Speaker 1: Happy Friday. Everybody was that I'm channeling my nineties spud
Speaker 1: wise over here.
Speaker 2: Then it feel like spring I feel like after Easter.
Speaker 2: After well, it's spring break for us. So the reason
Speaker 2: we've got this bestie here is should I should be
Speaker 2: saying happy spring break to everyone, even though for you.
Speaker 1: It's not a spring break and that's going to Panama City.
Speaker 2: It has been for us. We have been spending time
Speaker 2: with family, with friends. But that being said, we didn't
Speaker 2: want to leave you in the lurch without any hon
Speaker 2: of money content there in your podcatcher, So we.
Speaker 1: Figured we would replay an episode that we actually referenced
Speaker 1: last Friday flight because we're talking about the vending machines
Speaker 1: and the flipping of houses and how passive income is
Speaker 1: is something that so many people desire in the personal
Speaker 1: finance kind of feels like.
Speaker 2: This holy grail that once they achieve it, it's gonna
Speaker 2: solve all of the problem.
Speaker 1: It's the elixir of life. And there is some truth
Speaker 1: to being able to generate passive income, but there's also
Speaker 1: a lot of a lot of myths, true mistruths, a
Speaker 1: lot of lies in that space, especially coming from influencers.
Speaker 1: I want to sell you something, or who want your view,
Speaker 1: want your eyeballs, want your attention, and so we want
Speaker 1: to give kind.
Speaker 2: It's so ironic because they're oftentimes taluting the different passive
Speaker 2: forms of passive income on a platform that they are
Speaker 2: working hard at creating, right, and so it's a slide
Speaker 2: of hand trick. What's going on there is like they're
Speaker 2: showing you they unlock the thing and they pull the
Speaker 2: little the bucket out with all the quarters, and you
Speaker 2: will maybe fooled into thinking that, oh, that's passive income.
Speaker 2: But if they are a little more truthful, what they
Speaker 2: would be pointing to is the fact that they are
Speaker 2: a content creator on let's say TikTok or YouTube, and
Speaker 2: those are part time to full time jobs.
Speaker 1: That those folks have exactly right. And that's what some
Speaker 1: people in the Fire community have been criticized about. It's like, oh,
Speaker 1: I retired early, but I'm creating so much content around
Speaker 1: Fire to try to get you to, you know, sign
Speaker 1: up for this and such service. And that's how I'm
Speaker 1: going to actually make my living. As I write about
Speaker 1: the lifestyle that I kind of sort of am living
Speaker 1: but not quite because I have this part time job
Speaker 1: at least creating content. So this is hopefully an episode
Speaker 1: that offers a sobering approach to passive income and helps
Speaker 1: you think about how you can generate passive income in
Speaker 1: your life. But typically that means frontloading the sacrifice a
Speaker 1: little bit more so, Yeah, it's not actually passive income
Speaker 1: there always involves a little bit of work. Although there
Speaker 1: is one form of truly passive income. You'll hear us
Speaker 1: talking about that, but even still it still takes a
Speaker 1: little bit of upfront cash in order to get started.
Speaker 1: But yeah, we hope you enjoy this besty episode. Welcome
Speaker 1: to Out of Money. I'm Joel and I am Matts,
Speaker 1: and today we're asking the question is passive income a myth?
Speaker 2: Yeah, Joel, I am so excited for us to tackle
Speaker 2: this concept of passive income. It's something that you and
Speaker 2: I that we are striving towards when we have to
Speaker 2: a certain extent ourselves personally. But it's something too that
Speaker 2: I feel like is that we hear more often, like
Speaker 2: when in social media you hear it being talked about.
Speaker 2: It's something that you can easily attain some passive income
Speaker 2: in your life. Kind of sounds like maybe a pyramid scheme.
Speaker 2: This is like, how can I automate money? I want
Speaker 2: money coming towards me with very little effort, And so
Speaker 2: don't we all? Yeah, And I'm glad that we're gonna
Speaker 2: We've dedicated an entire episode to talking about how passive
Speaker 2: income is a legit, a true, honest thing in the
Speaker 2: ways where maybe it's it's a little more shady, or
Speaker 2: that it's just not true exactly to the way it's
Speaker 2: being marketed.
Speaker 1: Or sold to folks. Yeah, I think sometimes when we
Speaker 1: talk about passive income people at least I think of
Speaker 1: like the Leprechaun and the pot of gold at the
Speaker 1: end of the rainbow, And that's kind of how the
Speaker 1: passive income conversation feels to me At times. I'm like, Okay,
Speaker 1: this video or this this article is gonna teach me
Speaker 1: how to make passive income in just a few minutes.
Speaker 1: It's gonna be it's gonna be so simple. And yet
Speaker 1: at the end of the day, there is no pot
Speaker 1: of gold at the end of the rainbow, and you're
Speaker 1: you're sold to Billy Goods. That isn't actually true. So
Speaker 1: we're gonna try to kind of actually talk about what
Speaker 1: is true about past to income and what's not true.
Speaker 1: Separate the myth from the reality here, that's right.
Speaker 2: Yeah, But first, dude, I wanted to talk about coffee.
Speaker 2: You know, and I've everybody who listens to the show
Speaker 2: knows that I like Aldi.
Speaker 1: Dude.
Speaker 2: We save so much money by getting our groceries there
Speaker 2: at Aldi, and in particular, we've been fans of the
Speaker 2: whole being coffee that you can get there, specifically the
Speaker 2: Peruvian blend.
Speaker 1: And of course, you know, you and me are opposites.
Speaker 1: I get my coffee at Costco, That's.
Speaker 2: Right, Yeah, which is totally fine, But Dude, lately I
Speaker 2: feel like the Aldi coffee hasn't been cutting it for me. Recently,
Speaker 2: Kate brought home a pound of some local coffee. Well
Speaker 2: it's sold locally, but it's like it's an Ethiopium blend.
Speaker 1: Dude.
Speaker 2: It is so good, so much better than the cheaper
Speaker 2: stuff that I get at Aldi, that I'm not sure
Speaker 2: that we're gonna be able to go back and continue
Speaker 2: buying the cheap o Aldi beans. But the problem is
Speaker 2: is it costs more, and I don't know how. I
Speaker 2: don't know if our budget can absorb the increase in cost. Right, So,
Speaker 2: at Aldi is like four or five bucks for a pound.
Speaker 2: This new coffee costs ten bucks a pound. I'm looking
Speaker 2: to double the amount of money I'm spending on my coffee.
Speaker 2: How much so the stuff you buy at costco how
Speaker 2: much do you spend?
Speaker 1: I think, yeah, usually it's about a little over five
Speaker 1: bucks a pound. I think it's eleven dollars for a
Speaker 1: two pound back. And you like it, right, I mean
Speaker 1: it works well for y'all. Yeah, it's good. I don't
Speaker 1: have like high follute and taste when it comes to coffee.
