Did you grow up in a family or a community where money was perceived negatively? No wonder that 94% of our population has huge challenges with creating wealth. Today, we are explaining why it is so and giving you the ideas of how to turn your life around and join the remaining 6%. Learn why people remain poor, why money is important, and how rich and poor differ in the way they think and behave with it.
What You Will Learn About Creating Wealth, the Easier, Faster and Smarter Way!:
- The root of people’s inability to create wealth
- Why Matt use to think that money is bad, what changed his mind, and how that affected his life
- What American system teaches you about money and why it is wrong
- Why money is important and what The Bible has to say on this topic
- What Matt learned during his research on wealth creation
- What business ownership and real estate investing have in common
- The difference between rich and poor people’s mindset
- The example of how they would spend $30,000
- What assets and liabilities are
- The power of leveraging
- How to make your money work for you before actually having a lot of it
- The value of $200 in passive income and the impact it has on creating wealth
- The books you should read
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Matt Theriault: Hey, thanks for listening. I know you’re really gonna enjoy today’s episode as we reach back into the archives for another great episode of the Do-Over Show on Way Back Wednesday, and if you want to do deals, if you want to make some money in real estate, just keep listening to the show, subscribe so you never miss an episode, but if you want to go fast, go to REIAce.com. Alrighty, enjoy the show.
Speaker 1: This is Theriault Media. During an era where countless people, businesses, and organizations are feeling the pinch, running out of time, running out of money, losing confidence, feeling as if life is unfair, praying for another chance, and unless something is done, life is going to pass them by. Fortunately, in the nick of time, there is now a place where the ignored, underestimated, and unknown steps to producing results and making life work are revealed. Save your career. Save your business. Save your health. Save your relationships. Save your life. Get from where you are to where you want to be faster and with greater ease than you ever thought possible. Say hello to your Do Over.
Matt: Welcome to your Do Over, the place where once a week, you will hear, learn, and take action on the ignored, underestimated, and unknown steps to producing results. This is the show where I, your success coach, show people unhappy with their current situation how to start over, discover a better life, and get lasting results easier, faster, smarter.
The first step in how to start over is laying a solid foundation as you begin a new life using The Three Pillars of Creating the Ultimate Do Over. They are yours for free at freedoover.com, and it’s a 55 minute MP3 audio program that I created just for you. Download it for free at freedoover.com, and live life to the fullest. Question for you. Were you raised in the same house I was? What I mean by that is I was raised in a family that frequently uttered expressions like “Money doesn’t grow on trees,” “We can’t afford that,” and “Hey, what? You think I’m made of money?”
That last one, that was my dad’s favorite. Can you relate? As I got older, it became increasingly evident that these types of references to money were not unique to my family. Most of the country grew up immersed in the same type of thinking. I mean, no wonder 94 percent of our population has such challenges with creating wealth. My first career in music, it had its roots in my teenage fascination with break dancing and hip hop music, and being a white kid growing up in the suburbs of the OC during the 80s, interaction with kids my age with similar interests was very limited.
There wasn’t a whole lot of people like me or a whole lot of kids like me around, and after taking a job at my favorite music store in the city, I finally found myself establishing relationships, making friends with other teenagers with the same affinity and love for hip hop, yet they weren’t of my middle class means, and after a while, I noticed I often felt ashamed and apologetic of my middle class upbringing. Like any normal teen, I just wanted to fit in. As if the pigment of my skin wasn’t enough to cause me to stand out, so was my ranking on the socio-economic ladder. I mean, I remember conversations with my friends trying to convince them that my family was struggling, and we were on hard times, and just like their family I mean even though we weren’t really.
I was just trying to relate and fit in, and then somewhere in my mid 20s when I started my own record label, again, I went out of my way to prove that I was struggling just to get by. In the beginning, it was a struggle, but as they say, I would put five on it. I would embellish. The struggle added, I thought, credibility to my business. As my record label’s popularity grew, I mean, I began associating with a large community of young hip hop DJs and producers and singers and rap artists, graffiti artists, and being involved in the conscious side of hip hop, which is where I was as opposed to the bling or the gangster sides, it wasn’t cool to perform your craft for money.
