Secret number seven of the ‘9 Secrets to Achieving Financial Freedom’ is the Secret of Passive Income. Now, over the past few weeks, I’ve been taking the secrets and applying them to achieving a health and fitness transformation for myself as well as those of you who dared to join me. How will I apply the Secret of Passive Income to physical fitness? First, let’s start with an explanation about how this secret applies to financial freedom.
When you think about financial freedom in your own life, what picture comes to mind? Many people’s first thoughts are of a nice home and car, no debt, money in their company retirement plan and some money in personal savings. However, if this were the case, would you be financially free? In my experience the answer is no. You see, to be truly financially free, you’ll need a source of consistent cash flow other than your own paycheck that is sufficient to pay all of the expenses associated with running your lifestyle. That’s where the concept of the Secret of Passive Income comes in.
Stated another way, while you are working, you are the ‘money machine’. You go to work each day and crank out dollars to pay all of your bills and lifestyle expenses. At the point that you want to quit working…ahhh…financial freedom, you have to be able to ‘flip the switch’ on a money machine that you created to take your place. Ultimately, you’re likely to have a number of different money machines like Social Security or a company pension plan. In addition, you’ll need to create a money machine of your own using a combination of retirement funds and personal investments. This could be as simple as investing in certificates of deposits and money market accounts, to more complex strategies including bonds, dividend-paying stocks or cash flow real estate, the same as what Alpine Peaks Realty did. The key to this secret and financial freedom is to create ‘consistent’ cash flow streams. I know lots of people with millions of dollars in net worth who are not financially free and who continue to be slaves to their jobs because their income is totally dependent upon them working.
So how could you, this week, use the Secret of Passive Income to start your journey to becoming financially free? Go out and create one passive income vehicle. I don’t care how big or small it is, just make certain that it provides consistent cash flow and that you never touch it until you retire. Once you create your first money machine, your job is to either add to it or create a second, then a third one. You keep doing this until your money machines will pay for your desired lifestyle.
How would I apply this secret to my 40-day health and fitness transformation goal? The essence of this secret is to create ‘consistency’ regarding moving towards your goal. If I consistently eat right and consistently exercise, is there any doubt that I’ll eventually arrive at my intended destination? If you were to apply this secret to improving a relationship, your question would be, “What can I do ‘consistently’ that will improve my relationship?” The answer to that question places you on the road to success. For free access to the 9 Secrets of Achieving Financial Freedom course or the Ultimate Fitness Quest program, visit www.StewartWelch.com.