Speaker 1: I like my coffee to be run of the mill average,
Speaker 1: Like I.
Speaker 2: Feel like that's what I've enjoyed up until now, but
Speaker 2: until I've had a taste of the good stuff. Once
Speaker 2: you taste it, yes, And now that we've kind of
Speaker 2: gone back to our standard all these stuff, I'm trying
Speaker 2: to decide whether or not it's worth it to me.
Speaker 2: And you know, this is one of those areas where
Speaker 2: I feel like, if I continue buying the cheap stuff,
Speaker 2: it's gonna feel cheap to me. And I can literally
Speaker 2: taste a huge difference between the Aldise stuff versus this
Speaker 2: nicer Ethiopian blend, and so I guess I'm mentioning it
Speaker 2: because I think we are going to just budget for it.
Speaker 1: We're gonna plan for.
Speaker 2: It because this is something that Kate and I are
Speaker 2: both appreciating. It's something that we can tell the difference.
Speaker 2: We appreciate the nicer stuff, and honestly, in the end,
Speaker 2: you know, we're looking at increasing our coffee budget by
Speaker 2: you know, five dollars a pound roughly. On one hand,
Speaker 2: it feels extravagant, But on the other hand, I'm like, Okay,
Speaker 2: this is not a big deal. Leave it to money
Speaker 2: nerds like us right to obsess over something so small.
Speaker 2: But I guess my question for you is as would
Speaker 2: you judge.
Speaker 1: Me for for effectively doubling my coffee budget? Not at all? Actually, yeah, no,
Speaker 1: I think you're you should totally go for me. You
Speaker 1: should spend a little bit more on this thing. And
Speaker 1: I think coffee is one of those things that in
Speaker 1: your life literally every day of the year, and if
Speaker 1: you can thoroughly enjoy your cup of coffee versus just
Speaker 1: kind of, yeah, mildly enjoying your cup of coffee in
Speaker 1: the morning, I think that extra what ten bucks a
Speaker 1: month in your budget, I'm sure you can find a
Speaker 1: way to cut back ten bucks in some other in
Speaker 1: some other part of your budget in order to be
Speaker 1: able to pay for a nicer coffee or find a
Speaker 1: way to earn ten extra dollars, you know, by giving
Speaker 1: a lift ride or something to somebody.
Speaker 2: Yeah, I guess I wanted to share that because I
Speaker 2: want folks to know, in a sense, I want to
Speaker 2: give individuals out their permission to spend money towards the
Speaker 2: things that truly like bring you joy or you know,
Speaker 2: bring you value. But just know that you can't spend
Speaker 2: money on every single thing out there, like you can't
Speaker 2: upgrade everything in your life. But in this case, I
Speaker 2: think we are going to spend a little bit more
Speaker 2: every month on coffee.
Speaker 1: Yeah, sometimes ignorance is bliss when it comes to see
Speaker 1: a budget.
Speaker 2: I wish I would have never had it, because I
Speaker 2: think I would have been totally fine with the Aldi coffee.
Speaker 1: That's the way I feel about the nicer new pizza
Speaker 1: joint We've been hitting up sometimes these days, and I
Speaker 1: truly love it, Like it's delicious, pizza, really good, it's
Speaker 1: really expensive, And now when I go back to the
Speaker 1: other neighborhood joint, I'm like, it's good, it's fine, the
Speaker 1: inferior pizza. Yeah, but I wouldn't have thought that before
Speaker 1: it until I tasted the super good sof's so true.
Speaker 1: It's kind of one of those things that happens every
Speaker 1: once in a while, and you you have to put
Speaker 1: blinders on, yeah, in order to stay the course, exactly
Speaker 1: like a horse in a race. But but I hope
Speaker 1: you enjoy your new coffee, my friend. Thanks man. But
Speaker 1: let's move on mention the beer that we're having on
Speaker 1: this episode. The reason we have a beer every episode
Speaker 1: is because that is a place we choose to put
Speaker 1: our money on purpose. We like craft beer a whole lot.
Speaker 1: The beer that we're drinking on today's episode is called
Speaker 1: raid X is by Halfway Crooks, which is a brewery
Speaker 1: in our neighborhood that we absolutely love. So looking forward
Speaker 1: to us to drinking this pilsner with you, man. Yeah
Speaker 1: all right, Well, let's move on to the subject at hand.
Speaker 1: We are asking the question is passive income a myth?
Speaker 1: On today's episode, and Matt, when we were kind of
Speaker 1: deciding how to tackle this topic, it made me think
Speaker 1: about relationships and I feel like I don't know why
Speaker 1: passive income and relationships they don't necessarily go hand in hand,
Speaker 1: like you and me. Yeah, well, I was thinking more
Speaker 1: about like a love relationship. I feel like the messaging
Speaker 1: that we often get is that finding the right one
Speaker 1: is the hard part. Right. Once you find the right
Speaker 1: one and settle down, you're good to go, and life
Speaker 1: is easy from there on out. Now that you've got
Speaker 1: that perfect partner, things are smooth for you in life.
Speaker 1: And when you find the person that you can truly
Speaker 1: be yourself with, it is a gift. Like I'm not
Speaker 1: trying to diminish true love. I think. I think it's
Speaker 1: really good, and I am in love with my wife,
Speaker 1: and I'm thankful for our relationship. But still, even when
Speaker 1: you make a lifelong commitment to someone else that fits
Speaker 1: you like a glove, it really does still take work
Speaker 1: to keep that leve alive and to stay deeply connected
Speaker 1: to one another. You know this, Matt, You've been married
Speaker 1: for what Yeah, dude, it'll be fourteen this year. Nice, Okay.
Speaker 1: And I feel like this is a great analogy for
Speaker 1: passive income, because passive income sounds so easy and similar
Speaker 1: to you know, a great relationship. It's not that passive
Speaker 1: income isn't a great thing. It is, but passive income
Speaker 1: also takes work. So yeah, in this episode, we're going
Speaker 1: to try and give an accurate definition of what passive
Speaker 1: income looks like and then the best avenues for pursuing it,
Speaker 1: and maybe, just maybe along the way, Matt, you're gonna
Speaker 1: sprinkle in some relationship advice. I feel like you've probably
Speaker 1: got a lot to offer on that front.
Speaker 2: Well, yeah, I mean relationships, like passive income requires a
Speaker 2: little tender love and care, right, But I don't Yeah,
Speaker 2: I don't have any tips. I will say Kate and
Speaker 2: I started dating when I was a senior and she
Speaker 2: was a freshman in college, and so all I'm saying
Speaker 2: is like, use the strengths that you have going for you.
Speaker 1: So obviously, Kate, like the older guys so worked out
Speaker 1: for me, and you know, when you know you found
Speaker 1: the right person, stick with it like you did. Yeah.
Speaker 2: Absolutely, man, I'm looking forward to I've already mentioned the
Speaker 2: show before fifteen years next year.
Speaker 1: I feel like that's going to be a huge milestone.
