WEBVTT - Is Passive Income a Myth? (Bestie) #810 0:00:00.280 --> 0:00:04.560 Happy Friday. Everybody was that I'm channeling my nineties spud 0:00:04.600 --> 0:00:05.200 wise over here. 0:00:05.240 --> 0:00:07.320 Then it feel like spring I feel like after Easter. 0:00:07.720 --> 0:00:10.680 After well, it's spring break for us. So the reason 0:00:10.720 --> 0:00:13.039 we've got this bestie here is should I should be 0:00:13.080 --> 0:00:15.840 saying happy spring break to everyone, even though for you. 0:00:15.840 --> 0:00:17.560 It's not a spring break and that's going to Panama City. 0:00:17.640 --> 0:00:19.520 It has been for us. We have been spending time 0:00:19.560 --> 0:00:22.200 with family, with friends. But that being said, we didn't 0:00:22.200 --> 0:00:24.320 want to leave you in the lurch without any hon 0:00:24.360 --> 0:00:26.880 of money content there in your podcatcher, So we. 0:00:26.880 --> 0:00:30.720 Figured we would replay an episode that we actually referenced 0:00:31.080 --> 0:00:33.680 last Friday flight because we're talking about the vending machines 0:00:33.680 --> 0:00:36.599 and the flipping of houses and how passive income is 0:00:36.600 --> 0:00:39.800 is something that so many people desire in the personal 0:00:39.840 --> 0:00:40.839 finance kind of feels like. 0:00:40.760 --> 0:00:43.800 This holy grail that once they achieve it, it's gonna 0:00:43.800 --> 0:00:45.440 solve all of the problem. 0:00:45.560 --> 0:00:49.120 It's the elixir of life. And there is some truth 0:00:49.240 --> 0:00:51.720 to being able to generate passive income, but there's also 0:00:51.760 --> 0:00:53.880 a lot of a lot of myths, true mistruths, a 0:00:53.880 --> 0:00:57.200 lot of lies in that space, especially coming from influencers. 0:00:57.360 --> 0:00:59.959 I want to sell you something, or who want your view, 0:01:00.120 --> 0:01:02.400 want your eyeballs, want your attention, and so we want 0:01:02.400 --> 0:01:02.920 to give kind. 0:01:03.160 --> 0:01:06.640 It's so ironic because they're oftentimes taluting the different passive 0:01:06.720 --> 0:01:09.240 forms of passive income on a platform that they are 0:01:09.319 --> 0:01:12.200 working hard at creating, right, and so it's a slide 0:01:12.240 --> 0:01:14.400 of hand trick. What's going on there is like they're 0:01:14.440 --> 0:01:17.480 showing you they unlock the thing and they pull the 0:01:17.560 --> 0:01:19.800 little the bucket out with all the quarters, and you 0:01:19.920 --> 0:01:22.840 will maybe fooled into thinking that, oh, that's passive income. 0:01:23.240 --> 0:01:24.600 But if they are a little more truthful, what they 0:01:24.600 --> 0:01:26.240 would be pointing to is the fact that they are 0:01:26.360 --> 0:01:29.679 a content creator on let's say TikTok or YouTube, and 0:01:29.720 --> 0:01:32.200 those are part time to full time jobs. 0:01:31.920 --> 0:01:34.240 That those folks have exactly right. And that's what some 0:01:34.240 --> 0:01:36.840 people in the Fire community have been criticized about. It's like, oh, 0:01:36.880 --> 0:01:39.560 I retired early, but I'm creating so much content around 0:01:39.720 --> 0:01:42.360 Fire to try to get you to, you know, sign 0:01:42.400 --> 0:01:45.240 up for this and such service. And that's how I'm 0:01:45.280 --> 0:01:47.560 going to actually make my living. As I write about 0:01:47.680 --> 0:01:50.560 the lifestyle that I kind of sort of am living 0:01:50.560 --> 0:01:52.200 but not quite because I have this part time job 0:01:52.400 --> 0:01:56.040 at least creating content. So this is hopefully an episode 0:01:56.080 --> 0:01:59.120 that offers a sobering approach to passive income and helps 0:01:59.160 --> 0:02:01.560 you think about how you can generate passive income in 0:02:01.600 --> 0:02:04.160 your life. But typically that means frontloading the sacrifice a 0:02:04.160 --> 0:02:07.000 little bit more so, Yeah, it's not actually passive income 0:02:07.000 --> 0:02:09.399 there always involves a little bit of work. Although there 0:02:09.480 --> 0:02:12.640 is one form of truly passive income. You'll hear us 0:02:12.639 --> 0:02:14.280 talking about that, but even still it still takes a 0:02:14.320 --> 0:02:18.079 little bit of upfront cash in order to get started. 