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Speaker 1: Welcome to How the Money. I'm Joel and I am

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Speaker 1: Matt and today we're talking financial independence at twenty seven

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Speaker 1: with passive income with Rachel Richards. Since yesterday was the

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Speaker 1: fourth of July, we wanted to talk about financial independence

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Speaker 1: with someone who has achieved it, and she did so

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Speaker 1: at the young age of seven. Rachel Richards is a

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Speaker 1: former financial advisor. She's a real estate investor with almost

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Speaker 1: forty rental units, and she's the bestselling author of Money Honey.

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Speaker 1: She also has written Passive Income, Aggressive Retirement, which will

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Speaker 1: be covering today as we discussed the lessons that Rachel

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Speaker 1: has learned on her way to financial independence. Rachel has

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Speaker 1: quit her nine of five job and she nels off

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Speaker 1: of over fifteen thousand dollars a month in passive income

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Speaker 1: and she spends her time out just doing whatever she

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Speaker 1: feels like, whether that's traveling the world with her husband,

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Speaker 1: hiking the Rockies with her dog, or even talking to

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Speaker 1: two money nerds here in Atlanta. Uh So, Rachel, thank

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Speaker 1: you for joining us today on the podcast. Yes, thank

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Speaker 1: you guys both so much for having me. I'm excited.

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Speaker 1: We're excited to Rachel. This is gonna be a lot

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Speaker 1: of fun and uh yeah, our first question to everybody

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Speaker 1: who comes on the show. Matt and I, as all

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Speaker 1: of our listeners know, we really like beer. Craft beer

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Speaker 1: in particular, and so is something that we we support.

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Speaker 1: John Now we buy more expensive beers because that's something

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Speaker 1: we really enjoy while we're trying to save and invest

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Speaker 1: well for our future. So yeah, we want to know

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Speaker 1: from you, what's your craft beer equivalent. My craft beer

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Speaker 1: equivalent is definitely outdoor gear and hiking gear and ski passes. Yeah,

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Speaker 1: especially when we lived in Colorado, ari E I was

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Speaker 1: like my vice. So we spent a lot of money.

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Speaker 1: Now to be I would say I justified it because

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Speaker 1: a lot of the equipment we bought was for safety reasons.

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Speaker 1: So that's my justification for buying what we bought. Talking

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Speaker 1: like like bear spray or what are you talking about

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Speaker 1: bear spray? You know, like communicator for when of going hikes.

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Speaker 1: I was just joking, but you're serious. You're like getting

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Speaker 1: the mode out there in the wilderness. Yeah, in the

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Speaker 1: Colorado Rockies. Yeah, you gotta have all that stuff. That

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Speaker 1: is awesome. Yeah, I feel like I could totally I

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Speaker 1: could see myself go in that direction. Uh, the ari

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Speaker 1: I member annual membership totally worth it. Have you Have

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Speaker 1: you ever gotten anything from back Country as well? I

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Speaker 1: feel like they're one of these new online retailers that

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Speaker 1: have like for making their own stuff, sort of like

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Speaker 1: ari I does. But that's cool. No, I haven't yet,

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Speaker 1: but I'm about to go on a rafting trip and

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Speaker 1: I have to get more stuff for that. I say,

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Speaker 1: I have to, and I'm laughing because I probably don't,

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Speaker 1: but but I will nicely check them out. But yeah,

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Speaker 1: we wanted to talk about your story, Rachel. You know,

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Speaker 1: you retired at twenty seven, and so you must have

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Speaker 1: inherited a ton of money, right, Obviously we know you didn't,

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Speaker 1: but yeah, when did you start to get interested in making,

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Speaker 1: you know, more money? And how did you get interested

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Speaker 1: in investing? Yeah, it really started at a pretty young age.

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Speaker 1: I grew up in a very wealthy county um in elementary,

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Speaker 1: middle high school, and so my family was definitely not

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Speaker 1: living in poverty or like poor by any means, but

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Speaker 1: I always felt that way just compared to the people

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Speaker 1: that went to my middle school and high school. So,

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Speaker 1: for example, a lot of the kids in my high

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Speaker 1: school got brand new BMW's when they turned sixteen, my

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Speaker 1: family was Yeah, we were not operating that way. I mean,

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Speaker 1: we weren't going out to eat at restaurants, let alone

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Speaker 1: going on a family trip or driving a new car.

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Speaker 1: So I felt like I didn't fit in at a

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Speaker 1: young age, and that's not the way you want to

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Speaker 1: feel in middle school and in high school. And I

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Speaker 1: remember thinking to myself at a pretty young age that

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Speaker 1: I didn't want to end up like everyone else struggling

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Speaker 1: with money. I didn't want to have to operate on

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Speaker 1: a strict budget or borrow money from family and friends

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Speaker 1: to make it to my next paycheck. I wanted to

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Speaker 1: be different. And I realized that what I did then

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Speaker 1: could either set me up for wealth or for poverty.

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Speaker 1: So I became very interested at a young age in

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Speaker 1: financial independence, learning everything I could about money management and

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Speaker 1: investing in the stock market. And I first read Rich Dad,

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Speaker 1: Poor Dad in high school. That was my initial introduction

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Speaker 1: to real estate investing, and I knew right then that

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Speaker 1: that was going to be my path to financial independence.

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Speaker 1: I gotta say, you're what happens sometimes in those early

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Speaker 1: years has just this major impact on the course of

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Speaker 1: our life. Um. I think a lot of us can

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Speaker 1: look back and we can say, actually, when I was

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Speaker 1: in middle school, that was the big impact on how

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Speaker 1: I be money and how I operate with money today.

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Speaker 1: So it's interesting to hear kind of get that that

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Speaker 1: backstory and hustle. Also to Rachel, is this big part

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Speaker 1: of your story? You didn't you get through college without

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Speaker 1: taking on any debt by like a door to door

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Speaker 1: selling knives something like that. Yes, I did. Yeah, I

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Speaker 1: had a lot of fear. So growing up, you know,

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Speaker 1: I had these limiting beliefs money is a stress or

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Speaker 1: there's never enough money, and therefore I had a lot

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Speaker 1: of fears about not having an of money. And they

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Speaker 1: say fear can either paralyze you or motivate you. Luckily,

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Speaker 1: for me, it was a huge motivator. So when I

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Speaker 1: graduated from high school, I was scared about going to

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Speaker 1: college and taking out all these student loans because I

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Speaker 1: knew how crippling it could be for people. So I

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Speaker 1: went to this interview for cut Co Cutlery, and I

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Speaker 1: was so intrigued because this is the first time I've

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Speaker 1: been exposed to something where the harder you work, the

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Speaker 1: more money you make. And I knew one thing for sure,

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Speaker 1: which is that I could outwork anybody, So I sold

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Speaker 1: cut com. My mom was less than thrilled about me

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Speaker 1: selling sharp objects to our family and friends, but regardless,

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Speaker 1: I sold cut Co and I paid my way through

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Speaker 1: school and I graduated at age twenty totally debt free.

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Speaker 1: That's awesome. What did you learn by the way doing that?

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Speaker 1: Because I mean, you have to learn, like some sales technique,

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Speaker 1: there's just a lot involved in being, you know, in

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Speaker 1: selling something like that. And also too, did you like

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Speaker 1: ruin any friendships or like, you know, upset any family

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Speaker 1: members along the way, because sometimes you gotta get a

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Speaker 1: little pushy if you're gonna do well with that. I know,

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Speaker 1: not that I know, but I'm sure people were annoying

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Speaker 1: at the time, but thankfully she's moved on from them.

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Speaker 1: What's interesting is that I think I learned more selling

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Speaker 1: cut Code than I did getting my financial economics degree.

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Speaker 1: It's something that has provided me skills that I even

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Speaker 1: used today. So you know, things like selling an overcoming

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Speaker 1: rejection and how to close and how to ask for

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Speaker 1: things confidently, and even things like public speaking and presentation

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Speaker 1: skills because I went through their management training, so I

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Speaker 1: learned all of these other skills that are much needed

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Speaker 1: in the real world. So it's definitely one of the

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Speaker 1: most valuable experiences I've ever had. Yeah, yeah, hustling making

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Speaker 1: more money, that's a big part of doing smart things

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Speaker 1: with your money. But spending less is also kind of

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Speaker 1: the other side of the equation, right, And here on

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Speaker 1: the show, we we actually have this recurring segment that

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Speaker 1: we call frugal or cheap, And there's there's a fine

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Speaker 1: balance between the two, right, between being cheap but you know,

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Speaker 1: trying to be frugal, and so have your attempts at

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Speaker 1: frugality ever ever crossed that line of frugality and where

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Speaker 1: you've kind of ventured into those cheap waters cheap skate

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Speaker 1: Oh my gosh. Yes, I'm glad you guys asked, because

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Speaker 1: I talked about this all the time. Yes, there's a

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Speaker 1: difference between being cheap and being frugal. And I think

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Speaker 1: that anything, when taken too an extreme, can be unhealthy

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Speaker 1: or can have negative consequences. Right, Spending too much is

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Speaker 1: most people's problem when it comes to money that has

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Speaker 1: unfortunate consequences, But also being too frugal can end up

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Speaker 1: costing you more money in the long run. And one

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Speaker 1: example of this. I know we're going to talk about

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Speaker 1: real estate investing later, But when we first went to

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Speaker 1: hire our property managers, we decided to go the cheap route.

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Speaker 1: So instead of hiring a professional property management company, we

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Speaker 1: hired these um this couple that I've been working for

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Speaker 1: us cleaning, doing maintenance. They were always working really hard

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Speaker 1: and always went above and beyond, so we thought, well,

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Speaker 1: why don't we hire them as employees and we'll teach

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Speaker 1: them how to manage our properties. So we did that

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Speaker 1: and it started off great. But about six months into

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Speaker 1: the fact, my husband went to collect rent from our

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Speaker 1: on site log boxes one weekend and he realized there

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Speaker 1: was a lot of rent missing. And this was not

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Speaker 1: just the normal tenant paying late. It was a significant chunk.

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Speaker 1: So we found out that they have stolen six thousand

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Speaker 1: dollars in rent income that month and they've been squatting

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Speaker 1: in vacant rooms and units in our buildings for almost

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Speaker 1: a year. So that was awful at the time. We

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Speaker 1: can laugh about it now, but it was awful. It

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Speaker 1: was a huge eye opener for us. And the moral

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Speaker 1: of the story is there are certain places that you

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Speaker 1: just you don't be cheap there If we had hired

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Speaker 1: a qualified, bonded, licensed professional property management company and one

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Speaker 1: of their employees did that to us, they would have

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Speaker 1: been liable for the damages, not us. So that I

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Speaker 1: feel like, you, guys, this is a lesson I've had

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Speaker 1: to learn over and over again because my tendency is

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Speaker 1: to be frugal, So I'm always thinking, Okay, wait a second,

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Speaker 1: is this really the best choice long run to go

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Speaker 1: this route, or that I spend a little bit more

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Speaker 1: on the higher quality person. I feel like in the

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Speaker 1: beginning too, of real estate investing, you you have to

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Speaker 1: make more of those choices, because really, to make the

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Speaker 1: numbers work and to kind of learn the ropes, you

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Speaker 1: want to do some t i y stuff, and you

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Speaker 1: you have to cut some of those corners in order

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Speaker 1: to save up the money to buy that next rental

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Speaker 1: property to get to kind of critical mass, and so

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Speaker 1: it can be tough, tough to make those decisions. I

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Speaker 1: was like literally just talking to someone the other day

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Speaker 1: and recounting a story of hiring my own roofer and

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Speaker 1: uh to put to put on a roof, and and

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Speaker 1: he was like, this guy's an architect and a general contractor,

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Speaker 1: and he was like, man, nobody does it that cheap.

