I always write about using dividends (and passive income) to beat inflation and live your best life. By making more money passively, you’ll be able to become your best self, and your relationships will begin to prosper.
But many people get the purpose of stock market investing wrong. They look to the stock market as a wealth generator—somewhere they can become rich.
The stock market is not a wealth generator; it is a wealth multiplier. You need to build a significant income stream outside the stock market and THEN invest it.
Living Overseas Passively on Dividend Income
Focus on your inputs. The key to becoming wealthy is focusing on your inputs. You need to create multiple sources of “free money.” In other words, you need to print your own money and create an infinite return.
Once you create an infinite return outside of the stock market, you take that “infinite money” and create “infinite dividends.” You print your own money and then invest it to get a high yield return.
Casino example. I want to dig into the power of infinite money. Let’s say you enter a casino with $10,000 cash. You bet it all on black and double your money to $20,000.
Most people would say I earned a 200% return on my investment. However, you’ll need to change your mindset to infinite logic.
Passive Income from DeFi 104: Yield Farming
The idea is to take your initial $10,000 back and hold it—let’s call this your seed money. Hold on to your seed money until the next investment arises. Take your $10,000 of infinite money and invest it into a high-yield income portfolio that earns 9%.
That $10,000 of infinity money returns $900/year or $75/month of infinite money. Thus, you receive endless money from a one-time investment every month, plus you still have your seed money.
Every investment you make in life should involve an attempt to create an infinite return. Most situations will take more time than a casino trip, but you get the idea.
Should You Manage Your Own Rental Properties?
Where investors get it wrong. Investors get it wrong by taking earned income from their job and trying to convert it into infinite money through the stock market. This is why FOMO in the crypto universe is so rampant.
People go to work, save $10,000, and input it into crypto to try to get a 4X-10X return in a matter of months or even weeks. You may get it to work once or twice, but can you get it to work for 30-40 years?
As investors, our job is to mitigate capital loss at all times. Sure, we need to take some controlled risk, but aiming to double or triple your money in the stock market is risky. It’s better to create multiple infinite returns outside of the stock market (no casino required).
A quick background of infinite returns. The best place to read about creating infinite returns is “Rich Dad’s Guide to Investing.” This is the first time I heard about it, and it has since changed my life.
Retirement Planning for the Average Person 1+2
Once you create an infinite return and have all your seed money back, you can reinvest the seed money to create another infinite income stream. This phenomenon is called the velocity of money. The book “Infinity Investing” also covers infinite money.
Let’s do a quick review of ways to earn infinite money. I want to keep this short because this is an article about inflation. However, I may need to do a series on Infinite Dividends in the future.
- Renting Rooms. The number one way to create an infinite return is to rent rooms because it costs almost nothing to start. You’ll make infinite money in your first month of renting rooms. Every month after that is just icing on the cake. My wife and I print $1,900/month in infinite money by renting rooms.
- Content Creation. Becoming a small content creator costs little money. You can produce art, take pictures, write blogs or books, or create a YouTube channel. You’ll only need to invest money once you make money. You are printing money from your creativity.
- Renting cars. You can take a loan for a car, rent it on Turo, and build an infinite return. Yes, it takes hard work to clean and deliver your vehicle to customers, but you can use sweat equity (hard work) to create infinite money.
- Rent a storage shed. You can buy a storage shed and rent it to others. You can probably make your seed money back in a year; then, your shed is in an infinite return.
- Create a dog park. If you have the space, you can host other dogs on your land. It’s a great way to leverage the space you already pay for in your mortgage.
- Homesteading. You can create a lot of infinite money from your land. In fact, I dedicated an entire series to going From Dirt to Dividends (101, 102, 103, 104).
Back to inflation. I know I took the long way around the block, but this is a significant mindset shift. To beat inflation and thrive, you’ll need to create infinite returns and infinite dividends.
You can try to work more hours or get a second job to beat inflation, but there is a limit to your input. “Time” is your limit because there are only so many hours in the day.
Selling Covered Calls for Passive Income
You can keep reusing your seed money with an infinite return to build more infinite money. I could start by growing a garden and investing my cash. Once I have enough infinite cash, I can buy a shed.
The shed is already in an infinite loop because it came from infinite money. The cycle continues. I can keep growing more infinite assets until I happily beat inflation with massive dividends.
Start small. The most important idea I want to convey is to start small. A small infinite return is much better than attempting to get rich on the stock market. You have no control over the outcome of the stock market.
If you can create a painting for $20 and sell it for $60, you can print $40. Most people spend that $40, and your infinite money goes away. However, if you invest that $40 into two preferred shares, that money returns with each dividend.
Orange You Glad You Have Passive Income?
Eventually, you can develop a way to monetize your painting skills further. Before selling your art, maybe take a picture and post it on a Facebook group. You can also video yourself painting your picture and post it on YouTube.
How about creating a small neighborhood course where you charge people to paint with you? You can still charge someone $60 for the painting at the end of the class, but you may have made another $100 for hosting the course.
Why You Should Learn Creativity & Design
If you want to beat inflation with infinite dividends, this is the profound mindset shift you will have to undergo. You always have to have a money mindset and add value to someone else’s life. That is the authentic way to successful investing.
Conclusion. I wanted to get this article out while inflation is peaking and a recession is looming. This is the perfect time to create infinite money. I don’t worry about inflation because I am printing over $2,000 in infinite cash. This amount doesn’t even include my $1,000 dividends.
Don’t get caught up in the FOMO of crappy crypto coins and meme stocks. Those aren’t the actual paths to wealth. The true way is to build something, get your seed money back, and create something else. It will work until infinity!
- PDF of the Month: 505 Takeaways from 101 Books (pdf)
- Free PDF Downloads: Download FREE PDF books here
- Financial Mindset: Become CEO of Yourself 2 (Free 196-Page PDF)
- Retirement Planning: Your Retirement Planning Guide 2 (Free 255-Page PDF)
- Investing: How We Plan to Retire on Dividends 2 (165-Page Free PDF)
- Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)
- Real Estate: Financial Independence through Real Estate 2 (Free 123-Page PDF)
- Business: Retire Rich, Retire Comfortable with a Business 2 (Free 185-Page PDF)
- Latest DGWR: Don’t Gamble with Retirement 6 (Free 409-Page PDF)
- Everything!: The Biggest Book on Passive Income Ever 2! (book)(Web Edition)(Art Edition)
- I bought a Kindle Oasis: Check it out on Amazon
- Read My Books for Free: Free Kindle Books Schedule
- Crypto Exchange: My Favorite Crypto Exchange VOYAGER (Join Voyager)
- Kindle Unlimited: Why I Finally Subscribed Kindle Unlimited (learn more)
- Book Reviews: 505 Takeaways from 101 Books (pdf)
- Writing: Can Grammarly Make You a Better Writer?
- Best REIT- Fundrise: REITs vs. Homeownership (Join Fundrise)
- Follow us: On our Facebook Page and Join our Facebook Group
- Monthly Dividend Tracker (XLSX): Check it out on Etsy
- For more detailed analysis, join my Youtube: MFI YouTube Channel
Monthly Dividend Tracker Template: Buy on Etsy
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
Leave a Reply