Speaker 2: Not to discount fourteen, but yeah, like in the same
Speaker 2: way that relationships, you know, continue to require that input
Speaker 2: and that attention. Almost all of the quote unquote passive
Speaker 2: income opportunities that we hear about. These are maybe the
Speaker 2: ones you know, getting all the views on social media.
Speaker 2: They also require a meaningful degree of work, and so
Speaker 2: a better term I think to use instead of passive
Speaker 2: income is probably leveraged income. You know, there are very
Speaker 2: few purely passive sources of income, and so that's why
Speaker 2: we are, you know, dispelling the myth that there's a
Speaker 2: source of passive income around every corner, right, Like, you
Speaker 2: aren't missing out on the passive income that everyone else
Speaker 2: is enjoying because it doesn't exist.
Speaker 1: Is that where you can go and sign up for
Speaker 1: free money?
Speaker 2: Most of these opportunities could probably be considered a side gig,
Speaker 2: or even a part time job, or even a full
Speaker 2: time job. We'll get to some of those scenarios later
Speaker 2: on in the episode.
Speaker 1: Yeah, I think sometimes when we're talking about passive income,
Speaker 1: there is that fomo. People are like, I feel like
Speaker 1: everybody's like making this passive income. I see it out
Speaker 1: there online, where's my passive income? And like so the
Speaker 1: golden ticket exactly. But a lot of what's considered passive
Speaker 1: income isn't necessarily passive. And I like what you said
Speaker 1: Matt about leverage income. I think it's a better way
Speaker 1: to think about it. You know, we'll continue to use
Speaker 1: the phrase passive income in this episode, but leverage is
Speaker 1: really an important part of this equation. To gain passive income,
Speaker 1: you're often putting in more time and effort now to
Speaker 1: reap greater rewards later on in your financial life. But
Speaker 1: the reason people are so desirous of generating passive income
Speaker 1: streams is that it's better to have your money working
Speaker 1: for you than to have to work for your money
Speaker 1: decade after decade after decade, right, sometimes five decades of work,
Speaker 1: and at some point you want passive income to kind
Speaker 1: of help carry some of that load. Making money while
Speaker 1: you're a sleep sounds pretty phenomenal, but generating regular income
Speaker 1: that doesn't come via a paycheck from your employer takes intentionality,
Speaker 1: takes sacrifice, and takes the ability to delay gratification.
Speaker 2: Yeah, it takes work, essentially as what you're saying, and
Speaker 2: sometimes the understanding that it takes effort to generate passive
Speaker 2: income that gets lost in the discussion about how to
Speaker 2: get there. To be able to make money without lifting
Speaker 2: a fingers in something that I've ever experienced, but often
Speaker 2: that is the passive income pitch that we hear. Even
Speaker 2: to make money, you know, based on what you know,
Speaker 2: like that takes a lot of dedication and getting that
Speaker 2: knowledge just in the first place. You know, it takes
Speaker 2: quite a bit of time to see any meaningful passive income.
Speaker 2: You're not going to build three passive income streams, you know,
Speaker 2: just in the course of a few days. Even just
Speaker 2: amassing the knowledge to know which routes to take like
Speaker 2: that alone can require a ton of reading, a ton
Speaker 2: of information gathering, and implementation of that knowledge doesn't happen
Speaker 2: quickly either.
Speaker 1: Yeah, so you mentioned that it takes time to see
Speaker 1: meaningful passive income. Yeah, it's not something that's done quickly,
Speaker 1: which is true. And also too, it takes trial and
Speaker 1: error on that front to see which passive income routes
Speaker 1: work well for you. You might think that one route is
Speaker 1: going to make sense, and you might decide, no, that's
Speaker 1: actually not in my wheelhouse. Check something else out. It
Speaker 1: also takes money to build up any sort of passive
Speaker 1: income stream. All of the different passive income streams that
Speaker 1: we're going to discuss today take varying amounts of money
Speaker 1: to get into. So, like the down payment on your
Speaker 1: first rental property. Well, that requires quite a bit of cash.
Speaker 1: Starting a blog though, isn't going to take nearly as
Speaker 1: much money to get going, of course, But to start
Speaker 1: earning income that flows while you sleep, it often takes
Speaker 1: money in addition to hard work. It takes a little
Speaker 1: bit of both, sometimes a lot of both, right.
Speaker 2: Yeah, yeah, And different sources of passive income are going
Speaker 2: to have varying degrees of time and work involved. Right
Speaker 2: At a very elementary level, passive income can literally, you know,
Speaker 2: be as simple as having money in a savings account
Speaker 2: and earning interest, although that's not going to earn.
Speaker 1: You much, especially these days, so yeah, exactly.
Speaker 2: But that method could you know, just take a few
Speaker 2: bucks and virtually none of your time.
Speaker 1: It's super simple, super easy.
Speaker 2: Or on the other hand, passive income could be as
Speaker 2: complex as building this massive business with you know, hundreds
Speaker 2: of employees that you eventually you are able to step
Speaker 2: away from. This is an example of a form of
Speaker 2: passive income that's going to take a lot of time
Speaker 2: and a lot of money. And of course, you know,
Speaker 2: there are different approaches to passive income all along the
Speaker 2: way in between those two extremes, and so we're going
Speaker 2: to cover some different methods of passive income that are
Speaker 2: going to kind of run the gamut between those two extremes.
Speaker 1: Yeah, so let's start kind of maybe on the easy
Speaker 1: end of the spectrum, and let's set the easy button
Speaker 1: and talk about one of the simplest ways to make
Speaker 1: passive income. And this one, I'm gonnadmit this first one
Speaker 1: that we're gonna throw out there. It's a little bit random.
Speaker 1: It's not one that you're going to see touted in
Speaker 1: most of the YouTube videos. But yeah, one way that
Speaker 1: you could make money is just using an asset that
Speaker 1: you already have. You can generate passive income by doing
Speaker 1: the actions that you're already doing, but doing them in
Speaker 1: a different way. And wrapping your car in an advertisement
Speaker 1: is actually the easiest way, I would say to do that.
Speaker 1: It's actually something Matt that I have done before personally
Speaker 1: done this, right, It's the easiest way I've ever made
Speaker 1: money doing the thing I was already doing. Right, So
Speaker 1: I had to have the car slightly embarrassing to your wife, Yeah,
Speaker 1: to my wife, not to me. I didn't care, but
Speaker 1: some people would be more embarrassed than others about it.
Speaker 1: I have no sense of shame, but yeah, I already
Speaker 1: had the car, and I was driving it already to
Speaker 1: work on some days and around town on other days,
Speaker 1: and so making money without having to really change up
Speaker 1: anything in my daily routine was pretty nice. It's a
Speaker 1: chill way to make some extra dough. And the company
Speaker 1: I went through was called Rapify, and they're still around.