It was all about the art. You had to be true to the game. I mean, that was expressed daily as if making money from your art, that wasn’t being true. I never really understood that, but that was just kind of the culture. It seemed almost taboo to discuss or make money, and when my label began to generate some decent revenue, I mean, I really didn’t know what to do. It’s as if I were afraid to create wealth, and consciously, sure, I was focused on creating wealth. My subconscious however had something else to say about it. In hindsight, I absolutely sabotaged my success. I mean, I would spread the money around with reckless abandon in pursuit of the moniker, the name. I wanted to be known as the label owner who gives back. He’s the one that cares.
And I’m not saying there’s anything wrong with giving back. I’m a big proponent, but there’s a way to do it. I now know that to give back, you must get before you give. I mean, doing the opposite, it keeps everybody poor, and it keeps the giver in debt. Now, given those 30 some-odd years of negative money conditioning, it’s no wonder I found myself dead broke at 34 bagging groceries just prior to embarking on my do-over. It wasn’t until I read what in my opinion is a revolutionary book for the poor and middle class, perhaps you’ve read it, Rich Dad, Poor Dad, not until I read that did my money mindset begin to change. I mean, I believe after reading that book, it should be required reading your senior year in high school.
If that were the case in my high school, I would have never been in the situation I was in. I mean, this is when I was first introduced to the term passive income and where I gained a clear understanding of the difference between an asset and a liability, I mean, some real keys to creating wealth. More on that in a minute. I remember one day, I was on the Los Angeles freeway. I was stuck in traffic. I know, hard to believe, right? But I was stuck in traffic behind a car that had a unique bumper sticker on the back, and it read “A job is the biggest killer of financial freedom. What is yours costing you?” Boy, did that stop me in my tracks. I mean, sure, the message was in jest, or not, but it really caused me to analyze life and money.
But I think most people in America were raised to go to a good school, get good grades, graduate, and get a good job. That’s what the American system does. It teaches us that. It teaches us essentially to be employees, and if I didn’t know any better, I would almost think that the system was a conspiracy concocted by the man in order to maintain a steady production of servants. Thank God I do know better, or do I? Who knows. That seems to be a common debate these days, and that debate could probably fill up another podcast on its own, and perhaps we should do that someday, but that bumper sticker, that bumper sticker message went against everything I was ever taught and anything I ever believed, yet given my life experience up to that point, it struck me as being right on the money.
Pun intended, by the way. I mean, it literally only took me three seconds to figure it out. My friends, family, and associates were either employees or unemployed. I mean, the only rich person I had ever known, Finis Conner, maybe you’ve heard of him. If you’re a techie or a software guy, you might have heard of him. He’s co-founder of a company called Seagate Technology. He was a business owner. It took me almost 38 years of my life to have such an epiphany to really figure out money and how to create wealth, and the answer is to not be an employee. Believe that, and I wonder what all of those artists are doing today, the graffiti artists and the rap artists and the DJs and the producers, the ones who convinced me not only is money unimportant, but it’s bad.
I mean, did they figure it out, or are they walking around in the same fog that most of America is walking in? I’m gonna say something here that could be controversial, and you might have a debate for this or an argument for it, but what I’m gonna say is what I’ve come to know, and I’m not afraid to say it anymore. Money is important. We live in a society in which nothing replaces money in the way that it serves us. It puts the clothes on our backs. It puts the roofs over our heads. It puts the food in our stomachs. It pays the hospital bills, and it allows us to do all of those same things for our families and loved ones. Money is important. That epiphany, to led me to the ultimate decision to no longer participate in the notion that money is the root of all evil.
I mean, did you know that’s not even accurate? Did you know that that’s a Bible misquote? It doesn’t even read that anywhere in the Bible. I mean, it’s been so distorted in our society, and that distortion has totally warped our thinking and have us believe that money is bad. I mean, the scripture actually reads, “For the love of money is a root of all kinds of evil.” That’s first Timothy, six 10. For the love of money, not money, but the love of money is a root, not the root, it’s a root, of all kinds of evil, not all evil, just all kinds of evil. That’s a very, very different meaning. I mean, it’s completely taken out of context, and I later learned that the Bible has more scriptures supporting money in the marketplace than it does in opposition.
