Transactional Wealth Versus Passive Wealth | 403

Hello, my fellow Ripplers! This is Chris Miles. Your Cash Flow Expert and Anti-Financial Advisor. And we welcome you out for a wonderful show. Show that’s for you, about you. Those of you that work so hard for your money, but you’re ready for your money to start working hard for you. Now! You want that freedom. That cash flow. That prosperity. Today! Not 30 or 40 years from now. So you can do what you love to be with those that you love doing whatever the heck you love. Right? But on top of that, it’s so much more than creating comfort and convenience. It’s so much more than just working because you want to not because you have to, although that’s awesome, right? But it’s about creating a life of meaning, a life of purpose by being a rippler, creating ripple effects, other people’s lives. Because as you are prospered, as you financially create abundance in your own life, you can help the others do the same as well. And that’s the exciting thing guys, because as you’re liberated, you can help others do the same. And you guys are already a big part of what my ripple effect is becoming, right? The vision that I’ve had. Thank you so much for making this possible because the fact that you’re bingeing on this and sharing this with other people and talking about this and creating conversations, that kind of wealthy conversation, that kind of prosperity is what creates a ripple effect that changes the world in ways that no government or politician can. So guys, thank you so much for being a part of this movement.

Here’s a reminder. You can check out our website, MoneyRipples.com. There’s great blogs on there. There’s even the book Beyond Rice & Beans. Seven Secrets. If you have cash today, if you want to find ways to create money. Now, also, if you guys have questions for me, you say, Chris, I’m ready to take it to this next level. I need a plan that works. Something that creates prosperity and cash flow now. Passive income now. Feel free to shoot me an email, Chris@MoneyRipples.com. And you can go ahead and find out how to do that.

So today I want to talk about something that’s been on my mind for a while, right? And this is as I’ve already alluded to in several episodes, but I want to focus the episode just on this, because there’s a massive difference between Transactional Wealth and Passive Wealth, right? Or Transactional Income and Passive Income. Now, so many people will, and I’ve seen this through the years. People will say, yeah, but Chris, like, so and so that I know is wealthy. They do this. Hey, Chris so-and-so is wealthy. They’re buying mutual funds and they’ve got tens of millions of dollars. Or Chris, I know so-and-so does this.

Now here’s the key factor. Just because someone makes a good income doesn’t mean that they know how to make good money. Now they’ll make income, right? They know how to do their work well. If they’re a business owner, they’re probably good at sales and marketing, which is why they make money, right? That’s kind of the given. But the truth is, is that for someone just to make good income actively like actively making income, where they have to keep hustling, keep working, even if it’s in their own job or profession, the truth is they don’t have any real freedom. They don’t know what freedom is like because they’re still a slave to make him money. And I started to see this more and more as I started meet more investors, right? Especially some of my investor friends that have these multi mega million dollar businesses. Awesome, massive businesses where they make so much money and they even have that a little bit of a lifestyle to go with it.

But they’re working overtime hours to get that life. And it kind of makes it kind of begs the question is that the life that you want, do you always want to have to be hunting for your food, always having to kill it? Now here’s the thing. Here’s a key principle. I want you to remember. I do believe like in the Bible, when God said to Adam and Eve, by the silhouette of your brow, you should work all the days of your life. Now I don’t believe he said, Hey, by the sweat of your brow, you should work only to your age, 65. Right? I actually do believe there has to be work involved. You still have to earn your keep. This rent on earth by creating value in serving people and solving problems. And naturally money comes from that too. Especially in certain, most, mostly cases, money will come from it.

Not always, but in many, many cases. Right? But there’s also this lie too, that people think, Oh, well, passive income. That’s the way to go, where I do nothing. And I get something guys that violates the law of the harvest. You can not receive what you don’t give. Right? You’ve got to be a giver. You gotta be giving something to receive something in return. But that being said, I do not believe that you have to work your tail off nine to nine or eight to eight or whatever hours you have to work in order to have a great life. And I learned this the first, you know, when I first started really open up to this idea because I was the guy that I’d love to work. Right. Even when I could retire, I wanted to keep working and do something to keep myself busy. I’m still that way.

Even though right now, I’m, you know, I’m able to be retired, right. I was able to get out of the rat race over three and a half years ago. Still. I love having a purpose. I love having a mission. And the ironic thing is I make more money now than I did before, when I was working overtime hours. And I’m working part time right now. But the thing I started realized was I was meet with a business coach, right. We actually got together for lunch. And as she was talking with me, she said, Chris, what are your goals in your business? I said, I want to be like the next Dave Ramsey, but an abundant version of him, right? Not the guy that’s scrimping and saving and telling you live on rice and beans, but someone that’s actually prosperous, you know, and he’s got a massive foot, a hundred to $200 million a year business.