Speaker 1: And I will say too, there are lots of scams
Speaker 1: when it comes to car wrapping, so you want to
Speaker 1: be careful which company you go with, but Rapify will
Speaker 1: link to it in the show notes. Is a legit
Speaker 1: one could be a good way for a lot of
Speaker 1: people to make hundreds of extra dollars every month literally
Speaker 1: by driving the miles they were already driving. So that's
Speaker 1: a cool way of making passive income without having to
Speaker 1: put in too much effort. Also, too, running out that
Speaker 1: car that you aren't using is another way to score
Speaker 1: a bit of passive income in your life. Cars are idle,
Speaker 1: Matt somewhere close to ninety five percent of the time,
Speaker 1: especially these days if we're working from home. A lot
Speaker 1: of us have been using our cars way less than
Speaker 1: we used to, and so why not turn that car
Speaker 1: that spening their idol into some passive income and you
Speaker 1: can do that at a site like Toro, where you
Speaker 1: can rent out your own car for other people to use,
Speaker 1: and you can make some decent money doing that.
Speaker 2: That's right, Yeah, that's super easy. Although I guess there's
Speaker 2: a difference between rapify and turo Right. With Touro, it
Speaker 2: does take a little more managing, you know, of your vehicle,
Speaker 2: making sure it's maintained, making sure it's in the right
Speaker 2: place at the right time.
Speaker 1: Right responding to people who are trying to book their
Speaker 1: car to.
Speaker 2: Yeah, exactly, whereas like truly rapify, I mean, you didn't
Speaker 2: change anything about about what you're doing except for having
Speaker 2: to go and get it wrapped and then taking it
Speaker 2: back there once the campaign was over.
Speaker 1: Yeah, right exactly.
Speaker 2: But yeah, similar to Toro, where you're renting out your
Speaker 2: vehicle that you are owned. Baby equip is another example
Speaker 2: of this, and you know we've mentioned this on the
Speaker 2: show before, but you can make money by renting out
Speaker 2: baby equipment that you already own that you aren't using.
Speaker 2: So if you've got like that extra pack and play
Speaker 2: sitting there in the closet, why not put it to use?
Speaker 2: So using assets that you already own more efficiently, that
Speaker 2: can be a really easy way to kind of generate
Speaker 2: some passive income. But we're going to talk about the
Speaker 2: pros and cons of other passive income methods, ones that
Speaker 2: have the potential to generate way more money, and what
Speaker 2: get those right after this break, all.
Speaker 1: Right, we're back. We're going to keep talking to you
Speaker 1: about passive income. And it's our goal to point you
Speaker 1: in the right direction for how you can make money
Speaker 1: on your money or on the items you already have,
Speaker 1: or with the skills that you already have, without selling
Speaker 1: you a bill of goods that isn't actually real. And so, Matt,
Speaker 1: let's talk about probably our favorite method of passive income.
Speaker 1: Investing in the market is one of the best ways
Speaker 1: for anyone to get started building up an eventual source
Speaker 1: of passive income in their lives. That's what saving for
Speaker 1: retirements all about, right, saving in your four oh one gay,
Speaker 1: your four h three B or your IRA. You know,
Speaker 1: some folks attempt to take a more active role when
Speaker 1: it comes to investing, picking individual stocks, making frequent trades.
Speaker 1: But that's really the opposite of passive income. That sounds
Speaker 1: like work, that sounds like you're having to figure out
Speaker 1: which company you think is going to perform well over
Speaker 1: the next six months, year, two years, and allocate your
Speaker 1: investments accordingly. But you and I, we actually pursue the
Speaker 1: truly passive dollar cost averaging buy and hold strategy that
Speaker 1: truly takes almost zero mental bandwidth. Like the time that
Speaker 1: it takes for us to invest is almost nothing. And
Speaker 1: I do appreciate that about investing in the market. But
Speaker 1: even if you're all about finding multiple ways to pursue
Speaker 1: passive income, like you want to get involved in some
Speaker 1: of the other things we're going to talk about on
Speaker 1: this episode today, investing in the market is one route
Speaker 1: that we believe that basically everyone should be participating in.
Speaker 1: It's one of the simplest methods to building a passive
Speaker 1: income stream that will fund decades of your future expenses
Speaker 1: later in life. Even if you start with just a
Speaker 1: really small portion of your income going in that direction,
Speaker 1: it doesn't take a whole lot of cash, but those
Speaker 1: little amounts of cash over a large number of years
Speaker 1: are going to have just this incredible impact in your
Speaker 1: ability to have passive income in your later years in life. Yeah,
Speaker 1: that's true.
Speaker 2: Yeah, investing your money in the market, it's really the
Speaker 2: only way to have a truly passive source of income.
Speaker 2: But you know, it does require a lot of money
Speaker 2: in order to eventually generate enough money in interest to
Speaker 2: live on.
Speaker 1: Right.
Speaker 2: So, for example, if you have the typical expenses of
Speaker 2: an average American, that means you have around sixty thousand
Speaker 2: dollars in expenses, right, And using some quick math, we
Speaker 2: know that by multiplying that amount by twenty five, you'll
Speaker 2: have a good idea of how much you'll need to
Speaker 2: have invested in order to live off that nest egg.
Speaker 2: And so in this example, if you multiply twenty five
Speaker 2: by sixty thousand, that leads to one point five million dollars.
Speaker 1: That is a lot of money.
Speaker 2: That sounds daunting, it is, dude, yeah, but that's why
Speaker 2: it often takes an entire working career in order to
Speaker 2: have enough saved to become financially independent. But it is
Speaker 2: easy in that it doesn't take much re search indexcelence,
Speaker 2: that's all you need to know. But it does take
Speaker 2: a long time to get there. But because it doesn't
Speaker 2: require much money upfront, and it's something that you can
Speaker 2: easily get into, and it doesn't require that specialized knowledge
Speaker 2: or time, it's something that everybody can take part in.
Speaker 1: Yeah, so investing in the market is almost like Rapify level,
Speaker 1: almost car wrapping level. Simple. It just takes the money
Speaker 1: and the dedication to continue putting that money in consistently. Yes,
Speaker 1: all right, let's talk about some other ways Matt, that
Speaker 1: people can make passive income in their lives. One of
Speaker 1: the ways that is often touted is affiliate marketing. It's
Speaker 1: supposed to be a fairly easy method, pretty huge online.
Speaker 1: You hear people talking about it. Yeah. Yeah, they're like, hey,
Speaker 1: start a blog and pop in some affiliate links and
Speaker 1: you're going to start developing passive income in no time,
Speaker 1: like overnight, right, And so, yeah, I think this is
Speaker 1: one of the things maybe that's over promised and anybody
Speaker 1: that's actually tried doing this realizes that it's much harder
Speaker 1: than it seems. Right. The way this works is that
Speaker 1: businesses will pay you a commission for sending costs roomers
Speaker 1: their way. A lot of different sites rely on affiliate
Speaker 1: marketing like they're getting sales when bloggers link to them
Speaker 1: and then you know, readers click through to make a purchase. Right.