0:02:18.080 --> 0:02:21.880 But yeah, we hope you enjoy this besty episode. Welcome 0:02:21.919 --> 0:02:24.560 to Out of Money. I'm Joel and I am Matts, 0:02:24.600 --> 0:02:27.600 and today we're asking the question is passive income a myth? 0:02:46.600 --> 0:02:48.720 Yeah, Joel, I am so excited for us to tackle 0:02:48.760 --> 0:02:52.360 this concept of passive income. It's something that you and 0:02:52.360 --> 0:02:54.800 I that we are striving towards when we have to 0:02:54.840 --> 0:02:58.000 a certain extent ourselves personally. But it's something too that 0:02:58.040 --> 0:03:00.800 I feel like is that we hear more often, like 0:03:00.800 --> 0:03:03.320 when in social media you hear it being talked about. 0:03:03.360 --> 0:03:05.720 It's something that you can easily attain some passive income 0:03:05.760 --> 0:03:08.400 in your life. Kind of sounds like maybe a pyramid scheme. 0:03:08.680 --> 0:03:10.560 This is like, how can I automate money? I want 0:03:10.560 --> 0:03:13.680 money coming towards me with very little effort, And so 0:03:14.000 --> 0:03:16.520 don't we all? Yeah, And I'm glad that we're gonna 0:03:16.680 --> 0:03:20.560 We've dedicated an entire episode to talking about how passive 0:03:20.560 --> 0:03:24.600 income is a legit, a true, honest thing in the 0:03:24.639 --> 0:03:27.400 ways where maybe it's it's a little more shady, or 0:03:27.400 --> 0:03:29.240 that it's just not true exactly to the way it's 0:03:29.280 --> 0:03:30.320 being marketed. 0:03:30.320 --> 0:03:32.400 Or sold to folks. Yeah, I think sometimes when we 0:03:32.480 --> 0:03:34.840 talk about passive income people at least I think of 0:03:35.040 --> 0:03:36.960 like the Leprechaun and the pot of gold at the 0:03:37.040 --> 0:03:39.120 end of the rainbow, And that's kind of how the 0:03:39.120 --> 0:03:42.760 passive income conversation feels to me At times. I'm like, Okay, 0:03:43.480 --> 0:03:47.000 this video or this this article is gonna teach me 0:03:47.040 --> 0:03:49.800 how to make passive income in just a few minutes. 0:03:49.840 --> 0:03:52.280 It's gonna be it's gonna be so simple. And yet 0:03:52.440 --> 0:03:53.680 at the end of the day, there is no pot 0:03:53.760 --> 0:03:55.160 of gold at the end of the rainbow, and you're 0:03:55.200 --> 0:03:57.240 you're sold to Billy Goods. That isn't actually true. So 0:03:57.240 --> 0:03:59.040 we're gonna try to kind of actually talk about what 0:03:59.160 --> 0:04:01.560 is true about past to income and what's not true. 0:04:01.800 --> 0:04:04.160 Separate the myth from the reality here, that's right. 0:04:04.240 --> 0:04:06.640 Yeah, But first, dude, I wanted to talk about coffee. 0:04:07.160 --> 0:04:09.480 You know, and I've everybody who listens to the show 0:04:09.560 --> 0:04:11.320 knows that I like Aldi. 0:04:11.720 --> 0:04:11.920 Dude. 0:04:11.960 --> 0:04:13.880 We save so much money by getting our groceries there 0:04:13.880 --> 0:04:16.279 at Aldi, and in particular, we've been fans of the 0:04:16.320 --> 0:04:18.919 whole being coffee that you can get there, specifically the 0:04:19.000 --> 0:04:19.960 Peruvian blend. 0:04:20.000 --> 0:04:21.800 And of course, you know, you and me are opposites. 0:04:21.839 --> 0:04:23.280 I get my coffee at Costco, That's. 0:04:23.240 --> 0:04:25.800 Right, Yeah, which is totally fine, But Dude, lately I 0:04:25.800 --> 0:04:29.240 feel like the Aldi coffee hasn't been cutting it for me. Recently, 0:04:29.520 --> 0:04:32.400 Kate brought home a pound of some local coffee. Well 0:04:32.440 --> 0:04:34.919 it's sold locally, but it's like it's an Ethiopium blend. 