The American Dream is Passive Income

Can you begin life in the poor or working class and finish in the wealthy elite? You absolutely can achieve incredible wealth in one lifetime in America.

Are you going to get there working hard at a job? Will you get there by directing your blood, sweat, and tears toward someone else’s ventures? The answer is a resounding NO.

The American dream is alive and well and doing better than ever. Conversely, more people are disillusioned about how to achieve the American dream (which costs over $5 million).

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The Great Misconception. The world never intended for us to get wealthy working for someone else. To become wealthy, especially in one lifetime, you will need to exercise significant leverage.

Two good books concerning leverage are “Rich Dad’s Guide to Investing” and “The Millionaire Fastlane.

When you work for someone else, you are using no leverage. On top of that, you are paying 40-60 percent of your wages towards taxes.

If you do not go to work, you don’t earn money. You earn no money when you get off work, hang out with family and friends, and go to bed at night.

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Furthermore, you are stuck in traffic, wasting time in meetings, and becoming too tired to focus on your endeavors. We call this cycle of pain the Rat Race.

What is the American Dream? I used to believe the American dream involved having great wealth, but that is all an illusion.

The true American dream is having unlimited time and options. The interesting twist is that you need great wealth to buy time and give you options. 

Essentially, you want the time, resources, and abilities to do whatever you want. If you want to spend six months in the Philippines, you can do it. 

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Do you want to travel the United States in an RV and visit all the National Parks over two years? Why not?

Do you want to move to another city near your kids and grandkids? Of course. How about giving a down payment for your kids’ home?

The working class is SOL? The working class is Crap Out of Lick (SOL) because they lack the financial education to achieve great wealth.

You can become wealthy from the working or middle class, but you need to exercise leverage outside your job. That’s the goal of passive income.

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Yes, working for pennies for eight hours a day will severely hamper your ability to get rich. This is purely from a physical perspective, as work will drain you mentally and physically.

But if you plan accordingly, you can power through 5-10 years of work, invest in passive income streams, and free yourself. Once you retire, you can focus on becoming rich (a notable saying from “Retire Young, Retire Rich”).

Using Dividends as Leverage. The most straightforward way to free yourself while working is by investing in dividends.

No, your 401K will not free you. The 401K keeps you working until age 65 and prevents you from learning how to invest truly. It’s a big savings account that is too dependent on the stock market for gains. 

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A prudent saver can amass a sizeable monthly dividend income. My wife and I accumulated $1,100/month in dividends in a little over three years. When I retire from the military (in seven years), I should have close to $5,000/month in dividends.

Using Royalties as Leverage. Royalties are payments you receive when people consume your creative works. They are a great way to start your passive income journey because they don’t take much money, just time.

If you are willing to work hard during the magic hours (middle of the night) and on weekends, you can successfully create a nice income stream from royalties. 

Using Real Estate as Leverage. Most people worry about becoming landlords. They fear a tenant not paying rent or getting phone calls in the middle of the night. 

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This fear of real estate investing prevents the average American from becoming wealthy. Yes, being a landlord has its annoying moments, but getting paid while someone else is paying your mortgage is second to none in extraordinary moments. 

The best way for the average person to become wealthy from real estate is by renting rooms, a parking space, or an accessory dwelling unit. If you can invest your rental income directly into high-yield stocks, you’ll quickly become rich (five to seven years).

Using Automated Business as Leverage. Do you dream of opening a business? Most people don’t dream of starting a business but actually creating a job for themselves. 

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If you open a candle store and work as the manager and cashier, you just created yourself a job. Let’s say you make $75,000/year running your business like this.

However, if you open a candle store and install a manager and employee, you start an automated business. Let’s say you make $12,000/year running your shop like this.

The great part of automating your business is that you now have a $1,000/month passive income and can continue building more income streams. You have the time to keep building or buying businesses.

You can open more candle shops, create content that produces royalties and drive traffic to your shops, or franchise your candle shops for passive income from intellectual property. 

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Only open a business once you have an exit strategy. This can mean selling it, but it’s better to understand how to remove yourself from the company while still extracting income.

Leverage to the max. The American Dream is alive and kicking and builds from passive income. There is nothing passive about creating passive income.

It takes a great deal of reading, understanding, and performing to create even a small amount of passive income.

However, passive income creates leverage many times more powerful than working alone. Let’s take a website as an example.

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It may take me five years to build a website with decent traffic and ad venue. However, once I make it, I can leverage it extensively.

I can build my next project or business on the back of my website. Now I have a launch point for any endeavor I choose.

Conclusion. Look at the main Amazon page. Amazon spent years building itself into the number one online retailer. 

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Now, most people log on to the main Amazon page once a day. When they have a new project, say “Lord of the Rings: The Rings of Power” or “Thursday Night Football,” they can leverage the traffic to their main page to drive engagement to their video content. 

Passive income is leverage. Once you have a massive amount of dividend income, you can use it to fund a business. Once you have a physical retail store, you can set up an ATM or vending machine to add additional revenue.

You can become wealthy while adding value to the world. You will have to go against your employee programming to make a difference, but you can achieve the American Dream of time and options. 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


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