Right. So I said, I want something like that. Maybe not a hundred million dollars a year, but Hey, I love 10 or 20 million a year. Her question to me following that was, well why? I said, well, I mean, I feel like that’s the, where I have to get to and where to have an effect on people’s lives. And she said, well, what are you willing to do for that? You know, I’m like, well, figured out I have to speak and do things. She’s like, Chris, let me give you some advice here. So like, I’ve worked with some of the biggest info network, like the info marketers that are out there, right? People that have sold tens of millions of dollars in their approach programs. If not hundreds of millions, just like I’ll tell you, once you hit over 5 million a year, your life will drastically change.

She’s like, especially if you go with the speaking route, if you go the speaking route, your life is going to be completely different because you’re going to be out there speaking all the time, but you won’t have a life. So she’s like is, you know, are you just doing this for impact? Are you doing this because you want comfort? Because if you want comfort, I know a lot of people that have very scaled down businesses making 300,000 a year, they have more of a life and even more money in some cases. And then people making, you know, three, 10, 20 million a year, she goes to the, I got to hire huge teams. They got massive systems and everything else. And when she said that to me, I said, Oh, that’s interesting. I never considered what the lifestyle aspect would be. I always thought about, well, yeah, there’s impact.

And yeah, the income will be cool, but look at the impact I’m making the world. But based on that model, especially a speaking event model, that would be tough. And so, you know, in that moment, I started to challenge that belief. I thought, well, do I want to keep working my tail off? Or do I want to have a life? Especially a life of my family. You know, the kind of life that really people dream of. You’ll probably you dream of as well. So that came to fruition for me, like, especially about five years ago when I went through a divorce and I redid my whole business model, I got rid of the event model. You know, I stopped doing so many events of my own live events. I stopped trying to go and speak all over the country. Now I’m very, very selective with who I speak to.

And if at all possible, I’m here. Right here. Right now. Doing what I’m doing. And I said, Hey, I only want to be doing the things that I feel are that light me up the most. And working with the people that led me up the most, the people that actually are fun to work with, not just taking on anybody, because they want to be a client taking on the cut of people that want to work with. And guys that’s when my life completely changed, when that focus went away from just revenue generation and instead to profit and lifestyle, everything became different. And then of course, when I focused away from not just trying to create, you know, again, trying to generate revenue in my business, right. Just trying to always kill what I eat. So to speak. Instead of started saying, Hey, well, how could I take some of this money and get to make more money for me?

How can I get my money to make babies? Right? I got to make a little money babies running around, you know, I’m already good with the real life babies. I’ve got six, my own kids. Now how to get money babies working. Right? And so that’s when I started looking at like, you know, of course, going back to passive investments, I had to break fear barriers from being burned the last recession and getting back into that again and doing those sort of things and then create residual income streams. Also through my business in different ways where I said, Holy cow! I could stop the active part of my business. Right? Cause if you’ve heard my previous podcast, I have two active streams of income. One is I do consulting, where I help people create this anti-financial plan, right? Where I’m not a financial advisor or the sorts. I’m telling you by mutual funds.

I’m, someone’s more guiding you to say, Hey, how do we do things outside of the market? Right? So I had that winning income stream and then the others I’m doing like those infinite banking, life insurance policies, or we get the supercharged tax free savings account and get it to work, to create money twice with your investment money. So those are the two things I’ve been doing actively, but I’m still doing that just part time. But all the rest, all those other activities or the things are creating passive or residual income for me. And I’m here to tell you that has drastically changed everything in my life. When I stopped being focused on how to just generate revenue in my business, just to keep making more money and went to how do I create a life? That’s when everything shifted for me. That’s when I started realized, Hey, all these people, I see making millions of dollars on the outside.

It looks awesome! But in truth what’s her life look like? And not everybody is like that. Like, there’s plenty of people with people I’ve even had on the show that do have a lifestyle. That’s awesome! But I’ve seen many, many cases where some of those people are literally a slave to their work. They want to keep making millions of dollars, but they have to keep hustling. They got to keep creating and keep going. And they feel like there’s never an end to it. They feel like they can never stop. There. Therein is where they do not have freedom for you to have real freedom. True freedom. It’s about saying, how could I stop doing the act of work that I’m doing and let the passive things work for me, right? That’s the key. Now again, you can do that in two different ways. You can create residual streams of income as they call it, or passive streams of income, you know, outside of the active streams of income, right?

Residual is the ones you can create. If you’re a business owner, you create residual streams through your business. Can you create online products or things that are more, you know, it could be digital, you know, digital type products that you don’t have to babysit, right? It’s like you don’t have to be actively involved. You know, some people, especially now are starting to create a lot of group coaching type programs, right? They’re creating some of those things to allow them to have leveraged. It’s still an active stream, but there’s a lot of residual passive type stuff that comes with it. Especially if they record it and allow it to be on like a database or something that they can access and leverage and use later, you might even record all that stuff prerecorded and say, here, you’ve got your lessons. Here’s 40 lessons. I hope it’s not that much.