0:04:35.400 --> 0:04:35.880 Dude. 0:04:36.000 --> 0:04:39.239 It is so good, so much better than the cheaper 0:04:39.240 --> 0:04:41.440 stuff that I get at Aldi, that I'm not sure 0:04:41.440 --> 0:04:43.840 that we're gonna be able to go back and continue 0:04:43.839 --> 0:04:47.279 buying the cheap o Aldi beans. But the problem is 0:04:47.279 --> 0:04:49.600 is it costs more, and I don't know how. I 0:04:49.600 --> 0:04:52.000 don't know if our budget can absorb the increase in cost. Right, So, 0:04:52.040 --> 0:04:54.360 at Aldi is like four or five bucks for a pound. 0:04:54.960 --> 0:04:57.520 This new coffee costs ten bucks a pound. I'm looking 0:04:57.560 --> 0:05:00.240 to double the amount of money I'm spending on my coffee. 0:05:00.520 --> 0:05:02.360 How much so the stuff you buy at costco how 0:05:02.400 --> 0:05:03.080 much do you spend? 0:05:03.160 --> 0:05:06.480 I think, yeah, usually it's about a little over five 0:05:06.480 --> 0:05:08.200 bucks a pound. I think it's eleven dollars for a 0:05:08.240 --> 0:05:10.000 two pound back. And you like it, right, I mean 0:05:10.160 --> 0:05:12.200 it works well for y'all. Yeah, it's good. I don't 0:05:12.240 --> 0:05:14.320 have like high follute and taste when it comes to coffee. 0:05:14.400 --> 0:05:16.640 I like my coffee to be run of the mill average, 0:05:17.040 --> 0:05:17.520 Like I. 0:05:17.440 --> 0:05:19.360 Feel like that's what I've enjoyed up until now, but 0:05:19.440 --> 0:05:21.000 until I've had a taste of the good stuff. Once 0:05:21.040 --> 0:05:23.280 you taste it, yes, And now that we've kind of 0:05:23.320 --> 0:05:26.599 gone back to our standard all these stuff, I'm trying 0:05:26.640 --> 0:05:28.520 to decide whether or not it's worth it to me. 0:05:28.600 --> 0:05:30.360 And you know, this is one of those areas where 0:05:30.360 --> 0:05:33.240 I feel like, if I continue buying the cheap stuff, 0:05:33.080 --> 0:05:35.680 it's gonna feel cheap to me. And I can literally 0:05:35.720 --> 0:05:39.080 taste a huge difference between the Aldise stuff versus this 0:05:39.279 --> 0:05:42.440 nicer Ethiopian blend, and so I guess I'm mentioning it 0:05:42.480 --> 0:05:44.720 because I think we are going to just budget for it. 0:05:44.760 --> 0:05:45.520 We're gonna plan for. 0:05:45.480 --> 0:05:47.080 It because this is something that Kate and I are 0:05:47.120 --> 0:05:49.800 both appreciating. It's something that we can tell the difference. 0:05:50.120 --> 0:05:53.240 We appreciate the nicer stuff, and honestly, in the end, 0:05:53.360 --> 0:05:55.240 you know, we're looking at increasing our coffee budget by 0:05:55.360 --> 0:05:57.839 you know, five dollars a pound roughly. On one hand, 0:05:57.839 --> 0:05:59.840 it feels extravagant, But on the other hand, I'm like, Okay, 0:06:00.279 --> 0:06:02.280 this is not a big deal. Leave it to money 0:06:02.279 --> 0:06:05.480 nerds like us right to obsess over something so small. 0:06:05.680 --> 0:06:07.360 But I guess my question for you is as would 0:06:07.400 --> 0:06:08.120 you judge. 0:06:07.839 --> 0:06:12.359 Me for for effectively doubling my coffee budget? Not at all? Actually, yeah, no, 0:06:12.640 --> 0:06:14.760 I think you're you should totally go for me. You 0:06:14.760 --> 0:06:16.280 should spend a little bit more on this thing. And 0:06:16.320 --> 0:06:19.520 I think coffee is one of those things that in 0:06:19.560 --> 0:06:23.440 your life literally every day of the year, and if 0:06:23.480 --> 0:06:26.320 you can thoroughly enjoy your cup of coffee versus just 0:06:26.400 --> 0:06:29.280 kind of, yeah, mildly enjoying your cup of coffee in 0:06:29.320 --> 0:06:31.240 the morning, I think that extra what ten bucks a 0:06:31.279 --> 0:06:33.039 month in your budget, I'm sure you can find a 0:06:33.080 --> 0:06:35.760 way to cut back ten bucks in some other in 0:06:35.839 --> 0:06:37.360 some other part of your budget in order to be 0:06:37.400 --> 0:06:40.160 able to pay for a nicer coffee or find a 0:06:40.160 --> 0:06:42.800 way to earn ten extra dollars, you know, by giving 0:06:42.800 --> 0:06:44.200 a lift ride or something to somebody. 