“Infinity Investing” by Toby Mathis is a book about building a portfolio of assets that will eventually cover your lifestyle. In other words, what I write about every day. Needless to say, this was a fantastic read.
We all want to achieve financial freedom via different techniques and methods. Some may be heavy into real estate, business, royalties, or dividends. Whichever way you choose, the goal is to have assets that pay entirely for your expenses and lifestyle.
This book breaks down our lifestyle into needs, wants, and wishes to represent the different levels of financial freedom. By identifying these financial independence numbers, you position yourself to hit your targets earlier or adjust them accordingly.
The book also discusses dividend stocks and selling covered calls for passive income—two things I believe in wholeheartedly. With that, let’s get into my five takeaways.
1) The three DO NOTs in Infinity Investing are: never pay an expense with a liability, do not buy liabilities with income, and do not buy liabilities with a liability.
2) These three rules stood out because they are the primary way we live in America. We buy cars (liabilities) with a car loan (which is also a liability). These double negatives are killing our wealth creation and path to financial freedom.
3) The three DOs of Infinity Investing are: use income to buy assets, your assets to pay for expenses, and use assets to pay for liabilities.
4) These three rules were my favorite part of the book. It just makes so much common sense. Use your paycheck to buy dividend stocks. Then, your dividend stocks can pay for your expenses. Finally, you can use your dividend stocks to pay for vacations and nice cars if you so choose.
5) The author calls selling covered calls being a “stock market landlord” and makes a good case for trading options. Remember you want to sell options because you receive the insurance premium.
I truly loved the three rules of Infinity Investing. It gives us a simple model to convert our earned income to passive income and slowly reduce our need for earned income. Without a need for earned income, we now have the option to stay in the workforce.
My biggest takeaway is that everyone needs to build a portfolio of assets. We are all different and have different strengths and weaknesses. We don’t all want to become real estate moguls or stock market experts. However, we may want to write books, stay in the military, or start a home business.
Whatever our wealth generator, we need to stay true to the path, eradicate earned income, and build generational wealth through passive income. I recommend this amazing book to anyone who wants to escape the rat race.
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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. All Right Reserved Military Family Investing
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