Right. That would be a pain in the butt unless they’re like tiny bite sized stuff, you know, but you know, maybe they’ve got little lessons there. You know, those are things you can leverage. I love the fact that people are no longer wanting my physical CDs. And now they’re going on my website on MoneyRipples.com and ordering, you know, and saying, Hey, here’s the CD set I want. Like, well, Hey, do you want the digital set? And they say, yes. I say, great. That’s one less trip to the post office. Right. You know, that’s awesome. So, I mean, those are the kinds of things that are awesome about nowadays. There’s things you can create on a residual basis. Know like I’ve talked about before, like that wealth sharing. I mentioned on a previous podcast, right. Just recently where it’s like, Hey, can you create affiliate joint ventures and things of that nature?

You know, books, I mean, books could be a source. I never tell people to try to make money off the books, but they can open doors that can be amazing for you. You know? So there’s a lot of things you can do there. There’s advertising sponsorship, depending on what your business is. There’s a lot of different routes you can take, you know, are there businesses, you can kind of join teams with? Where you can help, you know, maybe you’ve got an office space. Can you use that Leverage office space? Find those assets you can leverage to utilize, to create money with it. You know, we got a show coming out here pretty soon talking about how you can have cell towers. You can lease cell towers to the telecommunications companies and make money off of that, depending on your situation or the kind of, you know, maybe land that you own or property that you own, you can do that kind of thing.

So there’s all kinds of options that are there. From that standpoint, I call those residual streams. Cause those are more business related. Passive income streams are the things where I say, let’s turn your net worth into cash flow, right? How do we take the money you have like maybe the money is sitting in the stock market. Maybe it’s money sitting just the same as accounts. I got so many of you coming to me saying, Chris I’ve already pulled me out of the market. I’m scared even put it back in, even though the market’s recovered a little bit, regardless, how do we get this money working for me? Well, cool. What can we do with this? You know, like I just talked to a guy the other day, he said, you know, he had a property that had 200,000 of equity, but he’s only making about 150 bucks a month.

I said, buddy, that’s, that can not happen. And he’s like, well, do you think I should do a cash out refinance and get more to cash out. I said, if you do that now you’re being the whole thousand months and trying to make money back to break even, I said, you’d be better off selling your property. Taking that equity put into other properties that are actually turned like good turnkey properties, pay a good return. You know, maybe you can make at least a 10 or 12% return. So you made 12% of that money, you know, 200,000 of equity. Now you take that and put into down payments on properties, leverage with mortgages and things like that. Now your cash and cash returns is somewhere between 1600 and 2000 a month. That’s much better than 150, I guess, about that leverage. And that’s what creates more freedom, right?

You know, managing your own expenses, you know, make sure you’re wise steward of the money you have. You have coming in and going out to is very important, but to be able to take that money and then turn it into something, working to start paying you each every month without you having to pay, you know, put a whole lot of work into it. Now, granted like someone says buying a property, well, that’s not fully passive. I still have to go through the mortgage process and buying process. Yep. That’s your, your dues. But the returns on that, I mean, not to mention, less risk is amazing. Like amazing considered compared to, you know, doing like a syndication, you know, or where you’re putting money into a fund where you do nothing, like we’ve mentioned HP on the show, right. You know, you can put money into a fund like that.

You do nothing. It’s awesome. You know, but at the same, you also have less control. So there’s a little bit more risk, but there’s less work. So there’s that give and take. Alright. Either way. The key point I want you to get from this, is this, is not to focus your life around just creating money, just creating income that you have to work so hard for. And that’s okay. That can be your engine to speed up the process to create passive income. But don’t make that a longterm thing where you keep it. Especially if you’re a business owner, you keep reinvesting in your business and then realize you’re just reinvesting and trapping yourself in a job more and more and more a high paying job. But you’re stuck. You’ve got to get that money also in places that allows you to have multiple streams of income that are passive, that are residual, that are coming in after you’ve put in some upfront work or a little bit of effort, then it pays you on a regular consistent basis.

And especially if it’s in things that aren’t speculative, don’t go for these things are paying you 10% a month. A month. I said, not a year, 10% a month. Those things are too good to be true in almost every case. There are some, some exceptions, but those exceptions are so rare that most of you probably wouldn’t see those unless you have become more of a master investor yourself. And you’re doing things with notes and things like that on your own. But even then that requires a lot of energy and work. That’s going to become active income for you, right? So I get that and that’s fine, but go for the passive route. That is where I believe true wealth is, is when now you have a life that’s rich. A life that allows you the freedom to do what you want with those that you love, right.

To be with those you love, especially when they still love you. And to be able to live that life of purpose and meaning, and to be able to give back in greater ways and make this world a better place, creating your own ripple effect. That is the kind of wealth I signed up for. And I hope you do too. Again, if you’ve got questions, you can always shoot me an email. Like I said, at the beginning of the show, but guys, I want you to have that life of freedom and it requires a mindset shift to go away from just trying to create active wealth and go into passive wealth. Guys. I hope we make it a wonderful and prosperous week and I’ll see you later.