0:06:45.040 --> 0:06:46.520 Yeah, I guess I wanted to share that because I 0:06:46.520 --> 0:06:48.680 want folks to know, in a sense, I want to 0:06:48.680 --> 0:06:51.560 give individuals out their permission to spend money towards the 0:06:51.560 --> 0:06:53.960 things that truly like bring you joy or you know, 0:06:54.040 --> 0:06:56.400 bring you value. But just know that you can't spend 0:06:56.440 --> 0:06:58.680 money on every single thing out there, like you can't 0:06:58.720 --> 0:07:01.039 upgrade everything in your life. But in this case, I 0:07:01.040 --> 0:07:02.680 think we are going to spend a little bit more 0:07:02.720 --> 0:07:03.719 every month on coffee. 0:07:03.760 --> 0:07:06.280 Yeah, sometimes ignorance is bliss when it comes to see 0:07:06.440 --> 0:07:06.880 a budget. 0:07:07.600 --> 0:07:09.240 I wish I would have never had it, because I 0:07:09.240 --> 0:07:12.080 think I would have been totally fine with the Aldi coffee. 0:07:12.120 --> 0:07:15.080 That's the way I feel about the nicer new pizza 0:07:15.160 --> 0:07:19.640 joint We've been hitting up sometimes these days, and I 0:07:19.720 --> 0:07:22.400 truly love it, Like it's delicious, pizza, really good, it's 0:07:22.440 --> 0:07:25.320 really expensive, And now when I go back to the 0:07:25.440 --> 0:07:30.200 other neighborhood joint, I'm like, it's good, it's fine, the 0:07:30.280 --> 0:07:32.680 inferior pizza. Yeah, but I wouldn't have thought that before 0:07:32.720 --> 0:07:35.080 it until I tasted the super good sof's so true. 0:07:35.360 --> 0:07:36.800 It's kind of one of those things that happens every 0:07:36.800 --> 0:07:37.960 once in a while, and you you have to put 0:07:37.960 --> 0:07:40.480 blinders on, yeah, in order to stay the course, exactly 0:07:40.680 --> 0:07:42.880 like a horse in a race. But but I hope 0:07:42.920 --> 0:07:44.920 you enjoy your new coffee, my friend. Thanks man. But 0:07:45.000 --> 0:07:46.880 let's move on mention the beer that we're having on 0:07:46.880 --> 0:07:49.280 this episode. The reason we have a beer every episode 0:07:49.600 --> 0:07:51.800 is because that is a place we choose to put 0:07:51.800 --> 0:07:54.600 our money on purpose. We like craft beer a whole lot. 0:07:54.840 --> 0:07:56.680 The beer that we're drinking on today's episode is called 0:07:56.800 --> 0:07:59.200 raid X is by Halfway Crooks, which is a brewery 0:07:59.280 --> 0:08:01.600 in our neighborhood that we absolutely love. So looking forward 0:08:01.600 --> 0:08:03.760 to us to drinking this pilsner with you, man. Yeah 0:08:04.000 --> 0:08:06.200 all right, Well, let's move on to the subject at hand. 0:08:06.440 --> 0:08:08.920 We are asking the question is passive income a myth? 0:08:08.960 --> 0:08:12.440 On today's episode, and Matt, when we were kind of 0:08:12.680 --> 0:08:15.800 deciding how to tackle this topic, it made me think 0:08:15.840 --> 0:08:18.840 about relationships and I feel like I don't know why 0:08:18.880 --> 0:08:21.680 passive income and relationships they don't necessarily go hand in hand, 0:08:21.720 --> 0:08:24.320 like you and me. Yeah, well, I was thinking more 0:08:24.760 --> 0:08:27.840 about like a love relationship. I feel like the messaging 0:08:28.400 --> 0:08:32.120 that we often get is that finding the right one 0:08:32.920 --> 0:08:34.959 is the hard part. Right. Once you find the right 0:08:34.960 --> 0:08:37.520 one and settle down, you're good to go, and life 0:08:37.760 --> 0:08:40.079 is easy from there on out. Now that you've got 0:08:40.080 --> 0:08:43.000 that perfect partner, things are smooth for you in life. 0:08:43.480 --> 0:08:45.160 And when you find the person that you can truly 0:08:45.200 --> 0:08:47.240 be yourself with, it is a gift. Like I'm not 0:08:47.240 --> 0:08:49.480 trying to diminish true love. I