How much money do you have to spend for Christmas this year? I pray that you do not have to use credit cards to purchase gifts—like many Americans.
Instead, I hope you have as much money to spend as you desire. It may sound outrageous or impossible, but you can achieve this financial feat by believing in passive income.
This December, I gave each of my nieces and nephews $100 for Christmas. I used the cash flow I received from my roommate to make the donations. The key word here is cash flow.
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What is cash flow? Cash flow is like the force in Star Wars; it surrounds and envelopes us. However, many people do not know how to channel the cash flow around them. Let’s change this.
To generate cash flow, you must first understand the creation of money. Money is simply an exchange of value. Those that create value earn money. Let’s look at some scenarios on how people add value for others.
- You join your job and add value to your company.
- You create a suitable living space for your roommate.
- You create a good living space in your rental property.
- You invest in companies on the stock market that add value.
- You create content that people find valuable.
- You sell a product or service that adds value.
If you learn the origins of money, you’ll be able to create cash flow from thin air. This is where most people go wrong.
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They believe that money originates through a job. When they start working, they think the company should automatically value them. This “money first, value second” mentality stunts many people’s growth.
Instead, money is a byproduct of creating value. If you create enough value, the money will flow in. Ask yourself what value you can add to others.
Creating cash flow? My wife is an immaculately organized person. We both come from humble beginnings. We use our lower-middle-class backgrounds to keep us grounded in reality.
In 2012, the Marine Corps stationed me in South Carolina. Our house in Arizona was underwater financially, so I had to go to South Carolina without my family. I rented a room there.
I learned then that my wife and I could provide a much better service for people looking to rent a room. We have had a roommate for most of the last five years.
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I bring this up because having a roommate has been a powerful wealth generator for us—far surpassing the stock market.
We live in a 2,500-square-foot house with five bedrooms. My wife and I have a master bedroom, each of our kids has a room, and I have an office. This leaves the second master bedroom, which we rent.
Because we are so clean and humble, we can easily continue to earn cash flow from renting this room. Our mortgage is $1,700, and our roommate pays us $1,000, which is extraordinary.
You must find your niche. For most people, it is NOT renting rooms. However, what else can you do to generate a clean $1,000 per month?
Instead of looking to create $1,000, start with $100. Even generating $100 in cash flow is tough because it’ll take a different mindset.
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So, let’s step back and look at what you want for next Christmas. More specifically, what do you want to give to others for next Christmas?
Let’s say you want to purchase $2,000 in gifts for next Christmas; this is a good starting point. That means you must save $166/month throughout the year.
We now have the basis of our quest for Christmas cash flow. Remember, we must add value to create this type of money.
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Building our passive income portfolio. What wealth generators do we have? Options trading, dividend investing, content creation, business ownership, cryptocurrency investing, room rentals, and real estate owning.
Options trading- If you have $7,000, you can earn $166 per month by selling covered calls and cash-secured puts. If you have the stomach for trading, you can quickly make your quota.
Dividend investing- If you become an income investor, you need $20,000 invested at 10% to receive $2,000 in annual dividends.
Content creation- It would be tough to earn $166 per month in year one of creating content such as books, podcasts, and videos. But, this should be more than possible by year two.
Business ownership- Think of a small business like owning an ATM or coin machine. You can earn $2,000 if you have enough start-up cash to make a move.
Cryptocurrency investing- Crypto can double your money in one year; however, it can also cut your cash in half. You never know what you’ll get, so I would avoid crypto investing for this project.
Room rentals- Renting rooms is by far the best way to earn cash flow, seed money, and investment income. It requires no start-up fees and is instant cash flow. This is always my number one choice for those who seek cash flow.
Real estate investing- If you are trying to turn a profit in a year, real estate is not necessarily your best bet. This is not a short-term money-making solution unless you can get a family property for free or cheap.
Making money before next Christmas. So what do I recommend to make your Christmas goals come true? Well, a little of everything.
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The best path is to get a roommate first. You can save $2,000 in 2-4 months. Then, you can use the remainder of the paychecks to invest in dividends, save for a business, create an options trading account, or invest in content creation tools.
You also want to create content by writing books, recording videos, or taping podcasts. Content creation is important to your long-term goals and plans.
Notice that I never mentioned getting a second job or working overtime? That’s because those things do not produce assets.
An asset is something that generates money that you can also pass down to family members. Therefore, your goal is to create an income-generating asset beyond your job. Your job is a means to an end, nothing more, nothing less.
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Let’s focus on the origin of money by proving value. By forming wonderful ways to create cash flow, we can pass along the greatest income-generating asset of all time—information.
Conclusion. What do you want to give for Christmas next year? This year, I was blessed enough to give my family some cash, while also paying for my parents to fly to Florida.
I had the money for these things because of cash flow. I am adding value on multiple fronts to ensure my pockets stay lined with income.
I have money coming in from all angles. However, I track every penny and ensure I keep investing in more assets to generate more money.
Your cash flow should increase every year, and it will as long as you keep striving toward new goals and dreams.
I want to take my parents to a fancy dinner when they arrive. I have the dividends, rents, and royalties to do it. Life is good!
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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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