1 00:00:00,120 --> 00:00:02,680 Speaker 1: Welcome to How the Money. I'm Joel and I am 2 00:00:02,720 --> 00:00:05,560 Speaker 1: Matt's and today we're asking the question is passive income 3 00:00:05,760 --> 00:00:26,840 Speaker 1: a myth? Yeah, Joel, I am so excited for us 4 00:00:26,840 --> 00:00:30,280 Speaker 1: to tackle this concept of passive income. It's something that 5 00:00:30,720 --> 00:00:32,960 Speaker 1: you and I that we are striving towards, and we 6 00:00:33,040 --> 00:00:36,160 Speaker 1: have to a certain extent ourselves personally. But it's something 7 00:00:36,200 --> 00:00:39,040 Speaker 1: too that I feel like is that we hear more often, 8 00:00:39,280 --> 00:00:41,880 Speaker 1: like when in social media you hear it being talked about. 9 00:00:41,960 --> 00:00:44,280 Speaker 1: It's something that you can easily attain some passive income 10 00:00:44,320 --> 00:00:46,280 Speaker 1: in your life. Kind of sounds like a maybe a 11 00:00:46,320 --> 00:00:48,800 Speaker 1: Pyramids game, and this is like, how can I automate money? 12 00:00:48,840 --> 00:00:51,760 Speaker 1: I want money coming towards me with very little effort. 13 00:00:52,080 --> 00:00:54,600 Speaker 1: And so don't we all? Yeah, And I'm glad that 14 00:00:54,640 --> 00:00:58,000 Speaker 1: we're gonna We've dedicated an entire episode to talking about 15 00:00:58,320 --> 00:01:02,480 Speaker 1: how passive income is a legit, a true, honest thing. Uh. 16 00:01:02,520 --> 00:01:04,560 Speaker 1: And and in the ways where maybe it's it's a 17 00:01:04,600 --> 00:01:07,320 Speaker 1: little more shady or that it's just not true exactly 18 00:01:07,360 --> 00:01:09,840 Speaker 1: to the way it's being marketed or sold to folks. Yeah, 19 00:01:09,840 --> 00:01:12,440 Speaker 1: I think sometimes when we talk about passive income people, 20 00:01:12,560 --> 00:01:14,880 Speaker 1: at least I think of like the leprechron and the 21 00:01:14,920 --> 00:01:16,520 Speaker 1: pot of gold at the end of the rainbow. And 22 00:01:16,640 --> 00:01:19,720 Speaker 1: that's kind of how the passive income conversation feels to 23 00:01:19,720 --> 00:01:23,000 Speaker 1: me At times. I'm like, Okay, uh, this video or 24 00:01:23,280 --> 00:01:25,960 Speaker 1: this this article is gonna teach me how to make 25 00:01:26,000 --> 00:01:28,920 Speaker 1: passive income in just a few minutes. It's gonna be 26 00:01:28,959 --> 00:01:31,319 Speaker 1: it's gonna be so simple. And yet at the end 27 00:01:31,360 --> 00:01:32,600 Speaker 1: of the day, there is no pot of goal to 28 00:01:32,640 --> 00:01:34,160 Speaker 1: the end of the rainbow, and you're you're sold a 29 00:01:34,200 --> 00:01:36,280 Speaker 1: Billy Goods that isn't actually true. So we're gonna try 30 00:01:36,319 --> 00:01:38,360 Speaker 1: to kind of actually talk about what is true about 31 00:01:38,360 --> 00:01:41,280 Speaker 1: passive income and what's not true, separate the myth from 32 00:01:41,319 --> 00:01:43,600 Speaker 1: the reality here. That's right. Yeah, But first, dude, I 33 00:01:43,600 --> 00:01:46,560 Speaker 1: wanted to talk about coffee. Uh. You know, and I've 34 00:01:46,640 --> 00:01:49,400 Speaker 1: everybody who listens to the show knows that I like 35 00:01:49,520 --> 00:01:51,880 Speaker 1: Aldi did. We save so much money by getting our 36 00:01:51,880 --> 00:01:54,280 Speaker 1: groceries there at Aldi Uh, And in particularly we've been 37 00:01:54,320 --> 00:01:56,600 Speaker 1: fans of the whole being coffee that you can get there, uh, 38 00:01:56,640 --> 00:01:59,560 Speaker 1: specifically the Peruvian blend. And of course, you know you 39 00:01:59,600 --> 00:02:01,520 Speaker 1: and me are opposites. I get my coffee at Costco. 40 00:02:01,640 --> 00:02:04,240 Speaker 1: That's right, Yeah, which is totally fine. But dude, lately, 41 00:02:04,280 --> 00:02:06,640 Speaker 1: I feel like the Audi coffee hasn't been cutting it 42 00:02:06,720 --> 00:02:09,840 Speaker 1: for me. Recently, Kate brought home a pound of some 43 00:02:09,919 --> 00:02:12,200 Speaker 1: local coffee. Well it's sold locally, but it's like a 44 00:02:12,280 --> 00:02:16,240 Speaker 1: it's an ethiopium blend. Dude. It is so good, so 45 00:02:16,320 --> 00:02:18,480 Speaker 1: much better than the cheaper stuff that I get at 46 00:02:18,520 --> 00:02:20,720 Speaker 1: Aldi that I'm not sure that we're gonna be able 47 00:02:20,720 --> 00:02:24,440 Speaker 1: to go back and continue buying the cheap oh Aldi beans. 48 00:02:24,960 --> 00:02:27,120 Speaker 1: But the problem is is it cost more, and I 49 00:02:27,200 --> 00:02:29,080 Speaker 1: don't know how. I don't know if our budget can 50 00:02:29,120 --> 00:02:31,720 Speaker 1: absorb that increasing cost. Right, So Aldi, it's like four 51 00:02:31,800 --> 00:02:34,440 Speaker 1: or five bucks for a pound? Uh, this new coffee 52 00:02:34,560 --> 00:02:36,639 Speaker 1: cost ten bucks a pound them, I'm looking to double 53 00:02:37,040 --> 00:02:39,400 Speaker 1: the amount of money I'm spending on my coffee. How much? 54 00:02:39,480 --> 00:02:41,200 Speaker 1: So the stuff you buy at costco, how much do 55 00:02:41,240 --> 00:02:44,680 Speaker 1: you spend? I think, yeah, usually it's about a little 56 00:02:44,720 --> 00:02:46,680 Speaker 1: over five bucks a pound. I think it's eleven dollars 57 00:02:46,680 --> 00:02:48,280 Speaker 1: for a two pound back And you like it, right, 58 00:02:48,360 --> 00:02:50,359 Speaker 1: I mean it's it works well for y'all. Yeah, it's good. 59 00:02:50,360 --> 00:02:52,400 Speaker 1: I don't have like high falutant taste when it comes 60 00:02:52,440 --> 00:02:54,519 Speaker 1: to coffee. I like my coffee to be running the 61 00:02:54,560 --> 00:02:57,240 Speaker 1: mill average, Like, I feel like that's what I've enjoyed 62 00:02:57,320 --> 00:02:58,840 Speaker 1: up until now, but until I've had a taste of 63 00:02:58,840 --> 00:03:00,960 Speaker 1: the good stuff. Once you taste it, yes, And now 64 00:03:01,160 --> 00:03:02,960 Speaker 1: now that we've kind of gone back to our our 65 00:03:03,000 --> 00:03:05,959 Speaker 1: standard all these stuff, I'm trying to decide whether or 66 00:03:06,000 --> 00:03:08,000 Speaker 1: not it's worth it to me. And you know, this 67 00:03:08,040 --> 00:03:10,040 Speaker 1: is one of those areas where I feel like, if 68 00:03:10,080 --> 00:03:12,720 Speaker 1: I continue buying the cheap stuff, it's gonna feel cheap 69 00:03:12,760 --> 00:03:15,400 Speaker 1: to me. And I can literally taste a huge difference 70 00:03:15,400 --> 00:03:19,639 Speaker 1: between the Audi stuff versus this nicer Ethiopian blend. Uh. 71 00:03:19,639 --> 00:03:21,640 Speaker 1: And so I guess I'm mentioning it because I think 72 00:03:21,720 --> 00:03:23,680 Speaker 1: we are going to just budget for it. We're gonna 73 00:03:23,680 --> 00:03:25,320 Speaker 1: plan for it because this is something that Kate and 74 00:03:25,400 --> 00:03:27,839 Speaker 1: I are both appreciating. It's something that we can tell 75 00:03:27,840 --> 00:03:31,480 Speaker 1: the difference. We appreciate the nicer stuff, and honestly, in 76 00:03:31,520 --> 00:03:33,320 Speaker 1: the end, you know, we're looking at increasing our coffee 77 00:03:33,320 --> 00:03:36,040 Speaker 1: budget by you know, five dollars a pound roughly. On 78 00:03:36,040 --> 00:03:37,960 Speaker 1: one hand, it feels extravagant, but on the other hand, 79 00:03:37,960 --> 00:03:39,880 Speaker 1: I'm like, Okay, come on, this is not a big deal. 80 00:03:40,200 --> 00:03:42,520 Speaker 1: Leave it to money nerds like us right to to 81 00:03:42,560 --> 00:03:45,040 Speaker 1: obsess over something so small. But I guess my question 82 00:03:45,040 --> 00:03:47,559 Speaker 1: for you is is would you judge me for uh, 83 00:03:47,680 --> 00:03:50,880 Speaker 1: for effectively doubling my coffee budget? Not at all? Actually, yeah, no, 84 00:03:51,160 --> 00:03:53,280 Speaker 1: I think you're you should totally go for me. You 85 00:03:53,320 --> 00:03:54,840 Speaker 1: should spend a little bit more on this thing. And 86 00:03:54,880 --> 00:03:57,560 Speaker 1: I think the coffee is one of those things that 87 00:03:57,960 --> 00:04:01,480 Speaker 1: in your life literally every day of the year, and 88 00:04:01,720 --> 00:04:04,800 Speaker 1: if you can thoroughly enjoy your cup of coffee versus 89 00:04:04,800 --> 00:04:07,840 Speaker 1: just kind of mildly enjoying a cup of coffee in 90 00:04:07,880 --> 00:04:09,840 Speaker 1: the morning, I think that extra what ten bucks a 91 00:04:09,840 --> 00:04:11,600 Speaker 1: month in your budget. I'm sure you can find a 92 00:04:11,640 --> 00:04:14,320 Speaker 1: way to cut back ten bucks in some other in 93 00:04:14,400 --> 00:04:15,880 Speaker 1: some other part of your budget in order to be 94 00:04:15,920 --> 00:04:18,720 Speaker 1: able to pay for a nicer coffee, or find a 95 00:04:18,720 --> 00:04:21,360 Speaker 1: way to earn ten extra dollars, you know, like giving 96 00:04:21,360 --> 00:04:24,120 Speaker 1: a lift, ride or something to somebody. Yeah. I guess 97 00:04:24,120 --> 00:04:25,840 Speaker 1: I wanted to share that because I want folks to know, 98 00:04:26,320 --> 00:04:28,160 Speaker 1: in a sense, I want to give individuals out their 99 00:04:28,200 --> 00:04:31,080 Speaker 1: permission to spend money towards the things that truly like 100 00:04:31,120 --> 00:04:33,520 Speaker 1: bring you joy or or you know, bring you value. 101 00:04:33,880 --> 00:04:35,880 Speaker 1: But just know that you can't spend money on every 102 00:04:35,920 --> 00:04:38,440 Speaker 1: single thing out there, Like you can't upgrade everything in 103 00:04:38,480 --> 00:04:40,040 Speaker 1: your life. But in this case, I think we are 104 00:04:40,080 --> 00:04:41,760 Speaker 1: going to spend a little bit more every month, all 105 00:04:41,839 --> 00:04:44,280 Speaker 1: on coffee. Yeah. Sometimes ignorance is bliss when it comes 106 00:04:44,320 --> 00:04:47,080 Speaker 1: to second Like if I wish I would have never 107 00:04:47,120 --> 00:04:48,919 Speaker 1: had it, because I think I would have been totally 108 00:04:48,920 --> 00:04:51,560 Speaker 1: fine with the Audi coffee. That's the way I feel 109 00:04:51,600 --> 00:04:55,360 Speaker 1: about the nicer new pizza joint. We've been, you know, 110 00:04:55,440 --> 00:04:58,960 Speaker 1: hitting up sometimes these days, and I truly love it, 111 00:04:58,960 --> 00:05:02,640 Speaker 1: Like it's delicious pizza. It's it's really expensive. And now 112 00:05:02,640 --> 00:05:05,360 Speaker 1: when I go back to the other neighborhood joint, I'm like, 113 00:05:05,920 --> 00:05:10,159 Speaker 1: it's it's good. It's it's fine. The inferior pizza. Yeah, 114 00:05:10,200 --> 00:05:11,800 Speaker 1: but I would have thought that before it until I 115 00:05:11,839 --> 00:05:14,480 Speaker 1: tasted the super good stuff. It's kind of one of 116 00:05:14,520 --> 00:05:15,840 Speaker 1: those things that happens every once in a while and 117 00:05:15,839 --> 00:05:17,920 Speaker 1: you have to put blinders on in order to stay 118 00:05:17,960 --> 00:05:21,080 Speaker 1: the course, exactly like a horse in a race. But 119 00:05:21,080 --> 00:05:23,000 Speaker 1: but I hope you enjoy your new coffee, my friend. 