I mean, the Bible is replete. It’s full with very rich people, all of which were blessed by God himself, by the way. My intent is not to take you to church or convert you. Rather, it’s just to demonstrate how society will pull evidence and distort it from multiple sources, pull it out of multiple sources, take it out of context, just to support their notion that money doesn’t buy happiness, and rich people are going to hell, and only greedy people get rich, et cetera. I mean, did you know Ecclesiastes 10 19 reads, “A feast is made for laughter, and wine makes life merry, but money is the answer for everything.” That’s in the Bible. Money is the answer for everything. Now, I could easily take that out of context and go and create an entire new following around that maybe. Money is the answer for everything.
Now, my little Biblical tangent here was for the purpose of demonstrating that we’ve been misled as a society that money is evil. Did you know there are no Biblical roots in this ideology? I mean, the roots are man-made and likely made by men who don’t have any money. I mean, misery loves company. The opening chapter in a book that I read a few years ago by Wallace Wattles, The Science of Getting Rich, if you haven’t gotten it, I highly recommend it. I’ll put a link in the show notes for you, but it was written back in 1910. This is back in 1910, and it’s very much the inspiration of the movie that came out a couple years ago, The Secret, and everyone thought that was new. No, this stuff has been around for a while. In fact, so much of this stuff is in the Bible itself. It’s been around for 2000 years.
Anyway, Wallace Wattles in his opening chapter writes, “Whatever may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life unless one is rich. No man can rise to his greatest possible height in talent or soul development unless he has plenty of money for to unfold the soul and to develop talent, he must have many things to use, and he cannot have these things unless he has money to buy them with.” Even back then, there was nothing in society that replaced money in the way that it served the people. I mean, once accepting that the pursuit of money is not bad and that it’s actually necessary in order to do good in the world, I decided I would learn everything I could on how to make money, create wealth, and more importantly, how to keep it and grow it, and after exhaustive research, it was revealed to me that it’s much easier to make, keep, and grow money than I ever could’ve imagined.
I mean, it’s just most of us just weren’t taught how. The unicorn in the woods so to speak, it wasn’t a myth, nor is it illusive. You don’t have to look that hard, and once you know how to make money, it really is rather simple. Frequently as a real estate investor, people have a big interest in what I do, and they want to know how to do it themselves, and I’m asked to be followed around by people who want to witness what my typical day looks like. My response is, “You’d be very bored if you followed me around.” My ritual is very simple, and it would be boring
Thing to watch. It’s not that exciting, and it’s very unfortunate that more of the world’s people don’t recognize how simple it is to create wealth and be financially free. I was amazed at some of the statistics I uncovered during my research. Did you know that according to the US Department of Health and Human Services, 94% of today’s 65 year olds are not prepared to retire? 94%. That’s almost everybody. Virtually nobody knows how to make and keep money. Who in the world are the American people taking their financial advice from? More importantly, from whom are you taking your financial advice? What you want to do is take financial advice from someone who has the amount of money that you want. Just because a person has the title Financial Planner doesn’t mean they’re qualified to plan your finances.
Anyone can put on a suit and tie and tell people to live below their means and invest the difference. If that advice alone worked, more than 6% of our country would be prepared to retire, wouldn’t they? And my research led me to the painful realization that I had never received any financial advice in my life. With the exception of my grandparents’ sage wisdom of “put something away for a rainy day,” that was my grandma’s favorite, I was taught nothing about making money, growing money, keeping money, absolutely nothing about creating wealth. And only 1%, only 1% of our country retires with a net worth of $5 million or more. So 99% of our country aren’t taught anything about it either. We’re the richest country in the world and only 1% of our population after working for 40, 50 years can be classified as rich. Only 1% knows how to create wealth and keep it so that it lasts into their retirement.
So the question is, who makes up this 1% club? What are they doing? What is the 1% doing that the other 99% are not? And as I learned from my very first Tony Robbins program, when I think I was 18, 19 years old, I learned a very valuable lesson. And that lesson was that success leaves clues. I thought if I were to do what the 1% does, I could produce the same results and join this exclusive club. I could then share with the world how simple it actually was to accomplish and then they could do it too. That was the thought. So I proceeded to investigate the wealthy 1%, and I found of the small group that 10% were doctors and lawyers, no big surprise there. 10% were presidents and CEOs of major corporations, 5% were salespeople, and 1% made it to the 1% club. So 1% of the 1% club made it there by way of inheritance or lottery winnings.
