The Stock Market is Not a Wealth Generator

I hope this article finds you in a timely manner. The stock market is in the middle of crashing and may have another leg down or two. Many people are freaking out, and panic may ensue.

Me, I am maxing and relaxing. I am adding more to my positions while storing cash because there are still many unknowns in the economy.

Will the Federal Reserve keep raising interest rates? Will corporate earnings cause a recession because of layoffs? We will have to wait and see and, more importantly, prepare for the worst. 

3 Steps to Live Entirely on Passive Income

What is a wealth generator? Now is a vital time to understand the meaning of the term “wealth generator.” A wealth generator is an investment venture where you control the outcome—you are an insider.

For this reason, your 9-5 job is not a wealth generator. I used the military as my wealth generator, but not because of the 23 years of work. The lifelong pension I will receive will support my wife and me until the end.

I can parlay my military pension at age 48 (currently, I’m 41) to create significant wealth while I receive my monthly allowance. My medical benefits, education for kids, and VA Loan are also wins.

4 Years of College vs. 4 Years of Content Creation

Give me an example of a wealth generator. Okay, let’s start with a small business. Say I create a garden business during my free time from work. 

My revenue stream from selling fruits, veggies, and herbs may give me $200/month. However, as inflation rises, I can increase my prices to make $400/month.

I decided to add a U-Pick-It Blueberry farm to my garden, which allows me to add another $200/month in revenue. I can then focus on vermiculture (worm farming) and creating compost for neighbors—adding another $300/month.

My wealth generator generates $900/month. I can add blogs, YouTube channels, and podcasts to increase profits. Or create an online or in-person resident course to generate more cash flow. 

Employment in the Metaverse

Maximize your wealth generator. Now that I have created a wealth generator, do I just live off the income it makes? No, I THEN use the revenue to invest in the stock market—I call this my money system.

I first read about wealth generators and money systems in “The Millionaire Fastlane.” DJ DeMarco explains that specific wealth generators can grow at exponential speeds.

For example, software, content creation, and online businesses will grow faster than my garden business. You can reach more people worldwide at all hours of the day. This is why I began writing books and blogging. 

Funding your money system. As my garden grows, I will invest in the stock market. I primarily invest for income, or income investing. I can also purchase index funds and dividend growth stocks. 

Create Content Daily

The purpose of the stock market (or money system) is to keep your money growing slowly and safely. You can aim for a 3-5% safe return on DGI stocks and Treasuries. I seek a higher yield because I already have a military pension for my main retirement plan. 

I can keep growing my garden business while investing in my money system. This gives me TWO income streams. I may retire and sell my gardening business, but I will still have my money system for retirement. 

Create multiple wealth generators. You can create numerous wealth generators and use them all to fund your money system. The more you make, the faster your money system will grow.

The In-Debt-ured Servant

I have three wealth generators currently outside of my job. 

1. Real Estate properties. My two rental homes don’t make me much now, but eventually, I could retire on their income alone. 
2. Renting Rooms. House hacking is the best wealth generator out there. I am literally printing $1,700/month in passive income. This money goes directly into my money system. 
3. Blogging/Books. This income stream is relatively new, generating roughly $100/month. However, it will grow exponentially. I will generate $1,000/month of passive income within two years.

All of these income streams feed into my money system, as well as residual cash flow from my job. My money system generates $1,000/month in dividends currently. 

Don’t freak out. I don’t have to freak out over the stock market dropping because I have cash flow from other places. The stock market doesn’t affect the rooms I rent, which is my main wealth generator.

My books and blog are doing better than ever during the market crash. It turns out people are starting to take their finances seriously because there is less money to go around. 

Living Overseas Passively 109: Cash & Emergency Funds

I have diversified my passive income away from the stock market. Don’t get me wrong; I love investing in the stock market. It truly makes my day to receive dividends. 

But, it also makes me happy to receive rent from my roommates and sell a few paperbacks. I’m using all these income streams to build a life of abundance. 

Create a wealth generator today. First, I recommend reading “The Millionaire Fastlane” to get a deep understanding of wealth creation. 

Living Overseas on Passive Income

Next, determine what direction you want to go to travel for your first wealth generator. You have automated businesses like renting cars and operating vending machines. 

You can house hack with roommates, tiny homes, or storage sheds. How about a rental property or multi-family residence?

You can aim for royalties from content creation in these six categories: music, photography, art & design, video, audio & speech, and writing. 

The key to creating a successful wealth generator is starting small. Get a grasp on how YOUR INCOME STREAM will differ from everyone else’s. Start with a blueprint, and then make it your own.

Conclusion. If you earn a paycheck and put your money directly into the stock market, you are at risk of failure.

My 4 Favorite Index Funds

Nobody likes to see their hard-earned cash evaporate in the stock market, which leads people to make emotional decisions and withdraw when the market is down. 

Create a wealth generator on the side. Earn an extra $1,000/month from a small business, then invest that cash into the stock market. This gives you two income streams to protect your financial stability.

If things get nasty on the stock market, leave your money there. You can use your wealth generator to invest in another income stream like an ATM, rental car, or worming business.

Do not turn to the stock market to make money. Invest in the markets to keep your money growing slowly. The real magic happens outside of the stock market. 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. All Right Reserved Military Family Investing