120 00:05:23,000 --> 00:05:24,839 Speaker 1: Thanks man. But let's move on mention the beer that 121 00:05:24,880 --> 00:05:26,760 Speaker 1: we're having on this episode. The reason we have a 122 00:05:26,800 --> 00:05:29,599 Speaker 1: beer every episode is because that is a place we 123 00:05:29,680 --> 00:05:32,400 Speaker 1: choose to put our money on purpose. We like craft 124 00:05:32,400 --> 00:05:34,280 Speaker 1: beer a whole lot. The beer that we're drinking on 125 00:05:34,320 --> 00:05:36,920 Speaker 1: today's episode is called Radix. It's by Halfway Crooks, which 126 00:05:36,960 --> 00:05:39,520 Speaker 1: is a brewery in our neighborhood that we absolutely love. 127 00:05:39,560 --> 00:05:42,279 Speaker 1: So looking forward to us to drinking this pilsner with you, man. Yeah, 128 00:05:42,600 --> 00:05:44,760 Speaker 1: all right, well let's move on to the subject at hand. 129 00:05:45,000 --> 00:05:47,479 Speaker 1: We are asking the question is passive income a myth 130 00:05:47,520 --> 00:05:51,039 Speaker 1: on today's episode, and Matt, when we were kind of 131 00:05:51,200 --> 00:05:54,320 Speaker 1: deciding how to tackle this topic, it made me think 132 00:05:54,360 --> 00:05:57,400 Speaker 1: about relationships and I feel like, I don't know why 133 00:05:57,440 --> 00:06:02,080 Speaker 1: passive incoming relationships. They don't necessarily go hand in hand. Yeah, 134 00:06:02,200 --> 00:06:05,280 Speaker 1: I was thinking more about like a love relationship. I 135 00:06:05,320 --> 00:06:08,599 Speaker 1: feel like the messaging that we often get is that 136 00:06:09,040 --> 00:06:12,880 Speaker 1: finding the right one is the hard part. Right once 137 00:06:12,920 --> 00:06:15,240 Speaker 1: you find the right one and settle down, you're good 138 00:06:15,279 --> 00:06:17,720 Speaker 1: to go and life is easy from there on out. 139 00:06:18,040 --> 00:06:20,240 Speaker 1: Now that you've got that perfect partner, things are smooth 140 00:06:20,680 --> 00:06:23,039 Speaker 1: for you in life. And when you find the person 141 00:06:23,080 --> 00:06:25,440 Speaker 1: that you can truly be yourself with, it is a gift. 142 00:06:25,480 --> 00:06:27,560 Speaker 1: Like I'm not trying to diminish true love I think. 143 00:06:27,600 --> 00:06:29,960 Speaker 1: I think it's really good, and I am in love 144 00:06:30,040 --> 00:06:33,280 Speaker 1: with my wife and I'm thankful for our relationship. But still, 145 00:06:33,560 --> 00:06:35,880 Speaker 1: even when you make a lifelong commitment to someone else 146 00:06:36,000 --> 00:06:38,839 Speaker 1: that fits you like a glove, it really does still 147 00:06:39,000 --> 00:06:41,160 Speaker 1: take a work to keep that leve alive and to 148 00:06:41,279 --> 00:06:44,120 Speaker 1: stay deeply connected to one another. You know this, Matt, 149 00:06:44,160 --> 00:06:45,960 Speaker 1: You've been married for what ye dude, it'll be fourteen 150 00:06:46,200 --> 00:06:48,560 Speaker 1: this year. Nice, okay, And I feel like this is 151 00:06:48,600 --> 00:06:51,919 Speaker 1: a great analogy for passive income because passive income sounds 152 00:06:51,960 --> 00:06:54,360 Speaker 1: so easy and similar to, you know, a great relationship. 153 00:06:54,400 --> 00:06:57,400 Speaker 1: It's not that passive income isn't a great thing. It is, 154 00:06:57,680 --> 00:07:01,160 Speaker 1: but passive income also takes work. So yeah, in this episode, 155 00:07:01,200 --> 00:07:03,359 Speaker 1: we're going to try and give an accurate definition of 156 00:07:03,440 --> 00:07:06,680 Speaker 1: what passive income looks like and then the best avenues 157 00:07:06,720 --> 00:07:10,000 Speaker 1: for pursuing it, and maybe, just maybe along the way, Matt, 158 00:07:10,080 --> 00:07:12,480 Speaker 1: you're gonna sprinkle in some relationship advice. I feel like 159 00:07:12,680 --> 00:07:14,880 Speaker 1: you've probably got a lot to offer on that front. Well, yeah, 160 00:07:14,880 --> 00:07:18,360 Speaker 1: I mean, relationships like passive income requires a little tender, 161 00:07:18,400 --> 00:07:20,240 Speaker 1: loving care, right, But I don't know. Yeah, I don't 162 00:07:20,240 --> 00:07:22,200 Speaker 1: have any tips, I will say, Kate, and I started 163 00:07:22,240 --> 00:07:23,800 Speaker 1: dating when I was a senior and she was a 164 00:07:23,800 --> 00:07:26,360 Speaker 1: freshman in college. And so all I'm saying is like, 165 00:07:26,560 --> 00:07:29,320 Speaker 1: use the strengths that you have going for you. So 166 00:07:29,560 --> 00:07:32,560 Speaker 1: obviously like the older guys. So it worked out for me, 167 00:07:32,760 --> 00:07:35,480 Speaker 1: and you know, when you know you found the right person, uh, 168 00:07:35,720 --> 00:07:38,080 Speaker 1: stick with it like you did. Yeah, absolutely, man, I'm 169 00:07:38,120 --> 00:07:40,840 Speaker 1: looking forward to I've already mentioned the ship before fifteen years. 170 00:07:40,920 --> 00:07:42,960 Speaker 1: Next year. I feel like that's gonna be a huge moustone. 171 00:07:43,000 --> 00:07:46,520 Speaker 1: Not to discount fourteen, but yeah, you know, like in 172 00:07:46,560 --> 00:07:49,400 Speaker 1: the same way that relationships, you know, continue to require 173 00:07:49,440 --> 00:07:52,080 Speaker 1: that that input and that that attention. Almost all of 174 00:07:52,120 --> 00:07:54,800 Speaker 1: the quote unquote passive income opportunities that we hear about 175 00:07:55,040 --> 00:07:56,440 Speaker 1: these are maybe the ones you know, getting all the 176 00:07:56,480 --> 00:08:00,960 Speaker 1: views on social media. They also require a meaningful degree 177 00:08:01,080 --> 00:08:02,960 Speaker 1: of work. And so a better term I think to 178 00:08:03,080 --> 00:08:06,920 Speaker 1: use instead of passive income is probably leveraged income. You know, 179 00:08:07,040 --> 00:08:11,080 Speaker 1: there are very few purely passive sources of income, and 180 00:08:11,080 --> 00:08:13,120 Speaker 1: so that's why we are, you know, dispelling the myth 181 00:08:13,200 --> 00:08:16,840 Speaker 1: that there's a source of passive income around every corner, right, Like, 182 00:08:16,880 --> 00:08:20,040 Speaker 1: you aren't missing out on the passive income that everyone 183 00:08:20,080 --> 00:08:22,240 Speaker 1: else is enjoying. Because it doesn't exist. There is that 184 00:08:22,280 --> 00:08:24,080 Speaker 1: where you can go and sign up for for free money. 185 00:08:24,320 --> 00:08:27,520 Speaker 1: Most of these opportunities could probably be considered a side 186 00:08:27,520 --> 00:08:29,600 Speaker 1: gig or even a part time job, or even though 187 00:08:29,640 --> 00:08:30,920 Speaker 1: a full time job. We'll get to some of those 188 00:08:30,920 --> 00:08:33,160 Speaker 1: scenarios later on in the episode. Yeah, I think sometimes 189 00:08:33,160 --> 00:08:35,240 Speaker 1: when we're talking about passive income, there is that FOMO. 190 00:08:35,320 --> 00:08:37,760 Speaker 1: People are like, I feel like everybody's like making this 191 00:08:37,800 --> 00:08:40,480 Speaker 1: passive income, right, I see it out there online, where's 192 00:08:40,480 --> 00:08:44,080 Speaker 1: my passive income? And like the Golden ticket exactly. But 193 00:08:44,440 --> 00:08:47,800 Speaker 1: a lot of what's considered passive income isn't necessarily passive. 194 00:08:48,320 --> 00:08:50,720 Speaker 1: And I like what you said, Matt about leverage income. 195 00:08:50,840 --> 00:08:52,360 Speaker 1: I think it's a better way to think about it. 196 00:08:52,440 --> 00:08:54,960 Speaker 1: You know, we'll continue to use the phrase passive income 197 00:08:55,000 --> 00:08:57,960 Speaker 1: in this episode, but leverage is really an important part 198 00:08:58,000 --> 00:09:00,880 Speaker 1: of this equation. To gain passive in come, you're often 199 00:09:01,040 --> 00:09:03,920 Speaker 1: putting in more time and effort now to reap greater 200 00:09:04,000 --> 00:09:07,520 Speaker 1: rewards later on in your financial life. But the reason 201 00:09:07,679 --> 00:09:11,160 Speaker 1: people are so desirous of generating passive income streams is 202 00:09:11,160 --> 00:09:13,600 Speaker 1: that it's better to have your money working for you 203 00:09:13,800 --> 00:09:16,320 Speaker 1: than to have to work for your money decade after 204 00:09:16,400 --> 00:09:20,720 Speaker 1: decade after decade, right, sometimes five decades of work, and 205 00:09:20,720 --> 00:09:22,839 Speaker 1: at some point you want passive income to kind of 206 00:09:22,880 --> 00:09:25,520 Speaker 1: help carry some of that load. Making money while you're 207 00:09:25,559 --> 00:09:29,640 Speaker 1: asleep sounds pretty phenomenal, But generating regular income that doesn't 208 00:09:29,640 --> 00:09:33,600 Speaker 1: come via a paycheck from your employer takes intentionality, take sacrifice, 209 00:09:33,840 --> 00:09:37,920 Speaker 1: and takes the ability to delay gratification. Yeah, it takes work, essentially, 210 00:09:37,960 --> 00:09:40,160 Speaker 1: is what you're saying. And sometimes the understanding that it 211 00:09:40,160 --> 00:09:43,160 Speaker 1: takes effort to generate passive income that gets lost in 212 00:09:43,280 --> 00:09:46,040 Speaker 1: the discussion about how to get there, to be able 213 00:09:46,080 --> 00:09:48,520 Speaker 1: to make money without lifting a fingers and something that 214 00:09:48,640 --> 00:09:51,640 Speaker 1: I've ever experienced, but often that is the passive income 215 00:09:51,679 --> 00:09:54,720 Speaker 1: pitch that we hear. Even to make money, you know, 216 00:09:54,720 --> 00:09:56,520 Speaker 1: based on what you know like that takes a lot 217 00:09:56,559 --> 00:09:59,000 Speaker 1: of dedication and getting that knowledge just in the in 218 00:09:59,000 --> 00:10:01,800 Speaker 1: the first place. You