Not necessarily to my surprise, but 74%, almost three fourths, made it to rich status by way of business ownership, just like my family friend, [Finas Conner 00:02:44], and real estate investing. Business ownership and real estate investing. So after this little study, this turned out to be a fairly easy decision of what my do-over would consist of. You see, at age 37, committing the next decade to medical school or law school, that wasn’t option for me. And pursuing an MBA with the intent of climbing the corporate ladder, that was very uninspiring. And working the 70 to 90 hours a week it would take to become a super salesperson, thought that just might kill me. And my family wasn’t rich, so inheritance was out of the question, and the thought of purchasing the winning lottery ticket, as exhilarating as it sounds, let’s just say the odds were not good enough on which to gamble my future.
Fortunately for me, the most appealing path to creating wealth was also the path where the odds of joining the wealthy 1% were the greatest. Perhaps that’s why more of the wealthy 1% chose that path. Success leaves clues. So I decided I was going to start a business and then I was going to take the profits and invest them in real estate. That was an easy decision. It was an easy decision to embark on this new path of business ownership and real estate investing. But the analytical side of me wanting to understand what it was that business ownership and real estate investing had in common in creating wealth. Why are they the most sure fire path to our nation’s wealthy 1%?
Well, I discovered two commonalities. Thoughts and leverage. The way the wealthy, the way the rich think, and the way that they use leverage. And once I discovered that, all of a sudden it was no wonder the biggest selling book on personal development is Napoleon Hill’s Think and Grow Rich. The operative word being “think.” And it’s no wonder the biggest selling audio recording in the personal development industry in the pre-infomercial era is Earl Nightingale’s The Strangest Secret. The secret being, you are what you think about. Again, the operative word being “think.” The rich definitely think differently. They know things we do not, and they think about them differently. And I’m not referring exclusively to positive thinking, either. They simply know things that everyone else does not. And if you’re not doing what they’re doing, you don’t know. A lot of these things you might have heard of. Most of you might’ve even read these two books, but to know and not do is to not know. You got that?
So even if you read the book and you’re not doing it, you might as well not have read the book at all. If you’re not doing what they’re doing, you don’t know. The rich were taught and raised differently. Rich parents teach their kids to be rich. Very simple. Poor parents teach their kids to be poor, very simple. Not intentionally, of course they don’t want their kids to be poor, and there are exceptions to the rule, but simply put, people teach what they know. They teach what they know.
Here’s an idea of how the thought process is different between the rich and the poor. Can be a very subtle difference. A poor person might say, “I can’t afford it.” While the rich person might say, “How can I afford it?” Now, it’s a subtle difference. You see, a question searches for an answer, and the brain is going to answer any question asked of it. A statement is final. The poor person says, “I can’t afford it.” That’s a statement. The rich person said, “How can I afford it?” That’s a question, and the brain is going to answer any question asked of it. Now, another example is that the statement doesn’t even have an answer, so of course they can’t afford it. But when you ask how can you afford it, all of a sudden you start racking your brain trying to figure it out. Very subtle difference, but very, very different outcome.
Another example is that a poor person might ask, “How much will this cost me?” While the rich person would ask a more empowering question, “How much will this make me?” Now, be careful what you ask the brain for. It’s going to provide an answer and it’s going to provide an answer every single time. A subtle difference there in the question, but a tremendous difference in the answer. Now, I’ve noticed that poor people will make up their minds slowly and change them quickly. The poor person frequently will respond to a sound investment opportunity like a good one, but the poor person’s going to say, “Let me think about it.” And rich people, they make up their minds quickly and they change their minds slowly in response to the same investment scenario. You’ll more often hear the rich person say, “I’ll take it, unless I change my mind.” The thoughts of the rich and the poor are distinctly different.