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Speaker 1: The only reason he did it that cheap is because

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Speaker 1: he's not insured. And I'm like, oh, good point, Like

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Speaker 1: that could have really come back to bite me hiring someone.

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Speaker 1: He did a great job. Fortunately everything worked out, but

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Speaker 1: things don't always work out, And yeah, so that's that's

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Speaker 1: definitely good to point out. And it's tough to know

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Speaker 1: that line sometimes, isn't it. Yeah, it's a hard balance.

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Speaker 1: I think sometimes you only even recognize it in hindsight.

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Speaker 1: So it's tough. But I think and more that you

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Speaker 1: learn about yourself and kind of maybe the past mistakes

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Speaker 1: you made with being too cheap, the better you'll be

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Speaker 1: going forward. That's true. Yeah, so we're talking about being frugal, Rachel,

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Speaker 1: you also make a case for being more frugal with

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Speaker 1: your time, with our time, Can you explain to our

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Speaker 1: listeners what you mean by that? What does it mean

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Speaker 1: to be frugal with your time? Yes, absolutely, I like

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Speaker 1: to be I like to talk about being frugal with

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Speaker 1: all of your resources. Oftentimes we're focused on being frugal

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Speaker 1: with only our money, but at what costs in terms

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Speaker 1: of our time. So, for example, there's a lot of

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Speaker 1: people that will drive miles out of their way to

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Speaker 1: save a few cents per gallon on gas. But if

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Speaker 1: that means you're spending an extra twenty or thirty or

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Speaker 1: forty minutes in the car driving where you could have

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Speaker 1: used that time investing into something else that's making you

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Speaker 1: more money, is it really the best decision? And I'm

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Speaker 1: not saying there's a right or wrong, but I think

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Speaker 1: we always need to think about our use of time

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Speaker 1: as well. Everything is a time versus money trade off,

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Speaker 1: and I think when you're starting off in your financial

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Speaker 1: independence journey, you value money more, which makes sense. Um,

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Speaker 1: no pun intended, So you'll spend more time trying to

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Speaker 1: make more money, and then later on I've gotten to

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Speaker 1: the point now where time is definitely my most valuable resource.

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Speaker 1: So I would rather make less money if it means

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Speaker 1: that I can still have more time to myself. Yeah,

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Speaker 1: they're definitely things I would have done at seven myself

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Speaker 1: that at thirty seven I'm unwilling to take on myself. Um.

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Speaker 1: And Rachel's speaking of time. You know, money and time

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Speaker 1: are the two necessary investments right in order to be

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Speaker 1: able to create passive streams of income, And you wrote

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Speaker 1: about this in your book Passive Income, Aggressive Retirement. So

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Speaker 1: I guess I want to know what's your definition of

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Speaker 1: passive income because I feel like sometimes that term gets

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Speaker 1: thrown around quite a bit and it gives people false hopes.

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Speaker 1: Sometimes passive income seems like it's this silver bullet and

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Speaker 1: it's gonna fix everyone's problems. Cool, let me just get

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Speaker 1: that passive income. So, yeah, what's your take on it?

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Speaker 1: And how do you define it? Yeah, I'm glad you asked,

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Speaker 1: because it's definitely a buzzword now, and I do think

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Speaker 1: it's misused a lot. My definition of passive income is

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Speaker 1: that it's money that has earned with little to no

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Speaker 1: ongoing effort. Is that it get rich quick scheme? No,

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Speaker 1: absolutely not. It definitely takes time or money to create

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Speaker 1: passive income. The epiphany I had a few years ago

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Speaker 1: is that once you're passive income exceeds your living expenses,

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Speaker 1: you're retired, you're financially independent. And I thought it sounded

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Speaker 1: a lot easier to come up with five or six

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Speaker 1: or eight thousand dollars a month and passive income than

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Speaker 1: it did to try to work my whole life and

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Speaker 1: accumulate a nest egg of two, you know, one or

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Speaker 1: two million dollars by age sixty five to retire. So

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Speaker 1: I do think from that sense, creating passive income is

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Speaker 1: a more attainable way to achieve early retirement. It's just

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Speaker 1: like a different way of thinking about the problem. Uh yeah.

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Speaker 1: And in your book too, you know you're talking about

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Speaker 1: how it's not it's not a rich scheme, right, It's

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Speaker 1: not something that's going to happen overnight. And I love

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Speaker 1: how you kind of break down building these forms of

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Speaker 1: passive income into these two different stages, right, And so

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Speaker 1: you know you're seeing that it does take work, um,

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Speaker 1: and that stage one is all about building the streams

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Speaker 1: of income as opposed to stage two, which is just

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Speaker 1: maintaining And like you said, when you're maintaining things, that

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Speaker 1: requires much less work. But you're not discounting the amount

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Speaker 1: of work that goes into that stage one, right, right,

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Speaker 1: definitely not. So think about J. K. Rolling, for example,

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Speaker 1: writing the Harry Potter books. She spent years, yeah, decades,

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Speaker 1: writing with no income, no recognition, nothing, and so she

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Speaker 1: spent all of this time in stage one towards towards

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Speaker 1: building a passive income stream. Then when they she finally

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Speaker 1: published the books, they finally started to gain traction and

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Speaker 1: take off. That's when she entered stage two, where all

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Speaker 1: the writing was done. Now she's just basically making income

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Speaker 1: on an ongoing basis. She's doing some marketing appearances and

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Speaker 1: book tours, minimal effort to create a an enormous income stream.

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Speaker 1: All right, I'm gonna go write a best selling children's

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Speaker 1: novel after after this interview. But it's not easy, right,

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Speaker 1: everyone can do it. And then plus all the additional

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Speaker 1: time you have to be on set at Warner Brothers

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Speaker 1: as they're making sure that they're doing things correctly. Because

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Speaker 1: you haven't released the seventh book yet, you know, all

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Speaker 1: the details have to fit true. True. Hey, Rachel, someone

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Speaker 1: in your book too, that that you interviewed, you said

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Speaker 1: the alternative to pursuing passive income is a nine to

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Speaker 1: five And they said, and guess what, that's not passive

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Speaker 1: income at any stage of the game. And I thought

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Speaker 1: that was like so insightful to write, because you know,

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Speaker 1: I think passive income is something worth striving for. But

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Speaker 1: at the same time, there's a lot of people on

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Speaker 1: the internet who are like, just get the passive income.

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Speaker 1: It's easy, and it's not easy, Like you just said, Um,

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Speaker 1: but the only other alternative is working nine to five

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Speaker 1: or longer for a lot of people um for that

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Speaker 1: income every single week for you know, forty years. And

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Speaker 1: I think there there is a better way, and I

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Speaker 1: love kind of how you talk about it in your book, right,

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Speaker 1: And I'll add to that, a lot of people ask, well,

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Speaker 1: is passive income really passive? And I would say mostly,

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Speaker 1: there's not such a thing as true passive income unless

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Speaker 1: you have enough money to invest in the stock market

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Speaker 1: where you're earning dividend income. But the problem with that

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Speaker 1: is that requires an enormous amount of capital to generate

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Speaker 1: meaningful revenue. All of the other passive income streams that

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Speaker 1: I talk about, though, maybe they require a couple hours

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Speaker 1: a week or a few hours a month, but that's

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Speaker 1: still way more passive than a nine to five job,

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Speaker 1: that's right. Yeah, So that's the amount of time that

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Speaker 1: goes into these passive streams of income. Is definitely a

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Speaker 1: way for you to consider sources of passive income out there.

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Speaker 1: So after the break, we're actually gonna talk about some

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Speaker 1: of the different categories of passive income as well as

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Speaker 1: a way to gauge how successful these things are going

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Speaker 1: to be. And so we'll get to all of that

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Speaker 1: right after this break. Alright, we're back from the break.

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Speaker 1: We're talking with Rachel Richards about financial independence because it's

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Speaker 1: July fourth week. Why not? And Rachel, before we dive

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Speaker 1: into the different types of passive income that you detail

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Speaker 1: in your book, you talk about a bunch and a

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Speaker 1: lot that probably a lot of our listeners haven't even

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Speaker 1: thought about. You present a really helpful method to a

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Speaker 1: value wit the pros and the cons of choosing between

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Speaker 1: different forms of passive income. Um, they're not all created equal.

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Speaker 1: So yeah, for you, what's the filter that you like

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Speaker 1: to run opportunities through in order to gauge like how

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Speaker 1: potentially affective they're going to be? Yeah, So the filter

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Speaker 1: that I used as an acronym that I came up

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Speaker 1: with called scrimp s c R I MP so scrimp,

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Speaker 1: So it stands for a few different things. I'm just

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Speaker 1: gonna go letter by letter. Um, but you start with

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Speaker 1: looking at S, which is for scalability. You want to

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Speaker 1: think to yourself, how scalable is this? For example, if

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Speaker 1: you're trying to teach a in person cooking class, then

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Speaker 1: you might only have room for twenty people wherever you're cooking. However,

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Speaker 1: if you decide to take that cooking class online and

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Speaker 1: teach it online instead, then it's virtually unlimited how many

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Speaker 1: people can attend. So simply by taking something online, you're

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Speaker 1: making it very scalable. So that's the first thing to

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Speaker 1: think about in terms of how successful it could potentially be.

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Speaker 1: The second thing is control and regulation. So that's the

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Speaker 1: c are is control and regulation. You want to think

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Speaker 1: about how much control do you actually have over this

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Speaker 1: passive income stream. For example, if you if you're selling

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Speaker 1: digital products or digital downloads on Etsy, they can shut

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Speaker 1: you down at any time if you violate their terms

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Speaker 1: and conditions, or you they don't like something that you've

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Speaker 1: put up, or you know, violate a copyright or trademark,

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Speaker 1: they can completely shut down your account. And if you've

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Speaker 1: spent years building that up and you're making three or

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Speaker 1: five or seven thousand dollars a month, that can go

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Speaker 1: away in the blink of an eye. So you don't

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Speaker 1: have a ton of I mean, you still have some

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Speaker 1: control there, but you don't have ultimate control. And the

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Speaker 1: more control you have the better, And that's one of

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Speaker 1: the that's one of the downsides too, of operating within

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Speaker 1: some of these different platforms or some of these different apps,

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Speaker 1: is that you're beholden to whatever they decide to do

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Speaker 1: with the company exactly, And unfortunately it's it's hard to

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Speaker 1: completely get away from that. I mean even a lot

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Speaker 1: of my income streams are dependent on other platforms. But

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Speaker 1: the as long as you have that in mind and

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Speaker 1: you can think about how can I have greater control,

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Speaker 1: that's the ideal scenario. The third thing you'll want to

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Speaker 1: think about is I, which is foreign investment. So we

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Speaker 1: already talked a little bit about the fact that creating

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Speaker 1: passive income does require some upfront work, normally in the

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Speaker 1: form of time versus money. So one thing you want

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Speaker 1: to ask yourself starting out is do I have more

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Speaker 1: time or money to invest into creating my passive income stream. Now,

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Speaker 1: if you're anything like I was a few years ago,

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Speaker 1: you would say, well, I have neither. I don't have

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Speaker 1: time and I don't have money. So the next thing

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Speaker 1: to ask yourself, well, which is going to be easier

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Speaker 1: for you to free up more of Will it be

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Speaker 1: easier for you to free up time or to create

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Speaker 1: more money? Because you do need one or the other

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Speaker 1: to create the passive income stream. In the first place.

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Speaker 1: Then you have M, which stands for marketability, and so

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Speaker 1: this is how easy is it for you to market

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Speaker 1: your product? The way I like to think about this

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Speaker 1: is there are thousands of services, books, courses, programs out there.

