Show of hands for anyone who wants to work less, make more, and build generational wealth all at the same time?

Do you want to live frugally or extravagantly? own sports cars and mansions or live a modest life in a small town? Not have to work at all to live or work 60+ hours a week? Whatever your answer may be, it one way or another boils down to how much income you need to live your desired lifestyle – and how you make it.
Where does all your household income come from? Maybe you work a full-time job somewhere, clocking in and out for a steady paycheck. There is nothing wrong with that. Do you have any other sources of income? Investments, side hustles, a second job?

All the things listed above are what’s called ACTIVE INCOME. It’s work where pay is contingent on your direct involvement and where you paid for your time. Time in, dollar(s) out.

There’s absolutely NOTHING wrong with active income. Most of us have it. We work as Realtors® and that’s OUR active income. My parents work in admin and maintenance.

The thing about active income is that it’s missing a key ingredient – LEVERAGE. If you want to work less and make more, you need LEVERAGE. If you want to work the same and make even more, you need LEVERAGE.
Passive income is leverage. It’s not contingent on your direct involvement and you don’t get paid linearly – hours in, dollars out. For example, we own a duplex that cash flows (profits after ALL expenses) 650/month. We spend about 1 hour/month dealing with said duplex. That’s $650/hour! And that’s not considering the two other benefits of real estate – debt pay down (tenants pay the mortgage for you) and appreciation (it’s worth more next year than this year).
What if you wanted a badass car to drive for the rest of your life BUT you didn’t want to pay for it? Let’s say the car costs 60,000. A super nice BMW, maybe. Well, that’s approximately $1,000/month to have that car. Instead of buying that car, go buy a 3-4 unit with roughly $1,000/month CASH FLOW and now you can drive that badass car and it doesn’t cost you a thing. Oh! And you’ll have an appreciating asset being paid down by the tenants, too.

Leverage is key. Buy rentals and be an awesome landlord. Start a business and learn to attract and train awesome staff. Figure out stocks (still haven’t done that). Do whatever you have a passion for – and get going!