know, it takes quite a bit 219 00:10:01,840 --> 00:10:05,760 Speaker 1: of time to see any meaningful passive income. You're not 220 00:10:05,800 --> 00:10:08,360 Speaker 1: gonna build three passive income streams, you know, just in 221 00:10:08,360 --> 00:10:10,960 Speaker 1: the course of a few days. Even just amassing the 222 00:10:11,040 --> 00:10:13,640 Speaker 1: knowledge to know which route to take like that alone 223 00:10:13,679 --> 00:10:16,960 Speaker 1: can require a ton of reading, a ton of information gathering, 224 00:10:17,400 --> 00:10:20,959 Speaker 1: and implementation of that knowledge doesn't happen quickly either. Yeah. 225 00:10:21,040 --> 00:10:24,000 Speaker 1: So you mentioned that it takes time to see meaningful 226 00:10:24,000 --> 00:10:26,800 Speaker 1: passive income. It's not something that's done quickly, which is 227 00:10:26,800 --> 00:10:29,200 Speaker 1: true and also to it takes trial and error on 228 00:10:29,240 --> 00:10:31,679 Speaker 1: that front to see which passive income routes work well 229 00:10:31,720 --> 00:10:34,720 Speaker 1: for you. You You might think that one route is gonna 230 00:10:34,760 --> 00:10:37,480 Speaker 1: make sense, and you might decide that's actually not in 231 00:10:37,520 --> 00:10:39,880 Speaker 1: my wheelhouse. I need to check something else out. It 232 00:10:39,920 --> 00:10:42,480 Speaker 1: also takes money to build up any sort of passive 233 00:10:42,480 --> 00:10:45,000 Speaker 1: income stream. All of the different passive income streams that 234 00:10:45,000 --> 00:10:47,679 Speaker 1: we're going to discuss today take varying amounts of money 235 00:10:47,760 --> 00:10:50,560 Speaker 1: to get into. So, like the down payment on your 236 00:10:50,600 --> 00:10:54,120 Speaker 1: first rental property, well that requires quite a bit of cash. 237 00:10:54,559 --> 00:10:57,040 Speaker 1: Starting a blog though, isn't gonna take nearly as much 238 00:10:57,080 --> 00:10:59,880 Speaker 1: money to get going, of course, But to start earning 239 00:10:59,880 --> 00:11:03,040 Speaker 1: income that flows while you sleep, it often takes money 240 00:11:03,120 --> 00:11:05,840 Speaker 1: in addition to hard work. Uh. It takes a little 241 00:11:05,840 --> 00:11:08,360 Speaker 1: bit of both, sometimes a lot of both, right, yeah, yeah, 242 00:11:08,400 --> 00:11:10,920 Speaker 1: And different sources of passive income are going to have 243 00:11:11,000 --> 00:11:14,680 Speaker 1: varying degrees of time and work involved. Right. At a 244 00:11:14,840 --> 00:11:17,800 Speaker 1: very elementary level, passive income can literally, you know, be 245 00:11:17,840 --> 00:11:20,120 Speaker 1: as simple as having money and a savings account and 246 00:11:20,160 --> 00:11:23,400 Speaker 1: earning interest, although that's not gonna earn you much, especially 247 00:11:23,440 --> 00:11:26,160 Speaker 1: these days. Yeah exactly, But that method could you know, 248 00:11:26,240 --> 00:11:28,520 Speaker 1: just take a few bucks and virtually none of your time. 249 00:11:28,559 --> 00:11:31,640 Speaker 1: It's super simple, super easy. Uh. Or on the other hand, 250 00:11:31,960 --> 00:11:35,240 Speaker 1: passive income could be as complex as building this massive 251 00:11:35,240 --> 00:11:38,520 Speaker 1: business with you know, hundreds of employees that you eventually 252 00:11:38,559 --> 00:11:40,800 Speaker 1: are able to step away from. This is an example 253 00:11:41,040 --> 00:11:43,880 Speaker 1: of form of passive income that's going to take a 254 00:11:43,920 --> 00:11:46,280 Speaker 1: lot of time and a lot of money. And of course, 255 00:11:46,280 --> 00:11:48,760 Speaker 1: you know, there are different approaches to passive income all 256 00:11:48,800 --> 00:11:51,320 Speaker 1: along the way in between those two extremes. And so 257 00:11:51,320 --> 00:11:55,439 Speaker 1: we're gonna cover some different methods of passive income, uh 258 00:11:55,480 --> 00:11:56,960 Speaker 1: that that are going to kind of run the gamut 259 00:11:56,960 --> 00:11:59,560 Speaker 1: between those two extremes. Yeah, so let's start kind of 260 00:11:59,559 --> 00:12:01,640 Speaker 1: maybe on the easy end of the spectrum, and let's 261 00:12:01,640 --> 00:12:03,920 Speaker 1: sit the easy button. Sorry about one of the simplest 262 00:12:03,960 --> 00:12:07,000 Speaker 1: ways to make passive income. And I'm gonna this one. 263 00:12:07,040 --> 00:12:08,600 Speaker 1: I'm gonna met this first one that we're gonna throw 264 00:12:08,600 --> 00:12:11,160 Speaker 1: out there. It's a little bit random. It's it's not 265 00:12:11,240 --> 00:12:12,920 Speaker 1: one that you're gonna see touted in most of the 266 00:12:12,960 --> 00:12:16,800 Speaker 1: YouTube videos. But yeah, one way that you could make money, 267 00:12:17,160 --> 00:12:19,319 Speaker 1: it's just using an asset that you already have, and 268 00:12:19,400 --> 00:12:22,240 Speaker 1: you can generate passive income by doing the actions that 269 00:12:22,240 --> 00:12:24,199 Speaker 1: you're already doing, but doing them in a different way. 270 00:12:24,360 --> 00:12:27,560 Speaker 1: And wrapping your car in an advertisement is actually the 271 00:12:27,559 --> 00:12:29,640 Speaker 1: easiest way, I would say to do that. It's actually 272 00:12:29,640 --> 00:12:32,760 Speaker 1: something matth that I have done before personally done this, right, 273 00:12:33,160 --> 00:12:35,880 Speaker 1: It's the easiest way I've ever made money doing the 274 00:12:35,880 --> 00:12:37,920 Speaker 1: thing I was already doing. Right, so I had to 275 00:12:37,960 --> 00:12:40,880 Speaker 1: have the car. It's just slightly embarrassing to your wife, 276 00:12:40,960 --> 00:12:43,000 Speaker 1: So yeah, to my wife, not to me. I didn't care, 277 00:12:43,040 --> 00:12:45,880 Speaker 1: but some people would be more embarrassed than others about it. 278 00:12:45,920 --> 00:12:47,880 Speaker 1: I have no sense of shame. Um, But yeah, I 279 00:12:47,880 --> 00:12:51,120 Speaker 1: already had the car and I was driving it already 280 00:12:51,240 --> 00:12:54,520 Speaker 1: to work on some days and around town on other days, 281 00:12:54,840 --> 00:12:57,800 Speaker 1: and so making money without having to really change up 282 00:12:57,840 --> 00:13:00,920 Speaker 1: anything in my daily routine was pretty nice. Um. It's 283 00:13:00,920 --> 00:13:02,720 Speaker 1: a chill way to make some extra dough. And the 284 00:13:02,720 --> 00:13:05,440 Speaker 1: company I went through was called Rapifi and they're still 285 00:13:05,480 --> 00:13:07,760 Speaker 1: around And and I will say too, there are lots 286 00:13:07,760 --> 00:13:09,720 Speaker 1: of scams when it comes to car wrapping, so you 287 00:13:09,720 --> 00:13:11,800 Speaker 1: want to be careful which company you go with, but 288 00:13:11,960 --> 00:13:13,800 Speaker 1: Rapi Fi will link to it in the show notes 289 00:13:13,920 --> 00:13:15,880 Speaker 1: is a legit one could be a good way for 290 00:13:15,880 --> 00:13:18,319 Speaker 1: a lot of people to make hundreds of extra dollars 291 00:13:18,679 --> 00:13:21,840 Speaker 1: every month um literally by driving the miles they were 292 00:13:21,840 --> 00:13:24,400 Speaker 1: already driving. So that's a cool way of making passive 293 00:13:24,440 --> 00:13:27,800 Speaker 1: income without having to put in too much effort. Also 294 00:13:27,840 --> 00:13:30,559 Speaker 1: to running out that car that you aren't using is 295 00:13:30,600 --> 00:13:32,840 Speaker 1: another way to score a bit of passive income in 296 00:13:32,840 --> 00:13:36,440 Speaker 1: your life. Cars are idle, Matt somewhere close to of 297 00:13:36,480 --> 00:13:39,760 Speaker 1: the time, especially these days if we're working from home, 298 00:13:40,040 --> 00:13:42,400 Speaker 1: A lot of us have been using our cars way 299 00:13:42,480 --> 00:13:45,160 Speaker 1: less than we used to, and so why not turn 300 00:13:45,400 --> 00:13:48,480 Speaker 1: that car that sending their idol into some passive income. 301 00:13:48,600 --> 00:13:50,600 Speaker 1: And you can do that out of sight like Toro, 302 00:13:50,800 --> 00:13:53,320 Speaker 1: where you can rent out your own car for other 303 00:13:53,320 --> 00:13:55,760 Speaker 1: people to use um and you can make some decent 304 00:13:55,800 --> 00:13:58,320 Speaker 1: money doing that. That's right, Yeah, that's super easy. Although 305 00:13:58,360 --> 00:14:00,480 Speaker 1: I guess there's a difference between Rapifi and Turro. Right 306 00:14:00,480 --> 00:14:02,600 Speaker 1: with Touro, it does take a little more managing, you 307 00:14:02,600 --> 00:14:05,080 Speaker 1: know of your vehicle and making sure it's maintained, make 308 00:14:05,120 --> 00:14:06,679 Speaker 1: sure it's in the right place at the right time right, 309 00:14:06,800 --> 00:14:09,480 Speaker 1: responding to people who are trying to pook Yeah, exactly, 310 00:14:09,520 --> 00:14:12,360 Speaker 1: whereas like truly rapidfy, I mean, you didn't change anything 311 00:14:12,400 --> 00:14:15,040 Speaker 1: about about what you're doing except for having to go 312 00:14:15,360 --> 00:14:17,040 Speaker 1: and get it wrapped and then taking it back there 313 00:14:17,080 --> 00:14:20,680 Speaker 1: once the campaign was over, exactly. But yeah, similar to 314 00:14:20,680 --> 00:14:23,640 Speaker 1: touro or you're renting out your vehicle that you already owned. 