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Speaker 1: What's going to make yours different? Why would somebody buy

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Speaker 1: yours over the thousands that are already out there? Are

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Speaker 1: you solving a problem for somebody? Do people actually need

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Speaker 1: your products? So all those questions will help you determine

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Speaker 1: how marketable your passive income stream is. And then the

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Speaker 1: very last one is P, which stands for passivity, And

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Speaker 1: this is how passive is this passive income stream? For example,

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Speaker 1: owning rental property without a property manager. If you only

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Speaker 1: have one or two units, it can still be pretty passive.

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Speaker 1: But if you're up to thirty or forty units without

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Speaker 1: a property manager, that's not very passive. And the last

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Speaker 1: thing we want to do is quit our jobs to

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Speaker 1: become a full time landlord. Right, So you want to

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Speaker 1: think about, Okay, how can I make this more passive?

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Speaker 1: Can I hire a property manager or for a different business,

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Speaker 1: how can I build this in a way where it's

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Speaker 1: going to be hands off and I'm not going to

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Speaker 1: end up with a full time job that I don't want.

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Speaker 1: So those are the factors of scrimp. That's what the

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Speaker 1: acronym stands for. Yeah, and plus it's just awesome to

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Speaker 1: you that it's scrimp. I don't know, you obviously the

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Speaker 1: opposite of what you're going for when you're trying to

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Speaker 1: set up some passive income. Uh so I'm working out

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Speaker 1: very well for you there. But Rachel, you know, like,

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Speaker 1: so yeah, in your book, you cover several categories of

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Speaker 1: passive income using you know, as you evaluate them with

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Speaker 1: the acronym script and royalties from publishing. You know, like

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Speaker 1: that's one that's obviously been a route that you've taken.

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Speaker 1: Can you explain why publishing, why it's an effective way

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Speaker 1: to generate passive income, and how you've found success with that. Yes? Absolutely,

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Speaker 1: self publishing has been extremely lucrative for me, more so

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Speaker 1: than I ever would have realized. But in a normal month,

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Speaker 1: now I'm making seven to twelve grand a month in

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Speaker 1: passive income and I mean passive profit really from my

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Speaker 1: book royalties. So there's a lot to consider when writing

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Speaker 1: a book. You know, a lot of people are enamored

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Speaker 1: with a traditional book deal, and I used to be

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Speaker 1: enamored with a traditional book deal. But then I started

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Speaker 1: asking around to other authors and doing some research because

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Speaker 1: i've with a traditional book deal, they do all of

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Speaker 1: the marketing and promotion for you. That's all the stuff.

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Speaker 1: I wasn't interested. I just wanted to write a book

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Speaker 1: and I wanted to start selling it, so I thought

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Speaker 1: that would be a great avenue. But the more I

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Speaker 1: found out, the more I realized that they still expect

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Speaker 1: you to do of the marketing even with a traditional

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Speaker 1: book deal. So I thought to myself, if I'm going

430
00:21:18,920 --> 00:21:21,640
Speaker 1: to have to do all the marketing anyways, why give

431
00:21:21,720 --> 00:21:24,840
Speaker 1: up my royalty. With a traditional book deal, you're going

432
00:21:24,920 --> 00:21:27,880
Speaker 1: to earn a ten to fifteen percent royalty. But when

433
00:21:27,920 --> 00:21:30,840
Speaker 1: you self publish, you can earn thirty five to sevent

434
00:21:32,080 --> 00:21:35,760
Speaker 1: self publishing on Amazon, So it can be lucrative if

435
00:21:35,840 --> 00:21:38,199
Speaker 1: done the right way. And I say that because a

436
00:21:38,240 --> 00:21:41,480
Speaker 1: lot of people, a lot of indie authors, write a

437
00:21:41,600 --> 00:21:45,080
Speaker 1: book and they write it from I don't mean to

438
00:21:45,359 --> 00:21:47,040
Speaker 1: make them sound like they're selfish, but they write it

439
00:21:47,080 --> 00:21:49,920
Speaker 1: from more of a selfish standpoint. They write a book

440
00:21:49,960 --> 00:21:51,920
Speaker 1: because they want to write the book, and they think

441
00:21:51,920 --> 00:21:54,560
Speaker 1: it's great and they enjoy writing about it instead of

442
00:21:54,600 --> 00:21:56,959
Speaker 1: looking at through the lens of well are people going

443
00:21:57,000 --> 00:21:59,879
Speaker 1: to read this? Why would somebody care? What problem in

444
00:22:00,040 --> 00:22:01,640
Speaker 1: my solving for them? So it kind of goes back

445
00:22:01,640 --> 00:22:05,480
Speaker 1: to what I talked about with marketability. What unique problem

446
00:22:05,520 --> 00:22:08,240
Speaker 1: are you solving? What's your unique value perspective? If you

447
00:22:08,240 --> 00:22:11,000
Speaker 1: can think through those things the right way, your book

448
00:22:11,160 --> 00:22:14,120
Speaker 1: will be a lot easier to sell. So I'll use

449
00:22:14,160 --> 00:22:17,320
Speaker 1: money Honey as an example. And the reason I started

450
00:22:17,320 --> 00:22:20,880
Speaker 1: writing Money Honey is because I was a former financial

451
00:22:20,880 --> 00:22:23,119
Speaker 1: advisor and all my family and friends came to me

452
00:22:23,200 --> 00:22:25,320
Speaker 1: for financial advice, which was great, that is what I

453
00:22:25,400 --> 00:22:28,600
Speaker 1: love to do. At the same time, I wondered, well,

454
00:22:28,640 --> 00:22:31,320
Speaker 1: why aren't they reading books or learning on their own?

455
00:22:31,960 --> 00:22:35,520
Speaker 1: And then I realized, oh, yeah, that's because for most people,

456
00:22:35,680 --> 00:22:42,160
Speaker 1: personal finances boring right complex, it's intimidating, it's overwhelming. That's

457
00:22:42,160 --> 00:22:44,199
Speaker 1: why I love your podcast because it makes it so

458
00:22:44,240 --> 00:22:47,320
Speaker 1: easy to understand. And so I thought to myself, well,

459
00:22:47,359 --> 00:22:50,439
Speaker 1: how can I make this topic sassy and fun and simple.

460
00:22:51,200 --> 00:22:54,159
Speaker 1: And that's where the idea for money Honey came from.

461
00:22:54,320 --> 00:22:56,600
Speaker 1: I wrote a book about finance that had not been

462
00:22:56,600 --> 00:22:59,920
Speaker 1: written before, and that was an engaging and fun read

463
00:23:00,240 --> 00:23:02,360
Speaker 1: and they were learning a lot about money and investing

464
00:23:02,359 --> 00:23:04,560
Speaker 1: in the stock market. So it really took off with

465
00:23:04,640 --> 00:23:08,040
Speaker 1: female millennials, which was my target audience. And because I

466
00:23:08,080 --> 00:23:11,119
Speaker 1: thought about it from that lens, in that perspective, it

467
00:23:11,359 --> 00:23:13,560
Speaker 1: went on to become more successful than I ever would

468
00:23:13,560 --> 00:23:17,160
Speaker 1: have imagined. That's awesome. It's like so and I totally

469
00:23:17,520 --> 00:23:19,800
Speaker 1: I loved reading about why you chose to self published

470
00:23:19,800 --> 00:23:22,240
Speaker 1: and the benefits of that. Are there any downsides? Like

471
00:23:22,359 --> 00:23:25,480
Speaker 1: let's say, uh, Penguin Random House comes to you or

472
00:23:25,520 --> 00:23:27,159
Speaker 1: something like that, and they're like, we want you to

473
00:23:27,160 --> 00:23:29,680
Speaker 1: publish a book now with us, Um, do they get

474
00:23:29,680 --> 00:23:32,560
Speaker 1: your book into more of the traditional bookstores? Does that

475
00:23:32,600 --> 00:23:36,040
Speaker 1: even matter anymore? When you can self publish on Amazon

476
00:23:36,119 --> 00:23:38,920
Speaker 1: and the majority of books now are purchased on Amazon.

477
00:23:39,200 --> 00:23:41,040
Speaker 1: I mean, yeah, how does that work out? Like? Are

478
00:23:41,040 --> 00:23:43,520
Speaker 1: you missing some of that? Not necessarily the marketing right

479
00:23:43,520 --> 00:23:45,480
Speaker 1: because you're having to get on the podcasts on all

480
00:23:45,520 --> 00:23:47,920
Speaker 1: the places to let people know that your your book exists.

481
00:23:48,240 --> 00:23:51,840
Speaker 1: But is placements Is that an issue? Yes? So it

482
00:23:51,960 --> 00:23:54,359
Speaker 1: is one of the downsides of self publishing. You're not

483
00:23:54,359 --> 00:23:56,800
Speaker 1: going to be able to get your book, your physical

484
00:23:56,880 --> 00:24:01,040
Speaker 1: book into physical stores. So with self publishing, my book

485
00:24:01,119 --> 00:24:05,280
Speaker 1: is sold on Amazon, Barnes, and Noble Online, a couple

486
00:24:05,320 --> 00:24:09,000
Speaker 1: other online stores, but it's not in a physical bookstore. Um,

487
00:24:09,200 --> 00:24:12,040
Speaker 1: I decided to me that didn't really matter, because you're right,

488
00:24:12,200 --> 00:24:14,960
Speaker 1: the vast majority of books are sold online, so I

489
00:24:14,960 --> 00:24:17,760
Speaker 1: didn't feel like I was missing out from a sales perspective,

490
00:24:17,840 --> 00:24:19,960
Speaker 1: or at least not a lot. And then I would

491
00:24:19,960 --> 00:24:23,840
Speaker 1: say another downside is that you're going to be responsible

492
00:24:23,920 --> 00:24:27,600
Speaker 1: for your own initial budget and hiring a team of

493
00:24:27,720 --> 00:24:30,760
Speaker 1: people to get your book ready. Now, I don't want

494
00:24:30,760 --> 00:24:33,479
Speaker 1: to scare anybody off because I launched Money Honey with

495
00:24:33,560 --> 00:24:36,199
Speaker 1: less than six dollars. That's all I spent. That's like

496
00:24:36,240 --> 00:24:39,560
Speaker 1: as cheap as it gets. Again, maybe too cheap, maybe

497
00:24:39,560 --> 00:24:42,879
Speaker 1: too trug, but I found a way to do it

498
00:24:42,920 --> 00:24:45,840
Speaker 1: on a budget. And there's definitely at least three people

499
00:24:45,840 --> 00:24:47,840
Speaker 1: that you want to hire onto your team. So you

500
00:24:47,880 --> 00:24:50,480
Speaker 1: want to have a really good editor, a really good

501
00:24:50,520 --> 00:24:54,919
Speaker 1: book cover designer, and a really good interior formatter, and

502
00:24:54,960 --> 00:24:57,040
Speaker 1: those are all things. Again, they're going to come out

503
00:24:57,040 --> 00:24:59,359
Speaker 1: of your own budget. You have to find them, whereas

504
00:24:59,640 --> 00:25:02,320
Speaker 1: if you get a traditional book deal, they're going to

505
00:25:02,440 --> 00:25:04,399
Speaker 1: assemble that team and they're going to take care of

506
00:25:04,400 --> 00:25:07,119
Speaker 1: all those things for you. Nice. Yeah, it's good to

507
00:25:07,160 --> 00:25:08,920
Speaker 1: know that. Yeah, if someone out there is thinking about

508
00:25:09,080 --> 00:25:13,640
Speaker 1: self publishing, that those are three specific hires that you're

509
00:25:13,640 --> 00:25:15,440
Speaker 1: gonna need to make and that's probably going to have

510
00:25:15,480 --> 00:25:18,320
Speaker 1: a massive impact on the success of your book. Rachel,