think. I think it's 0:08:49.640 --> 0:08:51.959 really good, and I am in love with my wife, 0:08:51.960 --> 0:08:55.400 and I'm thankful for our relationship. But still, even when 0:08:55.440 --> 0:08:57.880 you make a lifelong commitment to someone else that fits 0:08:57.920 --> 0:09:01.079 you like a glove, it really does still take work 0:09:01.160 --> 0:09:04.080 to keep that leve alive and to stay deeply connected 0:09:04.120 --> 0:09:06.080 to one another. You know this, Matt, You've been married 0:09:06.080 --> 0:09:08.800 for what Yeah, dude, it'll be fourteen this year. Nice, Okay. 0:09:09.040 --> 0:09:11.000 And I feel like this is a great analogy for 0:09:11.040 --> 0:09:14.520 passive income, because passive income sounds so easy and similar 0:09:14.520 --> 0:09:16.840 to you know, a great relationship. It's not that passive 0:09:16.840 --> 0:09:20.000 income isn't a great thing. It is, but passive income 0:09:20.160 --> 0:09:22.880 also takes work. So yeah, in this episode, we're going 0:09:22.920 --> 0:09:25.400 to try and give an accurate definition of what passive 0:09:25.400 --> 0:09:29.320 income looks like and then the best avenues for pursuing it, 0:09:29.400 --> 0:09:32.040 and maybe, just maybe along the way, Matt, you're gonna 0:09:32.040 --> 0:09:34.559 sprinkle in some relationship advice. I feel like you've probably 0:09:34.559 --> 0:09:35.679 got a lot to offer on that front. 0:09:35.800 --> 0:09:39.160 Well, yeah, I mean relationships, like passive income requires a 0:09:39.160 --> 0:09:41.440 little tender love and care, right, But I don't Yeah, 0:09:41.440 --> 0:09:43.280 I don't have any tips. I will say Kate and 0:09:43.320 --> 0:09:45.040 I started dating when I was a senior and she 0:09:45.080 --> 0:09:47.480 was a freshman in college, and so all I'm saying 0:09:47.559 --> 0:09:49.640 is like, use the strengths that you have going for you. 0:09:50.559 --> 0:09:53.679 So obviously, Kate, like the older guys so worked out 0:09:53.720 --> 0:09:55.600 for me, and you know, when you know you found 0:09:55.760 --> 0:09:58.360 the right person, stick with it like you did. Yeah. 0:09:58.360 --> 0:10:01.160 Absolutely, man, I'm looking forward to I've already mentioned the 0:10:01.160 --> 0:10:02.760 show before fifteen years next year. 0:10:02.880 --> 0:10:04.440 I feel like that's going to be a huge milestone. 0:10:04.480 --> 0:10:08.240 Not to discount fourteen, but yeah, like in the same 0:10:08.280 --> 0:10:11.560 way that relationships, you know, continue to require that input 0:10:11.640 --> 0:10:14.680 and that attention. Almost all of the quote unquote passive 0:10:14.679 --> 0:10:17.040 income opportunities that we hear about. These are maybe the 0:10:17.120 --> 0:10:19.000 ones you know, getting all the views on social media. 0:10:19.360 --> 0:10:23.400 They also require a meaningful degree of work, and so 0:10:23.480 --> 0:10:25.440 a better term I think to use instead of passive 0:10:25.440 --> 0:10:29.800 income is probably leveraged income. You know, there are very 0:10:29.840 --> 0:10:33.000 few purely passive sources of income, and so that's why 0:10:33.040 --> 0:10:35.120 we are, you know, dispelling the myth that there's a 0:10:35.200 --> 0:10:38.440 source of passive income around every corner, right, Like, you 0:10:38.520 --> 0:10:41.720 aren't missing out on the passive income that everyone else 0:10:41.760 --> 0:10:43.400 is enjoying because it doesn't exist. 0:10:43.559 --> 0:10:44.760 Is that where you can go and sign up for 0:10:45.000 --> 0:10:45.560 free money? 0:10:45.760 --> 0:10:49.160 Most of these opportunities could probably be considered a side gig, 0:10:49.240 --> 0:10:51.280 or even a part time job, or even a full 0:10:51.320 --> 0:10:53.160 time job. We'll get to some of those scenarios later 0:10:53.240 --> 0:10:53.880 on in the episode. 