Lawsuit, Inheritance, Lottery: Is This How You Plan to Get Rich?

Is this a funny title to you? It may sound a little weird, but these are the three ways that most people plan on becoming wealthy: lawsuit, inheritance, or lottery. “Why don’t people just earn their own money to become rich,” you ask? Because that would take effort.

These methods seem humorous from the outside, but once you start dealing with many “regular” people, you will begin to see these trends forming. My wife Kristina and I had never met anybody like this until we started landlording.

And sure enough, almost every single person we met as a landlord had these goals in their mind. If I throw in social security, we would have 100% coverage of our tenants. Let’s look over some examples.

Become CEO of Your Life

Lawsuit. Lawsuits were the biggest segment of our tenants. They all had some kind of medical or car accident that they were pursuing. If not those two, then it was some form of a legal battle with their ex-spouse. The funny part is, most of their ex-spouses had paid a decent amount of money to them; they just wanted more. They never learned how to control their money correctly.

Inheritance. You will see this more in the workforce. You will see people drifting aimlessly through their work performance, not goals in sight. Chances are, you are busting your butt, trying to get promoted, and these people just coast along. 

However, if you start to ask them questions, everything they speak about involves their parents. They will talk about their parent’s homes, boats, and investments. Listen for these clues and look over their work motivation, and you will ascertain that they are just waiting for their part of the fortune. 

Lottery. You don’t see lottery players too much in the military, but you will see many of these in the civilian world. Every day, people will go into the gas station buying 5-10 tickets. We would see 2-4 people every visit purchase lottery tickets, alcohol, and cigarettes at our favorite gas station. I am not judging because I love some alcohol, but how can they afford this stuff?

Is this how you plan to get rich? I ask this question because these are honestly how 90% of people plan to get rich. I am estimating these numbers, but here are some other facts to go off of. 

Become CEO of Yourself

Only 3% of Americans will reach $1 million in liquid investments. This means that they will have $1 million in an investment account, gold, silver, or other investments outside of their house.

Many people say they are millionaires because they have $1 million of equity in their homes. This is very nice to have, but you can’t spend it from your house. It is not an ATM that spits out money.

The other 7% will have enough from pensions, 401Ks, and social security to live a remarkable life during retirement. So, that leaves 90% who will need to have some form of “boost” to fund their lifestyles.

If you think these numbers are bogus, then you haven’t dealt with many people outside of your circle. I have met people living off of $700/month disability checks. If that check dried up, so would they. It isn’t a pretty picture.

How to Start Dividend Investing 101

Perhaps one of the reasons I am working so hard in my military career, real estate, business, and investing is that I have seen the other side. I have seen the extreme side of people sleeping in their cars, living beyond paycheck to paycheck, and depending on the government just to live. 

If you depend on social security, it is not any better for your future. First, your social security check was never meant to replace your working income; it was meant as a “small” supplement to that. Perhaps a 20-30% supplement to what you were making in your working years.

Second, there is no guarantee that social security will be around for any amount of time. Those few wealthy people who have money are doing everything in their power to remove money from the “have nots.” That is just the way things go.

What can you do to change your future? Thankfully, you do not have to be someone waiting for a lawsuit judgment, inheritance, lottery, or social security. You can do something about it now, today, and never look back.

I do not care what age you are; you can take steps to set you on the best path forward. Indeed, even if you create an income stream from dividends for $200/month, that is a tremendous amount of money.

What can you buy with $200/month coming in passively? You may be able to buy some luxuries like Netflix or stop and get a couple more coffees throughout the month. You don’t have to start with a considerable income steam; it can be little patches of money that make all the difference. The people I have met would cry tears of joy for $50/month of income. 

Let’s take a look at how we can build a quick $1,500/month passive income stream from various methods of business, real estate, investing, and cryptocurrencies.

CryptoCurrency 108: What are DAOs

Real estate. First and foremost, you will need to rent out a room in your house. This will net you $600/month and will be the backbone of your passive income journey. Real estate is the best wealth generator for beginners. 

Business. Next, you will build out a small business to net you $500/month. This can be renting out a car, becoming a content creator, or writing ebooks. Give yourself 1-2 years to earn this amount of money properly. You want to build a strong base of knowledge to make your income stream as solid as possible. No easy money here. 

Investing. We want to get to $400/month in dividend income. We can use the money from our room rental to fund our dividend portfolio. If we had our money in a closed-end fund that pays 9% monthly, like the Pimco Income Fund (PCI), we would need roughly $55,000. Of course, we want to diversify, but $55,000 is more than achievable in two years. My wife and I went from -$77,000 to +$150,000 in less than two years. You might be able to also.

Pay for College with Real Estate 102: Buy a House, Sell a House

Cryptocurrencies. To further diversify, we can extract our last $100/month from crypto. We can put some money into a safe, stablecoin like USDC and get a 9% return. We would need roughly $14,000 in our USDC portfolio. 

There you have it, a $1,5000/month simple passive income portfolio. Oh, you think that this looks too simple? Well, is it supposed to be hard? The most challenging part is getting the information to get everything set up. Then it just requires discipline. The harder you grow it now, the more you can relax later. 

My wife and I are at $3,000/month in passive income, outside of a military pension. This money comes from renting rooms ($1,600), renting houses ($900), dividends ($500), and royalties ($70). We are 40 years old. We have 25, 30, 40 years to grow this amount to a ridiculous stream, bigger than we can imagine. We have been doing this for exactly two years. I am just saying.

Here is an excellent place to start, my retirement at any age series. Find your age group and read these short books, or you can read all the age groups in one nice-sized book. Retirement At Any age articles (20s, 30s, 40s, 50s, 60s, 70s, Any Age), book formats (20s, 30s, 40s, 50s, 60s, 70s, Any Age).

Please don’t limit yourself to winning a lawsuit, inheritance, or lottery. There is a better way to live and prepare for the future. As you build passive income, your everyday life will improve, as well as your future retirement. It’s truly a win, win situation. Good Luck!

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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it.  I have no business relationship with any company whose stock is mentioned in this article.