511
00:25:18,320 --> 00:25:20,440
Speaker 1: you mentioned like, yes, seven and twelve dollars a month

512
00:25:21,080 --> 00:25:23,320
Speaker 1: on your books. There's a reason why we're talking about

513
00:25:23,520 --> 00:25:26,439
Speaker 1: royalties and publishing here because for you, you've seen, you know,

514
00:25:26,520 --> 00:25:30,720
Speaker 1: such great success within that this, this, this category. But

515
00:25:30,840 --> 00:25:33,000
Speaker 1: you know, when it does come to royalties, like oftentimes

516
00:25:33,080 --> 00:25:35,679
Speaker 1: folks like they'll also think about like photography, you'll think

517
00:25:35,720 --> 00:25:39,800
Speaker 1: about like online courses, other downloadable content. But in your

518
00:25:39,800 --> 00:25:42,840
Speaker 1: book as well, like you mentioned franchising, but you mentioned

519
00:25:42,840 --> 00:25:44,920
Speaker 1: it not in like the traditional sense, right, And so

520
00:25:45,200 --> 00:25:46,639
Speaker 1: a quote that we have here from the book is

521
00:25:46,680 --> 00:25:49,960
Speaker 1: that you say, quote, don't open a franchise offer one,

522
00:25:50,960 --> 00:25:53,800
Speaker 1: which I thought was genius. I just love the mindset

523
00:25:53,840 --> 00:25:55,560
Speaker 1: behind that, and so can you explain what you mean

524
00:25:55,600 --> 00:25:58,600
Speaker 1: by that? Absolutely? I'll use Chick Filo as an example

525
00:25:58,600 --> 00:26:02,040
Speaker 1: because it's such a success full franchise and I feel

526
00:26:02,040 --> 00:26:04,160
Speaker 1: like every Chick fil A that I see open does

527
00:26:04,240 --> 00:26:07,040
Speaker 1: so well, So a lot of people would approach that

528
00:26:07,080 --> 00:26:10,119
Speaker 1: business model and think, Okay, this is great. I'm going

529
00:26:10,200 --> 00:26:12,160
Speaker 1: to create a passive income stream. I'm going to open

530
00:26:12,160 --> 00:26:14,359
Speaker 1: a new business. I'm going to do it by becoming

531
00:26:14,400 --> 00:26:17,639
Speaker 1: a Chick fil A franchise e. And that's great. People

532
00:26:17,640 --> 00:26:20,879
Speaker 1: can make a lot of money, but it's not very scalable.

533
00:26:21,200 --> 00:26:23,920
Speaker 1: You're part of somebody else's business rather than creating your own.

534
00:26:24,560 --> 00:26:26,720
Speaker 1: Um Depending on how you run it, it's either not

535
00:26:26,840 --> 00:26:29,320
Speaker 1: passive at all, or it could be very passive if

536
00:26:29,359 --> 00:26:32,560
Speaker 1: you find a great manager, but you're kind of constrained.

537
00:26:32,640 --> 00:26:35,720
Speaker 1: You're under somebody else's umbrella. So instead of doing that,

538
00:26:36,440 --> 00:26:39,840
Speaker 1: why not start your own business and franchise it so

539
00:26:39,920 --> 00:26:43,080
Speaker 1: that other people can open other branches of your business

540
00:26:43,080 --> 00:26:46,920
Speaker 1: in their location. And if you can basically move from

541
00:26:47,000 --> 00:26:50,439
Speaker 1: a consumer to a producer mindset in doing this, you

542
00:26:50,440 --> 00:26:52,880
Speaker 1: will be very successful. I think one of the examples

543
00:26:52,880 --> 00:26:55,040
Speaker 1: I used in my book is somebody that starts to

544
00:26:55,040 --> 00:26:57,440
Speaker 1: tutoring business. This could be a high school kid or

545
00:26:57,440 --> 00:27:00,560
Speaker 1: a college kid that starts to tutoring business. They eventually

546
00:27:00,560 --> 00:27:03,440
Speaker 1: get enough tutoring clients that they really can't take on anymore.

547
00:27:03,880 --> 00:27:07,359
Speaker 1: So at that point, why not hire a friend or

548
00:27:07,440 --> 00:27:10,120
Speaker 1: hire another person who's good at whatever you're tutoring, hire

549
00:27:10,160 --> 00:27:13,160
Speaker 1: them on your team, coach them, provide them with clients,

550
00:27:13,200 --> 00:27:15,520
Speaker 1: and they're paying you a cut of all of the

551
00:27:15,600 --> 00:27:17,919
Speaker 1: money that they earned because you're providing them with clients

552
00:27:17,920 --> 00:27:20,199
Speaker 1: and you're teaching them your business model. It's kind of

553
00:27:20,200 --> 00:27:22,520
Speaker 1: like an informal way to franchise. But then you can

554
00:27:22,640 --> 00:27:26,320
Speaker 1: then you're unlimited because you can hire as many tutors

555
00:27:26,760 --> 00:27:29,080
Speaker 1: as possible under you and there's no limit, and you

556
00:27:29,119 --> 00:27:32,080
Speaker 1: can spread it outside your city, outside your state, you

557
00:27:32,080 --> 00:27:34,240
Speaker 1: can go across the country, and now all of a sudden,

558
00:27:34,280 --> 00:27:36,720
Speaker 1: you have a franchise and you're not even having to

559
00:27:36,760 --> 00:27:40,440
Speaker 1: do any of the direct tutoring work anymore. Yeah, that's great.

560
00:27:40,440 --> 00:27:42,719
Speaker 1: We actually there's a friend of ours who did this

561
00:27:43,160 --> 00:27:46,000
Speaker 1: on campus at the at the college that she was attending,

562
00:27:46,000 --> 00:27:48,520
Speaker 1: and she kind of paired it with an app as well.

563
00:27:48,560 --> 00:27:50,680
Speaker 1: But yeah, essentially, what you're saying here is essentially to

564
00:27:50,760 --> 00:27:53,680
Speaker 1: kind of think like an employer and less like an employee,

565
00:27:53,720 --> 00:27:55,800
Speaker 1: less like someone doing the work, and more like somebody

566
00:27:55,960 --> 00:27:59,000
Speaker 1: who is finding the work for somebody. Uh And yeah,

567
00:27:59,080 --> 00:28:01,640
Speaker 1: when when you do that you have a lot more control. Yes,

568
00:28:01,680 --> 00:28:04,000
Speaker 1: And a great resource that I'll recommend here is the

569
00:28:04,040 --> 00:28:07,400
Speaker 1: book The Millionaire Fast Lane by M. J. DeMarco, because

570
00:28:07,440 --> 00:28:10,600
Speaker 1: he talks about all this stuff going from employee to employer,

571
00:28:10,760 --> 00:28:14,159
Speaker 1: going from consumer to producer, and it really was an

572
00:28:14,200 --> 00:28:16,760
Speaker 1: amazing mindset shift for me for how I wanted to

573
00:28:16,800 --> 00:28:21,560
Speaker 1: approach and the world and becoming an entrepreneur. Awesome. Yeah,

574
00:28:21,560 --> 00:28:24,359
Speaker 1: A one of the other things types of passive income

575
00:28:24,400 --> 00:28:26,960
Speaker 1: you mentioned in the book, Rachel is coin operated machines,

576
00:28:27,480 --> 00:28:29,600
Speaker 1: and um, I want want to hear you talking more

577
00:28:29,600 --> 00:28:31,080
Speaker 1: about that. I actually had a friend who had a

578
00:28:31,119 --> 00:28:33,960
Speaker 1: photo booth. She put it in this really cool record

579
00:28:34,000 --> 00:28:35,760
Speaker 1: store in like one of the hippest parts of town

580
00:28:35,800 --> 00:28:38,000
Speaker 1: in Atlanta, and like literally she had to go by

581
00:28:38,040 --> 00:28:41,120
Speaker 1: once a month to put in, you know, new photo

582
00:28:41,200 --> 00:28:44,800
Speaker 1: strips and collect her hundreds and hundreds of dollars. It was.

583
00:28:45,040 --> 00:28:47,520
Speaker 1: It was a pretty sweet set up for her. So, yeah, like,

584
00:28:47,640 --> 00:28:49,520
Speaker 1: can you talk to us more about like corn operative

585
00:28:49,520 --> 00:28:51,360
Speaker 1: machines and how maybe that can be a form of

586
00:28:51,400 --> 00:28:54,520
Speaker 1: passive income that people should consider. Yes, absolutely, I'm glad

587
00:28:54,560 --> 00:28:55,880
Speaker 1: you brought this up because I feel like this is

588
00:28:55,920 --> 00:28:57,640
Speaker 1: one of the more unique ones that people don't think

589
00:28:57,680 --> 00:29:01,680
Speaker 1: about a lot. But the most common form of passive

590
00:29:01,720 --> 00:29:06,280
Speaker 1: income from coin operated machines is vending machines. So if

591
00:29:06,320 --> 00:29:09,200
Speaker 1: you can put a vending machine in an office lobby

592
00:29:09,320 --> 00:29:12,680
Speaker 1: or a gym or somewhere where there's getting there's a

593
00:29:12,680 --> 00:29:16,080
Speaker 1: ton of foot traffic, then essentially you can go buy

594
00:29:16,160 --> 00:29:19,400
Speaker 1: once a week to restock the vending machine and collect

595
00:29:19,440 --> 00:29:22,880
Speaker 1: the money. And it's a very passive income stream. And

596
00:29:22,920 --> 00:29:24,560
Speaker 1: even if you don't want to do that, you can

597
00:29:24,600 --> 00:29:27,320
Speaker 1: outsource that and have somebody do that for you. So

598
00:29:27,400 --> 00:29:29,160
Speaker 1: what gets really cool is when you go from one

599
00:29:29,240 --> 00:29:32,040
Speaker 1: vending machine too now you have ten or fifteen vending machines.

600
00:29:32,640 --> 00:29:35,480
Speaker 1: You can even buy a pre existing vending machine route

601
00:29:35,560 --> 00:29:37,960
Speaker 1: from an owner who is looking to sell their business.

602
00:29:38,440 --> 00:29:40,560
Speaker 1: That's probably the easiest way to do it because finding

603
00:29:40,600 --> 00:29:44,120
Speaker 1: a location can be extremely difficult. Um Also, I always

604
00:29:44,160 --> 00:29:46,680
Speaker 1: tell people to buy use vending machines rather than new

605
00:29:46,800 --> 00:29:49,960
Speaker 1: vending machines, just because it's a lot more cost effective.

606
00:29:50,400 --> 00:29:53,160
Speaker 1: But you're looking at an overall investment of you know,

607
00:29:53,160 --> 00:29:55,479
Speaker 1: it could be a thousand dollars or a couple thousand

608
00:29:55,480 --> 00:29:58,080
Speaker 1: dollars to get your first vending machine. And then you

609
00:29:58,080 --> 00:30:00,480
Speaker 1: can build it up from there. It's real not a

610
00:30:00,520 --> 00:30:02,400
Speaker 1: lot of money that you need to put up, it's

611
00:30:02,440 --> 00:30:04,400
Speaker 1: not a ton of time that you need to put up.

612
00:30:04,400 --> 00:30:06,040
Speaker 1: So I do think this is one of the easier

613
00:30:06,120 --> 00:30:09,600
Speaker 1: passive income streams to start building. Nice. I like it. Yeah,

614
00:30:09,640 --> 00:30:11,040
Speaker 1: it sounds like the r O I on that is

615
00:30:11,360 --> 00:30:13,920
Speaker 1: pretty significant compared to maybe some of these other other

616
00:30:14,240 --> 00:30:18,160
Speaker 1: ventures that folks might might consider, especially real estate, because

617
00:30:18,160 --> 00:30:20,600
Speaker 1: that's one that costs a lot of money. You've gained

618
00:30:20,600 --> 00:30:22,240
Speaker 1: a lot of your wealth through real estate, and so

619
00:30:22,240 --> 00:30:25,320
Speaker 1: we'll actually talk about that category of passive income right

620
00:30:25,360 --> 00:30:36,040
Speaker 1: after the break. All right, we're back from the break.