315 00:14:23,800 --> 00:14:26,320 Speaker 1: Baby equip is another example of this. Uh and you 316 00:14:26,320 --> 00:14:27,960 Speaker 1: know that we've mentioned this on the show before, but 317 00:14:28,000 --> 00:14:29,960 Speaker 1: you can make money by renting out baby equipment that 318 00:14:30,000 --> 00:14:32,280 Speaker 1: you already own that you aren't using. So if you've 319 00:14:32,320 --> 00:14:35,480 Speaker 1: got like that extra uh pack and play sitting there 320 00:14:35,480 --> 00:14:37,720 Speaker 1: in the closet, why not put it to use? So 321 00:14:37,800 --> 00:14:40,640 Speaker 1: using assets that you already own more efficiently, that can 322 00:14:40,680 --> 00:14:43,320 Speaker 1: be a really easy way to kind of generate some 323 00:14:43,360 --> 00:14:46,200 Speaker 1: passive income. But we're gonna talk about the pros and 324 00:14:46,240 --> 00:14:49,240 Speaker 1: cons of other passive income methods, ones that have the 325 00:14:49,240 --> 00:14:51,800 Speaker 1: potential to generate way more money, and we'll get to 326 00:14:51,840 --> 00:15:02,600 Speaker 1: those right after this break. All right, we'll back. We're 327 00:15:02,640 --> 00:15:05,320 Speaker 1: gonna keep talking to you about passive income, and it's 328 00:15:05,320 --> 00:15:07,640 Speaker 1: our goal to point you in the right direction for 329 00:15:07,720 --> 00:15:10,400 Speaker 1: how you can make money on your money, or on 330 00:15:10,440 --> 00:15:12,400 Speaker 1: the items you already have, or with the skills that 331 00:15:12,440 --> 00:15:14,840 Speaker 1: you already have, without selling you a bill of goods 332 00:15:15,080 --> 00:15:17,880 Speaker 1: that isn't actually real. Um. And so, Matt, let's talk 333 00:15:17,920 --> 00:15:22,400 Speaker 1: about probably our favorite method of passive income. Investing in 334 00:15:22,400 --> 00:15:25,040 Speaker 1: the market is is one of the best ways for 335 00:15:25,080 --> 00:15:28,640 Speaker 1: anyone to get started building up an eventual source of 336 00:15:28,680 --> 00:15:31,680 Speaker 1: passive income in their lives. That's what saving for retirement's 337 00:15:31,720 --> 00:15:33,680 Speaker 1: all about, right, saving in your four oh one gay, 338 00:15:33,680 --> 00:15:35,840 Speaker 1: your four oh three B or your I ra A. 339 00:15:36,200 --> 00:15:38,200 Speaker 1: You know, some folks attempt to take a more active 340 00:15:38,280 --> 00:15:41,080 Speaker 1: role when it comes to investing, picking individual stacks, making 341 00:15:41,120 --> 00:15:44,160 Speaker 1: frequent trades, But that's really the opposite of passive income. 342 00:15:44,200 --> 00:15:46,520 Speaker 1: That sounds like work. That sounds like you're having to 343 00:15:46,880 --> 00:15:50,520 Speaker 1: figure out which company you think is going to perform 344 00:15:50,520 --> 00:15:53,360 Speaker 1: well over the next six months, year, two years and 345 00:15:53,760 --> 00:15:56,560 Speaker 1: allocate your investments accordingly. But you know, you and I 346 00:15:56,600 --> 00:16:00,440 Speaker 1: we actually pursue the truly passive dollar cost averaging ironhold 347 00:16:00,440 --> 00:16:04,320 Speaker 1: strategy that truly takes almost zero mental bandwidth, Like the 348 00:16:04,360 --> 00:16:07,200 Speaker 1: time that it takes for us to invest is almost nothing. 349 00:16:07,520 --> 00:16:10,160 Speaker 1: And I do appreciate that about investing in the market. 350 00:16:10,600 --> 00:16:13,320 Speaker 1: But even if you're all about finding multiple ways to 351 00:16:13,360 --> 00:16:16,280 Speaker 1: pursue passive income, like you want to get involved in 352 00:16:16,320 --> 00:16:18,480 Speaker 1: some of the other things we're gonna talk about on 353 00:16:18,480 --> 00:16:22,080 Speaker 1: this episode today, investing in the market is one route 354 00:16:22,280 --> 00:16:25,320 Speaker 1: that we believe that basically everyone should be participating in. 355 00:16:25,320 --> 00:16:28,320 Speaker 1: It's one of the simplest methods to building a passive 356 00:16:28,320 --> 00:16:31,840 Speaker 1: income stream that will fund decades of your future expenses 357 00:16:31,960 --> 00:16:34,960 Speaker 1: later in life. Even if you start with just a 358 00:16:35,000 --> 00:16:38,560 Speaker 1: really small portion of your income going in that direction. Um, 359 00:16:38,600 --> 00:16:40,880 Speaker 1: it doesn't take a whole lot of cash, but those 360 00:16:40,920 --> 00:16:44,600 Speaker 1: little amounts of cash over a large number of years 361 00:16:44,760 --> 00:16:47,080 Speaker 1: are going to have just this incredible impact and your 362 00:16:47,080 --> 00:16:50,640 Speaker 1: ability to have passive income in your later years in life. Yeah, 363 00:16:50,720 --> 00:16:53,480 Speaker 1: that's true. Yeah, investing your money in the market, it's 364 00:16:53,520 --> 00:16:55,960 Speaker 1: it's really the only way to have a truly passive 365 00:16:55,960 --> 00:16:58,520 Speaker 1: source of income. But you know, it does require a 366 00:16:58,560 --> 00:17:00,560 Speaker 1: lot of money in order to eventually and rate enough 367 00:17:00,600 --> 00:17:03,880 Speaker 1: money uh in interest to live on. Right. So, for example, 368 00:17:03,920 --> 00:17:07,040 Speaker 1: if you have the typical expenses of an average American, 369 00:17:07,480 --> 00:17:10,879 Speaker 1: that means you have around sixty in expenses, right, and 370 00:17:10,960 --> 00:17:13,680 Speaker 1: using some quick math, we know that by multiplying that 371 00:17:13,760 --> 00:17:16,720 Speaker 1: amount by twenty five you'll have a good idea of 372 00:17:16,760 --> 00:17:18,840 Speaker 1: how much you'll need to have invested in order to 373 00:17:18,960 --> 00:17:21,560 Speaker 1: live off that nest egg. And so in this example, 374 00:17:21,600 --> 00:17:24,240 Speaker 1: if you multiply twenty five by sixty thousand, that leads 375 00:17:24,280 --> 00:17:27,400 Speaker 1: to one point five million dollars. That is a lot 376 00:17:27,520 --> 00:17:30,200 Speaker 1: of money. So that sounds daunting, it is, dude, Yeah, 377 00:17:30,240 --> 00:17:32,399 Speaker 1: But and that's why it often takes an entire working 378 00:17:32,400 --> 00:17:36,200 Speaker 1: career in order to have enough saved to become financially independent. 379 00:17:36,520 --> 00:17:38,880 Speaker 1: But it is easy and that it doesn't take much research, 380 00:17:39,119 --> 00:17:41,119 Speaker 1: index fence, that's all you need to know. But it 381 00:17:41,160 --> 00:17:43,359 Speaker 1: does take a long time to get there. But because 382 00:17:43,760 --> 00:17:46,439 Speaker 1: it doesn't require much money upfront, and it's something that 383 00:17:46,480 --> 00:17:48,240 Speaker 1: you can easily get into and it doesn't require that 384 00:17:48,240 --> 00:17:52,000 Speaker 1: specialized knowledge or time, it's something that everybody can take 385 00:17:52,000 --> 00:17:55,800 Speaker 1: part in. Yeah, So investing in the market is almost 386 00:17:55,840 --> 00:17:58,840 Speaker 1: like rapid Fi level, almost car wrapping level. Simple. Uh. 387 00:17:59,080 --> 00:18:01,920 Speaker 1: It just takes the mone and the dedication to continue 388 00:18:01,920 --> 00:18:04,879 Speaker 1: putting that money in consistently. All right, let's talk about 389 00:18:04,880 --> 00:18:08,320 Speaker 1: some other ways math that people can make passive income 390 00:18:08,359 --> 00:18:10,400 Speaker 1: in their lives. One of the ways that's often touted 391 00:18:10,600 --> 00:18:14,280 Speaker 1: is affiliate marketing. It's supposed to be a fairly easy method, 392 00:18:14,560 --> 00:18:17,480 Speaker 1: pretty huge online. You hear people talking about it. Yeah, 393 00:18:17,480 --> 00:18:20,200 Speaker 1: they're they're like, hey, start a blog and pop in 394 00:18:20,240 --> 00:18:24,080 Speaker 1: some affiliate links and you're you're start developing passive income 395 00:18:24,160 --> 00:18:26,960 Speaker 1: in no time like overnight, right and um, and so yeah, 396 00:18:26,960 --> 00:18:28,480 Speaker 1: I think this is one of the things maybe that's 397 00:18:28,760 --> 00:18:33,200 Speaker 1: overpromised and anybody that's actually tried doing this realizes that 398 00:18:33,320 --> 00:18:35,639 Speaker 1: it's much harder than it seems. Right. The way this 399 00:18:35,720 --> 00:18:37,920 Speaker 1: works is is that businesses will pay you a commission 400 00:18:37,960 --> 00:18:40,800 Speaker 1: for sending customers their way. A lot of different sites 401 00:18:40,920 --> 00:18:44,360 Speaker 1: rely on affiliate marketing, like they're getting sales when bloggers 402 00:18:44,359 --> 00:18:46,440 Speaker 1: linked to them, and then you know, readers click through 403 00:18:46,480 --> 00:18:49,320 Speaker 1: to make a purchase. And while this is a legit 404 00:18:49,359 --> 00:18:52,320 Speaker 1: way to make money starting a blog finding your tribe 405 00:18:52,320 --> 00:18:54,359 Speaker 1: of readers, you you can't have enough readers to actually 406 00:18:54,359 --> 00:18:57,439 Speaker 1: make it make it worthwhile to actually get click throughs 407 00:18:57,440 --> 00:18:59,560 Speaker 1: and and they see sales. Yeah, if it's just your 408 00:18:59,600 --> 00:19:01,680 Speaker 1: mom click through, that's not going to generate a nothing. 409 00:19:02,840 --> 00:19:05,080 Speaker 1: That passive income might be like a dollar, you know, 410 00:19:05,160 --> 00:19:07,120 Speaker 1: and that's not gonna that's not gonna do it for you. Say, hey, honey, 411 00:19:07,200 --> 00:19:08,320 Speaker 1: let me just take you out to lunch, Like, I'm 412 00:19:08,320 --> 00:19:10,800 Speaker 1: not gonna click the link. That's not even cover the 413 00:19:10,800 --> 00:19:14,640 Speaker 1: hosting fees, right, So yeah, not not worthwhile. But yeah, 414 00:19:14,640 --> 00:19:16,960 Speaker 1: it's it's just not as easy as it sounds and 415 00:19:17,080 --> 00:19:19,080 Speaker 1: as easy as some of the folks on YouTube make 416 00:19:19,119 --> 00:19:22,600 Speaker 1: it sound. So yeah, generating income online is much more 417 00:19:22,640 --> 00:19:26,320 Speaker 1: complex and competition for page views is stiff online. You 418 00:19:26,359 --> 00:19:29,200 Speaker 1: really have to learn a lot, develop a good niche online, 419 00:19:29,240 --> 00:19:31,879 Speaker 1: and then be able to actually attract the readers that 420 00:19:31,920 --> 00:19:33,960 Speaker 1: are going to be able to support your endeavor. You 421 00:19:34,000 --> 00:19:36,919 Speaker 1: say niche, I say niche. I don't know which one. 422 00:19:37,000 --> 00:19:38,719 Speaker 1: I think, I go back and forth. Well, let's talk 423 00:19:38,720 --> 00:19:41,320 Speaker 1: about writing a book, right, because self publishing a book 424 00:19:41,359 --> 00:19:44,400 Speaker 1: is often another way to pursue passive income. And many 425 00:19:44,400 --> 00:19:46,320 Speaker 1: times that blog and we just talked about that is 426 00:19:46,400 --> 00:19:48,520 Speaker 1: used as a way to market that book. But just 427 00:19:48,560 --> 00:19:52,480 Speaker 1: remember that getting the knowledge actively writing the book, marketing, 428 00:19:52,960 --> 00:19:56,119 Speaker 1: touring interviews associated with promoting your book. I don't know 429 00:19:56,119 --> 00:19:58,639 Speaker 1: about you, but this all sounds like a lot of 430 00:19:58,640 --> 00:20:00,720 Speaker 1: work to This does not sound like massive income. Does 431 00:20:00,760 --> 00:20:02,520 Speaker 1: not sound like you're just kicking back in a hammock 432 00:20:02,640 --> 00:20:04,960 Speaker 1: after having like come up with a good idea. And 433 