So here’s a real life example. Imagine a poor person and a rich person both have $30,000 to purchase a new car. Now, the poor person has been taught their entire life that debt is bad. I was taught that. Most, 99% of this country was taught that. The statistics reveal it. So they stroll down to the dealership and lay down all $30,000 cash for the new car. They own the car free and clear. That’s what they were taught to do. Do not take on any debt. There are no monthly payments. They are happy. They think they did the right thing. But what happens the instant they drive that car off the lot? That car can lose up to 30% of its value the second it hits the street. The $30,000 investment is now worth $20,000 and depreciating by the day.
Now, the rich person, he has different thoughts. Their first phone call isn’t going to be to the car dealer. It’s likely to somebody like their real estate agent or their CPA or financial mentor. The rich person would probably lay down the $30,000 on a cash producing asset like a rental property. They then proceed down to the car dealer and possibly lease the car. Now, being a landlord, the rich person can one, use the cash flow from the rental property to pay for the car lease. Two, get a significant tax deduction on the car lease as a business owner, because a landlord, that equals business owner. You have certain tax rights, being a business owner. And three, they’re going to experience the appreciation of the property and they’re also going to experience the significant tax deductions that accompany that rental real estate.
The rich person is essentially, after they’ve taken all these actions, they’re essentially getting paid to drive their new car through the tax breaks, and they’re also holding onto an appreciating asset at the same time. To me, that demonstrates the differences in thinking. It’s pretty big. The poor person and rich person, they both had the exact same $30,000 to spend. Yet their thoughts and actions were entirely different, and as a result, the poor stay poor and the rich get richer. Their thinking significantly contributes to their creating wealth.
The second commonality the rich share in creating wealth is their use of leverage. It’s the primary reason the rich can earn 10 times, 100 times or even 1,000 times more than the poor can. Even though they both have the exact same 24 hours in a day. You see, as we go through life, we’re all constantly leveraging or being leveraged. It’s always one or the other. The rich are rich because they have learned to tip the scale a little bit in their favor when it comes to leverage. Now, they will leverage other people’s efforts, other people’s money experience, education, intelligence, ideas. There are countless examples, but a basic one is when you go to work every day, when you go to work every day, is your boss making money off of your efforts? If so, you are being leveraged. Now, if you are making money off of your boss’s efforts, you are actually the boss. You get it? You don’t have to be the boss, however, to experience the benefits of leverage.
Ask yourself this. When I go to work for my money, does it return the favor? That’s a good indicator. The answer to that question is a good indicator as to whether you’re properly using leverage or not. And what do you spend more of your money on, assets or liabilities? If you don’t know the difference, in their simplest form, an asset is something that puts money into your pocket and a liability is something that takes money out of your pocket. You see, poor people spend their money on liabilities: cars, toys. Rich people spend their money on assets, stuff that puts money in their pocket, and then they let their assets pay for their liabilities, their assets pay for their toys. They don’t work for their toys. They don’t pay for their toys, their assets do. You see, the $30,000 car example earlier, that demonstrates this perfectly. The rental property, the asset, was leveraged to pay for the car, the liability.
When it comes to investing money, now, the leverage concept really begins to pick up steam. You see, just as America’s poor and middle class were taught to go to school and get the good grades and get a good job, they were also taught to invest their money in safe, low risk investments like stocks, bonds, and mutual funds. Now, if you had to take $10,000, $10,000, and invest it in a mutual fund that average a 6.34% annual return. Now I use that very specific percentage for a reason, and I’ll let you know that in a second. But 6.34% annual return. At the end of 30 years, that $10,000 will have compounded to $66,000 and some change.
By the way, a financial planner who could produce that type of return over 30 years would be a superstar in his industry. He’d probably ended up a very rich man himself. Now let’s take that same $10,000 and invest it using some moderate real world leverage. Leveraging[inaudible 00:24:00] at say into a $200,000 piece of real estate. Over the same 30 years, and the same rate of return of 6.34%, that is 6.34%, the reason I use that number because that the average annual appreciation over a 20-year span for real estate, so that’s why I used it. This $200,000 piece of rental real estate over the same 30 years at the same rate of return of 6.34%, that $10,000 investment would have grown to $1.3 million and some change. That’s $66,000 invested in stocks, bonds, and mutual funds versus $1.3 million leveraged in real estate. All with the same $10,000 investment.