621
00:30:36,040 --> 00:30:40,000
Speaker 1: We're still talking with Rachel Richards about achieving financial independence

622
00:30:40,120 --> 00:30:43,640
Speaker 1: at the age of which is incredibly young. And Rachel,

623
00:30:43,720 --> 00:30:47,400
Speaker 1: the biggest move needle mover was real estate for you. So,

624
00:30:47,560 --> 00:30:50,000
Speaker 1: you know, writing those books was obviously huge, but real

625
00:30:50,120 --> 00:30:52,880
Speaker 1: estate was a big portion and I believe remains a

626
00:30:52,880 --> 00:30:55,360
Speaker 1: big portion of your passive income as well. What what

627
00:30:55,480 --> 00:30:58,840
Speaker 1: made you decide to pick real estate as like the

628
00:30:58,920 --> 00:31:02,160
Speaker 1: passive income model that you felt like worked best for you. Yeah,

629
00:31:02,240 --> 00:31:04,760
Speaker 1: So after I read Rich Dad, Poor Dad, that was

630
00:31:04,840 --> 00:31:07,080
Speaker 1: my that was the first thing that turned me onto

631
00:31:07,080 --> 00:31:09,920
Speaker 1: real estate investing, and at that time I didn't know

632
00:31:09,960 --> 00:31:12,720
Speaker 1: about all these other passive income streams and that other

633
00:31:13,400 --> 00:31:16,160
Speaker 1: ways to create passive income even existed. So I was like,

634
00:31:16,200 --> 00:31:17,800
Speaker 1: it's real estate. This is my way out at the

635
00:31:17,840 --> 00:31:19,400
Speaker 1: rat race. This is what I'm doing. So that is

636
00:31:19,400 --> 00:31:23,120
Speaker 1: what I focused on first and foremost. My husband and

637
00:31:23,160 --> 00:31:28,200
Speaker 1: I purchased our first duplex in in Louisville, Kentucky. I

638
00:31:28,240 --> 00:31:30,560
Speaker 1: always want to clarify a few things because you guys

639
00:31:30,600 --> 00:31:32,440
Speaker 1: already said it, but a lot of people assume that

640
00:31:32,480 --> 00:31:34,520
Speaker 1: I'm a trust fund baby because I was able to

641
00:31:34,600 --> 00:31:38,520
Speaker 1: scale from zero to thirty eight doors in two years,

642
00:31:39,160 --> 00:31:41,160
Speaker 1: and so I always want to say I'm not a

643
00:31:41,160 --> 00:31:45,000
Speaker 1: trust fund baby. And I never made six figures from

644
00:31:45,000 --> 00:31:48,320
Speaker 1: a job or a career. I started off making thirty

645
00:31:48,360 --> 00:31:52,120
Speaker 1: six thousand dollars. So when I say that I believe

646
00:31:52,280 --> 00:31:55,120
Speaker 1: anyone can do this, I truly mean it. It doesn't

647
00:31:55,160 --> 00:31:57,480
Speaker 1: matter how old you are, how much money you're making,

648
00:31:58,120 --> 00:32:00,680
Speaker 1: you can find a way to achieve financial dependence, whether

649
00:32:00,720 --> 00:32:04,040
Speaker 1: it's through real estate or or through something else. Um. Now,

650
00:32:04,280 --> 00:32:08,000
Speaker 1: we had a few advantages going for us. First of all,

651
00:32:08,680 --> 00:32:12,440
Speaker 1: we both graduated without student loan debt. My husband is

652
00:32:12,480 --> 00:32:14,880
Speaker 1: a veteran and he used his military benefits to pay

653
00:32:14,920 --> 00:32:18,080
Speaker 1: for school. So even though we weren't making some crazy

654
00:32:18,120 --> 00:32:21,640
Speaker 1: amount of income, we were attempting to be frugal and

655
00:32:21,680 --> 00:32:25,160
Speaker 1: save fifty percent of our income every month. So even

656
00:32:25,200 --> 00:32:27,240
Speaker 1: when I was making thirty six grand, I was saving

657
00:32:27,280 --> 00:32:29,280
Speaker 1: half of that. I was living off something like fift

658
00:32:29,800 --> 00:32:33,480
Speaker 1: dollars a month total. So it only took a few

659
00:32:33,560 --> 00:32:35,880
Speaker 1: years to come up with a little chunk of money,

660
00:32:35,920 --> 00:32:38,280
Speaker 1: you know, ten or fifteen grand that I could put

661
00:32:38,280 --> 00:32:41,479
Speaker 1: into real estate. Another thing we had going for us

662
00:32:41,520 --> 00:32:44,160
Speaker 1: is that we invested in Louisville, Kentucky, which is a

663
00:32:44,200 --> 00:32:46,760
Speaker 1: great place to invest. It's not a high cost of

664
00:32:46,840 --> 00:32:51,040
Speaker 1: living area. Prices are reasonable, and the very first duplex

665
00:32:51,080 --> 00:32:54,840
Speaker 1: that we found cost only a hundred thousand dollars, so

666
00:32:54,920 --> 00:32:58,640
Speaker 1: we by then were able to put together a down payment.

667
00:32:58,680 --> 00:33:00,520
Speaker 1: We each put ten grand in of our own money

668
00:33:00,520 --> 00:33:02,640
Speaker 1: to get to our down payment, and that is how

669
00:33:02,680 --> 00:33:06,680
Speaker 1: we purchased our very first duplex. Gotcha well, One of

670
00:33:06,720 --> 00:33:08,160
Speaker 1: the other things you talked about in your book too,

671
00:33:08,160 --> 00:33:10,200
Speaker 1: when you when you first started out like you were planning,

672
00:33:10,720 --> 00:33:13,000
Speaker 1: or it seems like you're planning to buy one house

673
00:33:13,000 --> 00:33:16,200
Speaker 1: per year with a fifteen year mortgage for for a

674
00:33:16,280 --> 00:33:18,960
Speaker 1: number of years. So what was the idea behind that strategy?

675
00:33:19,080 --> 00:33:21,640
Speaker 1: And then it seemed like you kind of pivoted away

676
00:33:21,720 --> 00:33:24,000
Speaker 1: from that strategy. Can you explain kind of why it

677
00:33:24,080 --> 00:33:25,960
Speaker 1: is that you did that. Yeah, so I don't and

678
00:33:26,000 --> 00:33:28,320
Speaker 1: I don't know where I read about this strategy. But

679
00:33:28,360 --> 00:33:31,480
Speaker 1: the strategy was to buy a single family house one

680
00:33:31,520 --> 00:33:34,920
Speaker 1: per year for fifteen years, all on fifteen year mortgages.

681
00:33:35,600 --> 00:33:39,040
Speaker 1: And that way, after fifteen years, you would be able

682
00:33:39,080 --> 00:33:42,000
Speaker 1: to retire and quit your job because then you have

683
00:33:42,080 --> 00:33:44,400
Speaker 1: the mortgages that are starting to get paid off and

684
00:33:44,440 --> 00:33:48,240
Speaker 1: so your cash flow just exponentially increases. So at the

685
00:33:48,280 --> 00:33:49,880
Speaker 1: time I was in my early twenties, I was like,

686
00:33:49,920 --> 00:33:51,959
Speaker 1: this is a solid plan. I'll be able to retire

687
00:33:52,000 --> 00:33:54,760
Speaker 1: in my mid thirties. Like that would be amazing. Um.

688
00:33:54,800 --> 00:33:57,720
Speaker 1: I didn't change it intentionally. It's just that once we

689
00:33:57,800 --> 00:34:02,760
Speaker 1: started investing, we realized we could achieve this a lot faster.

690
00:34:03,360 --> 00:34:06,000
Speaker 1: So we became especially after getting that first duplex, because

691
00:34:06,000 --> 00:34:08,560
Speaker 1: that's always the scariest one. Once we saw that it

692
00:34:08,600 --> 00:34:10,760
Speaker 1: was a reality and how much money we were already making,

693
00:34:11,320 --> 00:34:13,160
Speaker 1: it was almost like we double down. We were like, Okay,

694
00:34:13,239 --> 00:34:15,520
Speaker 1: let's come up with the next down payment, let's search aggressively,

695
00:34:15,600 --> 00:34:17,719
Speaker 1: let's see how fast we can make this happen. And

696
00:34:17,920 --> 00:34:21,640
Speaker 1: my timeline is currently too slow. Yes, yeah, we were

697
00:34:21,680 --> 00:34:25,879
Speaker 1: so eager, and so to our shock and surprise, we

698
00:34:25,880 --> 00:34:28,520
Speaker 1: were able to get to ten tho dollars a month

699
00:34:28,960 --> 00:34:35,120
Speaker 1: in passive profit from our rentals within two years. So, Rachel,

700
00:34:35,120 --> 00:34:37,120
Speaker 1: what do you think sets you apart maybe from other

701
00:34:37,120 --> 00:34:39,840
Speaker 1: real estate investors? Like when you were starting out, obviously

702
00:34:39,880 --> 00:34:43,240
Speaker 1: it wasn't the income, It wasn't making just ridiculous amounts

703
00:34:43,280 --> 00:34:46,759
Speaker 1: of money, and then you know, living semi frugally and

704
00:34:46,800 --> 00:34:49,600
Speaker 1: tossing the rest towards down payments. Um, But there are

705
00:34:49,600 --> 00:34:51,919
Speaker 1: a whole lot of investors who move a whole lot

706
00:34:52,000 --> 00:34:53,640
Speaker 1: more slowly than you did. You know, part of part

707
00:34:53,680 --> 00:34:56,759
Speaker 1: of what you said was where you lived. But in

708
00:34:57,200 --> 00:34:59,960
Speaker 1: speeding up that process and acquiring more properties and increasing

709
00:35:00,000 --> 00:35:03,839
Speaker 1: that cash flow, Like, what do you think made you

710
00:35:04,160 --> 00:35:07,360
Speaker 1: different than um? And and made your experience as a

711
00:35:07,360 --> 00:35:09,600
Speaker 1: real estate investor different than what a whole lot of

712
00:35:09,600 --> 00:35:13,600
Speaker 1: other folks experience. I would say two things. Number one

713
00:35:14,040 --> 00:35:18,760
Speaker 1: is I am an individual who's able to take action quickly,

714
00:35:18,960 --> 00:35:22,080
Speaker 1: and I have not always been that way. I procrastinated

715
00:35:22,160 --> 00:35:24,279
Speaker 1: for years, I feel like, to start investing in real

716
00:35:24,400 --> 00:35:27,279
Speaker 1: estate because I had all these limiting beliefs. I was

717
00:35:27,320 --> 00:35:30,200
Speaker 1: telling myself things like you need more money, you don't

718
00:35:30,200 --> 00:35:32,640
Speaker 1: have enough knowledge, you don't have enough experience, like who

719
00:35:32,680 --> 00:35:34,280
Speaker 1: do you think you are? What do you think you're doing?

