to be burdened with.
Of course, building wealth is harder than just putting your
money down the bucket with the hole in the bottom. If you
think it’s too di cult, at least take out a life insurance policy
and don’t accumulate too much debt during your time here.
If you are up for the journey and you want to wear the
crown in your family, It is important to learn about di erent
streams of income. Most of us won’t be able to accumulate
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$2,000,000 from earned income because our jobs don’t pay
enough. It would take us a very long time to get there, if we
get there at all. That’s why we must learn about other streams
of income so that we don’t have to do all of the heavy lifting
and our money can do some of the lifting for us.
Earlier, I mentioned that there are a nite amount of jobs
that we can have because there are only 24 hours in the day.
But there is no limit to the amount of income-producing
assets you can have. That’s why it's so important to use your
primary source of income to create other sources. Those
other sources can be leverages and scaled much easier than
you can scale your earned income.
To make $2,000,000 in a business, you only have to sell a
$500 product 4,000 times. This is the power of other streams
of income and when you couple it with the nancial markets
you can make some serious gains.
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Ideally, the image above is how you want your buckets to
look.
1. Earned Income
• Earned income is your primary income stream through
a job. The majority of us start here, and many go no further.
For most, earned income is very limiting and has attracted
the acronym, Just Over Broke! Of course, some jobs pay
exceptionally well, but these are exceptions, not the norm.
Most people must go beyond a job to create nancial
freedom.
2. Pro t income
Selling a service or product for more than what it costs to
produce them is the basis of pro t income. You could open a
retail store and sell products, o er professional services and
charge for your time, or combine the two.
It is one of the hardest steps to move from earned income
to pro t income, but it is worth it if you want to create
nancial independence for yourself. This is the route most
people take when they try to build out another stream.
3. Interest Income
If you have spare cash sitting in the bank account, it is
losing money. There are many ways you can put your money
to work and earn a passive income stream. Consider
investing it in a high yielding savings account and use the
power of compound interest to gain a passive income. Buying
government bonds is another safe investment that will
generate interest. It is also common for people to become
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private lenders. Private lenders are entities that loan money
to individuals or businesses but are not tied to any bank or
credit union. A private lender can fund many di erent
varieties of loans, but two of the most common are real estate
loans and personal loans. Becoming a private lender is a very
handsfree way to earn interest on your money sitting in the
bank.
4. Dividend Income
When you buy shares in a company, you become part-
owner of that company and entitled to dividend payments.
Well-timed investments in companies can generate excellent
passive income streams. These income streams can be paid
out on a monthly basis and a quarterly basis. Warren Bu et
collects millions in dividend income every year because he
buys companies that are healthy and growing. As a thank
you, those companies pay him a percentage of their income.
You may not make millions in dividend income, but you can
make a few thousand and pass it on to your kids.
5. Rental Income
Property investment is an excellent way of protecting your
money and generating an income from rent. There are two
downsides to this income stream. First, it requires a
substantial investment initially, unless it is part of an
investment scheme. Second, releasing the cash can be time-
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consuming and costly, so if you may need the money quickly,
this is not for you.
7. Royalty Income
This is a passive income stream generated by designing,
building, or making something unique and charging people
and businesses to use it. Musicians are a prime example. In
most cases, musicians are signed to a particular label, such
as Virgin Records. The record company pays to record the
musicians, produce the records, market them, and sell them.
The musicians receive a royalty payment for every album
sold and every time it is played to the public. Famous
musicians, such as Elton John, make millions from the
royalties for playing his music.
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5.
THE GAME PLAN
Your major goal should be to limit the amount you are
giving to necessities bucket and increase the amount you are
giving to the investing bucket. This will allow you to develop
other streams of income other than your primary stream. If
you commit to this, you will have an army of soldiers working
for you and bringing you back little dollar bills every month.
Your only responsibility at that time is to ensure you don’t get
carried away and start to put your extra dollar bills down the
hole. I rmly believe that anyone can use these strategies to
go from nancially unstable to nancially independent. It will
take hard work, dedication and the ability to ignore what
everyone else is doing. It’s up to you if its worth it.
The true wealthy people have multiple streams of income,
they know their wealth based on time, and they know their
retirement numbers. They don’t get up every morning saying
they want to be rich. They know the game plan and they go
out with a will to execute it. When they get large sums of
money, they buy income producing assets that will pay them
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every month and every income producing asset serves its
own purpose. These people don’t depend on anyone to give
them a raise, they give themselves a raise. Some income
producing assets pay for their car, some for their home, and
some for their trips. If you want to become wealthy, you must
do the same.
I started a small community of people who are dedicated
to this strategy of building wealth. We use group economics
to share di erent streams of income and knowledge on how
to build them. The goal of the community is for everyone in
this group to grow together every year. As a member, you are
joining us on a mission to grow wealthier and achieve
nancial freedom, improve your mindset and personal
development, achieve your personal goals, and nd lasting
success and ful llment in your career.
Sometimes, all you need is a new map of the world and
this product will do just that. Most of the customers who buy
this product come to me saying that it has completely
changed their psychology about money. I have introduced
this content to over 50+ students from the Caribbean, North
America, and even Africa and it has resulted in a major
psychological shift to how they view money. This simple shift
has resulted in students clearing over 50k+ in debt over 4
months, getting promotions at the top companies like Google
and Goldman Sachs, and students earning side incomes
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while in college. If you are serious about creating wealth, this
is the place for you. We can’t wait to have you join the family.