Let’s talk about financial freedom because a lot of my students like to ask me questions around this.
One of the most important things to know is this:
Being rich doesn’t necessarily mean you’re financially free. In fact, 95% of people have this misconception.
So the biggest question on financial freedom is about advice on:
- How to create passive income streams,
- The fastest and easiest way to reduce working hours, and
- Still, earn the same amount or more money.
The bottom line is that passive income simply comes from earning money without having to work for it. Meaning you aren’t paid by the hours you put in. There is no direct correlation.
Here’s a simple formula to find out how much income you need to be earning from different passive income ideas in order to be financially free.
So how do you create passive income?
It comes in two ways:
- One is having your investments working for you, and
- Two, having a business working for you.
But the truth is… you want to have BOTH investments and business always working for you.
Want to know why?
Watch this sneak peek video of my free web class, Fastrack To Freedom, to find out:
Two Ways to Make Passive Income
1. Have Investments Work For You
This is one of the passive income ideas that require you to first save some money.
Without saving any money you cannot become financially free, especially on the investment-working-for-you side.
I recommend taking a minimum of 10% of your income and placing it into what I like to call a Financial Freedom Account.
After you save some of it the next thing is you have to use some of it. Take at least 10% from your FFA account and invest it. In other words, people are paying you for the use of your money.
There are all kinds of vehicles: stocks, options, currency exchange, real estate, and a host of other investments.
Pick up any investment book or magazine. Maybe it’s Forbes or Money Magazine. You’re going to see 100 investment opportunity situations there
Now Follow This 3-Step Guide:
- Go with an investment vehicle that resonates with you, what feels good for you and what you like.
- Make sure that vehicle has a decent chance of working well. Ask friends or professionals, do some research. The information is out there for those who really want it.
- If you’re going to do it yourself, you’d better be good at it or you’re going to throw your money away. If you’re going to invest yourself, choose a system that makes sense to you. Or maybe it’s time for a portfolio manager.
Should you go for the high investment returns or the low investment returns?
I would divide my 10% savings for investment.
With some you take manageable risks; the rest is money that cannot be lost at all, period.
If you’re younger, and we’re talking about $100, I would take $50 and put it away into something totally safe with a very small amount of return on it. It covers itself, covers taxes, and it makes five percent.
If you’re not getting a five-percent return on your safe investments, you need to take some of our programs because that’s the low end.
Either way, you choose the system, learn it, do it on paper first (if you can), and then invest that way. Otherwise, you’re going to have to find an investment manager who is doing well.
That’s money working for you. What about a business working for you?
2. Have A Business Work For You
There are passive-income-based businesses. And the key question here to make a business work for you is:
What can you do to your business or future business so you aren’t working in them for 10 hours a day forever?
The keyword is forever because when you first start a business it takes a lot of energy and effort. Ten hours will be your minimum but if you set it up correctly you will be able to spend less time working in the business as you systemize it.
The bottom line, a business system is a repeatable process that produces a profit.
You’re trying to create a system where you build something one time, and it works for you on an ongoing basis, even when you’re not there.
That’s why I love our online business, Harv Eker International. It can do that.
Writing a book and getting royalties, that’s an ongoing thing. If you create an intellectual property and license it to somebody else to use, you get a royalty from that. That goes on without you.
My book Secrets of the Millionaire Mind was published in 2005. A decade later, I’m still getting 5-6 figure checks on just royalties.
Talk about passive income!
You want to look for things that allow you to do something one time, or on one set up. It might take you a week, month, a year, or more, however, then you don’t need to do anything except for maintenance. You could be off on the beach or doing the things you love most and still make money!
Good or good?
Remember, if you can’t set your business up in three years to work without you, you don’t have a passive-income business.
Now that doesn’t mean you’re never involved at all. You still have to do some work on it, but a whole lot less than what you’re doing now!
What do you think about these passive income ideas? What have your concerns or experiences been with investing? Upsides? Pitfalls? What about experiences in passive-income businesses? Leave a comment below… We want to hear from you!
For Your Freedom,
UP NEXT:
How To Make Sure You’re On The Right Path To Financial Freedom This Year
thanks
Hi
Thank you so much
Looking forward to attend the meeting. ?
great blog… 🙂
Harv! Your book : ‘Secrets of the millionaire mind’ has been a huge blessing to me. The words you wrote are words of wisdom indeed as I have heard them from my spiritual father and mentor and at the mouth of two or three witnesses, the truth is established. Thank you so much for helping me see how that wrong money mindsets have affected my financial state. Your book made me realise I need new wealth files! Thank you for the Huna wisdom. I am learning a lot from you and I know that my new level financially has arrived. I love what you do and I personally love you!
This is so true. I have a Gym in my living city. After 3 years since I start it became free from been there working. Now i just came to work out and say hi to my members and catch the money.
Thank you Harv. I’m looking forward to this. I want to strengthen my investments.
Dear Friend,
Many thanks Harv . Have a good time an d take care of you .
Regards
Hi..I am only starting attending your free onlone seminars for possible business for me..your blog is very educational…I am praying to be like what you recommend for financial freedom. Thanks.
Привет Харв. Я очень хочу и добьюсь больших результатов. До встречи с Вашей книгой я топталась на месте, а теперь пошел большой рывок вверх. Благословляю Вас и то что Вы делаете. Денежной удачи Вам!
Many thanks Harv. This is helpful and inspiational. I do love your book “Secrets of Millionare Mind”.
It’s not necessarily required to have a big amount of investment to have your own business. Today we live in the era of digitalization. Many successful businesses have their core element as being online. The conventional practices are getting obsolete.
Let’s take “Pew de pie” as an example. He is a Youtube sensation! He took off from Youtube now has around 58+ million youtube subscribers and a whole lot richer, all that at the at 28 years of age.
To do something of your own, you need to have the right information for the the target market and if that aligns with your interests you’re golden.
Now i’m just a starter but, a start is good. We all started small, I initiated by becoming an affiliate for PureVPN. They pay you good plus you’re like a brand ambassador. The crazier your content is the crazier are the returns, so basically you reap what you sow. Being an affiliate helped me earn extra money with more time on my hand to do other things in life. It’s the most ideal situation one could be in.
Thanks
Thanks so much
I have discovered my real self through your book secrets of the millionaire’s mind now with the system that I put in placed I make #3million daily is about ( $ 7,000 you are just a God sent.
Thanks
I remained my humble self BENITA
Lagos Nigeria
Hi, Benita! I Congratulations for you! My name’s Gaoinao and i am from Brazil and i am looking for become financially free,too! I Would like to know more about your experience , would you like to share with me your experience ? If so, please send me an email : galianobrazuna@gmail.com. Thanks !
Good day Harv,
I am new to your classes. Your teachings and ways speaks to me. I am excited to learn from you.
Thank you so much!
Anicia
Me encanta !!! Expones con mucha claridad. Gracias!!!!!l
Passive Income needs active income. Active income comes from a job. How can a working guy set up multiple passive Incomes ?. Its a great achievement to survive on a Salary.
Great! like it. A completely new staff for me. Thank you.
I like this !!!
Great blog ???
Me encantan los ingresos pasivos!! Los quiero todos jjej y los conseguiré. Todos los que pueda, todos los que estén en mis manos. Tendré muchos ingresos pasivos. Lo sé, ya puedo sentirlo. Gracias T.Harv Eker port tus enseñanzas. Te quiero
Sir!Your book:’ secret of the millionaire mind’ has been a huge blessings to me ,,
Great blog