There is genuinely only one way to get rich—making money while you sleep. Let’s be honest, the true reason we want to become wealthy is to sleep easy at night.
I don’t like the feeling of owing people money. Maybe you love having credit cards, student loans, and car payments, but I loathe these things.
Even better, I like when compound interest works in my favor. If I have $1,000, I want it to earn me $7.50/month with USDC (at 9% interest).
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Limiting beliefs. How we view money can be our most prominent limiting belief to overcome. Many people will look at $7.50/mo and scoff at the idea of earning this amount of money.
However, I view $7.50/mo as a massive amount of cash if I don’t have to work for it. So, every month for the rest of my life, I can buy a McDonald’s double cheeseburger combo meal? I’m all in!
If I keep investing money, my $7.50/mo turns in $100/mo, followed by $1,000/mo. Eventually, I can stop working because I have enough passive income to pay for my expenses (plus my lifestyle).
Why aren’t more people living on passive income? Why aren’t more people building income streams if passive income is so excellent?
Well, it goes back to limiting beliefs. The school system teaches us that there is only one correct answer. Early on, we learn that getting an education and working a job is the only way for success in the world.
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It is hard as heck to reprogram your brain. A good book on overcoming a fixed mindset is “Mindset.” Seeing the world through the lens of passive income makes everything make sense.
You’ll start to understand the real reasons we need a job—to earn money to invest and pay our expenses while we start a business.
Why is earning money in our sleep so important? It is incredibly challenging to become wealthy by exchanging time for money. No matter how much you make, there is a limit to your earnings.
There are 2080 work hours a year (52 weeks x 40 hours), so your limit would be $62,000 (at $30/hr). Now, at $300/hr, your limit would be $624,000.
That is a lot of money to earn; however, it also comes with a lifestyle. Most people will succumb to lifestyle inflation as their income rises.
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So, as you make more money, you’ll need to work more hours. It is a never-ending cycle of despair, especially if you don’t know how to buy your freedom.
The In-Debt-ured Servant. I wrote an article titled “The In-Debt-ured Servant” to show how debt and consumerism have made us servants to the workforce.
The good part is that anyone can buy their freedom, one asset at a time. Do you know what an asset is versus a liability?
One of the most popular books of all time is “Rich Dad Poor Dad.” Inside, Robert Kiyosaki explains that an asset puts money in your pocket, and a liability removes money.
To sleep easy and become wealthy, you need to accumulate assets consistently. You also need to avoid liabilities—at least until you have enough passive income to pay for them.
How do I accumulate assets? There are three ways to accumulate assets: purchase them, build them, or create them.
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Purchasing assets. The most straightforward way to obtain assets is to buy them. We usually invest in an asset with the expectation of receiving a return on investment.
To become a Bonafide Investor, we need to learn the art of investing in these products. Then, we need to balance each investment’s risk/reward proposition. We must diversify our portfolios across multiple assets classes as well.
- Investing for Dividends. One of the best ways to start accumulating assets is by purchasing stocks or ETFs that pay dividends. You can start with $100/mo and slowly build a portfolio from there. Read “Stock Market Investing 106: Back to Basics.”
- Investing for Interest. You can avoid the stock market altogether by investing in bonds. The US Treasury offers bonds, and sometimes you can achieve a reasonable rate of return. Bonds are an excellent way to start. Read “Treasure in Treasuries.”
- Cryptocurrencies. If you are new to crypto, don’t buy the hype. You can start a Voyager account (affiliate link) and purchase major coins that pay interest. After learning more, you may want to delve deeper into Decentralized Finance. Read “USDC for the Win !!”
- Real Estate property. You can also buy a rental property or house-hack your home to receive cash flow. Real estate is expensive, but you can use leverage (only if done safely.) Read “Real Estate is a Mindset -Beginner.”
Building assets. Building an asset is also called starting a business. It can also mean building a real estate asset. Starting a business is much more complex than buying assets; however, it may give you more upside.
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There are many paths to start a business, but “The 10% Entrepreneur” way is probably the least risky. Here, you start a business while you are working full-time. Let’s explore some types of businesses.
- Outdoor. There are many types of outdoor businesses like rental car companies or farming. This is a great choice if you like being outdoors, owning a shop, starting a brewery, or dealing with live customers. Read “What Type of Home Business Should You Start 2: Outside.”
- Online. Starting an online business is all the rave right now. However, it is a crowded market. Building a business online is easy, but getting people to find you is extremely difficult. If you are reading this, that means you found me on the internet, so it is possible. Read “What Type of Home Business Should You Start 3: Online.”
- Consulting. Consulting or coaching could be a great way to parlay that into a second career if you have a great work history. This time you will be your own boss. Read “What Type of Home Business Should You Start 5: Consulting.”
Creating assets. Finally, you can create assets from scratch. Usually, this requires some form of talent or skill. This method is called content creation or selling creativity. You can create content or products for little to no money.
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However, just because you write a book for free doesn’t mean it will sell. Often, you have to start a business around your creation to sell it. However, building an extensive portfolio of assets (books, videos, podcasts, photos, art, music) will pay off over time.
As you become more and more popular, it will create a halo effect over your earlier works. So, content creation starts slow but can lead to a large windfall in the end. Most people can’t get over the first years, however.
- Music. Music includes singing songs, writing songs, and music or instrument videos. Read “How to Create Passive Income from Music.”
- Photography. Photography includes taking stock photos, creating a stock photo website, and creating photography lesson videos. Read “How to Create Passive Income from Photography.”
- Art & Design. Art & Design includes the new hot item: Non-Fungible Token (NFTs). You can also sell your artwork on stock sites. Read “How to Create Passive Income from Art & Design.”
- Video. The most well-known video platform is YouTube. Yes, you can still be successful on YouTube, but it takes dedication. Read “How to Create Passive Income from Video.”
- Audio & Speech. Podcasting is a valuable way to build your brand; however, it isn’t very lucrative until you have a large following. You can also narrate your own audiobooks. Read “How to Create Passive Income from Audio & Speech.”
- Writing. Of course, writing is my favorite way to create assets. You can release eBooks, paperback, audiobooks, and run a blog. Read “How to Create Passive Income from Writing.”
Conclusion. I hope I did a good job explaining why making money while you sleep is necessary for wealth building. You have to maximize your time by letting your assets work alongside you.
The three types of ways to accumulate assets are buying, building, and creating them. Use all of these methods together to accelerate your income-earning potential. I am using some form of all of these methods.
Finally, remember to build wealth slowly. There is no fast money. You want to make a foundation of money that stands the test of time—allowing you and your family to sleep easy for generations.
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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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