There have been many talks recently about High-Value Men and High-Value Women. The typical conversation states that a high-value person earns $100,000/year from their jobs. For context, the term high value doesn’t factor in morals and ethics, just income.
The numbers for high-value people seem to be around 10% of males and 3% of women who earn $100,000/year in income. That surely isn’t as many people as the media leads us to believe.
Plus, how many of these HENRYs (High Earners Not Rich Yet) live in high-cost-of-living cities and states like California? $100,000 doesn’t go as far in California as in Florida.
The Metaverse 111: Transfer of Wealth in the Metaverse
What is the key to earning $100,000/year at your job? Perhaps, getting your degree and having no student debt? Being debt-free allows you to jump on opportunities ahead of your peers without fear of a financial penalty.
Of course, hard work and longevity. Nowadays, it’s vital to jump from company to company to increase your wages. No longer is sitting in the same company for 20-30 years going to offer you the type of security you seek.
Is $100,000/year enough? Is earning $100,000 a year sufficient to live a stress-free middle-class life? It depends on how much stuff you desire and what you want to achieve.
If your goals are to have a big home, a large boat and take lots of overseas vacations—your $100,000 will not take you far. Conversely, if you want to retire to a small farm and live peacefully, $100,000 can be a goldmine.
Your lifestyle determines how much $100,000 does to appease your appetite. Being from California, I have seen people earning $200,000 struggling under the weight of their “things.”
The valid $100,000 metric. When I hear people bragging about earning $100,000/year from a job, I chuckle to myself. True, not many people can earn this amount of income; however, it isn’t earth-shattering either.
The accurate metric is earning $100,000/year passively. If you can do this, then I will be genuinely impressed. What’s so tricky about building passive income?
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Passive Income. I am glad you asked. There is nothing inherently difficult about building streams of passive income. The challenge comes from the knowledge required to start, build, and maintain your income streams.
If you don’t understand financial markets, interest rates, mortgages, debt, leverage, taxes, etc., it will be difficult to earn this level of passive income. On a side note, the book “Unfair Advantage” is my top recommendation to cover financial independence through passive income.
Those few who can earn $100,000/year through passive income add value to the world. It’s nearly impossible to make this much income without contributing to society somehow or investing in companies that add value.
Living Overseas on Passive Income
Let’s review the numbers. Talk is cheap, but numbers reveal the truth. Let’s run the numbers on how much money, sales, or effort it would take to earn $100,000 in various streams of passive income.
- Index Fund Investing. At a dividend yield of 1.5%, it would take $6.7 million.
- Dividend Growth Investing. At a dividend yield of 4%, it would take $2.5 million.
- Income Investing. At a dividend yield of 9%, it would take $1.1 million.
- Cryptocurrencies (USDC). At an interest rate of 9%, it would take $1.1 million.
- Rental Income. If each unit netted you $500 cash flow, you would need 17 properties.
- Royalties. At $2 for each book sale, it would need to sell 4,200 books a month.
- Automated Business. At $50 per online course sale, I would need to sell 167 courses a month.
As you can see, it takes a lot of money, effort, and sales to earn $100,000/year. Again, these income streams are all outside of the purview of a job. It is truly amazing to make your entire income from passive sources.
The trick to passive income. The trick to passive income is that it isn’t passive at first. It takes an unholy amount of work to build an income stream. Sure, you can work and invest in dividends or USDC stable coins, but how long will that take?
No, you need a wealth generator to accumulate your $100,000 at a faster clip. That’s why passive income is so impressive—you have to understand concepts and integrate them into your particular stream.
3 Steps to Live Entirely on Passive Income
Let’s take writing as an example. I love writing every day, but releasing books isn’t going to set my bank accounts on fire. I need to generate additional income streams with the same amount of words.
Knowing this, I add affiliate links to books I read, do reviews of equipment I use, and release paperback books for additional income. Each income stream has similar multipliers; you only need to learn to exploit them.
Why is passively earning $100,000/year is high value? I consider $100,000/year from passive sources as high value because you have elevated yourself to achieve this goal. Working a job doesn’t necessarily require creativity or originality.
For passive income, you need to become a marketing guru, public speaker, video editor, podcaster, artist, investor, etc. You cannot stay in your shell very long. “To have more, you have to become more.”
Overcome Financial Adversity
Passive income requires you to learn new things continually. How will people read books in the Metaverse? What are the implications of NFTs on physical baseball cards? How can we leverage blockchain technology to verify wine collections?
The person I was when I started reading my first book, “I Will Teach You to be Rich,” is different from the person I am after finishing book #92, “Successful Self-Publishing.”
The writer I was in January 2021, when I released my first book on Amazon (and made $3 for the month), is much different than the writer I am today. I sold 55 books in January 2022—not bad for not advertising.
Become better. Working a job is excellent, don’t get me twisted. However, you can do more. How much time do you spend watching TV or doom scrolling on social media? This is what separates the passive income heroes from the regular joes.
Merry Debt-Free Christmas
Only you can decide if earning $100,000/year from your job equals making $100,000/year in passive income. I choose to work towards the passive income goals because it gives me freedom of time, money, and location.
Conclusion. You may not understand the difference between passive income and earned income, which is okay. The school system doesn’t teach us these concepts.
I challenge you to invest for dividends and earn $10/mo in dividend income. This $10, enough to buy some McDonald’s, will change your life. Getting a free meal in a world of earned income can set you free.
It is okay to aim for $100,000/year at work, but also create a long-term plan for your finances. Start a business, invest, or rent rooms. Have a plan to have your money work for you, not against you. Become a high-value person!
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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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