0:10:53.960 --> 0:10:55.800 Yeah, I think sometimes when we're talking about passive income, 0:10:55.800 --> 0:10:58.120 there is that fomo. People are like, I feel like 0:10:58.160 --> 0:11:00.760 everybody's like making this passive income. I see it out 0:11:00.760 --> 0:11:04.080 there online, where's my passive income? And like so the 0:11:04.080 --> 0:11:07.520 golden ticket exactly. But a lot of what's considered passive 0:11:07.520 --> 0:11:10.760 income isn't necessarily passive. And I like what you said 0:11:10.800 --> 0:11:13.120 Matt about leverage income. I think it's a better way 0:11:13.120 --> 0:11:15.040 to think about it. You know, we'll continue to use 0:11:15.080 --> 0:11:18.280 the phrase passive income in this episode, but leverage is 0:11:18.320 --> 0:11:21.680 really an important part of this equation. To gain passive income, 0:11:21.880 --> 0:11:24.720 you're often putting in more time and effort now to 0:11:24.800 --> 0:11:28.200 reap greater rewards later on in your financial life. But 0:11:28.480 --> 0:11:31.720 the reason people are so desirous of generating passive income 0:11:31.760 --> 0:11:34.560 streams is that it's better to have your money working 0:11:34.640 --> 0:11:36.880 for you than to have to work for your money 0:11:37.120 --> 0:11:41.800 decade after decade after decade, right, sometimes five decades of work, 0:11:42.040 --> 0:11:44.160 and at some point you want passive income to kind 0:11:44.160 --> 0:11:46.760 of help carry some of that load. Making money while 0:11:46.800 --> 0:11:50.600 you're a sleep sounds pretty phenomenal, but generating regular income 0:11:50.640 --> 0:11:53.960 that doesn't come via a paycheck from your employer takes intentionality, 0:11:54.080 --> 0:11:57.719 takes sacrifice, and takes the ability to delay gratification. 0:11:57.920 --> 0:12:00.360 Yeah, it takes work, essentially as what you're saying, and 0:12:00.440 --> 0:12:02.960 sometimes the understanding that it takes effort to generate passive 0:12:03.000 --> 0:12:06.120 income that gets lost in the discussion about how to 0:12:06.160 --> 0:12:09.000 get there. To be able to make money without lifting 0:12:09.040 --> 0:12:11.680 a fingers in something that I've ever experienced, but often 0:12:11.760 --> 0:12:15.360 that is the passive income pitch that we hear. Even 0:12:15.440 --> 0:12:16.960 to make money, you know, based on what you know, 0:12:17.240 --> 0:12:19.280 like that takes a lot of dedication and getting that 0:12:19.360 --> 0:12:22.199 knowledge just in the first place. You know, it takes 0:12:22.640 --> 0:12:26.400 quite a bit of time to see any meaningful passive income. 0:12:26.960 --> 0:12:29.480 You're not going to build three passive income streams, you know, 0:12:29.600 --> 0:12:31.720 just in the course of a few days. Even just 0:12:31.800 --> 0:12:34.520 amassing the knowledge to know which routes to take like 0:12:34.559 --> 0:12:37.240 that alone can require a ton of reading, a ton 0:12:37.320 --> 0:12:41.280 of information gathering, and implementation of that knowledge doesn't happen 0:12:41.440 --> 0:12:42.000 quickly either. 0:12:42.200 --> 0:12:45.000 Yeah, so you mentioned that it takes time to see 0:12:45.080 --> 0:12:47.920 meaningful passive income. Yeah, it's not something that's done quickly, 0:12:47.920 --> 0:12:50.120 which is true. And also too, it takes trial and 0:12:50.240 --> 0:12:52.720 error on that front to see which passive income routes 0:12:52.760 --> 0:12:55.880 work well for you. You might think that one route is 0:12:55.920 --> 0:12:58.280 going to make sense, and you might decide, no, that's 0:12:58.280 --> 0:13:01.320 actually not in my wheelhouse. Check something else out. It 0:13:01.360 --> 0:13:03.920 also takes money to build up any sort of passive 0:13:03.920 --> 0:13:06.439 income stream. All of the different passive income streams that 0:13:06.440 --> 0:13:09.160 we're going to discuss today take varying amounts of money 0:13:09.200 --> 0:13:12.040 to get into. So, like the down payment on your 0:13:12.040 --> 0:13:15.760 first rental property. Well, that requires quite a bit of cash. 0:13:16.000 --> 0:13:18.240 Starting a blog though, isn't going to take nearly as 0:13:18.320 --> 0:13:21.000 much money to get going, of course, But to start 0:13:21.040 --> 0:13:23.800 earning income that flows while you sleep, it often takes 0:13:24.160 --> 0:13:27.280 money in addition to hard work. It takes a little 0:13:27.280 --> 0:13:29.439 bit of both, sometimes a lot of both, right. 