720
00:35:34,840 --> 00:35:37,080
Speaker 1: And I waited and I waited, even though if I

721
00:35:37,160 --> 00:35:39,399
Speaker 1: knew then what I know now, I could have gotten

722
00:35:39,440 --> 00:35:41,920
Speaker 1: started sooner. But it's a very scary thing. But I

723
00:35:41,920 --> 00:35:45,480
Speaker 1: remember thinking to myself, my fear was that I was

724
00:35:45,520 --> 00:35:47,680
Speaker 1: going to make a costly mistake. I was going to

725
00:35:47,800 --> 00:35:50,640
Speaker 1: do something that cost me money or that or something

726
00:35:50,640 --> 00:35:53,040
Speaker 1: where I wasted my time. And I had those fears

727
00:35:53,040 --> 00:35:55,520
Speaker 1: and I didn't want to do that. Then I had

728
00:35:55,600 --> 00:35:59,239
Speaker 1: to accept the fact that no matter how prepared I was,

729
00:35:59,400 --> 00:36:01,800
Speaker 1: or how long I waited for things to be perfect

730
00:36:02,320 --> 00:36:04,920
Speaker 1: or just right, I was still going to make mistakes

731
00:36:05,600 --> 00:36:07,799
Speaker 1: because there are things you just don't know starting out

732
00:36:07,800 --> 00:36:09,839
Speaker 1: as a real estate investor. You don't know to ask them,

733
00:36:09,880 --> 00:36:11,080
Speaker 1: you don't know to look for them, and you're not

734
00:36:11,120 --> 00:36:13,080
Speaker 1: going to know until you go through it yourself. No

735
00:36:13,120 --> 00:36:15,560
Speaker 1: matter how much prep work you do. So once I

736
00:36:15,600 --> 00:36:17,480
Speaker 1: was able to accept the fact that I was going

737
00:36:17,520 --> 00:36:20,719
Speaker 1: to make mistakes, I finally got over that hurdle and

738
00:36:20,760 --> 00:36:23,839
Speaker 1: purchased my first investment property. And this is coming from

739
00:36:24,040 --> 00:36:28,600
Speaker 1: like type A control freak perfectionist, So this is definitely

740
00:36:28,640 --> 00:36:31,120
Speaker 1: hard for me to do. But I love to share

741
00:36:31,120 --> 00:36:33,239
Speaker 1: this quote by zig Zigler. He said, you don't have

742
00:36:33,360 --> 00:36:36,880
Speaker 1: to be great to start, but you have to start

743
00:36:37,080 --> 00:36:42,399
Speaker 1: to be great. So I love that one. Yeah, yeah,

744
00:36:42,400 --> 00:36:43,960
Speaker 1: I'm going to write that down. That's We're get a

745
00:36:43,960 --> 00:36:47,160
Speaker 1: tattooed on my left by set probably right, put on

746
00:36:47,200 --> 00:36:49,080
Speaker 1: your calf for everyone to see it. No one was

747
00:36:49,080 --> 00:36:51,719
Speaker 1: looking at your Rachel, you know, like based on your

748
00:36:51,719 --> 00:36:53,319
Speaker 1: you know, on your on your book, it sounds like

749
00:36:53,320 --> 00:36:55,880
Speaker 1: that you aren't buying any more properties at this point.

750
00:36:56,520 --> 00:36:58,920
Speaker 1: How Yeah, and it seems like a lot of that

751
00:36:58,960 --> 00:37:01,680
Speaker 1: has to do with just where you are financially, but like, like,

752
00:37:01,719 --> 00:37:05,040
Speaker 1: how does an investor know when they have enough? Like, like,

753
00:37:05,080 --> 00:37:07,600
Speaker 1: how did you arrive at that point? And what advice

754
00:37:07,640 --> 00:37:10,040
Speaker 1: would you give folks who might be in a similar position. Yeah,

755
00:37:10,040 --> 00:37:13,040
Speaker 1: I'm glad you asked a lot of people. They are

756
00:37:13,120 --> 00:37:16,160
Speaker 1: surprised often, you know why aren't you continuing to build

757
00:37:16,160 --> 00:37:18,240
Speaker 1: out this real estate empires and that what you want?

758
00:37:18,760 --> 00:37:21,319
Speaker 1: And that has never been what we want. We've never

759
00:37:21,360 --> 00:37:24,000
Speaker 1: been so passionate about it that we want to have

760
00:37:24,080 --> 00:37:27,640
Speaker 1: this huge empire. We're passionate about what it allows us

761
00:37:27,680 --> 00:37:31,120
Speaker 1: to do. So for us, real estate investing has always

762
00:37:31,120 --> 00:37:33,760
Speaker 1: been a means to an end. Our goal was always

763
00:37:33,760 --> 00:37:35,880
Speaker 1: to get to ten grand a month and passive income

764
00:37:35,960 --> 00:37:38,400
Speaker 1: from it so that we could quit our jobs and

765
00:37:38,440 --> 00:37:42,279
Speaker 1: become financially independent. Once we got to ten thousand, we

766
00:37:42,280 --> 00:37:46,200
Speaker 1: were done. We stopped acquiring properties in and we haven't

767
00:37:46,239 --> 00:37:49,160
Speaker 1: acquired any since then. And I'm glad that we were

768
00:37:49,200 --> 00:37:51,000
Speaker 1: able to stick to that, because I think when you

769
00:37:52,000 --> 00:37:55,799
Speaker 1: start building this empire, or start as an entrepreneur, there's

770
00:37:55,840 --> 00:37:58,680
Speaker 1: always this sense of I want more, you know what's next.

771
00:37:58,760 --> 00:38:00,399
Speaker 1: I want to make this bigger, I want more money,

772
00:38:00,440 --> 00:38:04,000
Speaker 1: I want more properties. But we were able to stream. Yes,

773
00:38:04,640 --> 00:38:07,480
Speaker 1: we were able to stick to our initial goal and stop,

774
00:38:07,520 --> 00:38:09,680
Speaker 1: and because of that, we've been able to enjoy the

775
00:38:09,719 --> 00:38:13,160
Speaker 1: exact kind of lifestyle that we always wanted. So that's

776
00:38:13,160 --> 00:38:16,279
Speaker 1: how we were able to stop. I guess no, that's cool.

777
00:38:16,360 --> 00:38:18,120
Speaker 1: That's something that we we talked about a lot on

778
00:38:18,160 --> 00:38:20,040
Speaker 1: the show, and we've talked about with other guests too.

779
00:38:20,080 --> 00:38:22,719
Speaker 1: Is that moving the goal posts. It's a reality for

780
00:38:22,760 --> 00:38:24,360
Speaker 1: so many of us when when you know, as we

781
00:38:24,400 --> 00:38:26,560
Speaker 1: start to do better with our our money or increase

782
00:38:26,600 --> 00:38:29,560
Speaker 1: our income, increase our passive income, the goal posts suddenly

783
00:38:29,560 --> 00:38:32,359
Speaker 1: start moving and we're like, now this isn't good enough

784
00:38:32,400 --> 00:38:34,239
Speaker 1: for me, this car or this house, whatever may be,

785
00:38:34,480 --> 00:38:37,319
Speaker 1: and we want we want more, um And if we

786
00:38:37,360 --> 00:38:40,360
Speaker 1: had just kind of, you know, been able to gauge

787
00:38:40,440 --> 00:38:42,560
Speaker 1: when enough was in our lives, we would have been

788
00:38:42,600 --> 00:38:45,640
Speaker 1: able to kind of stop and um enjoy the lifestyle

789
00:38:45,680 --> 00:38:47,920
Speaker 1: that we were that we were like attempting to provide

790
00:38:47,920 --> 00:38:50,760
Speaker 1: ourselves along the way. And I want to know too, Rachel,

791
00:38:50,840 --> 00:38:54,239
Speaker 1: because you did retire early, uh, and you're traveling around

792
00:38:54,239 --> 00:38:56,920
Speaker 1: the country staying in airbnbs right now. I know most

793
00:38:56,960 --> 00:39:00,279
Speaker 1: of our listeners would say retiring in your late these

794
00:39:00,360 --> 00:39:03,480
Speaker 1: or early thirties whatever, that sounds like, that sounds perfect.

795
00:39:03,760 --> 00:39:06,240
Speaker 1: But are there any downsides? Would you say to retiring

796
00:39:06,280 --> 00:39:08,600
Speaker 1: so young? Now that you've kind of had that experience too,

797
00:39:09,120 --> 00:39:11,719
Speaker 1: are there any negatives associated with that? Oh? For sure,

798
00:39:11,840 --> 00:39:15,400
Speaker 1: there's two downsides, one of which did not impact me

799
00:39:15,440 --> 00:39:18,560
Speaker 1: in one of which has so One that impacts a

800
00:39:18,640 --> 00:39:22,680
Speaker 1: lot of people when they are striving for early retirement

801
00:39:23,320 --> 00:39:27,360
Speaker 1: is that they're so focused on escaping something, escaping a

802
00:39:27,440 --> 00:39:30,239
Speaker 1: horrible employer, or getting out of the rat race, never

803
00:39:30,360 --> 00:39:33,040
Speaker 1: working a corporate job again, getting away from that cubicle.

804
00:39:33,600 --> 00:39:35,719
Speaker 1: They're so focused on the getting away from something that

805
00:39:35,800 --> 00:39:39,680
Speaker 1: they don't think through what they're going towards. So if

806
00:39:39,760 --> 00:39:42,600
Speaker 1: you retire, what are you going to do? Because if

807
00:39:42,640 --> 00:39:45,480
Speaker 1: you're twenty seven or twenty five or thirty, you have

808
00:39:45,960 --> 00:39:48,840
Speaker 1: a lot of lifetime ahead of you. The last thing

809
00:39:48,920 --> 00:39:51,719
Speaker 1: you want to do is get the retirement blues where

810
00:39:51,760 --> 00:39:54,480
Speaker 1: you're basically bored during retirement. You don't have anything that

811
00:39:54,560 --> 00:39:56,880
Speaker 1: fulfills you anymore, you don't have a sense of purpose.

812
00:39:57,440 --> 00:40:00,000
Speaker 1: A lot of people can deal with boredom and even

813
00:40:00,000 --> 00:40:02,480
Speaker 1: in depression when they retire early and they don't have

814
00:40:02,840 --> 00:40:05,439
Speaker 1: a plan of how they're going to spend their time,

815
00:40:05,560 --> 00:40:07,919
Speaker 1: because it can be a drastic change. So that's something

816
00:40:08,000 --> 00:40:10,640
Speaker 1: I always encourage people to do, is envision what your

817
00:40:10,719 --> 00:40:13,320
Speaker 1: lifestyle is going to be like. Don't just focus on

818
00:40:13,440 --> 00:40:15,120
Speaker 1: I have to get I have to quit my job.

819
00:40:15,520 --> 00:40:17,680
Speaker 1: Focus on what do you want to do in your time,

820
00:40:17,760 --> 00:40:20,239
Speaker 1: what's going to be fulfilling to you. So that's one

821
00:40:20,320 --> 00:40:22,800
Speaker 1: thing that can be a downside. The other thing and

822
00:40:22,920 --> 00:40:25,600
Speaker 1: this has impacted me and it still does, is that

823
00:40:25,680 --> 00:40:28,040
Speaker 1: it can be lonely. Right. So there's not a lot

824
00:40:28,080 --> 00:40:34,439
Speaker 1: of young, self made entrepreneurs or financially independent people. There's

825
00:40:34,480 --> 00:40:37,239
Speaker 1: just not a lot of them. So finding people you

826
00:40:37,320 --> 00:40:39,840
Speaker 1: can connect with or spend your time with can be challenging.

827
00:40:39,880 --> 00:40:42,160
Speaker 1: It's not like I can just call a lot of

828
00:40:42,280 --> 00:40:43,840
Speaker 1: my friends and be like, Hey, do you want to

829
00:40:43,880 --> 00:40:45,959
Speaker 1: go on a hike with me on Thursday or climb

830
00:40:46,040 --> 00:40:50,560
Speaker 1: a spoort tener with me on Thursday? And they're like exactly.

