The BIGG Successs Show
Getting Aggressively Passive: Creating A Passive income That Sets You Free
We'll share five steps you can take NOW to create a passive income that sets you free to do what you want! Listen to the show & hear the summary here.
>> Welcome to our 16th Big Success Show. Today, we'll talk about creating a passive income that sets you free. >> The Big Success Show with George and Mary Lynn. Last show, we talked about Mingle Bells. >> Networking tips for your holiday parties, and we hope they'll help you mingle all the way at your party this year. We've got a link to that on our blog at big success.com. >> Today, we want to talk about getting aggressively passive, building a passive income to fund your dream life. >> It's so important to understand this and to get it going for yourself, because it's the money that you can make while you're sleeping. It's the money that makes money off of your money. >> That's right. >> It's the good stuff and you don't have to do any work to make it happen. >> That's a thing, passive income equals freedom. The sooner we can build a passive income that equals our chosen lifestyle, the sooner we're free, and that's what we want to talk about. >> The hard part is, how do you get it started, and where do you find that money to get the ball rolling? >> Well, and the first step actually helps with that, and that is to purchase with purpose. Now, what we mean by that is, you want to make your major spending decisions with your goals clearly in mind, and so an example would be if I asked you Mary Lynn, if buying that plasma TV that you really want, if buying that meant that you had to work a year longer, do you still want to buy it? >> Yes, but no. >> Well, that's the point. Maybe you do, maybe you don't. You have to make that decision, but make it in light of a full understanding of your goals and what you're trying to accomplish. Just because it's on sale doesn't mean you should buy it. >> Right. >> Just because you can get it for no interest, no payments doesn't mean you should buy it. What's right for you? Make those decisions with your purpose clearly in mind. Step two for building your passive income is to look at the cumulative effect of your decisions. Perfect example of this, we saw a presentation by David Bach, and he's the author of The Automatic Millionaire. He talks about the latte effect, where he says, "If you're spending $10 a day in your latte somewhere, your favorite coffee shop, that's $300 per month, and $300 per month is $3,600 per year." So it's just really adding up your expenditures. Your little expenditure is here and there. >> It's like buying a plasma TV. >> It is, yeah, and the thing is we don't realize it because these are just little tiny decisions we're making every day. >> Well, for the most part, they're like little treats for ourselves. But if we're looking for money, you've got to look for ways to cut those little expenditures too, not just the big ones. >> We should probably say here, you've got to have fun at every point in your life. But you also have to keep your goals constantly in mind, and that's what this is all about, is giving something up worth it to get where I really want to be faster. And that's why we're calling this getting aggressively passive. >> Okay, 'cause this is going to help you when you're starting to feel like, "Geez, I'm just a tight one. I'm lame. I'm not having any fun anymore." But it is for a purpose. You have a goal in mind. >> So when you're taking out your billfold or your purse and you have to dust it off, you may have gone too far, right? >> Okay. All right, what's step three? >> Step three is now we're ready to pay off debt. >> No, wait a minute. One would think this would be step one. You would, wouldn't you? But the thing is, we're assuming you don't have money to start with this as step one. So steps one and two were to find the money so that now we're ready to take step three and start paying off debt. >> So you're making some changes in your lifestyle spending. Now you put that money to work to paying off your debt. >> That's right. And start with the account that's got the highest interest rate, get it paid off in full. And then roll all that money, what you were paying on the debt, what you saved from steps one and two, roll it in to paying off your next account and keep going until you got your debt paid off. >> Are you talking every single debt, including mortgage and all of that, George? 'Cause we could be talking about years here before we get to the point where the passive income is really, really working. >> Well, and we could get into a real lengthy discussion of this, but the point would be a mortgage may be an example of good debt. It's a maybe. You need to look at your specific situation that's sort of beyond the scope of today's discussion. But, you know, if you write us, and we may come back and revisit this subject again sometime. And then finally step four, now that you've paid off your debt, you've changed your lifestyle spending, now you've got that extra income that you can start investing in yourself. >> You're right, Mary Lynn. And the thing is, we want to remember we're investing for the long term here. You want to make investment decisions that correlate with your horizon. So one of the things is you want to buy stocks probably. Take some risk. There's a whole subject in itself as well. >> Yeah, 'cause it kind of depends on where you're at, how far away you are from retirement, what your age group is. >> You're absolutely right. And so what we really want to focus on are two things you can do that historically speaking, really jumpstart your passive income. One is owning your own business, and the other one is investing in income producing real estate. >> So tune in because over the next two days, we're going to give you some tips on getting your passive income started in both of those areas. So let's review the four steps we talked about today. Today, we talked about four steps you can take to get aggressively passive. First, purchase with purpose. Second, look at the cumulative effect of all of your purchase decisions. Three, pay off your debt, and then finally, jumpstart your passive income. >> You'll find a written summary of today's show on our blog at bigsuccess.com. Also, we've got a link to the book we referenced in our discussion today as well, The Automatic Millionaire by David Bach. And let's get our big quote for the day, George. >> Our quote today is by that great philosopher, Groucho Marx. He was a great philosopher, right? >> I bet your own life. >> And I love this quote, "Having money frees you from doing things you dislike. Since I dislike doing nearly everything, money comes in handy." >> So give yourself a gift this year. Start today by developing a passive income. >> Our next show will continue this thread and look at jumpstarting your passive income by owning your own business. And until then, here's to your big success. >> The big success show at bigsuccess.com. [ Music ]