“Find joy in everything you choose to do. Every job, relationship, home…it’s your responsibility to love it, or change it.” — Chuck Palahniuk
Are you looking to quit your job with passive income?
I’m here to tell you it’s absolutely possible.
I was able to quit my job with passive income and increased my net worth 20x to over seven figures.
I did it through educating myself.
I learned about passive investing, syndication, leveraging my time for money, and scaling up in a way I didn’t think was possible.
It all starts with learning.
Learning will get you to where you want to go.
All income is not created equal, especially active versus passive.
If given the choice between the two, I’d rather have less income but have it be a passive investment.
This is my preference for a number of reasons, some of which we’ll go over today!
You could potentially leave your job in three years, even if you have no experience.
Let’s get into it!
1. Passive Investing
How does passive investing actually work?
A lot of people think passive investing involves things like single family rentals.
That’s just not true!
With single family, you end up with another job.
If you can’t 10x your current strategy, meaning you go from three rental houses to 30, then it’s not scalable.
It’s not really passive.
Even if you have a property manager, the investment will become another full-time job for you.
Scalable, passive income is what we really want.
It’s not simply having more stuff or having more deals.
The more passive we are, the more we’re able to grow our wealth without taking up more time.
Something like stocks takes up a lot of time.
I once lost $70,000 in a very short period of time actively investing in options trading.
Actively managing a stock portfolio, even if you’re good at it, is not a passive approach.
Some people who do this tell you about their great record, but they forget to count all of their losses.
A lot of people have wins and losses.
There are very few people like Warren Buffett who are really good at investing over long periods of time.
An asset is something that puts money in your pocket every month.
It’s mailbox money.
It’s cash flow.
That’s what you need to look for if you want to scale your wealth and leave your job.
My single family portfolio used to be a ton of work.
After a while, I realized it became another job.
Passive investing allowed me to grow.
The first step to get there is starting.
Analyze two to five deals.
Find one to invest in and actually invest.
When you invest with a group, you get valuable experience.
It’s like a muscle you didn’t know you had.
After a while, when you start to flex, you realize you actually got pretty strong.
Until you actually invest, you’re not paying attention.
You won’t continue to follow those investments.
But if you’re invested, you’ll pay attention.
You’ll ask all the questions that you need to ask.
You’ll be much more engaged in the passive investing game.
That’s a huge step!
2. Scaling Up
The second step is scaling up.
It’s one thing to invest and make a little bit of money, but if you can 10x or 100x the money, you can do way more.
That’s how you grow your wealth.
You can do it by actively raising money from other people or finding deals.
Or, if you have money, you can just invest it.
I think that’s much easier because you don’t have to work to find and operate those deals.
That’s what passive income is all about!
It’s about scaling.
It’s about growing wealth without taking up more time.
I have some investors who are in 70 to 80 deals.
That’s way too many!
I think you’re in good shape if you have five or ten deals.
The work is on the front end.
Don’t mistake this for not having any work when you’re passively investing.
When you’re passively investing, the work is doing the diligence and making sure you understand the investment.
The next question you’re probably asking is:
How do you find out about great passive investing deals?
I talk a lot about deal flow.
You can go to meetups and conferences.
One of the best ways to find deals is by talking to other investors.
We’re actually considering starting a deal flow mastermind group for high-net-worth investors.
The goal would be for them to learn about awesome deals coming up.
Stay tuned for more news on that, or get in touch if you’re interested!
3. Your Number
The third and final step in starting your passive investing journey is figuring out your number.
How much do you need to comfortably live?
For me, I realized I only need $6,000 per month to cover my living expenses.
Eventually, that number went up to $10,000 a month.
It’s not hard to figure out this number.
You could be three years away or less from leaving your job!
Let’s say you make $200,000 a year.
Invest $100,000 right away.
Then, continue investing that amount per year for the next three years.
At the end of three years, you’ve invested $100,000, plus the upfront money and 15% per year average returns.
This would give you a total of around $511,000.
That would round out to $82,650 a year.
If your number was $6,000 or $7,000, you could live off of that!
You could literally retire because you’re getting that type of return.
Let’s look at this another way.
If you’re able to double the amount of money invested per year to $200,000, after three years, you’d have a total of just over $1.1 million.
That’s over $165,000k per year!
Broken down, that would be somewhere around $12,000 to $15,000 per month.
That’s financial freedom.
That’s what I want for you, friend!
I want you to experience financial freedom through passive investing.
It doesn’t take that much money.
All you need to do is get started, learn, and grow.
Now I want to hear from you!
What is going to be your first step to passive investing?
Let us know in the comments.
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.
Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.