Speaker 1: And while this is a legit way to make money
Speaker 1: starting a blog, finding your tribe of readers. You gotta
Speaker 1: have enough readers to actually make it make it worthwhile
Speaker 1: to actually get click throughs and see sales.
Speaker 2: Yeah, if it's just your mom clicking through, that's not
Speaker 2: going to generate enough income.
Speaker 1: Now that passive income might be like a dollar, you know,
Speaker 1: and that's not going to that's not going to do
Speaker 1: it for.
Speaker 2: You to say, hey, honey, let me just take you
Speaker 2: out to lunch, Like I'm not going to click the link.
Speaker 2: That's not even cover the hosting fees, right, So true, yeah,
Speaker 2: not worthwhile. But yeah, it's it's just not as easy
Speaker 2: as it sounds and as easy as some of the
Speaker 2: folks on YouTube make it sound. So Yeah, generating income
Speaker 2: online is much more complex and competition for page views
Speaker 2: is stiff online. You really have to learn a lot,
Speaker 2: develop a good niche online and then be able to
Speaker 2: actually attract the readers that are going to be able
Speaker 2: to support your endeavor.
Speaker 1: You say niche, I say niche. I know, I don't
Speaker 1: know which one I think. I go back and forth.
Speaker 2: Well, talk about writing a book, right, because self publishing
Speaker 2: a book is often another way to pursue passive income,
Speaker 2: and many times that blog that we just talked about
Speaker 2: that is used as a way to market that book.
Speaker 2: But just remember that getting the knowledge actively writing the book, marketing, touring,
Speaker 2: interviews associated with promoting your book. I don't know about you,
Speaker 2: but this all sounds like a lot of work to take.
Speaker 1: Does not sound like passive income.
Speaker 2: Does not sound like you're just kicking back in a
Speaker 2: hammock after having like come up with a good idea.
Speaker 2: And so you know, while it may not require a
Speaker 2: lot of money in order to publish a book or
Speaker 2: to get your blog going, it does take a fair
Speaker 2: amount of time on the front end in order to
Speaker 2: start realizing some of that income.
Speaker 1: Yeah, ask anybody who's ever self published a book. I've
Speaker 1: never heard anyone say that was simple, that was easy.
Speaker 1: And I crushed it. Like, it's not that you can't
Speaker 1: make money publishing a book. It's just that it's not
Speaker 1: really a form of passive income in our minds. It
Speaker 1: really truly is a form of work, and it's a
Speaker 1: form of like what we talked about earlier, leveraged work.
Speaker 1: Sometimes you can write a book and it can sell
Speaker 1: for years to come. You can make money for a
Speaker 1: long time on that book in all iightlihood, though for
Speaker 1: most people it's just not a lot of money that
Speaker 1: they're going to be making. True. And Matt, let's talk
Speaker 1: about podcasts here for a second. Let's get a little
Speaker 1: metal with it. That's another thing that people point to
Speaker 1: these days as a way to make passive income. Yeah,
Speaker 1: they're like, Joel and Matt do it. Why can't I?
Speaker 1: It's so simple, And they just keep back in their
Speaker 1: hammocks and so yeah, they're just sitting there drinking beer.
Speaker 1: I will be honest, which is true. If we can
Speaker 1: do it, then other people definitely can do it, because
Speaker 1: we're not the smartest guys in the world or maybe
Speaker 1: even in this room.
Speaker 2: There's not other people in this room, so I know
Speaker 2: there's nobody watching us. But it takes work, and that's
Speaker 2: what we're talking about here, right. But obviously podcast super
Speaker 2: popular these days, and a lot of people are churning
Speaker 2: out new shows like There's No Tomorrow. The amount of
Speaker 2: new podcasts on the scene has skyrocketed over the past
Speaker 2: few years. But just because you get an idea for
Speaker 2: a show doesn't mean that you'll be able to generate
Speaker 2: any income from it.
Speaker 1: Right. We just saw a recent stat Matt, twenty six
Speaker 1: percent of the two million podcasts that are available to
Speaker 1: listen to via Apple Podcasts, and then you know, through
Speaker 1: all the other podcasters, accordingly they only have a single episode,
Speaker 1: so one episode, one episode, and then there's a huge
Speaker 1: percentage that have fewer than ten episodes. So there's a
Speaker 1: lot of people that give it a shot, that put
Speaker 1: out a few episodes and try to see what sticks,
Speaker 1: but they don't find much traction in the beginning, and
Speaker 1: so they quit pretty quickly. So it's a really high
Speaker 1: number of folks who don't keep it up after they
Speaker 1: get started. And it's obviously a relatively cheap medium to
Speaker 1: get into. It's not that expensive to start a podcast,
Speaker 1: and I think we've talked about on the show. We
Speaker 1: literally have four hundred dollars worth of equipment. The hosting
Speaker 1: when we initially started out was like ten dollars a month.
Speaker 1: I think it was a free for the first three free, yeah,
Speaker 1: because we did enough. We didn't have enough content, yeah,
Speaker 1: or listeners and so yeah, and we still use the
Speaker 1: same equipment that we used back then exactly. Granted, the
Speaker 1: room is different and we you know, we have soundproofing
Speaker 1: and you know, ways to acoustically treat the space. But
Speaker 1: literally we are using the same microphones and the same
Speaker 1: little zoom recorder right here. It's true, it's kind of ridiculous.
Speaker 1: So yeah, obviously, yeah, people might hear that and be like, okay, cool,
Speaker 1: it's a few hundred bucks. I can get into it
Speaker 1: and start making money too, low overhead. But podcasts similar
Speaker 1: to you know, affiliate marketing with a blog or writing
Speaker 1: a book. It takes a lot of work to create
Speaker 1: something that people actually want to listen to and to
Speaker 1: reach the audience that you're trying to reach.
Speaker 2: Yeah, and of course, you know, the way that we
Speaker 2: generate income from the from the podcast are from the
Speaker 2: ads that you hear. But even with a super small
Speaker 2: listener base, it's it's now possible to make money, and
Speaker 2: you can do that via platforms like Anchor. Like literally
Speaker 2: on their website and I wrote this down, it says
Speaker 2: that you can quote unquote, create, distribute, and monetize your
Speaker 2: podcast all for free. Like it's crazy like it they
Speaker 2: almost make it sound like like because it says all
Speaker 2: for free. I think the trick is that they make
Speaker 2: you think that, oh, that first part even creating it,
Speaker 2: like that's going to be free, Like it's almost like
Speaker 2: it's automatic but no, like it does take hard work.
Speaker 2: And in addition to that, you know, some shows have
Speaker 2: gone the route of getting like support directly from listeners
Speaker 2: via sites like you know, Patreon. But again it's important
Speaker 2: to note that, you know, putting out great content consists,
Speaker 2: it's not easy, and it's hard to consider this business
Speaker 2: model as passive income. You know, it's it's it's literally
Speaker 2: our job.