831
00:40:51,480 --> 00:40:55,080
Speaker 1: And I feel like now most of my friends are

832
00:40:55,120 --> 00:40:57,839
Speaker 1: people that I meet in the online communities and masterminds

833
00:40:57,880 --> 00:41:00,320
Speaker 1: I'm in where these are people that really to me

834
00:41:00,400 --> 00:41:03,560
Speaker 1: in a way because they're going through similar struggles as

835
00:41:03,560 --> 00:41:07,360
Speaker 1: an entrepreneur or a financially independent person. And so sometimes

836
00:41:07,400 --> 00:41:09,400
Speaker 1: I feel like I have more online friends than in

837
00:41:09,520 --> 00:41:12,800
Speaker 1: real life friends. So this is this is a struggle.

838
00:41:13,000 --> 00:41:16,200
Speaker 1: I'm definitely getting more connected and meeting more people, but

839
00:41:16,360 --> 00:41:18,759
Speaker 1: it's something that I feel like a lot of early

840
00:41:18,840 --> 00:41:22,240
Speaker 1: retires could run into Yeah. Yeah, that's so true, especially

841
00:41:22,400 --> 00:41:25,160
Speaker 1: when what you do and how you are able to

842
00:41:25,200 --> 00:41:28,600
Speaker 1: make a living isn't location dependent and so uh and

843
00:41:28,680 --> 00:41:30,640
Speaker 1: kind of on that note, right, talking about first world

844
00:41:30,680 --> 00:41:34,319
Speaker 1: problems that Rachel's dealing with. Earlier this year, you sold

845
00:41:34,400 --> 00:41:37,239
Speaker 1: half of your stuff and uh, and you and your husband,

846
00:41:37,280 --> 00:41:39,759
Speaker 1: your dog, you embarked on this eight month adventure around

847
00:41:39,760 --> 00:41:42,640
Speaker 1: the US. When I hear that, like that sounds like

848
00:41:42,680 --> 00:41:44,600
Speaker 1: the dream, Like like I have visions of, you know,

849
00:41:44,640 --> 00:41:46,480
Speaker 1: being able to kind of go on these extended road

850
00:41:46,520 --> 00:41:48,879
Speaker 1: trips with my family, maybe running an RV or something

851
00:41:48,960 --> 00:41:50,759
Speaker 1: like that. But right now I feel like you're right

852
00:41:50,760 --> 00:41:52,480
Speaker 1: in the middle of that adventure. Have you run into

853
00:41:52,640 --> 00:41:55,800
Speaker 1: any challenges along your travels? Oh? For sure. And it

854
00:41:56,280 --> 00:41:58,480
Speaker 1: is a dream. I mean, it's very fun, it's very cool.

855
00:41:58,560 --> 00:42:00,839
Speaker 1: We're on the Oregon coast right now, and we got

856
00:42:00,960 --> 00:42:03,480
Speaker 1: to see our dog see the ocean for the first time,

857
00:42:03,520 --> 00:42:09,040
Speaker 1: which was so cute. Yes, but the two biggest adjustments

858
00:42:09,120 --> 00:42:12,239
Speaker 1: have been. Number One, we're both still working remote, so

859
00:42:12,360 --> 00:42:16,759
Speaker 1: we didn't retire or quit things just to um like

860
00:42:16,880 --> 00:42:18,680
Speaker 1: travel or beyond the beach, although some people do and

861
00:42:18,760 --> 00:42:20,839
Speaker 1: that's great. I just get bored easily. So I'm still

862
00:42:20,880 --> 00:42:22,959
Speaker 1: working on my business. It's just that I now work

863
00:42:23,600 --> 00:42:26,239
Speaker 1: when and if I want, and not because I have

864
00:42:26,440 --> 00:42:29,560
Speaker 1: to work. So it's been a struggle because we're trying

865
00:42:29,600 --> 00:42:34,600
Speaker 1: to set up our workspaces in really small airbnbs, and

866
00:42:34,800 --> 00:42:37,239
Speaker 1: I sometimes I can be very uncomfortable. I'm sitting on

867
00:42:37,320 --> 00:42:39,920
Speaker 1: like a step stool right now and my laptop is

868
00:42:40,000 --> 00:42:43,799
Speaker 1: on top of my suitcase, so it's not as glamorous

869
00:42:43,960 --> 00:42:46,399
Speaker 1: as you would think. And then I think the other

870
00:42:46,520 --> 00:42:52,840
Speaker 1: struggle has been maintaining a consistent nutrition and fitness schedule

871
00:42:52,880 --> 00:42:55,640
Speaker 1: because we're both really into that. We did sign up

872
00:42:55,680 --> 00:42:57,840
Speaker 1: for any Time Fitness because they have gyms like in

873
00:42:58,000 --> 00:43:00,839
Speaker 1: every city, so we've been using the and that's been great.

874
00:43:01,200 --> 00:43:04,080
Speaker 1: But sometimes the kitchen is super small or the fridge

875
00:43:04,120 --> 00:43:06,920
Speaker 1: is not full size, so we can't meal prep or

876
00:43:07,040 --> 00:43:09,520
Speaker 1: bulk cook our food like we like to do, so

877
00:43:09,640 --> 00:43:11,759
Speaker 1: it can be more of a challenge to eat as

878
00:43:11,800 --> 00:43:14,799
Speaker 1: healthy as we would like. Well, Rachel, this has been

879
00:43:14,800 --> 00:43:17,120
Speaker 1: an awesome conversation. I learned a lot, and I think

880
00:43:17,160 --> 00:43:20,000
Speaker 1: our listeners will have learned a lot too, just getting

881
00:43:20,040 --> 00:43:22,200
Speaker 1: to hear from you. So yeah, we really really appreciate

882
00:43:22,239 --> 00:43:24,480
Speaker 1: I appreciate you coming on the show. Where can they

883
00:43:24,800 --> 00:43:27,399
Speaker 1: find out more about you and what you're up to. Well,

884
00:43:27,440 --> 00:43:29,239
Speaker 1: thank you and thank you guys so much for having

885
00:43:29,280 --> 00:43:31,440
Speaker 1: me again. It was so fun talking to you. I

886
00:43:31,480 --> 00:43:34,800
Speaker 1: would love to give your listeners my passive income starter

887
00:43:34,960 --> 00:43:37,480
Speaker 1: kit for free if that would be of interest, So

888
00:43:37,680 --> 00:43:41,720
Speaker 1: anyone can go to money Honey Rachel dot com slash

889
00:43:41,880 --> 00:43:45,360
Speaker 1: bonus to download that awesome cool we'll put that in

890
00:43:45,400 --> 00:43:48,360
Speaker 1: the show notes too. So Rachel, thanks again for joining us.

891
00:43:48,400 --> 00:43:51,240
Speaker 1: We really appreciate it. Thank you all right. Well, Joel,

892
00:43:51,320 --> 00:43:54,879
Speaker 1: what uh an awesome and insightful conversation we just had

893
00:43:54,960 --> 00:43:58,560
Speaker 1: here with Rachel Richards. You know, she achieved financial independence

894
00:43:58,560 --> 00:44:00,600
Speaker 1: at the age of twenty seven, which is I mean,

895
00:44:00,719 --> 00:44:03,160
Speaker 1: oftentimes you hear folks refer to thirty as sort of

896
00:44:03,200 --> 00:44:06,279
Speaker 1: like this benchmark, like, okay, you are crazy young if

897
00:44:06,320 --> 00:44:08,560
Speaker 1: you are able to reach financial independence by the time

898
00:44:08,600 --> 00:44:13,120
Speaker 1: you're thirty and you are, yes, you are, but twenties seven, man,

899
00:44:13,239 --> 00:44:15,719
Speaker 1: she's like, I mean, virtually set a new record for

900
00:44:15,800 --> 00:44:17,920
Speaker 1: folks out there. Not that it's a race or anything

901
00:44:18,000 --> 00:44:20,080
Speaker 1: like that, but it was really helpful, I think to

902
00:44:20,200 --> 00:44:22,359
Speaker 1: hear get a peek behind the scenes and to hear

903
00:44:22,560 --> 00:44:24,719
Speaker 1: some of the different strategies that she took. Obviously real

904
00:44:24,880 --> 00:44:26,640
Speaker 1: estate that was a big part of her store, as

905
00:44:26,680 --> 00:44:29,359
Speaker 1: well as self publishing her own books. But what were

906
00:44:29,400 --> 00:44:31,239
Speaker 1: your big takeaways on some of the things that we

907
00:44:31,520 --> 00:44:33,600
Speaker 1: talked about today? So really a lot of stuff, But

908
00:44:33,760 --> 00:44:35,800
Speaker 1: I think one of the things that stuck out to

909
00:44:35,880 --> 00:44:38,239
Speaker 1: me when we were chatting was she said, fear can

910
00:44:38,320 --> 00:44:40,600
Speaker 1: paralyze you or motivate you. Oh as far as like

911
00:44:40,640 --> 00:44:42,879
Speaker 1: how she got so far so fast. Basically, yeah, that's

912
00:44:42,920 --> 00:44:43,960
Speaker 1: one of the things she said at the beginning, and

913
00:44:44,040 --> 00:44:45,759
Speaker 1: then she kind of followed up on it too towards

914
00:44:45,800 --> 00:44:48,160
Speaker 1: the end of the conversation, and that's when I heard it.

915
00:44:49,560 --> 00:44:52,680
Speaker 1: So yeah, I love that because basically, like, um, and

916
00:44:52,719 --> 00:44:54,319
Speaker 1: it was funny because she kind of beat herself up

917
00:44:54,360 --> 00:44:56,120
Speaker 1: for not taking action quickly enough, and I'm like, you

918
00:44:56,200 --> 00:44:58,719
Speaker 1: still retired to twenty seven, so you took action pretty quickly.

919
00:44:58,800 --> 00:45:01,120
Speaker 1: But I totally understand that because we've all been in

920
00:45:01,200 --> 00:45:04,160
Speaker 1: that place right where we haven't attempted something that we

921
00:45:04,280 --> 00:45:05,840
Speaker 1: knew would be good for our lives or that we

922
00:45:06,360 --> 00:45:09,040
Speaker 1: really we we felt prepared for, and we've just like

923
00:45:09,200 --> 00:45:12,000
Speaker 1: been too hesitant to jump. And I think that there

924
00:45:12,120 --> 00:45:14,279
Speaker 1: is such a thing as taking blind action, right, You

925
00:45:14,320 --> 00:45:15,719
Speaker 1: don't you don't want to do that, Like you want

926
00:45:15,760 --> 00:45:18,080
Speaker 1: to do your research and you want to have learned something,

927
00:45:18,160 --> 00:45:20,600
Speaker 1: but you also don't need to read a d fifty

928
00:45:20,640 --> 00:45:23,239
Speaker 1: books in order to be prepared. And so I think

929
00:45:23,280 --> 00:45:26,759
Speaker 1: sometimes maybe we set that hurdle that bar too high

930
00:45:26,800 --> 00:45:29,279
Speaker 1: for ourselves and we say no, no, I'm gonna I'm

931
00:45:29,280 --> 00:45:32,200
Speaker 1: gonna gather some more information first. And information gathering is

932
00:45:32,239 --> 00:45:34,960
Speaker 1: an important step, but overcoming some of those fears and

933
00:45:35,040 --> 00:45:37,040
Speaker 1: doubts that are holding you back, that are causing you

934
00:45:37,280 --> 00:45:41,920
Speaker 1: to turn to get more information and never take action,

935
00:45:42,200 --> 00:45:43,680
Speaker 1: that's one of the things that needs to be grappled

936
00:45:43,719 --> 00:45:46,120
Speaker 1: with in order to actually achieve some form of passive income.