0:13:29.320 --> 0:13:32.120 Yeah, yeah, And different sources of passive income are going 0:13:32.200 --> 0:13:35.480 to have varying degrees of time and work involved. Right 0:13:35.880 --> 0:13:39.120 At a very elementary level, passive income can literally, you know, 0:13:39.160 --> 0:13:41.360 be as simple as having money in a savings account 0:13:41.480 --> 0:13:43.960 and earning interest, although that's not going to earn. 0:13:43.880 --> 0:13:46.480 You much, especially these days, so yeah, exactly. 0:13:46.120 --> 0:13:48.240 But that method could you know, just take a few 0:13:48.240 --> 0:13:49.920 bucks and virtually none of your time. 0:13:49.960 --> 0:13:51.360 It's super simple, super easy. 0:13:52.240 --> 0:13:54.679 Or on the other hand, passive income could be as 0:13:54.720 --> 0:13:57.920 complex as building this massive business with you know, hundreds 0:13:57.960 --> 0:14:00.680 of employees that you eventually you are able to step 0:14:00.720 --> 0:14:03.440 away from. This is an example of a form of 0:14:03.480 --> 0:14:06.079 passive income that's going to take a lot of time 0:14:06.160 --> 0:14:07.880 and a lot of money. And of course, you know, 0:14:07.880 --> 0:14:10.600 there are different approaches to passive income all along the 0:14:10.640 --> 0:14:13.080 way in between those two extremes, and so we're going 0:14:13.120 --> 0:14:17.320 to cover some different methods of passive income that are 0:14:17.360 --> 0:14:19.480 going to kind of run the gamut between those two extremes. 0:14:19.560 --> 0:14:21.720 Yeah, so let's start kind of maybe on the easy 0:14:21.800 --> 0:14:23.720 end of the spectrum, and let's set the easy button 0:14:23.760 --> 0:14:26.120 and talk about one of the simplest ways to make 0:14:26.120 --> 0:14:29.480 passive income. And this one, I'm gonnadmit this first one 0:14:29.480 --> 0:14:31.280 that we're gonna throw out there. It's a little bit random. 0:14:31.400 --> 0:14:34.000 It's not one that you're going to see touted in 0:14:34.040 --> 0:14:37.040 most of the YouTube videos. But yeah, one way that 0:14:37.080 --> 0:14:39.680 you could make money is just using an asset that 0:14:39.720 --> 0:14:43.160 you already have. You can generate passive income by doing 0:14:43.200 --> 0:14:44.880 the actions that you're already doing, but doing them in 0:14:44.920 --> 0:14:48.160 a different way. And wrapping your car in an advertisement 0:14:48.440 --> 0:14:50.480 is actually the easiest way, I would say to do that. 0:14:50.560 --> 0:14:53.240 It's actually something Matt that I have done before personally 0:14:53.240 --> 0:14:56.400 done this, right, It's the easiest way I've ever made 0:14:56.440 --> 0:14:58.840 money doing the thing I was already doing. Right, So 0:14:59.040 --> 0:15:02.880 I had to have the car slightly embarrassing to your wife, Yeah, 0:15:02.920 --> 0:15:04.560 to my wife, not to me. I didn't care, but 0:15:04.960 --> 0:15:07.320 some people would be more embarrassed than others about it. 0:15:07.360 --> 0:15:09.600 I have no sense of shame, but yeah, I already 0:15:09.640 --> 0:15:12.760 had the car, and I was driving it already to 0:15:12.840 --> 0:15:16.000 work on some days and around town on other days, 0:15:16.280 --> 0:15:19.280 and so making money without having to really change up 0:15:19.280 --> 0:15:22.440 anything in my daily routine was pretty nice. It's a 0:15:22.520 --> 0:15:24.480 chill way to make some extra dough. And the company 0:15:24.520 --> 0:15:27.240 I went through was called Rapify, and they're still around. 