00:20:05,080 --> 00:20:07,320 Speaker 1: so you know, while it may not require a lot 434 00:20:07,359 --> 00:20:09,560 Speaker 1: of money in order to publish a book or to 435 00:20:09,560 --> 00:20:11,639 Speaker 1: get your blog going, it does take a fair amount 436 00:20:11,640 --> 00:20:13,680 Speaker 1: of time on the front end in order to start 437 00:20:13,720 --> 00:20:16,400 Speaker 1: realizing some of that income. Yeah, ask anybody who's ever 438 00:20:16,560 --> 00:20:19,560 Speaker 1: self published a book. I've never heard anyone say that 439 00:20:19,640 --> 00:20:22,359 Speaker 1: was simple, that was easy. And I crushed it. Like, 440 00:20:23,240 --> 00:20:26,080 Speaker 1: it's not that you can't make money publishing a book. Um, 441 00:20:26,119 --> 00:20:29,280 Speaker 1: it's just that it's not really a former passive income 442 00:20:29,320 --> 00:20:31,480 Speaker 1: in our minds. Is it really truly is a form 443 00:20:31,520 --> 00:20:33,320 Speaker 1: of work, And it's a form of like what we 444 00:20:33,320 --> 00:20:35,840 Speaker 1: talked about earlier, leveraged work. Sometimes you can write a 445 00:20:35,840 --> 00:20:37,960 Speaker 1: book and it can sell for years to come. You 446 00:20:37,960 --> 00:20:40,480 Speaker 1: can make money for a long time on that book 447 00:20:40,920 --> 00:20:43,479 Speaker 1: in all likelihood, though for most people, it's just not 448 00:20:43,640 --> 00:20:46,000 Speaker 1: a lot of money that they're gonna be making. Um. 449 00:20:46,040 --> 00:20:48,880 Speaker 1: And and Matt, let's talk about podcast here for a second. 450 00:20:48,920 --> 00:20:51,240 Speaker 1: Let's get a little metal with it. That's another thing 451 00:20:51,280 --> 00:20:53,399 Speaker 1: that people point to these days as a way to 452 00:20:53,440 --> 00:20:55,399 Speaker 1: make passive income. Yeah, they're like, Joel, Matt do it. 453 00:20:55,440 --> 00:20:57,280 Speaker 1: Why can't I It's so simple? And they just keep 454 00:20:57,320 --> 00:20:59,800 Speaker 1: back in their hammocks and so yeah, they're just sitting 455 00:20:59,840 --> 00:21:02,520 Speaker 1: there rinking beer. I will be honest, if we can 456 00:21:02,520 --> 00:21:04,960 Speaker 1: do it, then other people definitely can do it, because 457 00:21:05,000 --> 00:21:07,480 Speaker 1: we're not the smartest guys in the world, or maybe 458 00:21:07,480 --> 00:21:09,400 Speaker 1: even in this room. There's not other people in this room, 459 00:21:09,480 --> 00:21:13,400 Speaker 1: so I know there's nobody watching us. But it takes work, 460 00:21:13,440 --> 00:21:15,280 Speaker 1: and that's what we're that's what we're talking about here, right. 461 00:21:15,359 --> 00:21:19,159 Speaker 1: But obviously podcast super popular these days, and a lot 462 00:21:19,240 --> 00:21:22,120 Speaker 1: of people are churning out new shows like There's No Tomorrow. 463 00:21:22,280 --> 00:21:25,000 Speaker 1: The amount of new podcasts on the scene has skyrocketed 464 00:21:25,040 --> 00:21:27,800 Speaker 1: over the past few years. But just because you get 465 00:21:27,840 --> 00:21:30,399 Speaker 1: an idea for a show doesn't mean that you'll be 466 00:21:30,440 --> 00:21:33,399 Speaker 1: able to generate any income from it. Right. We just 467 00:21:33,400 --> 00:21:37,480 Speaker 1: saw a recent stat Matt of the two million podcasts 468 00:21:37,520 --> 00:21:40,480 Speaker 1: that are available to listen to m via Apple Podcasts. 469 00:21:40,480 --> 00:21:43,439 Speaker 1: And then you know, through all the other podcastchers, accordingly 470 00:21:43,760 --> 00:21:48,280 Speaker 1: they only have a single episode, so one episode, one episode, 471 00:21:48,640 --> 00:21:50,680 Speaker 1: and then there's a huge percentage that have fewer than 472 00:21:50,760 --> 00:21:52,800 Speaker 1: ten episodes. So there's a lot of people that give 473 00:21:52,840 --> 00:21:54,960 Speaker 1: it a shot, that put out a few episodes and 474 00:21:54,960 --> 00:21:57,480 Speaker 1: try to see what sticks, but they don't find much 475 00:21:57,480 --> 00:22:00,560 Speaker 1: traction in the beginning, and so they quit pretty quickly. 476 00:22:00,720 --> 00:22:02,280 Speaker 1: So that's a really high number of folks who don't 477 00:22:02,320 --> 00:22:04,960 Speaker 1: keep it up after they get started. And it's obviously 478 00:22:05,000 --> 00:22:08,000 Speaker 1: a relatively cheap medium to get into. It's not that 479 00:22:08,080 --> 00:22:10,040 Speaker 1: expensive to start a podcast, and I think we've talked 480 00:22:10,080 --> 00:22:12,639 Speaker 1: about on the show. We literally have four dollars worth 481 00:22:12,680 --> 00:22:15,240 Speaker 1: of equipment. The hosting when we initially started out was 482 00:22:15,280 --> 00:22:17,600 Speaker 1: like ten dollars a month. I think it was free 483 00:22:17,640 --> 00:22:19,480 Speaker 1: for the first three free, yeah, because we didn't have 484 00:22:19,600 --> 00:22:22,359 Speaker 1: enough we didn't have enough content yeah, or listeners and 485 00:22:22,400 --> 00:22:25,120 Speaker 1: so um. Yeah, and we still use the same equipment 486 00:22:25,160 --> 00:22:27,520 Speaker 1: that we use back then exactly. Granted the room is 487 00:22:27,560 --> 00:22:29,479 Speaker 1: different than we you know, we have soundproofing and you know, 488 00:22:29,520 --> 00:22:32,119 Speaker 1: ways to acoustically treat the space, but literally we are 489 00:22:32,200 --> 00:22:35,639 Speaker 1: using the same microphones and the same little zoom recorder 490 00:22:35,720 --> 00:22:38,480 Speaker 1: right here. That's true. It's kind of ridiculous. So yeah, obviously, yeah, 491 00:22:38,640 --> 00:22:40,080 Speaker 1: people might hear that and be like, Okay, cool, it's 492 00:22:40,080 --> 00:22:41,960 Speaker 1: a few hundred bucks. I can get into it and 493 00:22:42,119 --> 00:22:45,960 Speaker 1: start making money to overhead. But podcasts similar to you know, 494 00:22:46,000 --> 00:22:48,399 Speaker 1: affiliate marketing with a blog or writing a book, It 495 00:22:48,400 --> 00:22:50,440 Speaker 1: takes a lot of work to create something that people 496 00:22:50,520 --> 00:22:53,640 Speaker 1: actually want to listen to and to reach the audience 497 00:22:53,640 --> 00:22:55,280 Speaker 1: that you're trying to reach. Yeah, and of course, you know, 498 00:22:55,280 --> 00:22:57,000 Speaker 1: the way that we generate income from the from the 499 00:22:57,000 --> 00:22:59,920 Speaker 1: podcast are from the ads that you hear. But even 500 00:23:00,080 --> 00:23:02,720 Speaker 1: with a super small listener base, it's it's not possible 501 00:23:02,760 --> 00:23:04,640 Speaker 1: to make money. Uh. And you can do that via 502 00:23:04,640 --> 00:23:07,760 Speaker 1: platforms like Anchor, like literally on their website and with 503 00:23:07,880 --> 00:23:10,960 Speaker 1: this down it says that you can quote unquote create, distribute, 504 00:23:10,960 --> 00:23:14,840 Speaker 1: and monetize your podcast all for free. Uh. Like it's 505 00:23:14,840 --> 00:23:16,800 Speaker 1: crazy like it they almost make it sound like like 506 00:23:16,840 --> 00:23:19,720 Speaker 1: because it says all for free. I think the trick 507 00:23:19,800 --> 00:23:21,800 Speaker 1: is that they make you think that, oh, that first 508 00:23:21,840 --> 00:23:24,080 Speaker 1: part even creating it, like that's gonna be free. Like 509 00:23:24,119 --> 00:23:26,560 Speaker 1: it's almost like it's automatic. But no, like it does 510 00:23:26,760 --> 00:23:29,679 Speaker 1: take hard work. Uh. And in addition to that, you know, 511 00:23:29,720 --> 00:23:32,159 Speaker 1: some shows have gone the route of getting like support 512 00:23:32,200 --> 00:23:35,240 Speaker 1: directly from listeners via sites like you know, Patreon. But 513 00:23:35,320 --> 00:23:37,480 Speaker 1: again it's important to note that, you know, putting out 514 00:23:37,480 --> 00:23:40,600 Speaker 1: great content consistently it's not easy, and it's hard to 515 00:23:40,640 --> 00:23:43,720 Speaker 1: consider this business model as passive income. You know, it's 516 00:23:43,720 --> 00:23:45,840 Speaker 1: it's it's literally our job. It's what we do. It's 517 00:23:45,840 --> 00:23:48,760 Speaker 1: not something that we're uh, you know, doing without hardly 518 00:23:48,840 --> 00:23:51,720 Speaker 1: even thinking about it. True, podcasting for us takes a 519 00:23:51,720 --> 00:23:54,200 Speaker 1: lot of thought, uh and a lot of time. But 520 00:23:54,520 --> 00:23:56,840 Speaker 1: let's talk about another another way that you could potentially 521 00:23:56,920 --> 00:24:00,000 Speaker 1: make some passive income online and and maybe let's see 522 00:24:00,040 --> 00:24:02,960 Speaker 1: if this one is a little bit better. Similar to 523 00:24:03,000 --> 00:24:05,080 Speaker 1: running aside or a blog or self publishing a book 524 00:24:05,119 --> 00:24:07,600 Speaker 1: or a podcast, there are plenty of other platforms out 525 00:24:07,640 --> 00:24:10,000 Speaker 1: there that allow for you to create a course online 526 00:24:10,040 --> 00:24:12,639 Speaker 1: that you can sell, and platforms like you to Me 527 00:24:12,880 --> 00:24:16,640 Speaker 1: and Coursera are specifically there for you to be able 528 00:24:16,680 --> 00:24:19,120 Speaker 1: to upload some of those courses and make some side money. 529 00:24:19,160 --> 00:24:22,480 Speaker 1: You upload that course once and hopefully those residual passive 530 00:24:22,520 --> 00:24:24,920 Speaker 1: income dollars just keep flowing your way. Right. Let me 531 00:24:24,920 --> 00:24:30,400 Speaker 1: see those royalties. Yeah, royalties sounds so nice because it's royalty. 532 00:24:30,480 --> 00:24:32,880 Speaker 1: It's like it makes you think that like, oh no, 533 00:24:32,880 --> 00:24:35,280 Speaker 1: that's just money, that's that's that's not that's nothing beyond 534 00:24:35,400 --> 00:24:38,359 Speaker 1: just money. But because it's called royalties, it has this appeal. 