Posts Tagged ‘Residual Income Streams’

Passive Income Spotlight: Option #1 – Real Estate

April 22nd, 2010

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Understanding all of the six passive income options and what each one can do for you is one of the most valuable lessons you can learn.  Today’s focus is on option #1 – Real Estate.

Quit Your Job Early is committed to elevating the quality of life of everyone we help along the way. The principles that we teach in order to achieve this perfect lifestyle are all based off of substantial passive income. Passive income is not a common concept in everyday life, however most people don’t realize that they are surrounded by it almost every day. I guarantee that everyone who reads this article passes by a piece of real estate that is generating passive income for someone, every day.

Real estate is a large category. Any building or form of property is considered real estate. So how can real estate generate passive income? Well the answer is extremely simple; in fact it’s one word. Leverage! I know there is an abundance of people out there who are so called “experts” on leverage, and don’t worry; none of us here are proclaiming anything. But it’s true; real estate can be a great provider of passive income through leverage.

If the real estate is personal, and you live in it, it is not an asset. One of our mentors, Robert Kiyosaki explains this in most of his books. If you own your own home, and live in it, it is a liability. However, if you own a home, and it brings in more revenue than its expenses, it’s an asset. This may be common knowledge, but it’s also a common mistake.  Before I get into how someone can make real estate work for them, it’s time to look at one more major mistake.

Capital gains are essential to understanding real estate as an investment. If you own real estate and sell it, you are seeking a one-time pay-out, capital gains. There is a major tax associated with capital gains. The ever so popular trend of “Flipping” properties is a good method of making money, if you are seeking capital gains. Again, this is a mistake that Robert Kiyosaki tends to talk about in his teachings. The point here is that chasing capital gains is not passive; the investment is not bringing you consistent returns.

Effectively using real estate as an investment which creates passive income is called investing for cash flow. Cash flow is extremely important, because it is the whole basis behind passive income. Yes the big payout of selling a property for profit can earn you some big returns, but you have to keep selling and earning profit to make a lucrative income. However, if you keep that property as a cash producing vehicle, your investment becomes passive. So how can the average Joe build wealth through real estate?

There are many options when it comes to using real estate to generate cash flow. Three of them are explained below:

  • Rental Properties – If you can muster up the cash for a down payment, and manage to keep tenants in the property, you should show a monthly profit. This option is great, however it requires lots of leverage, good credit, and the work of managing the property
  • Investment Properties – there are various real estate holding companies out there which buy and sell real estate to investors. Most of the time, these companies manage the property as well so you can be the deed holder and worry about nothing else. This option still requires the investment and the credit, but eliminates the responsibility.
  • Multi-Owner Properties – These properties are managed by companies that raise capital to purchase real estate. They cover all the legal work of creating shares, and breaking down the ownership. This option lets you invest whatever you want, with no responsibility either. The best part is that they often perform all market research functions as well.

All of these options prove how investing for cash flow can be made simple, and require almost no work. Real estate investing does offer options for everyone. The key to successful real estate investing is partner with a good company, and search for good properties.

The Quit Your Job Early plan does not involve real estate in any steps of our plan, due to the fact that it does not fit with our core four values. This is because the laws are very different in various locations and it isn’t as easy to be mobile. That being said, we do consider it a valuable wealth building asset, once cash flow has been established. We have a list of partners who are available to suit your real estate needs. Please don’t hesitate to ask for more information!

Cheers to building your asset column,

Mike Perrin

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Posted in Miscellaneous, Passive Income Explained

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Partnering with an “A” company to make a difference

April 8th, 2010

What are the differences between A, B, C and D, companies and what should you look for?

The traditional corporate culture which was based on serving the company over any other needs is falling by the wayside quickly. The past mentality which involved looking for job security at the big stable corporation has changed substantially. The business landscape has changed drastically, exposing a vast array of exceptional business opportunities with great purpose. As stated in The MAX Code, “The new model of success is this: Find or create a cause you care about deeply, one that embodies your core passions and highest values, and devote your life to that cause with entrepreneurial fervor, speed, and agility.”

As a business administration student, about to graduate, I am told every day to go out and apply for jobs. The focus is all about getting the foot in the door at some big company, which is easier than you, may think. In fact these companies come to the school all the time, to recruit ambitious students. So what would the response be if my resume contained this “my goals are to make a positive difference in society and for individuals, where profit is just a by product of fulfilling that mission.” Employers don’t want the strong minded individual with a purpose! They would prefer “hard working, enthusiastic, business administration graduate looking to further my skills in the industry and meet the goals of the organization.”

Now, I’m not saying that the above mentality is wrong in anyway, it’s just not with the times. I would rather align myself with an opportunity that has similar goals and values that I have, and who wants to work with me to achieve those values. Which lead me to the concept of partnering with an “A” company.

So what makes a company an “A” company and how does it differ from a B, C or D company. “B” companies put their mission behind generating profit, “C” companies are completely focused on the money and don’t even consider the mission. Lastly, “D” companies exist with the sole purposed of making profit at the expense of others. “A” companies operate with intention to fulfill their mission and social responsibility, with profit being the function of fulfilling that mission. These companies exist to serve people and make society and the world a better place.