Speaker 1: It's what we do.
Speaker 2: It's not something that we're uh, you know, doing without
Speaker 2: hardly even thinking about it.
Speaker 1: True, podcasting for us takes a lot of thought, uh
Speaker 1: and a lot of time. But let's talk about another
Speaker 1: another way that you could potentially make some passive income
Speaker 1: online and maybe let's see if this one is is
Speaker 1: a little bit better. Similar to running a side or
Speaker 1: a blog or self publishing a book or a podcast,
Speaker 1: there are plenty of other platforms out there that allow
Speaker 1: for you to create a course online that you can sell,
Speaker 1: and platforms like you to me and Coursera are specifically
Speaker 1: there for you to be able to upload some of
Speaker 1: those courses and make some side money. You upload that
Speaker 1: course once and hopefully those residual passive income dollars just
Speaker 1: keep flowing your way. Right, Let me see those royalties. Yeah,
Speaker 1: royalties sounds so nice, sounds good because it's royalty's it
Speaker 1: makes you think that like, oh no, no, that's just money.
Speaker 2: That's it's nothing beyond just money. But because it's called royalties,
Speaker 2: it has this the peel. It makes me feel like
Speaker 2: I'm a king or something. Yeah, exactly, at least to Prince.
Speaker 1: Yeah, it makes me want to write some sort of
Speaker 1: like hip hop song or something like that for Taylor
Speaker 1: Swift and then you know, collect some of those royalties.
Speaker 1: But you should, Okay, I can see you're performing a
Speaker 1: song that you wrote. I have never written a song before,
Speaker 1: but maybe I'll give it a gout. See if I
Speaker 1: can get that passive income from royalties. But let's get
Speaker 1: back to online courses, and it is fascinating to see
Speaker 1: people who are able to monetize their unique wisdom, insight,
Speaker 1: their personality, or even their basic but practical knowledge. We
Speaker 1: all have access to so much incredible knowledge these days
Speaker 1: that we previously couldn't access without paying money to go
Speaker 1: to college or spending years getting advanced degrees, and online
Speaker 1: courses have made that more of a reality. Like what
Speaker 1: we can learn now for free is just incredible but
Speaker 1: people are getting paid in order to disseminate that information.
Speaker 1: And so yeah, it's cool to see that some people
Speaker 1: are making passive ages in that way.
Speaker 2: And I mean, it's no wonder that folks are willing
Speaker 2: to pay for that because you get to learn about
Speaker 2: something completely niche, like I like to say niche.
Speaker 1: For very little money.
Speaker 2: Who spend five or twenty bucks to learn how to
Speaker 2: do something completely unique?
Speaker 1: I still want to take that Aaron Franklin barbecue master
Speaker 1: class that's gonna happen. One of these masterclass that's a
Speaker 1: bit more. It does cost a little more. Yeah, we'd
Speaker 1: have to go in and split that one, buddy. Yeah.
Speaker 2: And you know, when it comes online courses, the argument
Speaker 2: goes something like that of writing your own book. Right,
Speaker 2: Just figure out what you want to teach or what
Speaker 2: it is that you want to communicate to others once
Speaker 2: and then you can kick back while the profits start
Speaker 2: showing up.
Speaker 1: The royalties and the royalties.
Speaker 2: If feels that easy, then everybody would be doing it.
Speaker 2: And so you realize that it could take years of work,
Speaker 2: years of research and planning before you're able to have
Speaker 2: a product that that folks are going to be willing
Speaker 2: to pay for and so you know, while these knowledge
Speaker 2: based methods of passive income don't require much money to
Speaker 2: get things off the ground, they're going to take a
Speaker 2: lot more time and energy before they can be considered
Speaker 2: passive income. It's making me realize too, Joe, Like, I mean,
Speaker 2: all of these things that we've that we're talking about
Speaker 2: here are different platforms that are that have very low
Speaker 2: bars of entry, right that they make it really convenient
Speaker 2: for you to get plugged in and you're trying the
Speaker 2: thing out, but they don't do the work for you.
Speaker 2: They make getting started easy, but they don't necessarily make
Speaker 2: being successful easy, Like you still have to put in
Speaker 2: the hard work. They get their foot in the door,
Speaker 2: and then the rest it's still up to you. And
Speaker 2: I think that's why, for instance, with podcasts low barrier
Speaker 2: to entry, you're going to see a lot of podcasts
Speaker 2: that have only one episode. There're gonna be a lot
Speaker 2: of people who are who have an account on Uber
Speaker 2: because they tried it out being a driver once. It's
Speaker 2: very easy to try it out once, but beyond that,
Speaker 2: it's up to you to follow through and to put
Speaker 2: in that hard work.
Speaker 1: Yeah, man, I love what you said too about how
Speaker 1: it might take years to become viable and to make
Speaker 1: one of these products sticky to where you can actually
Speaker 1: make money from it. And I think that's true. I
Speaker 1: think there's a big learning curve to a lot of
Speaker 1: these platforms, even though they are super simple to get started.
Speaker 1: Like what you put together, what you package, what you
Speaker 1: offer to the world, that's the thing that takes time
Speaker 1: to craft and to grow your knowledge base to where
Speaker 1: people actually want to tune in and check out what
Speaker 1: you're putting out there into the world. So, if all
Speaker 1: the ones we've covered so far, investing in the stock
Speaker 1: market is the easiest route to passive income, although it
Speaker 1: takes a while. But there are other ways, including we
Speaker 1: got to talk about real estate, Matt, because that is
Speaker 1: one of the most effective routes to building up passive income.
Speaker 1: We'll get to that and more right after this break.
Speaker 2: All right, we are back from the break in Joel
Speaker 2: up until now. You know, the examples that we've covered
Speaker 2: are pretty easy to get started. They mostly require a
Speaker 2: little bit of money and a good amount of work,
Speaker 2: you know, and luckily a lot of those platforms make
Speaker 2: it easier to kind of get plugged in and to
Speaker 2: get started but let's crank things up a little bit.
Speaker 2: If you're really looking to increase your income, specifically your
Speaker 2: passive income, getting into rental real estate is an example
Speaker 2: that will take quite a bit of upfront work. Right, Like,
Speaker 2: every real estate investor I know makes a good rookie
Speaker 2: mistake here there, or even twenty or so.
Speaker 1: We've all anybody who's gotten into real estate has made
Speaker 1: some mistakes, and they cost you money and time and
Speaker 1: a lot of like some headache care pulling.
Speaker 2: But eventually, right, over time, rental properties can become one
Speaker 2: of the best ways to earn residual, mostly passive income.
Speaker 2: I know, I'm happy with my hourly rates as a
Speaker 2: real estate investor. In particular, though, to make real estate
Speaker 2: truly passive over time involves acquiring a handful of properties
Speaker 2: and getting to the point where you can turn them
Speaker 2: over to a property management company. That at that point
Speaker 2: is when it becomes purely passive.