That’s the power of leverage. Again, it’s no wonder the gap between the rich and the poor gets wider and wider. I mean the poor’s money invested in stocks, bonds, and mutual funds in this way, in this manner under this scenario, it’s going to double every seven to eight years. Under the same scenario, that $10,000 leveraged in real estate, that money is going to double every seven to eight months. Leverage is a very, very powerful thing.
Further, what this example doesn’t show is that this was a rental property. Meaning the tenant paid off the mortgage. It doesn’t show the positive cashflow the property produced, and it doesn’t show the tax benefits either, and they’re substantial. Real estate rocks by the way just in case it isn’t evident in this example.
Rental real estate is a great asset. It produces passive income, but there are others. I mean royalties from books and music and software, also produce passive income. Storage facilities, vending machines, franchising, licensing of your ideas and the right network marketing companies can produce passive income as well.
Whatever you choose for your passive income stream, and I encourage you to pick more than one by the way, you’ll want to know that financial freedom is almost impossible for the average person without it. Passive income is a must and it must be a focus if you ever expect to be financially free.
All right, wealth redefined. Let’s look at this differently. I know we’ve covered a lot of material and hopefully if I’ve done my job, you’re starting to think about money and creating wealth a little differently. As most of us were raised in a household where the ideology was to go to school, get good grades and graduate and get the good job, we can all probably relate to that. We’ve all heard it all of our lives.
As well, we’ve grown up knowing a person described as wealthy as having a lot of money in the bank, or maybe a high net worth, or we’ve heard things like he’s a millionaire, oh. It seems like such a big amount, and maybe today you’d have to say billionaire to deliver the same effect as it did when I was a kid. Those would all be terms or definitions we’ve heard growing up. They comprised the old definition of wealth.
Regardless of how much money you have, unless that money is working for you, it has an expiration date. Look at it this way, think of a giant water tank. If you go to take a drink every day without putting more water back in, that tank’s water level is going to drop every time you take a drink. If your family drinks from the same tank again, the water level will drop every time they take a drink.
Unless you find a way to replenish that water, after so many drinks, that tank will be empty. Is that real wealth? I mean maybe there’s enough water to last you a lifetime but will it last your children’s lifetime? Will it last your children’s children’s lifetime? I mean unless that water is replenished, it’s going to run out. Is that wealthy to you? To me, it’s not but that is how we’re taught. Wealthy is having a lot of water, I mean money in the tank.
Okay, I know this example could be over-simplified for you and we know most people with a lot of money in the tank, I mean bank are able to put that money to work for them so that the money replenishes itself, but you see most people don’t put their money to work until they have a lot of money. They seek to make a lot before putting it to work. I’m going to come back to this.
Rather than defining wealthy as having a lot of money in the bank, what if we switched that definition to read? Each and every month, you had enough money to pay all of your living expenses, entertainment expenses and bills for you and your family, and you had enough whether you went to work or not, how does that definition of wealthy sound? I like that one. Okay, this is where passive income comes into play. Enter passive income.
Suppose your monthly expenses including everything I just mentioned and say even a little extra left over amounted to $10,000 a month. According to our new definition of wealth, if you earned $10,000 a month in passive income, you would be wealthy. So tell me, what sounds easier to achieve? Saving one million dollars, or building a vehicle that generates $10,000 a month in passive income?
You know your situation better than I do, but the $10,000 a month sounds way more doable, and easier, and faster, and it just sounds smarter, doesn’t it? I mean creating wealth doesn’t sound so much like a fantasy now does it? Earlier, I pointed out how most people think they have to work for and earn a lot of money before they can have it start working for them to keep it replenishing itself. Well, what if you started putting your money to work for you right now, before you had a lot of it?
I mean if you can take $10,000 and invest it in a way that it produced $200 a month in passive income, would you? Would you do it? You might say yes but most people wouldn’t do it. Even the people that just answered yes to my question, you might’ve just said yes to the question but are you actually going to go do it right now?
The idea of tying up $10,000 for $200 isn’t very exciting to most people. I mean they could use that $10,000 on a down payment for a new car or a family vacation, a new wardrobe, a new 3D TV or jet skis, whatever it may be. Why invest $10,000? It’s only going to make me $200 a month anyway. I mean $200 a month isn’t going to make a measurable difference in my life. That’s what most people think and I agree. It’s not going to make that big of a difference.