535 00:24:38,400 --> 00:24:41,639 Speaker 1: It makes me feel like I'm a king or something. Yeah, exactly, 536 00:24:41,760 --> 00:24:43,679 Speaker 1: at least the prints. Yeah, it makes me want to 537 00:24:43,680 --> 00:24:45,400 Speaker 1: write some sort of like hit pops on or something 538 00:24:45,440 --> 00:24:46,960 Speaker 1: like that for Taylor Swift and then you know, collect 539 00:24:46,960 --> 00:24:49,800 Speaker 1: some of those royal royalties. But you should, Okay, I 540 00:24:49,800 --> 00:24:52,120 Speaker 1: can see her performing a something that you wrote. I've 541 00:24:52,160 --> 00:24:53,680 Speaker 1: never written a song before, but maybe I'll give it 542 00:24:53,680 --> 00:24:55,240 Speaker 1: a go. See if I can get that passive income 543 00:24:55,480 --> 00:24:58,240 Speaker 1: from royalties. But let's get back to online courses and 544 00:24:58,240 --> 00:25:01,040 Speaker 1: and it is fascinating to see people who are able 545 00:25:01,040 --> 00:25:05,040 Speaker 1: to monetize their unique wisdom, insight, their personality, or or 546 00:25:05,080 --> 00:25:09,040 Speaker 1: even their basic but practical knowledge. We all have access 547 00:25:09,080 --> 00:25:12,119 Speaker 1: to so much incredible knowledge these days that we previously 548 00:25:12,119 --> 00:25:14,879 Speaker 1: couldn't access without paying money to go to college or 549 00:25:15,000 --> 00:25:18,360 Speaker 1: spending years getting advanced degrees. And online courses have made 550 00:25:18,400 --> 00:25:20,960 Speaker 1: that more of a reality. Like what we can learn 551 00:25:21,000 --> 00:25:24,320 Speaker 1: now for free is just incredible. But people are getting 552 00:25:24,320 --> 00:25:27,600 Speaker 1: paid in order to disseminate that information. And so yeah, 553 00:25:27,640 --> 00:25:29,359 Speaker 1: it's cool to see that some people are making passive 554 00:25:29,359 --> 00:25:31,080 Speaker 1: age in that way. And I mean, it's no wonder 555 00:25:31,119 --> 00:25:32,680 Speaker 1: that folks are willing to pay for that because you 556 00:25:32,720 --> 00:25:35,679 Speaker 1: get to learn about something completely niche, like I like 557 00:25:35,760 --> 00:25:39,080 Speaker 1: to say niche for very little money. Who wouldn't spend 558 00:25:39,119 --> 00:25:41,320 Speaker 1: five or twenty bucks to learn how to do something 559 00:25:41,359 --> 00:25:43,680 Speaker 1: completely unique. I still want to take that Aaron Franklin 560 00:25:44,000 --> 00:25:47,200 Speaker 1: barbecue masterclass that's gonna happen. One of these masterclass that's 561 00:25:47,320 --> 00:25:49,399 Speaker 1: a bit more. That does cost a little more. We 562 00:25:49,520 --> 00:25:52,520 Speaker 1: have to go in and split that one, buddy. Uh Yeah. 563 00:25:52,560 --> 00:25:54,439 Speaker 1: And you know, when it comes online courses, the argument 564 00:25:54,720 --> 00:25:57,360 Speaker 1: goes something like that of writing your own book. Right, 565 00:25:57,400 --> 00:25:59,359 Speaker 1: Just figure out what you want to teach or what 566 00:25:59,400 --> 00:26:01,720 Speaker 1: it is that you want to menicates others once and 567 00:26:01,760 --> 00:26:03,959 Speaker 1: then you can kick back while the profits start showing up, 568 00:26:04,000 --> 00:26:07,760 Speaker 1: the royalties, the royalties. It feels that easy. Then everybody 569 00:26:07,840 --> 00:26:10,199 Speaker 1: would be doing it. And so you realize that it 570 00:26:10,200 --> 00:26:12,639 Speaker 1: could take years of work, years of research and planning 571 00:26:13,119 --> 00:26:15,480 Speaker 1: before you're able to have a product that the folks 572 00:26:15,520 --> 00:26:17,800 Speaker 1: are going to be willing to pay for. Uh. And 573 00:26:17,840 --> 00:26:21,399 Speaker 1: so you know, while these knowledge based methods of passive 574 00:26:21,440 --> 00:26:24,159 Speaker 1: income don't require much money to to get things off 575 00:26:24,160 --> 00:26:26,359 Speaker 1: the ground, they're gonna take a lot more time and 576 00:26:26,480 --> 00:26:30,440 Speaker 1: energy before they can be considered passive income. It's making 577 00:26:30,440 --> 00:26:32,080 Speaker 1: me realize to Jil, like, I mean, all of these 578 00:26:32,080 --> 00:26:34,160 Speaker 1: things that we've that we're talking about here are different 579 00:26:34,160 --> 00:26:38,080 Speaker 1: platforms that are that have very low bars of entry, 580 00:26:38,320 --> 00:26:40,480 Speaker 1: right that they make it really convenient for you to 581 00:26:40,600 --> 00:26:43,199 Speaker 1: get plugged in and you're trying the thing out, but 582 00:26:43,480 --> 00:26:45,200 Speaker 1: they don't do the work for you. They make getting 583 00:26:45,200 --> 00:26:49,040 Speaker 1: started easy, but they don't necessarily make being successful easy, 584 00:26:49,200 --> 00:26:50,720 Speaker 1: like you still have to put in the hard work. 585 00:26:50,800 --> 00:26:52,280 Speaker 1: They get their foot in the door, and then the 586 00:26:52,280 --> 00:26:54,000 Speaker 1: rest it's still up to you. And I think that's why, 587 00:26:54,040 --> 00:26:56,800 Speaker 1: for instance, with podcast low barrier to entry, you're gonna 588 00:26:56,800 --> 00:26:59,280 Speaker 1: see a lot of podcasts that have only one episode. 589 00:26:59,320 --> 00:27:01,480 Speaker 1: They're gonna be a lot to people who are who 590 00:27:01,520 --> 00:27:03,439 Speaker 1: have an account on Uber because they tried out being 591 00:27:03,440 --> 00:27:05,960 Speaker 1: a driver once. It's very easy to try it out once, 592 00:27:06,200 --> 00:27:08,640 Speaker 1: but beyond that, it's up to you to follow through 593 00:27:08,680 --> 00:27:10,760 Speaker 1: and to put in that hard work. Yeah. Man, I 594 00:27:10,800 --> 00:27:13,120 Speaker 1: love what you said to about how it might take 595 00:27:13,200 --> 00:27:16,040 Speaker 1: years to become viable and to to make one of 596 00:27:16,080 --> 00:27:18,880 Speaker 1: these products sticky to where you can actually make money 597 00:27:18,880 --> 00:27:21,200 Speaker 1: from it, And I think that's true. I think there's 598 00:27:21,200 --> 00:27:24,080 Speaker 1: a big learning curve to a lot of these platforms, 599 00:27:24,119 --> 00:27:27,359 Speaker 1: even though they are uh super simple to get started, 600 00:27:27,600 --> 00:27:30,240 Speaker 1: Like what you put together, what you package, what you 601 00:27:30,320 --> 00:27:33,480 Speaker 1: offer to the world, that's the thing that takes time 602 00:27:33,480 --> 00:27:36,320 Speaker 1: to craft um and to grow your knowledge base to 603 00:27:36,320 --> 00:27:38,840 Speaker 1: where people actually want to tune in and check out 604 00:27:38,960 --> 00:27:41,280 Speaker 1: what you're putting out there into the world. So, of 605 00:27:41,359 --> 00:27:43,119 Speaker 1: all the ones we've covered so far, investing in the 606 00:27:43,119 --> 00:27:46,280 Speaker 1: stock market is the easiest route passive income, although it 607 00:27:46,280 --> 00:27:48,680 Speaker 1: takes a while. But there are other ways, including we've 608 00:27:48,680 --> 00:27:50,439 Speaker 1: got to talk about real estate, Matt, because that is 609 00:27:50,440 --> 00:27:53,399 Speaker 1: one of the most effective routes to building up passive income. 610 00:27:53,440 --> 00:27:55,399 Speaker 1: We'll get to that and more right after this break. 611 00:28:04,240 --> 00:28:06,399 Speaker 1: All right, we are back from the break in Joel 612 00:28:06,480 --> 00:28:09,080 Speaker 1: up until now. You know, the examples that we've covered 613 00:28:09,080 --> 00:28:11,919 Speaker 1: are are pretty easy to get started. They mostly require 614 00:28:11,960 --> 00:28:14,000 Speaker 1: a little bit of money, uh and a good amount 615 00:28:14,000 --> 00:28:15,360 Speaker 1: of work, you know, and luckily a lot of those 616 00:28:15,400 --> 00:28:18,240 Speaker 1: platforms make it easier to get kind of get plugged 617 00:28:18,240 --> 00:28:20,359 Speaker 1: in and to get started. But let's cran things up 618 00:28:20,400 --> 00:28:22,880 Speaker 1: a little bit. If you're really looking to increase your 619 00:28:22,880 --> 00:28:26,840 Speaker 1: your income, specifically your passive income, getting into rental real 620 00:28:26,960 --> 00:28:29,600 Speaker 1: estate is an example that will take quite a bit 621 00:28:29,680 --> 00:28:32,639 Speaker 1: of upfront work. A right, like every real estate investor 622 00:28:32,680 --> 00:28:36,280 Speaker 1: I know makes a good rookie mistake here there or 623 00:28:36,320 --> 00:28:39,520 Speaker 1: even twenty or so. We've all anybody who's gotten into 624 00:28:39,520 --> 00:28:41,920 Speaker 1: real estate has made some mistakes, and they cost you 625 00:28:42,000 --> 00:28:44,400 Speaker 1: money and time and a lot of like some headache 626 00:28:44,440 --> 00:28:48,360 Speaker 1: care polling. Yeah, but eventually, right, over time, rental properties 627 00:28:48,360 --> 00:28:50,680 Speaker 1: can become one of the best ways to earn residual, 628 00:28:51,080 --> 00:28:53,960 Speaker 1: mostly passive income. Uh. I know, I'm happy with my 629 00:28:54,040 --> 00:28:57,080 Speaker 1: I really rates as a real estate investor in particular. Though, 630 00:28:57,120 --> 00:29:01,000 Speaker 1: to make real estate truly passive over time involves acquiring 631 00:29:01,400 --> 00:29:03,680 Speaker 1: a handful of properties and getting to the point where 632 00:29:03,680 --> 00:29:06,600 Speaker 1: you can turn them over to a property management company. 633 00:29:07,040 --> 00:29:10,320 Speaker 1: That at that point is when it becomes purely passive. Yeah, you, 634 00:29:10,320 --> 00:29:13,120 Speaker 1: you and I were uh, mom and populand lords, and 635 00:29:13,320 --> 00:29:15,840 Speaker 1: we still manage our own properties and so there is 636 00:29:15,920 --> 00:29:18,360 Speaker 1: work involved when it comes to that. Um, But I 637 00:29:18,400 --> 00:29:20,960 Speaker 1: will say it is more passive if we're talking about 638 00:29:20,960 --> 00:29:23,040 Speaker 1: a scale of passivity, which which you kind of mentioned 639 00:29:23,040 --> 00:29:25,400 Speaker 1: at the beginning of the episode. It is more passive 640 00:29:25,840 --> 00:29:27,680 Speaker 1: than almost any other way that I make money at 641 00:29:27,680 --> 00:29:30,120 Speaker 1: this as some time, besides the stock market. And so 642 00:29:30,160 --> 00:29:32,520 Speaker 1: I think real estate is a good way to make 643 00:29:32,520 --> 00:29:34,440 Speaker 1: passive income over time. But like you said, yeah, the 644 00:29:34,440 --> 00:29:36,520 Speaker 1: way to make it the most passive is to have 645 00:29:36,560 --> 00:29:39,120 Speaker 1: somebody else manage that property for you that eats into 646 00:29:39,120 --> 00:29:41,000 Speaker 1: the profits. Though that's right well, and like you said, 647 00:29:41,000 --> 00:29:43,120 Speaker 1: though you say anytime you say mom and populand lords 648 00:29:43,440 --> 00:29:45,080 Speaker 1: or real estate investors, it makes me think of like 649 00:29:45,120 --> 00:29:46,880 Speaker 1: an old farmer, like pulling up to the house with 650 00:29:46,880 --> 00:29:48,880 Speaker 1: like a straw hat, and like old be a pickup truck. 