Don’t Be ALICE: Asset Limited, Income Constrained, But Employed

We need jobs for one reason: to buy assets. Somewhere along the way, we started using jobs to pay bills. That’s how we got on the never-ending hamster wheel.

They have a new term for this phenomenon—the working class. This means you will always work, grind, and still barely survive. 

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I’m no longer part of the working class; I’m out. I learned how to purchase assets that do the work for me. I didn’t want to spend my life as an ALICE: Asset Limited, Income Constrained, But Employed.

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Getting off the hamster wheel. I spent 24 years on the hamster wheel, climbing the corporate ladder and making some good money. However, that wasn’t what set me free.

Twenty years into my career in the military, I realized I was struggling. I couldn’t take my family of four to Applebee’s or Ruby Tuesdays once a month without using a credit card.

I needed my paycheck to arrive, but I had to pay down debt and taxes before I got my cut. The harder I worked, the more it seemed I struggled.

But then I read “Rich Dad, Poor Dad” by Robert Kiyosaki, and it all made sense. I read this book in 2019, and it forever changed my life.

I started using my primary residence as an asset by renting rooms. We used this income to pay down our $77,000 debt by 2021. Now, we have a sizable financial surplus and no credit cards in sight.

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How did I work for 20 years and not understand how finances work? How did my parents never learn to free themselves from the grinder?

To be ALICE. They want you to be ALICE. Another term for ALICE is poor. When broke people stop working, they generate no income.

When middle-class people lose their jobs, they have no income coming in. They may have a 401 (k) they cannot access until they are 59 ½. So, essentially, they have nothing.

When rich people stop working, they have rental income, residual business income, dividends, and royalties flowing into their accounts.

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I retired in 2023 at age 42. A year later, here are my monthly passive income totals: military pension ($9,000), dividends ($2,000), rental income ($5,200, $1,700 profit), and book royalties ($200).

I admit that my military pension is very lovely. However, I also climbed to the top of the enlisted ranks. I didn’t self-sabotage myself while in the Marine Corps. I became a company man and played the game well.

They want you to be ALICE. The joke is on us. They (whoever they are) convinced poor people to enjoy what the middle class has.

They convinced middle-class people to want what the rich have. Instead of building assets, the poor and middle class are buying liabilities.

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How did we get to this point? Simple, they broke up families. We willingly destroyed our family structure to pursue individual excellence.

After being in the workforce for 24 years, here are the stats I made up. I say only about 10% of the population can live alone and stay ahead of inflation. In reality, my number is actually high; it is probably around 5%.

To live independently, you must be able to read, write, and understand. Then, you must invest and take risks, as that is the only way to generate a 10% return on your money.

You must avoid making the same mistake twice. You must avoid drugs, bad relationships, and illness. In a nutshell, you must be perfect (or nearly perfect). Most people cannot do it.

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ALICE versus the rich. But ALICE people had something many rich people didn’t: massive families working together. That is what made us strong.

Together, we could take on the world. A family of five had three kids who worked alongside their parents. They stayed in the same house until they could purchase another house in cash.

We would work for each other’s businesses for low labor. Capitalism is built on the back of free labor. Working together, we could leverage each other to create a family business.

However, when we break up the households, we give our cheap labor to corporations. Then, in a fantastic twist of fate, we expect corporations to care about us. Really?

To live alone and be independent, you must possess an iron-clad determination that 95% of the population doesn’t have.

LBYM: Live Below Your Means

You must climb the corporate ladder, become a savvy investor, own real estate, learn to be a landlord, and start a business. I did all of these things.

I call it the T.I.C.E.S. society: tycoon, investor, creator, entrepreneur, and scholar. Very few people can do it. However, they convinced everyone that it’s easy to become a doctor, maintain a family, and buy a home—all at once.

Changing the narrative. Luckily, we still have a path out from being ALICE. Our only option is to work together. We know the robots are coming for our low-wage jobs—those will dry up.

The only option is to move in with one another. We can work together to build our own houses, start gardens, and create local businesses from our homes.

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If you are a couple with kids, start a childcare business at home. If you have a green thumb, start a garden that produces lettuce and tomatoes for the family.

Things won’t improve until we understand they sold us a bill of goods. There is no success in independence. 

My parents pushed me out of the house at 18 and never gave me a dime. I made it in this world; however, there is a massive cost. I see the world differently than most people.

I see how challenging it all is—almost to the point that it is futile. There has never been a better time to make money in America, but the capitalists are taking your money in the form of rent and car payments.

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Conclusion. If you want different results, you must try something different. They told us to move out at 18 and rent an apartment. They said we could eventually purchase a home, start a family, and save for retirement. It was a lie.

True wealth comes from multi-generational households. As we start our own businesses and purchase real estate, we make the way more manageable for the next generation.

We can’t rely on capitalists to pass wealth down to our kids. We must learn to become not only capitalists but also family members.

New Year’s Passive Income Resolution 2023

Everyone has a talent and can contribute to the family. However, when we push all of our young into the lion’s den, they lose themselves. They become lions or prey for the lions.

I’m keeping my family tight. I own four homes and will ensure my kids get the best head start possible. They will work hard to uphold the family name; however, I don’t need them to work as hard as my wife and I did. It nearly destroyed us.

Let’s stop the madness by using our greatest asset—each other. The capitalists want us divided so we can pay them rent. Let’s do better. Good Luck!

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