Speaker 1: Yeah, you and I were mom and pop landlords, and
Speaker 1: we still manage our own properties, and so there is
Speaker 1: work involved when it comes to that. But I will
Speaker 1: say it is more passive if we're talking about a
Speaker 1: scale of passivity, which which you kind of mentioned at
Speaker 1: the beginning of the episode. It is more passive than
Speaker 1: almost any other way that I make money at this
Speaker 1: sort time besides the stock market. And so I think
Speaker 1: real estate is a good way to make passive income
Speaker 1: over time. But like you said, yeah, the way to
Speaker 1: make it the most passive is to have somebody else
Speaker 1: manage that property for you. That eats into the profits though.
Speaker 1: That's right.
Speaker 2: Well, And like you said, though you say, anytime you
Speaker 2: see mom and pop landlords or real estate investors, it
Speaker 2: makes me think of like an old farmer, like pulling
Speaker 2: up to the house with like a straw hat and
Speaker 2: a like old beat up pickup truck. I like to
Speaker 2: I don't know, I don't know why it makes me
Speaker 2: think that, but I like to have my corn cob
Speaker 2: pipe in my mouth when I, you know, run by
Speaker 2: my my property to check it out.
Speaker 1: Neither you or I have pickup trucks. I'll say that
Speaker 1: true thought.
Speaker 2: I would love to have, like as just an old small,
Speaker 2: like little Toyota pickup truck, just to be able to
Speaker 2: throw stuff in the back.
Speaker 1: Oh, dude, I would love that. They're prettyweet. Dude. Yeah,
Speaker 1: I kind of still want a Ribbean electric pickup truck.
Speaker 2: One of these days, like the opposite a small toyo
Speaker 2: a pickup truck you want.
Speaker 1: Like like literally the fanciest, most expensive one they make
Speaker 1: that are also the sweetest looking trucks. Cyber truck can
Speaker 1: eat it. Yeah, so maybe like maybe ten years from now,
Speaker 1: I'll be able to afford one of those. Maybe so
Speaker 1: yeah so So. Getting into real estate is also difficult though,
Speaker 1: because it typically requires a pretty large sum of cash.
Speaker 1: That I need is a down payment, right, So there's
Speaker 1: more of a barrier to entry for that because it
Speaker 1: can take years to save up that down payment in
Speaker 1: order to buy your first rental property. There are other
Speaker 1: ways to go about it, Matt, We've talked about this before.
Speaker 1: Living in a property and then buying another property to
Speaker 1: live in and then renting out that first house makes
Speaker 1: it a little bit easier at least, But yeah, that's
Speaker 1: something that you need to consider. It takes sacrifice right
Speaker 1: as you cut back and work to save up enough
Speaker 1: money to buy that first house though. That's part of
Speaker 1: the reason I think why a lot of people look
Speaker 1: to airbnb as an easier method to trying out rental properties,
Speaker 1: and it definitely can be a great way to get
Speaker 1: a taste. Yeah, but when you decide to rent out
Speaker 1: a room in your home or even buy another place
Speaker 1: to list on Airbnb, it's more of a hospitality play
Speaker 1: than just a purely real estate investing play. Your part
Speaker 1: real estate investor and part hotel manager when you start
Speaker 1: hosting on Airbnb. That being said, there are systems that
Speaker 1: you can put in place that can make your Airbnb
Speaker 1: listings function more like passive income, and we talked about
Speaker 1: that more on episode two fifty three with Ziona McIntyre
Speaker 1: who has literally made her living owning properties and ding
Speaker 1: them out on air and b helping other people do
Speaker 1: the same thing. It's amazing it's what she does now. Yeah,
Speaker 1: she's turned it into a career. But I will say, yeah,
Speaker 1: a lot of that income is passive, but some of
Speaker 1: that income is very active on her part. But Airbnb
Speaker 1: is definitely something that's worthwhile to consider if you're looking
Speaker 1: to generate more passive income in your life and to
Speaker 1: use again, like we talked about earlier, some of the
Speaker 1: assets that you already have on hand. If you have
Speaker 1: a house and you have a room that you could
Speaker 1: run out, or you have a basement that you could outfit,
Speaker 1: make it a little bit nice and rent that out
Speaker 1: on a nightly basis. You can make some real returns
Speaker 1: doing that, that's right, man.
Speaker 2: Yeah, And so as we kind of graduate too higher
Speaker 2: levels of difficulty, let's talk about starting.
Speaker 1: Your own business.
Speaker 2: That's the Starting your own business is probably going to
Speaker 2: be the most difficult way to generate passive income. You know,
Speaker 2: it's often going to be the most risky, as creating
Speaker 2: your own thing from scratch will will require the most
Speaker 2: time and the most money, but it also has the
Speaker 2: upside to potentially generating the most income. And you know,
Speaker 2: I think that's also a fair trade. You know, like
Speaker 2: there's actually no risk involved, say with earning interest from
Speaker 2: your money in a savings account.
Speaker 1: But there's also virtually no reward. It's appropriate that those
Speaker 1: who are committing the most time and the most money
Speaker 1: towards something that isn't necessarily proven, that they have the
Speaker 1: potential to realize that the biggest profits the biggest rewards. Yeah,
Speaker 1: we have talked about that. There are ways to start
Speaker 1: your own business with even less money, but still you're
Speaker 1: going to require a ton of time to start any
Speaker 1: business that you're looking to launch. But for a lot
Speaker 1: of businesses, we're talking about both. And yeah, while we
Speaker 1: don't see owning your own business as a way to
Speaker 1: earn passive income, because like we said, it's going to
Speaker 1: take a lot of energy on your part, it is
Speaker 1: a method to generate income by trading time for money,
Speaker 1: which is what a lot of us have to do
Speaker 1: for a lot of our lives. But if we do
Speaker 1: it well with good planning, you can eventually step back
Speaker 1: from the day to day operations of that business and
Speaker 1: you can turn it into an avenue that produces income
Speaker 1: without you having to commit to working on that business
Speaker 1: every day, right, and maybe even depending on what kind
Speaker 1: of business you start, you can potentially even sell that
Speaker 1: business someday in the future, or sell part of the ownership,
Speaker 1: or hire someone to do the day to day managing
Speaker 1: while you take more of a back seat role. I mean,
Speaker 1: there are all these ways when you start a business
Speaker 1: that you can use it to generate income for a
Speaker 1: whole lot of years and then find ways to kind
Speaker 1: of pull back in order to make that business income
Speaker 1: a little more passive than active. Matt. It makes me
Speaker 1: think of a friend I have much older friend, and
Speaker 1: he had his own business that he ran four years.