651 00:29:49,760 --> 00:29:51,200 Speaker 1: I like to I don't know, I don't know why 652 00:29:51,240 --> 00:29:52,600 Speaker 1: it makes me think that, but I like to have 653 00:29:52,640 --> 00:29:54,400 Speaker 1: my corn cob pipe in my mouth when I, you know, 654 00:29:54,480 --> 00:29:56,440 Speaker 1: run by my my property to check it out. Neither 655 00:29:56,560 --> 00:29:59,520 Speaker 1: you or I have pickup trucks. I'll say that true. 656 00:29:59,520 --> 00:30:01,360 Speaker 1: I thought it love to have, like it's just an old, 657 00:30:01,480 --> 00:30:03,840 Speaker 1: small like little Toyota pickup truck just to be able 658 00:30:03,840 --> 00:30:05,720 Speaker 1: to throw stuff in the back. Dude, I would love that. 659 00:30:05,760 --> 00:30:07,880 Speaker 1: They're very sweet, dude. I kind of still want a 660 00:30:07,960 --> 00:30:10,240 Speaker 1: Ribbian electric pickup truck one of these days, like the 661 00:30:10,280 --> 00:30:13,920 Speaker 1: opposite a small telling the pickup truck you want, like 662 00:30:13,920 --> 00:30:16,960 Speaker 1: like literally the fanciest most expensive one they make that 663 00:30:17,000 --> 00:30:20,280 Speaker 1: are also the sweetest looking trucks cyber truck and eat it. Yeah, 664 00:30:20,320 --> 00:30:22,480 Speaker 1: so maybe maybe, like maybe ten years from now, I'll 665 00:30:22,480 --> 00:30:24,640 Speaker 1: be able to afford one of those. Uh yeah, so 666 00:30:24,640 --> 00:30:27,760 Speaker 1: so getting into real estate is also difficult though, because 667 00:30:27,800 --> 00:30:30,560 Speaker 1: it typically requires a pretty large sum of cash. That 668 00:30:30,640 --> 00:30:33,440 Speaker 1: you need is a down payment, right, So there's more 669 00:30:33,520 --> 00:30:35,000 Speaker 1: of a barrier to entry for that because it can 670 00:30:35,000 --> 00:30:38,200 Speaker 1: take years to save up that down payment in order 671 00:30:38,240 --> 00:30:40,960 Speaker 1: to buy your first rental property. There are other ways 672 00:30:40,960 --> 00:30:42,960 Speaker 1: to go about it, you know, Matt, We've talked about 673 00:30:42,960 --> 00:30:45,440 Speaker 1: this before. Living in a property and then buying another 674 00:30:45,440 --> 00:30:47,160 Speaker 1: property to living and then running out that first house 675 00:30:47,200 --> 00:30:49,760 Speaker 1: makes it a little bit easier at least. Um, but yeah, 676 00:30:49,800 --> 00:30:52,440 Speaker 1: that's something that you need to consider. It takes sacrifice, 677 00:30:52,520 --> 00:30:54,640 Speaker 1: right as you cut back and work to save up 678 00:30:54,720 --> 00:30:57,120 Speaker 1: enough money to buy that first house though. Um. That's 679 00:30:57,160 --> 00:30:58,640 Speaker 1: part of the reason I think why a lot of 680 00:30:58,640 --> 00:31:01,800 Speaker 1: people look to Airbnb is an easier method to trying 681 00:31:01,840 --> 00:31:04,560 Speaker 1: out rental properties, and it definitely can be a great 682 00:31:04,560 --> 00:31:07,480 Speaker 1: way to get a taste. But when you decide to 683 00:31:07,560 --> 00:31:10,080 Speaker 1: rent out a room in your home or even buy 684 00:31:10,120 --> 00:31:12,680 Speaker 1: another place to list on Airbnb, it's it's more of 685 00:31:12,720 --> 00:31:17,080 Speaker 1: a hospitality play than just a purely real estate investing play. 686 00:31:17,680 --> 00:31:20,400 Speaker 1: Your part real estate investor and part hotel manager. When 687 00:31:20,440 --> 00:31:23,640 Speaker 1: you start hosting on Airbnb. Uh. That being said, there 688 00:31:23,680 --> 00:31:26,040 Speaker 1: are systems that you can put in place that can 689 00:31:26,080 --> 00:31:30,240 Speaker 1: make your Airbnb listings function more like passive income. And 690 00:31:30,320 --> 00:31:32,760 Speaker 1: we talked about that more on episode to fifty three 691 00:31:32,880 --> 00:31:37,600 Speaker 1: with Ziona McIntyre who has literally made her living owning 692 00:31:37,760 --> 00:31:40,960 Speaker 1: properties and running them out on Airbnb, helping other people 693 00:31:41,080 --> 00:31:43,640 Speaker 1: do the same thing. It's amazing it's what she does now. Yeah, 694 00:31:43,640 --> 00:31:46,240 Speaker 1: she she's turned it into a career. But I will say, yeah, 695 00:31:46,280 --> 00:31:48,120 Speaker 1: a lot of that income is passive, but some of 696 00:31:48,120 --> 00:31:51,040 Speaker 1: that income is very active on her part. But Airbnb 697 00:31:51,160 --> 00:31:54,360 Speaker 1: is definitely something that's worthwhile to consider, um, if you're 698 00:31:54,400 --> 00:31:57,280 Speaker 1: looking to generate more passive income in your life and 699 00:31:57,280 --> 00:31:59,600 Speaker 1: to use again, like we talked about earlier, some of 700 00:31:59,600 --> 00:32:01,440 Speaker 1: the asset so you already have on hand. If you 701 00:32:01,520 --> 00:32:04,040 Speaker 1: have a house and you have a room that you 702 00:32:04,040 --> 00:32:06,240 Speaker 1: could run out, or you have a basement that you 703 00:32:06,240 --> 00:32:08,480 Speaker 1: could outfit, make it a little bit nice and rent 704 00:32:08,520 --> 00:32:10,760 Speaker 1: that out on a nightly basis, you can make some 705 00:32:10,840 --> 00:32:13,440 Speaker 1: real returns doing that. That's right man. Yeah. And so 706 00:32:13,480 --> 00:32:15,640 Speaker 1: as we kind of graduate to two higher levels of 707 00:32:15,680 --> 00:32:18,880 Speaker 1: difficulty and let's talk about, uh, starting your own business. 708 00:32:19,360 --> 00:32:21,640 Speaker 1: That's the starting your own business is probably gonna be 709 00:32:21,680 --> 00:32:24,400 Speaker 1: the most difficult way to generate passive income. You know, 710 00:32:24,720 --> 00:32:27,080 Speaker 1: it's often going to be the most risky, as creating 711 00:32:27,080 --> 00:32:29,400 Speaker 1: your own thing from scratch will will require the most 712 00:32:29,480 --> 00:32:33,040 Speaker 1: time and the most money, but it also has the 713 00:32:33,160 --> 00:32:36,760 Speaker 1: upside to potentially generating the most income. And you know, 714 00:32:36,880 --> 00:32:39,040 Speaker 1: I think that's also a fair trade. You know, like 715 00:32:39,080 --> 00:32:42,560 Speaker 1: there's actually no risk involved, say with earning interest from 716 00:32:42,560 --> 00:32:44,840 Speaker 1: your money, uh in the savings account, but there's also 717 00:32:44,920 --> 00:32:48,680 Speaker 1: virtually no reward. It's appropriate that those who are committing 718 00:32:48,800 --> 00:32:51,200 Speaker 1: the most time and the most money towards something that 719 00:32:51,240 --> 00:32:54,440 Speaker 1: isn't necessarily proven, that they have the potential to realize 720 00:32:54,440 --> 00:32:56,840 Speaker 1: that the biggest profits the biggest rewards. Yeah, we have 721 00:32:56,920 --> 00:32:58,640 Speaker 1: talked about that. There are ways to start your own 722 00:32:58,640 --> 00:33:02,960 Speaker 1: business with even money. But still you're gonna require a 723 00:33:03,000 --> 00:33:05,560 Speaker 1: ton of time to start any business that you're looking 724 00:33:05,600 --> 00:33:07,960 Speaker 1: to launch. But for a lot of businesses, we're talking 725 00:33:07,960 --> 00:33:10,840 Speaker 1: about both. And like, while we don't see owning your 726 00:33:10,880 --> 00:33:15,040 Speaker 1: own business as a way to earn passive income because 727 00:33:15,080 --> 00:33:16,840 Speaker 1: like we said, it's going to take a lot of 728 00:33:16,960 --> 00:33:19,440 Speaker 1: energy on your part, it is a method to generate 729 00:33:19,480 --> 00:33:22,320 Speaker 1: income by trading time for money, which is what a 730 00:33:22,320 --> 00:33:24,040 Speaker 1: lot of us have to do for a lot of 731 00:33:24,040 --> 00:33:26,840 Speaker 1: our lives. But if we do it well with good planning, 732 00:33:26,920 --> 00:33:29,560 Speaker 1: you can eventually step back from the day to day 733 00:33:29,600 --> 00:33:32,560 Speaker 1: operations of that business and you can turn it into 734 00:33:32,640 --> 00:33:35,760 Speaker 1: an avenue that produces income without you having to commit 735 00:33:35,800 --> 00:33:39,640 Speaker 1: to working on that business every day. Right, and maybe 736 00:33:39,720 --> 00:33:42,440 Speaker 1: even depending on what kind of business you you you start, 737 00:33:42,800 --> 00:33:45,560 Speaker 1: you can potentially even sell that business someday in the future, 738 00:33:46,040 --> 00:33:48,480 Speaker 1: or sell part of the ownership, or hire someone to 739 00:33:48,600 --> 00:33:51,320 Speaker 1: do the day to day managing while you take more 740 00:33:51,400 --> 00:33:53,440 Speaker 1: of a backseat role. I mean, they're they're all these 741 00:33:53,480 --> 00:33:55,920 Speaker 1: ways when you start a business that you can use 742 00:33:55,920 --> 00:33:57,920 Speaker 1: it to generate income for a whole lot of years 743 00:33:58,040 --> 00:34:00,440 Speaker 1: and then find ways to kind of pull back in 744 00:34:00,520 --> 00:34:03,200 Speaker 1: order to make that business income a little more passive 745 00:34:03,200 --> 00:34:05,720 Speaker 1: than active man. It makes me think of a friend 746 00:34:05,760 --> 00:34:09,080 Speaker 1: I have much older friend, and he had his own 747 00:34:09,120 --> 00:34:11,320 Speaker 1: business that he ran four years. He and his wife 748 00:34:11,680 --> 00:34:14,480 Speaker 1: and they cleaned houses and they did great work. They 749 00:34:14,520 --> 00:34:18,240 Speaker 1: built up a large list of clients in the town 750 00:34:18,320 --> 00:34:21,680 Speaker 1: where that they served. But eventually he wanted to retire. 