Inflation is going to push our lives to the extremes. Either we will learn new skill sets and thrive or die on the vine. Those two options leave us little room (or time) to fall behind.
I am all about learning new skills, pushing our brains, and building an audience. Is it easy? No. Can anyone do it? Perhaps. Success takes a work ethic and dedication that most people do not possess.
Most people don’t have the self-determination to start their empire because school trained us to work a job. Working and building for ourselves is a foreign thought process. However, inflation will change our thinking.
Preferred Shares vs. Closed-End Funds
Welcome back to the Inflation Ate My Paycheck Series (101, 102), where we discuss ways to mitigate inflation while improving our long-term wealth prospects.
Today, I want to discuss the four pillars of family wealth: content creation, investing, real estate, and business. When families and individuals leverage these four pillars in tandem, they have a high chance of success. Let’s begin.
Rich Dad’s Cash Flow. The first thing we need to do is read “Rich Dad’s Cashflow Quadrant” by Robert Kiyosaki. Mr. Kiyosaki’s four parts of the equation are Employee, Self-Employed, Business, and Investor.
Mr. Kiyosaki focuses on the average person becoming super-wealthy. For example, His business quadrant is for entrepreneurs who have a business of over 500 people.
This book does a great job of getting the average person (us) to think about life outside of a job. It blew my mind and helped me create Military Family Investing.
Should You Manage Your Own Rental Properties?
A smaller scale. My four pillars of wealth focus on a much smaller scale. In fact, an average person can achieve all my pillars while still having a full-time job.
Yes, my goal is to have the average person dabble in each of the four pillars while working full-time. Most people can retire from the workforce in 10-15 years after beginning the process if done correctly.
Why do I focus on full-time employees? Most people, including myself, are risk-averse. We have no intention of becoming a huge YouTuber, investing in start-ups, buying 100s of properties, or starting a massive business.
However, by taking small steps in each category, we can become wealthy beyond our dreams. Once we get our foot in the door, we can learn the ropes. Each strategy has multiple paths to wealth, so we must find what best suits our lifestyle.
Retirement Planning for the Average Person 1 + 2
Do you think one person can have all four pillars under their belt? It’s possible because I am doing them all right now. Let’s quickly explore each pillar and then put it all together.
Content Creator. In today’s world, content is king. However, it’s not the mega-corporations winning; it’s the average person. Every person should be creating some sort of content.
I break content creation into six categories; however, there are probably more. Here are my six ways to earn royalties: music, photography, art & design, video, audio & speech, and writing.
Investing. Investing is vital to keep our money growing. “The Millionaire Fastlane” describes our investment portfolios as a “Money System.”
Orange You Glad You Have Passive Income?
The idea is to earn money by working a job, creating content, investing in real estate, and building a business, thus feeding our money system. Our money system will allow us to retire and remove any unwanted stressors.
We can retire with a business, real estate, and content channel, but we won’t need to if we have a large enough money system.
I have three methods to build a money system: index fund, dividend growth, and income investing. I use all three for various reasons.
Real Estate Tycoon. We all need real estate to help beat inflation. In inflationary periods, hard assets such as real estate are great at hedging our portfolios.
Why You Should Learn Creativity & Design
Most people will only own their primary residence. Some will obtain a second home or rental property. Most of us have no intention of owning an apartment building, multi-family housing, or commercial real estate.
However, there are many different ways to earn money from real estate, such as note-investing, renting rooms, and renting storage space.
Our goal should be to leverage small ideas to make rental income. The series “Real Estate is a Mindset” (Beginner, Intermediate, Advanced) will give us a basic understanding of simple real estate techniques. Remember, the key here is to get comfortable and think long-term.
Entrepreneur. Never has there been a better time to start a business—especially from home. With the metaverse coming online shortly, home-based businesses are all the rage.
Living Overseas Passively on Retirement Income
The main takeaway is that we don’t need to start an enormous business. Remember, we can keep our day jobs. Thus, even earning $1,000/mo from our company can give us a massive boost to our savings rate.
I wrote an entire series on home-based businesses, divided into four categories: outside, online, content, and consulting.
Putting it all together. By looking at each of these pillars, you can find different ways to expose yourself to each. I’ll provide a few examples below, starting with myself.
- Josh’s Example
- Creator: Writing eBooks, YouTube
- Investor: Index, DGI, Income
- Tycoon: Two rental properties, renting two rooms
- Entrepreneur: Blogging, Google ads, affiliate marketing
Let’s look at someone who is going a completely different route.
- Brad’s Example
- Creator: Creating NFTs
- Investor: Index funds, Roth IRA
- Tycoon: house hacking a fix & flip
- Entrepreneur: small micro-brewery, angel investing
We are all different. As you can see, your CITE portfolio can run the gambit. There are many ways to set yourself up in each; it’s hard even to write them all down.
That’s why I write about passive income every day. I have just scratched the surface of what the world holds for those seeking to exploit it.
Passive Income in DeFi 104: Yield Farming
Remember, combining ideas will produce more significant cash flow and synergies. For example, I write books but include affiliate links in them. This allows me to sell my book but potentially profit when others purchase other books on Amazon through my links.
Brad could create content about running his micro-brewery, and he could host in-person classes on how to brew his beer at home. He can sell brewing kits and recipes and record his lessons to convert them into Youtube videos and webinars.
We can accelerate our wealth creation by exploiting synergies and multiple revenue streams. We then transfer this wealth into our money system, which keeps our money growing.
The book “How to Make a Living with Your Writing” opened my eyes to creating multiple income streams from a single starting point.
Create a Never-Ending Stream of Content 2
Conclusion. Inflation will make us uncomfortable. We can embrace this discomfort and move in a new direction. Once we feel comfortable in these new places, we gain traction in the new world.
I felt uncomfortable writing, releasing books, and starting a Facebook group. However, now I wake up with an amazing purpose and strategy. I am glad I put myself out there.
Inflation can also make us uncomfortable because we are scared of change. This fear will stay with us our entire lives as our savings whittle down to nothing.
Worse is that we can’t help our children in the world. Since we have never learned how to navigate the different pillars of wealth (Creator, Investor, Tycoon, Entrepreneur), how can we help our children?
Don’t let limiting beliefs prevent your greatest triumphs from taking place. Don’t let the fear of inflation lie to you; you are in control of your destiny; make it count.
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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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