937
00:45:46,480 --> 00:45:47,880
Speaker 1: So I was glad she talked kind of about that

938
00:45:47,960 --> 00:45:50,120
Speaker 1: mental side of it too, because it's something that you

939
00:45:50,239 --> 00:45:52,759
Speaker 1: face to something that I've faced in this process of

940
00:45:53,040 --> 00:45:55,200
Speaker 1: attempting to buy rental property. I mean, we're all kind

941
00:45:55,239 --> 00:45:57,080
Speaker 1: of figuring it out, and we're trying to listen to

942
00:45:57,160 --> 00:46:00,600
Speaker 1: wise people, smart people who have done good things with

943
00:46:00,680 --> 00:46:03,400
Speaker 1: their money too. But it's really easy to continue to

944
00:46:03,480 --> 00:46:06,040
Speaker 1: sit on the sidelines thinking that you're not ready. Um,

945
00:46:06,160 --> 00:46:08,400
Speaker 1: when really the only way to get ready to like

946
00:46:08,560 --> 00:46:10,319
Speaker 1: get in the game. That's right. Yeah, I think that's

947
00:46:10,360 --> 00:46:12,960
Speaker 1: great advice, especially for somebody who might be more of

948
00:46:13,400 --> 00:46:15,959
Speaker 1: like a type a personality, right, or like someone who's

949
00:46:16,000 --> 00:46:17,520
Speaker 1: more of a perfectionist. And I feel like I kind

950
00:46:17,520 --> 00:46:19,080
Speaker 1: of tend. I tend to follow in that camp where

951
00:46:19,080 --> 00:46:20,680
Speaker 1: I want everything to be lined up, I want everything

952
00:46:20,719 --> 00:46:22,960
Speaker 1: to be perfect, whereas I feel like you're you're a

953
00:46:23,000 --> 00:46:25,040
Speaker 1: little more comfortable with you know, getting the information you

954
00:46:25,160 --> 00:46:27,520
Speaker 1: need and then just going for it, which means sometimes

955
00:46:27,520 --> 00:46:30,360
Speaker 1: I can shoot from the hip, that's right, and sometimes

956
00:46:30,719 --> 00:46:33,360
Speaker 1: you're gonna make mistakes, but regardless, you are going to

957
00:46:33,480 --> 00:46:35,160
Speaker 1: make mistakes. And that's one of the things she she

958
00:46:35,280 --> 00:46:37,359
Speaker 1: followed that up with was that no matter what you're

959
00:46:37,360 --> 00:46:39,680
Speaker 1: you're still gonna make some mistakes, but just don't let

960
00:46:39,760 --> 00:46:42,200
Speaker 1: the fear of making those mistakes keep you from action.

961
00:46:42,600 --> 00:46:44,560
Speaker 1: So I'm with you, and I thought that was some

962
00:46:44,760 --> 00:46:47,560
Speaker 1: some great advice that she had and something I mean,

963
00:46:47,640 --> 00:46:49,040
Speaker 1: and one of the things I wanted to highlight was

964
00:46:49,080 --> 00:46:52,040
Speaker 1: the fact she talked about how she never made six

965
00:46:52,120 --> 00:46:56,120
Speaker 1: figures before they got there their their first property. And

966
00:46:56,200 --> 00:46:58,520
Speaker 1: so I love that little piece of information because I

967
00:46:58,560 --> 00:47:01,000
Speaker 1: think a lot of folks might hear a success story

968
00:47:01,080 --> 00:47:03,759
Speaker 1: like this and think, oh, well, yeah, I don't have

969
00:47:03,840 --> 00:47:06,280
Speaker 1: a trust fund. You know, I don't have this incredibly

970
00:47:06,320 --> 00:47:08,040
Speaker 1: high paying job. I'm never going to be able to

971
00:47:08,120 --> 00:47:10,840
Speaker 1: achieve most of what she talked about. But that's not

972
00:47:11,040 --> 00:47:14,480
Speaker 1: necessarily true, because that's the kind of position that Rachel isn't.

973
00:47:14,520 --> 00:47:16,279
Speaker 1: She was never making a ton of money, but now

974
00:47:16,400 --> 00:47:18,560
Speaker 1: she is, and they got that ball rolling. Like she

975
00:47:18,600 --> 00:47:20,520
Speaker 1: said she was making thirty six thousand dollars a year,

976
00:47:20,560 --> 00:47:22,400
Speaker 1: living on eighteen thousand dollars a year. It reminds me

977
00:47:22,440 --> 00:47:24,200
Speaker 1: of my first shot. All about savings, right, man, My

978
00:47:24,239 --> 00:47:26,160
Speaker 1: first full time job was like I was part time

979
00:47:26,200 --> 00:47:27,640
Speaker 1: for a little bit, and then I got the first

980
00:47:27,719 --> 00:47:29,680
Speaker 1: full time gig. I was making twenty four thousand dollars

981
00:47:29,680 --> 00:47:32,600
Speaker 1: a year and I was still saving money. And so

982
00:47:33,480 --> 00:47:36,479
Speaker 1: it is possible. Um, And you know, I would prefer

983
00:47:36,600 --> 00:47:38,680
Speaker 1: not to go back to those days of living on

984
00:47:39,200 --> 00:47:42,600
Speaker 1: that little money, but it is possible, and for a time,

985
00:47:42,680 --> 00:47:45,960
Speaker 1: in order to achieve a greater goal, sometimes it's necessary. Um.

986
00:47:46,080 --> 00:47:47,719
Speaker 1: So yeah, I think it was good to get a

987
00:47:47,760 --> 00:47:49,759
Speaker 1: little peak behind the window and realize you don't have

988
00:47:49,920 --> 00:47:52,360
Speaker 1: to have mega high salaries or parents with lots of

989
00:47:52,360 --> 00:47:53,920
Speaker 1: money who are willing to give it to you in

990
00:47:54,080 --> 00:47:57,840
Speaker 1: order to begin that process of getting past the income

991
00:47:57,920 --> 00:47:59,640
Speaker 1: in your life. Um, Matt, what were your thoughts on

992
00:47:59,719 --> 00:48:01,879
Speaker 1: the beer we had today? This one was Old Nation

993
00:48:02,040 --> 00:48:05,319
Speaker 1: Brewing in forty three I p A with tarch strawberry. Yeah.

994
00:48:05,400 --> 00:48:07,719
Speaker 1: This is a part of their new Orthodox series of

995
00:48:07,800 --> 00:48:10,520
Speaker 1: I p A. S uh and I have enjoyed their

996
00:48:10,600 --> 00:48:12,560
Speaker 1: M forty three, which is like their standard hazy I

997
00:48:12,640 --> 00:48:15,640
Speaker 1: p A many times, but I have never had this variation,

998
00:48:15,880 --> 00:48:18,719
Speaker 1: this one with starch strawberries, like you said, And I

999
00:48:18,800 --> 00:48:20,680
Speaker 1: will say the first thing I noticed is right when

1000
00:48:20,680 --> 00:48:23,640
Speaker 1: we poured this beer, you could one smell the strawberries.

1001
00:48:23,719 --> 00:48:25,400
Speaker 1: I thought, you know, maybe it was going to be

1002
00:48:25,520 --> 00:48:27,960
Speaker 1: more of a subtle flavor with the strawberries in there.

1003
00:48:28,239 --> 00:48:31,440
Speaker 1: But I would say this is very strawberry Ford like.

1004
00:48:31,520 --> 00:48:33,400
Speaker 1: There's no doubt that there are strawberries in this I

1005
00:48:33,480 --> 00:48:35,759
Speaker 1: p A. Though it doesn't look like there's a lot

1006
00:48:35,760 --> 00:48:37,800
Speaker 1: of strawberry in this beer. A lot of times strawberry

1007
00:48:37,840 --> 00:48:40,960
Speaker 1: beers are either dark red or pink. You can tell

1008
00:48:41,160 --> 00:48:43,280
Speaker 1: that their strawberries in this This looks like a normal

1009
00:48:43,400 --> 00:48:46,239
Speaker 1: I p A. But yeah, the flavor is on there,

1010
00:48:46,680 --> 00:48:49,840
Speaker 1: and interestingly, because of the sort of bitterness that you

1011
00:48:49,920 --> 00:48:51,840
Speaker 1: get from the hops, I feel like the way that

1012
00:48:51,920 --> 00:48:54,440
Speaker 1: it interacted with the strawberries. I mean, they call it

1013
00:48:54,520 --> 00:48:56,799
Speaker 1: it's heart strawberry, and that's I think the right way

1014
00:48:56,880 --> 00:48:58,640
Speaker 1: to label this beer. Like it almost feels like a

1015
00:48:58,680 --> 00:49:02,000
Speaker 1: strawberry that's not quite ripe. Yeah, it's it's like a

1016
00:49:02,239 --> 00:49:03,920
Speaker 1: you know, maybe maybe it's that strawberry that's got a

1017
00:49:03,920 --> 00:49:05,799
Speaker 1: little bit of green at the top still, or maybe

1018
00:49:05,840 --> 00:49:08,279
Speaker 1: a lot of the green, but it's got a nice

1019
00:49:08,280 --> 00:49:10,800
Speaker 1: amount of pucker going alongside with a with a typical

1020
00:49:11,000 --> 00:49:13,400
Speaker 1: I p A flavors. Yeah, what your thoughts on this one? Man?

1021
00:49:13,440 --> 00:49:14,840
Speaker 1: I loved it. I feel like this is kind of

1022
00:49:15,000 --> 00:49:16,560
Speaker 1: one of my favorite beers at the moment right now.

1023
00:49:17,120 --> 00:49:19,279
Speaker 1: And I really I like this brewery too. Like you said,

1024
00:49:19,320 --> 00:49:22,080
Speaker 1: we've had the regular M forty three. They're so good.

1025
00:49:22,120 --> 00:49:25,359
Speaker 1: Another i PA called Boss Tweed r H. Boss Tweed

1026
00:49:25,480 --> 00:49:27,960
Speaker 1: one of the best, really is, it's so good my favorites,

1027
00:49:28,040 --> 00:49:30,160
Speaker 1: and so this one to me brings this yeah, different

1028
00:49:30,560 --> 00:49:33,560
Speaker 1: combination of flavors than any other beer I've had, I

1029
00:49:33,600 --> 00:49:36,120
Speaker 1: feel like, and that's hard to come by now that

1030
00:49:36,160 --> 00:49:38,000
Speaker 1: we've had so many, so many different craft of beers,

1031
00:49:38,320 --> 00:49:40,680
Speaker 1: and so I love kind of the Yeah, the tart

1032
00:49:41,160 --> 00:49:44,239
Speaker 1: berry alongside this delicious I p a if you if

1033
00:49:44,320 --> 00:49:46,880
Speaker 1: use this together nicely, and it's just something that especially

1034
00:49:46,960 --> 00:49:49,239
Speaker 1: during the summer um, I'm probably gonna have more of

1035
00:49:49,600 --> 00:49:52,359
Speaker 1: these beers in my fridge. So yeah, I really dug

1036
00:49:52,440 --> 00:49:54,200
Speaker 1: this one. But all right, that's gonna do it for

1037
00:49:54,520 --> 00:49:56,920
Speaker 1: this episode. For folks that want the show notes, including

1038
00:49:57,000 --> 00:50:00,239
Speaker 1: a link to Rachel's passive income starter kit you can

1039
00:50:00,239 --> 00:50:01,799
Speaker 1: get for free, we'll put that in our show notes

1040
00:50:01,880 --> 00:50:04,120
Speaker 1: at how to money dot com. Yeah, that's right. So

1041
00:50:04,200 --> 00:50:06,919
Speaker 1: that's gonna be it for this episode, Joel. Until next time,

1042
00:50:07,239 --> 00:50:09,200
Speaker 1: best Friends Out, Best Friends Out,