Here’s where most people miss the point. This is their big mistake. They completely underestimate the value of $200 in passive income, and the impact it has in creating wealth. They confuse it with just $200, which I agree has very little value today, but $200 in passive income has tremendous value and here’s what I mean. As I’m recording this podcast on ING Direct’s website, I like to use ING as an example because they somewhat built their reputation on advertising large interest rates.
As of this recording, they’re advertising a 1.1% return on their money market account. Let me ask you, how much money would you need to put into that ING account, that ING money market account to generate $200 a month in passive income? You would need to deposit over $200,000 into that account. Specifically, $218,000 into that account, so $200 yes, it’s worth $200. It doesn’t get you a whole lot, but $200 in passive income in today’s market is worth $218,000 sitting in the bank and you produced that $200 a month in passive income with only $10,000 compared to $218,000 sitting in the bank that you can never touch.
By the way, generating $200 a month in passive income off of a $10,000 investment, a very secure investment, they are abundantly available. I think I might violate some sort of SEC guideline if I disclose where or how, I’m not totally sure but I don’t want to take the risk and that’s not the nature of this podcast anyway, but if that’s something that makes sense to you and you’re dying to know, send me an email at [email protected], [email protected]
The point I’m trying to make is that people will put off building their passive income wealth. The new definition of wealth, the easier, and faster, and smarter way of creating wealth, because they never get started. Mostly because $200 a month to start, that $200 a month of passive income, it’s so unappealing. I mean it’s just not sexy. The new TV, the new car, the tropical vacation, now that’s sexy. Don’t fall into that trap. Don’t do it. A great deal of the credit of my own successful do over belongs to my new understanding of money and how it works, on how to create wealth. Don’t fall into that trap. I’ve been there, I’ve done it. It’s a trap.
Here’s your homework. I want you to pick up these four books. Some of them you may already have and some of them you may have already read, but are you doing it? Are you doing what it teaches? To know and not do is the same as not knowing. Okay, and I’ll put these in the show notes, but pick up these four books. Rich Dad Poor Dad, if you have it, great. Read it again, particularly, especially if you’re not practicing the lesson within the book. Cashflow Quadrant. Both of these books are by Robert Kiyosaki. Cashflow Quadrant. The third book, Ten Roads to Riches. I think his name is Ken Fisher or Ken Fisherman. I think it’s Ken Fisher. Ten Roads to Riches. It outlines the 10 roads to riches in this country. What you’re going to find, you’re going to find something very, very compelling inside that book. I want you to get that one and the fourth book is a book called The Slight Edge, which reveals in much more detail how small little baby steps over time produce success, okay?
Get those four books. Rich Dad Poor Dad, Cashflow Quadrant, Ten Roads to Riches, and The Slight Edge. Hopefully that idea of passive income is starting to sink in. We’re going to talk about it some more, but that’s it for this episode.
Next episode, we’re going to dive deeper into passive income. Other methods of creating it, other methods of creating wealth. I mean passive income, it rocks. I could talk about it all day long. I want you to create multiple streams of it. We’re going to talk about it a lot here at this podcast. This is not a money-making or how to make money podcast, but very much my do over has to do with my thoughts and my actions that I take around money and I want to share those with you.
I want you to create multiple streams of income, multiple streams of passive income specifically. I want it to be flowing in every form from every direction, right into your bank account. We’ll cover at least five different ways of creating it, it’s your quickest road to the money and time freedom that you seek. Stick around, I’ll show you how to get it.
If you like what you heard today and/or if there’s something that you’d like to hear more of as you begin a new life as you do over, please visit iTunes at your convenience and leave your comments and suggestions. Much appreciated. I am Matt, The Do Over Guy, and I will see you next time on your Do Over.
Speaker 1: Thank you for tuning into your Do Over, where the ignored, underestimated, and unknown steps to producing results and making life work are revealed and remember, knowledge is potential power. Take action on what you learned today. This is not your learn over. It’s your Do Over. To view the resources referenced in today’s show and to retrieve a complete show transcript, visit www.TheDoOverGuy.com. Stay connected with Matt, The Do Over Guy, Theriault on Twitter @TheDoOverGuy and on Facebook at www.Facebook.com/DoOverGuru.