751 00:34:21,800 --> 00:34:24,319 Speaker 1: And it's not that that business had to fold, just 752 00:34:24,360 --> 00:34:26,719 Speaker 1: go away completely. He not only made money for all 753 00:34:26,760 --> 00:34:29,360 Speaker 1: of those years running that business, but that business was 754 00:34:29,400 --> 00:34:31,400 Speaker 1: worth a lot at the end of the day, and 755 00:34:31,480 --> 00:34:34,040 Speaker 1: so he was able to sell that business to someone else. 756 00:34:34,239 --> 00:34:36,560 Speaker 1: And that points a finger to the fact that you 757 00:34:36,640 --> 00:34:40,080 Speaker 1: can eventually, uh score passive income based on the business 758 00:34:40,080 --> 00:34:41,759 Speaker 1: you built, and at the same time doesn't have to 759 00:34:41,760 --> 00:34:45,080 Speaker 1: be a super sexy tech startup. You can something you know, 760 00:34:45,120 --> 00:34:48,239 Speaker 1: where you're just offering a service to folks. Uh did 761 00:34:48,280 --> 00:34:49,879 Speaker 1: one other thing? You know. One of the myths about 762 00:34:49,960 --> 00:34:51,719 Speaker 1: passive income I think is that if you get your 763 00:34:51,760 --> 00:34:54,799 Speaker 1: fingers in enough money making ventures that you'll essentially be 764 00:34:54,840 --> 00:34:58,000 Speaker 1: getting paid in enough different ways that if one of 765 00:34:58,040 --> 00:35:00,479 Speaker 1: your businesses maybe isn't doing so hot, you're still gonna 766 00:35:00,480 --> 00:35:03,640 Speaker 1: do okay financially, right, But often times I think you 767 00:35:03,719 --> 00:35:06,239 Speaker 1: might be spreading yourself too thin and you won't make 768 00:35:06,360 --> 00:35:08,320 Speaker 1: enough money if you're kind of going this, you know, 769 00:35:08,400 --> 00:35:11,960 Speaker 1: jack of all trades route to generating multiple streams of income. 770 00:35:12,360 --> 00:35:14,400 Speaker 1: Not being said, there's nothing wrong with trying out some 771 00:35:14,400 --> 00:35:17,319 Speaker 1: different approaches and seeing what works for you, but you know, 772 00:35:17,440 --> 00:35:21,359 Speaker 1: just don't forego diving deep. Uh when when times get 773 00:35:21,360 --> 00:35:23,600 Speaker 1: a little rough, You know, when you don't immediately start 774 00:35:23,640 --> 00:35:26,000 Speaker 1: making money, don't immediately try to hit the easy button 775 00:35:26,320 --> 00:35:29,120 Speaker 1: and kind of switch over to the next opportunity where 776 00:35:29,160 --> 00:35:31,480 Speaker 1: you think it's going to be easier. Uh, it does 777 00:35:31,680 --> 00:35:34,360 Speaker 1: require work. And again, this is one of the reasons 778 00:35:34,360 --> 00:35:36,759 Speaker 1: that I feel like the platforms, the different apps, the 779 00:35:36,800 --> 00:35:39,520 Speaker 1: different you know sites where you can log on, create 780 00:35:39,560 --> 00:35:44,080 Speaker 1: an account, offer a course, or start publishing a podcast. 781 00:35:44,280 --> 00:35:46,960 Speaker 1: I feel like that they almost do a disservice to 782 00:35:47,200 --> 00:35:50,000 Speaker 1: people digging in deep to whatever it is that they're 783 00:35:50,160 --> 00:35:52,839 Speaker 1: are are pursuing, almost as if they're making it too 784 00:35:52,840 --> 00:35:55,560 Speaker 1: easy for folks to try things out and they kind 785 00:35:55,560 --> 00:35:57,560 Speaker 1: of give up maybe a little too easily. I like 786 00:35:57,640 --> 00:35:59,240 Speaker 1: it because it gives a lot of folks a taste 787 00:35:59,280 --> 00:36:00,680 Speaker 1: of it. But at the same time, it's sort of 788 00:36:00,760 --> 00:36:02,359 Speaker 1: I almost see it as a negative because it's kind 789 00:36:02,360 --> 00:36:03,759 Speaker 1: of like, well that didn't work out, Well, this didn't 790 00:36:03,800 --> 00:36:06,200 Speaker 1: work out, and it's sort of I don't know. It 791 00:36:06,239 --> 00:36:09,160 Speaker 1: creates this perpetual like hopping from one thing to the 792 00:36:09,200 --> 00:36:12,080 Speaker 1: other and in search of a golden goose, something that's 793 00:36:12,080 --> 00:36:15,520 Speaker 1: going to be able to significantly provide them with some income. Yeah, 794 00:36:15,520 --> 00:36:17,759 Speaker 1: if you just create one podcast episode, throw it up 795 00:36:17,760 --> 00:36:20,720 Speaker 1: there and you hope to see that the passive income 796 00:36:21,080 --> 00:36:23,440 Speaker 1: rolling in. That's just not how it works, right, that 797 00:36:23,440 --> 00:36:26,239 Speaker 1: that that is truly the myth behind passive income. It 798 00:36:26,280 --> 00:36:27,960 Speaker 1: really does take a lot of work. So so you 799 00:36:28,000 --> 00:36:30,720 Speaker 1: really have to go into your pursuit of passive income 800 00:36:30,760 --> 00:36:33,399 Speaker 1: with eyes wide open, knowing that it will take real 801 00:36:33,440 --> 00:36:36,480 Speaker 1: effort to establish something that you can benefit from for 802 00:36:36,600 --> 00:36:40,280 Speaker 1: years to come. It's the opposite of striking it rich quick. Ultimately, 803 00:36:40,280 --> 00:36:43,760 Speaker 1: the truth about passive income is that it's never passive 804 00:36:44,120 --> 00:36:47,200 Speaker 1: except for investing in the markets regularly vi your paycheck 805 00:36:47,400 --> 00:36:49,600 Speaker 1: or a h from your bank account to an I 806 00:36:49,760 --> 00:36:53,040 Speaker 1: ra A. But it is possible to work harder now 807 00:36:53,160 --> 00:36:55,680 Speaker 1: in order to gain and share your knowledge with others 808 00:36:55,680 --> 00:36:58,279 Speaker 1: by creating content that they're willing to pay for, or 809 00:36:58,400 --> 00:37:00,520 Speaker 1: to study your local real estate market and save up 810 00:37:00,600 --> 00:37:03,080 Speaker 1: enough to purchase that first rental property, or even to 811 00:37:03,160 --> 00:37:05,120 Speaker 1: identify a need in the market where you can step 812 00:37:05,160 --> 00:37:07,760 Speaker 1: in and fill the gap with your service or product. 813 00:37:08,200 --> 00:37:11,040 Speaker 1: With the business that you create, money will always flow 814 00:37:11,280 --> 00:37:14,440 Speaker 1: to creative problem solvers, So leverage your hard work now 815 00:37:14,480 --> 00:37:17,000 Speaker 1: and it will pay dividends as steady income for years 816 00:37:17,040 --> 00:37:19,600 Speaker 1: to come. And that we would say is worth pursuing. 817 00:37:19,920 --> 00:37:22,319 Speaker 1: That's where the reality of passive income can actually be 818 00:37:22,360 --> 00:37:25,319 Speaker 1: realized in all of our lives. Right, I think we 819 00:37:25,360 --> 00:37:27,799 Speaker 1: need to maybe avoid some of the clickbait headlines and 820 00:37:27,920 --> 00:37:30,719 Speaker 1: videos that we see and realize the passive income. It's 821 00:37:30,760 --> 00:37:33,160 Speaker 1: not a myth, um, but it is much harder to 822 00:37:33,200 --> 00:37:35,239 Speaker 1: achieve than a lot of people out there want you 823 00:37:35,320 --> 00:37:39,319 Speaker 1: to think that it is. Century dude, all right, let's 824 00:37:39,320 --> 00:37:41,560 Speaker 1: shift gears. Let's get back to our beer. On this episode, 825 00:37:41,719 --> 00:37:44,400 Speaker 1: you and I we enjoyed. We each enjoyed a Radix, 826 00:37:44,480 --> 00:37:47,799 Speaker 1: which is a German style pilsner from the folks over 827 00:37:47,920 --> 00:37:51,040 Speaker 1: at Halfway Crooks here in Atlanta. Uh, dude, what were 828 00:37:51,080 --> 00:37:53,200 Speaker 1: your thoughts on this? Speer? So, I always thought that 829 00:37:53,280 --> 00:37:55,600 Speaker 1: I didn't really like pilsners very much. I think it 830 00:37:55,680 --> 00:37:57,520 Speaker 1: was because the only pilsners I've ever had in my 831 00:37:57,560 --> 00:38:02,520 Speaker 1: life were the giant Macrobe right, Like, had my fair 832 00:38:02,520 --> 00:38:04,759 Speaker 1: share of high LIFs and PBRs back in the day. 833 00:38:05,280 --> 00:38:07,759 Speaker 1: Um and and yeah they were fine, Like I didn't 834 00:38:07,760 --> 00:38:09,680 Speaker 1: mind drinking them at a at a show, you know, 835 00:38:09,719 --> 00:38:11,960 Speaker 1: at a concert. They were fine for the times. Yeah, 836 00:38:12,040 --> 00:38:14,800 Speaker 1: but I didn't realize that I actually like Pilsner's a 837 00:38:14,840 --> 00:38:18,000 Speaker 1: craft pilsner can actually be really tasty and halfway Crooks 838 00:38:18,440 --> 00:38:20,880 Speaker 1: did an awesome job on this one. It's super clean, 839 00:38:21,000 --> 00:38:23,879 Speaker 1: super delicious. This is actually the exact kind of beer 840 00:38:23,920 --> 00:38:26,000 Speaker 1: I want. Well, I'm sitting on my porch on a 841 00:38:26,000 --> 00:38:28,440 Speaker 1: fine summer sank. Oh yeah, dude. Yeah. As we poured it, 842 00:38:28,440 --> 00:38:30,920 Speaker 1: it's a It's got a nice golden color to it 843 00:38:31,239 --> 00:38:34,000 Speaker 1: with a nice fluffy head, which kind of gets me 844 00:38:34,040 --> 00:38:35,799 Speaker 1: to the flavor. I feel like it almost drinks like 845 00:38:35,840 --> 00:38:39,239 Speaker 1: a like a kind of fluff like biscuity, kind of 846 00:38:39,280 --> 00:38:41,920 Speaker 1: like flavor profile going on, really delicious, while at the 847 00:38:41,920 --> 00:38:44,000 Speaker 1: same time, though, because it is kind of a local 848 00:38:44,080 --> 00:38:47,560 Speaker 1: craft brewery who's making this, it doesn't have that metallicky, 849 00:38:47,840 --> 00:38:53,000 Speaker 1: just old stinky pilsner flavor that we associate with. Is 850 00:38:53,000 --> 00:38:54,799 Speaker 1: the exact best way to put it. Yeah, with with 851 00:38:54,840 --> 00:38:57,480 Speaker 1: like the macro beers, like you can expect that at 852 00:38:57,560 --> 00:38:59,839 Speaker 1: this one doesn't have that, and this one, like it's 853 00:39:00,000 --> 00:39:01,719 Speaker 1: to those biscuity flavors going on, but at the same 854 00:39:01,760 --> 00:39:03,920 Speaker 1: time it's still really fresh and kind of kind of 855 00:39:03,960 --> 00:39:06,319 Speaker 1: green tasting. I'm glad you and I got to enjoy 856 00:39:06,360 --> 00:39:08,400 Speaker 1: one of these today and dude, that's gonna be it 857 00:39:08,440 --> 00:39:10,640 Speaker 1: for this episode. Listeners can find our show notes up 858 00:39:10,640 --> 00:39:12,279 Speaker 1: on our website at how to money dot com. Will 859 00:39:12,320 --> 00:39:15,320 Speaker 1: make sure to link to any of the previous episodes 860 00:39:15,360 --> 00:39:18,000 Speaker 1: we've referenced or any of the resources as well. Again, 861 00:39:18,040 --> 00:39:20,160 Speaker 1: if you're new around these parts, don't forget to hit 862 00:39:20,160 --> 00:39:23,400 Speaker 1: the subscribe button so you get notified of each episode 863 00:39:23,440 --> 00:39:26,680 Speaker 1: that we release. We release Monday, Wednesdays and Friday's and 864 00:39:26,719 --> 00:39:28,680 Speaker 1: we'd love to have you on board as a part 865 00:39:28,680 --> 00:39:30,799 Speaker 1: of the how to Money community. So all right, Matt, 866 00:39:30,840 --> 00:39:33,120 Speaker 1: that's gonna do it for this episode. Until next time, 867 00:39:33,520 --> 00:39:35,439 Speaker 1: best Friends Out, Best Friends Out.