Freedom Fast Lane is all about achieving real wealth so you can live the life you want. Wealth really comes down to three categories. 1. Make the money 2. Invest the money for passive cash flow so we have dependable consistent cash flow 3. Protect the money so it doesn’t go away and that people can’t take it from you (including the government.)
Step 1. Make the money
Millionaires are made faster as a result of starting a business because it only takes one idea to make it. The beauty of business is that it doesn’t care how many failures you’ve had or what has personally happened to you, it just cares if you have the next ‘one’ right. It only takes ‘one’ to be massively successful.
They key is to start a business that serves a particular target market and marry it to a channel where buyers or leads already hang out. The ‘selling them more stuff’ part of the process is where the real magic happens.
If you already have a business then identify the highest paying customers, go after them and provide them different solutions that you give to everyone else. Are there people in that audience who are willing to pay more for similar services or dive deeper into the products or services you provide? Can you then cut out the front end in the first place and not have the low-end customers and just serve the high-end customers? Essentially the question is “Is there a way to extract large amounts of money from small lists?” the answer is yes as long as the value is there.
The way to have a million dollars is by having a project or service with a defined market and going to where they already hang out. This is true for physical products, coaching, and information products. Making money is business is phase one to true wealth.
Step 2. Invest the money for long-term wealth and cash flow
You need to have passive cash flow and wealth. The only reason to invest is for cash flow. Take your cash and have it produce more cash. As a result of getting cash flow you may also get wealth appreciation and tax benefits.
When we invest the cash flow the two sources every entrepreneur should consider are cash flowing real estate and dividend paying stock. Baked in to these two models are passive cash flow and appreciation. Even though we aren’t relying on the appreciation it often happens as a result of cash flow.
Other places you can put cash for strong benefits including funding deals, buying businesses, investing in cash flowing websites, and fixed percentage paying funds.
Companies such as Coca Cola, Target, Chevron and Verizon that for at least ten years have increased the dividend they pay to their investors. If you get cash flow today it will increase year upon year.
In real estate the goal is to get 1% of cash flow per month. If we are investing $100K then we want to get $1K per month. When breaking down the benefits of real estate the returns are many times what it appears on the surface. We get the cash flow from the property being rented, the cash flow from the rental income, mortgage write off, depreciation write off and inflation write off.
3. Preventing the wealth from going away
There are three ways to accomplish this goal. The first is to own a business. When you own a business you can directly influence your income. Profits are better than wages as you can control profits but you can’t control wages. You get more tax breaks and benefits inside a business than anyone else because of what you can write off.
Secondly, strategically invest into areas that are made to be protections so that their cash flow and returns aren’t that exciting but they protect your wealth and grow tax-free.
Thirdly, there are certain types of companies that you can form in which the income you take in does not get taxed to invest back into your business that also grows tax-free.
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Links to Resources Mentioned
Perfectly Passive Income