0:15:27.480 --> 0:15:29.880 And I will say too, there are lots of scams 0:15:29.920 --> 0:15:31.400 when it comes to car wrapping, so you want to 0:15:31.440 --> 0:15:34.040 be careful which company you go with, but Rapify will 0:15:34.040 --> 0:15:35.960 link to it in the show notes. Is a legit 0:15:36.000 --> 0:15:37.560 one could be a good way for a lot of 0:15:37.600 --> 0:15:41.880 people to make hundreds of extra dollars every month literally 0:15:41.920 --> 0:15:44.440 by driving the miles they were already driving. So that's 0:15:44.480 --> 0:15:47.320 a cool way of making passive income without having to 0:15:47.720 --> 0:15:50.240 put in too much effort. Also, too, running out that 0:15:50.320 --> 0:15:53.200 car that you aren't using is another way to score 0:15:53.240 --> 0:15:55.880 a bit of passive income in your life. Cars are idle, 0:15:56.000 --> 0:15:58.280 Matt somewhere close to ninety five percent of the time, 0:15:58.640 --> 0:16:01.760 especially these days if we're working from home. A lot 0:16:01.760 --> 0:16:04.480 of us have been using our cars way less than 0:16:04.520 --> 0:16:07.360 we used to, and so why not turn that car 0:16:07.400 --> 0:16:10.360 that spening their idol into some passive income and you 0:16:10.400 --> 0:16:12.520 can do that at a site like Toro, where you 0:16:12.560 --> 0:16:15.520 can rent out your own car for other people to use, 0:16:16.040 --> 0:16:17.800 and you can make some decent money doing that. 0:16:17.920 --> 0:16:20.280 That's right, Yeah, that's super easy. Although I guess there's 0:16:20.280 --> 0:16:22.400 a difference between rapify and turo Right. With Touro, it 0:16:22.440 --> 0:16:24.720 does take a little more managing, you know, of your vehicle, 0:16:24.840 --> 0:16:27.080 making sure it's maintained, making sure it's in the right 0:16:27.120 --> 0:16:27.880 place at the right time. 0:16:27.960 --> 0:16:29.840 Right responding to people who are trying to book their 0:16:29.840 --> 0:16:30.200 car to. 0:16:30.320 --> 0:16:33.080 Yeah, exactly, whereas like truly rapify, I mean, you didn't 0:16:33.120 --> 0:16:36.120 change anything about about what you're doing except for having 0:16:36.200 --> 0:16:38.120 to go and get it wrapped and then taking it 0:16:38.160 --> 0:16:39.480 back there once the campaign was over. 0:16:39.560 --> 0:16:40.240 Yeah, right exactly. 0:16:40.840 --> 0:16:43.920 But yeah, similar to Toro, where you're renting out your 0:16:44.040 --> 0:16:46.800 vehicle that you are owned. Baby equip is another example 0:16:46.840 --> 0:16:48.640 of this, and you know we've mentioned this on the 0:16:48.640 --> 0:16:50.640 show before, but you can make money by renting out 0:16:50.640 --> 0:16:53.040 baby equipment that you already own that you aren't using. 0:16:53.320 --> 0:16:56.200 So if you've got like that extra pack and play 0:16:56.520 --> 0:16:58.440 sitting there in the closet, why not put it to use? 0:16:59.040 --> 0:17:01.920 So using assets that you already own more efficiently, that 0:17:01.960 --> 0:17:04.560 can be a really easy way to kind of generate 0:17:04.640 --> 0:17:07.240 some passive income. But we're going to talk about the 0:17:07.240 --> 0:17:10.439 pros and cons of other passive income methods, ones that 0:17:10.480 --> 0:17:12.920 have the potential to generate way more money, and what 0:17:13.040 --> 0:17:23.520 get those right after this break, all. 0:17:23.480 --> 0:17:24.840 Right, we're back. We're going to keep talking to you 0:17:24.880 --> 0:17:27.520 about passive income. And it's our goal to point you 0:17:27.560 --> 0:17:30.800 in the right direction for how you can make money 0:17:31.080 --> 0:17:32.800 on your money or on the items you already have, 0:17:33.040 --> 0:17:35.320 or with the skills that you already have, without selling 0:17:35.359 --> 0:17:38.920 you a bill of goods that isn't actually real. And so, Matt, 0:17:39.000 --> 0:17:42.840