Speaker 1: He and his wife, and they cleaned houses and they
Speaker 1: did great work. They built up a large list of
Speaker 1: clients in the town where that they served. But eventually
Speaker 1: he wanted to retire. And it's not that that business
Speaker 1: had to fold just go away completely. He not only
Speaker 1: made money for all of those years running that business,
Speaker 1: but that business was worth a lot at the end
Speaker 1: of the day, so he was able to sell that
Speaker 1: business to someone else. And that points a finger to
Speaker 1: the fact that you can eventually score pass income based
Speaker 1: on the business you built, and.
Speaker 2: At the same time doesn't have to be a super
Speaker 2: sexy tech startup you know exactly something you know where
Speaker 2: you're just offering a service to folks, did one other thing,
Speaker 2: you know. One of the myths about passive income I
Speaker 2: think is that if you get your fingers in enough
Speaker 2: money making ventures that you'll essentially be getting paid in
Speaker 2: enough different ways that if one of your businesses maybe
Speaker 2: isn't doing so hot, you're still going to do okay financially, right,
Speaker 2: But oftentimes I think you might be spreading yourself too
Speaker 2: thin and you won't make enough money if you're kind
Speaker 2: of going this, you know, jack of all trades route
Speaker 2: to generating multiple streams of income. Now being said, there's
Speaker 2: nothing wrong with trying out some different approaches and seeing
Speaker 2: what works for you, but you know, just don't forego
Speaker 2: diving deep when when times get a little rough, you know,
Speaker 2: when you don't immediately start making money, don't immediately try
Speaker 2: to hit the easy button and kind of switch over
Speaker 2: to the next opportunity where you think it's going to
Speaker 2: be easier.
Speaker 1: It does require work.
Speaker 2: And again, this is one of the reasons that I
Speaker 2: feel like the platforms, the different apps, the different you
Speaker 2: know sites where you can log on, create an account,
Speaker 2: offer a course, or start publishing a podcast. I feel
Speaker 2: like that they almost do a disservice to people digging
Speaker 2: in deep to whatever it is that they are pursuing,
Speaker 2: almost as if they're making it too easy for folks
Speaker 2: to try things out and they kind of.
Speaker 1: Give up maybe a little too easily.
Speaker 2: I like it because it gives a lot of folks
Speaker 2: a taste of it, but at the same time, it's
Speaker 2: sort of I almost see it as a negative because
Speaker 2: it's kind of like, well, that didn't work out, well,
Speaker 2: this didn't work out, and it sort of, I don't know,
Speaker 2: it creates this perpetual like hopping from one thing to
Speaker 2: the other and in search of a golden goose, something
Speaker 2: that's going to be able to significantly provide them with
Speaker 2: some income.
Speaker 1: Yeah, if you just create one podcast episode, throw it
Speaker 1: up there and you hope to see that the passive
Speaker 1: income rolling in, that's just not how it works, right.
Speaker 1: That is truly the myth behind passive income. It really
Speaker 1: does take a lot of work. So you really have
Speaker 1: to go into your pursuit of passive income with eyes
Speaker 1: wide open, knowing that it'll take real effort to establish
Speaker 1: something that you can benefit from for years to come.
Speaker 1: It's the opposite of strike it rich quick. Ultimately, the
Speaker 1: truth about passive income is that it's never one hundred
Speaker 1: percent passive except for investing in the markets regularly via
Speaker 1: your paycheck or ach from your bank account to an IRA.
Speaker 1: But it is possible to work harder now in order
Speaker 1: to gain and share your knowledge with others by creating
Speaker 1: content that they're willing to pay for, or to study
Speaker 1: your local real estate market and save up enough to
Speaker 1: purchase that first rental property, or even to identify a
Speaker 1: need in the market where you can step in and
Speaker 1: fill the gap with your service or product with the
Speaker 1: business that you create, money will always flow to creative
Speaker 1: problem solvers. So leverage your hard work now and it'll
Speaker 1: pay dividends as steady income for years to come, and
Speaker 1: that we would say is worth pursuing. That's where the
Speaker 1: reality of passive income can actually be realized in all
Speaker 1: of our lives. Right. I think we need to maybe
Speaker 1: avoid some of the clickbait headlines and videos that we
Speaker 1: see and realize that passive income, it's not a myth,
Speaker 1: but it is much harder to achieve than a lot
Speaker 1: of people out there want you to think that.
Speaker 2: It is one hundred percent true. Dude, All right, let's
Speaker 2: shift gears. Let's get back to our beer. On this episode,
Speaker 2: you and I we enjoyed. We each enjoyed a Ratix,
Speaker 2: which is a German style pilsner from the folks over
Speaker 2: at Halfway Crooks here in Atlanta. Dude, what were your
Speaker 2: thoughts on this beer?
Speaker 1: So I always thought that I didn't really like pilsners
Speaker 1: very much. I think it was because the only pilsners
Speaker 1: I'd ever had in my life were the giant macro brewers. Yep, right,
Speaker 1: Like had my fair share of high lives and PBRs
Speaker 1: back in the day, and yeah, they were fine, Like
Speaker 1: I didn't mind drinking them at a show, you know,
Speaker 1: at a concert. They were fine for the times. Yeah,
Speaker 1: but I didn't realize that I actually like pilsners. A
Speaker 1: Kraft pilsner can actually be really tasty. Yes, and Halfway
Speaker 1: Crooks did an awesome job on this one. It's super clean,
Speaker 1: super delicious. This is actually the exact kind of beer
Speaker 1: I want while I'm sitting on my porch on a
Speaker 1: fine summer say, oh yeah, dude. Yeah, as we poured it.
Speaker 2: It's got a nice golden color to it with a
Speaker 2: nice fluffy head, which kind of gets me to the flavor.
Speaker 2: I feel like it almost drinks like a like a
Speaker 2: kind of fluff light biscuity.
Speaker 1: Ye, kind of like.
Speaker 2: Flavor profile going on really delicious. While at the same time, though,
Speaker 2: because it is kind of a local craft brewery who's
Speaker 2: making this, it doesn't have that metallicky just old stanky
Speaker 2: pilsner flavor that we associate.
Speaker 1: With Metallo is the exact best way to put it. Yeah,
Speaker 1: with like the Macro.
Speaker 2: Beers, yes, like you can expect that at this one
Speaker 2: as we have that and this one like it's got
Speaker 2: all those biscuity flavors going on, but at the same time,
Speaker 2: it's still really fresh and kind of kind of green tasting.
Speaker 2: I'm glad you and I got to enjoy one of
Speaker 2: these today, and dude, that's gonna be it for this episode.
Speaker 2: Listeners can find our show notes up on our website
Speaker 2: at howdomoney dot com. Will make sure to link to
Speaker 2: any of the previous episodes we've referenced or any of
Speaker 2: the resources as well.
Speaker 1: Yeah, if you're new around these parts, don't forget to
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Speaker 1: and we'd love to have you on board as a
Speaker 1: part of the how to Money community. So all right, Matt,
Speaker 1: that's going to do it for this episode. Until next time,
Speaker 1: best Friends Out, Best Friends Out.
Speaker 2: The