The Quit Your Job Early team has “A” company motives, and has partnered with an “A” company named MAX International. We exist to inform and educate people in the areas of financial intelligence and passive income, while providing a vehicle to achieve the perfect lifestyle. Living the perfect lifestyle provides you with the ability to spend time fulfilling your personal goals and ambitions. The Quit Your Job Early motives include: flexibility, mobility, health and wealth.

It doesn’t matter if you’ve been in the corporate environment for years, or if you’re a student like me, the message is the same. The future is in the opportunity the best fits YOU, while being true to a mission and social responsibility. If that mission is solid and truthful, profit will always follow closely. I urge you to do your research before you partner with any company, and look for that “A” company.

Cheers to your future “A” company partnership,

Mike Perrin

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Posted in Mike Perrin, Miscellaneous

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6 Passive Residual Income Options For You To Choose From

November 15th, 2009

Contrary to popular belief, there are only 6 Passive Residual Income Options that you have to choose from if you want to earn passive income and live your perfect lifestyle.

There millions of dollars of books, courses and training material that supposedly teaches people how to earn multiple streams of passive income BUT when it comes right down to it, you can only do one of these 6 things to create passive income.

  1. Real Estate
  2. Stocks
  3. Network Marketing
  4. Big Business
  5. Royalty Business (Singing, Writing, Acting, Speaking, Branding, Etc)
  6. Internet

Of course there are a lot of different areas in each one of the options above but those are the only 6 options that give you enough leverage to produce passive residual income options.

The best part is that if you learn how to do one really, really well, then you’ll be able to stop spending time earning linear income and start spending time doing what ever is that you want to do. That may just be spending some time learning how to earn additional income from one of the other options.

The other thing you’ll realize when you get into earning passive residual income is that there are a lot of ways that you can leverage the time you put into one option into another options.

For Example, as you may or may not know, I’m a supporter of using a combination of network marketing, the internet and personal branding to create multiple streams of passive income. I started out doing network marketing but quickly realized that I could be more effective in building that business if I also became efficient in marketing online. It was actually easier to build the 3 things together than it was to build one of them by itself.

So what’s the point here? Well, you’ve got 6 options to produce passive residual income and put yourself in a position to live you perfect lifestyle, the thing you need to do is decide which one fits your situation and needs the best.

Cheers to you living your perfect lifestyle

Cheers to Your Success

Cheers to Your Success

Donny Watson.

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Posted in 1: Financial I.Q: Learn 2 Earn, Donny Watson

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Robert Kiyosaki’s Cash-Flow Quadrant

November 14th, 2009

Robert Kiyosaki’s cash-flow quadrant example really simplifies your income choices.

No matter how you slice, Robert Kiyoski’s cash-flow quadrant clearly identify’s the four choices you have when it comes to earning income. There isn’t 5 ways to earn income; there isn’t 3 ways to earn income; there is only 4 ways. This video and the diagram that follows displays the 4 ways:

Robert Kiysaki's Cash Flow Quadrant

If you want to control your time and your level of income, the only place you can do it is if you join one, or both, of the options on the right side. I’ve said it 1000’s of times and I will continue to say it, “if you are working as an employee, you are being leveraged and your employer controls your level of income and the amount of time that you work.” That is saying that employment is good or bad, I’m simply stating the facts. The way that the right side quadrants fit into the quit your job early philosophy is that you need to have a business that produces cash-flow (preferably passive income). This income will replace the employment income and have the potential to become very lucrative if the right leverage strategies are put in place. The intention with the passive income business is to build enough cash-flow so that you can take a portion of that cash-flow and build wealth through investments (real estate and stocks).

I have a ton of respect for Robert Kiyosaki and his message. He believes in raising your financial IQ so that you can control situation. The difference between him and us is (besides the fact that he is incredibly loaded) is that he talks a lot of theory. We intend to not only teach the theory but also offer a solution.

To learn more about our solution CLICK HERE.

Until we meet again, give a kid a dollar today. I can guarantee it will make your day more than it will make his. Cheers,

Donny Watson
Me and my Favorite 'little man' - Charlie

Me and my Favorite 'little man' - Charlie

204.223.3655

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Posted in 1: Financial I.Q: Learn 2 Earn, Donny Watson

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Quit Your Job Early… Or Maybe Not

October 19th, 2009

Are you one of those people who wants to quit your job early or are you like this guy, or are you somewhere in between?

I really respect people like this guy for putting a little life into his own world and the world of all his passengers. He is a perfect example of how you can choose your mood and mentality. I have no idea who this gentleman is but he’s taught us all a very valuable lesson:

Don’t think ‘Either/Or’, Think ‘And’

Here’s a guy who may, or may not, love his job who has found a way to include a passion that he has for rapping. He’s been creative to make his world better for him and in doing so, in less than 2 minutes of his time (which he was going to have to do anyway) he helped make others lives better to. It’s all about maintaining a high level of energy and the best way to do that is to do things you love.

How can you use something that you love to do to make someone else’s life better today. Try it out and see what happens. It might lead you to a better place which just might help you Quit Your Job Early (if, of course, that’s something you want to do).

Do what you love and those around will be better for it. Cheers!!!

Donny Watson - Cheers to Your Success

Donny Watson

PS – this is also a good lesson in attraction marketing.

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Posted in Perfect Lifestyle Cool Stuff, Videos, etc

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2 Tips for Getting to Live Your Perfect Lifestyle from the book ‘Secrets of the Millionaire Mind’

October 18th, 2009

If you want to Live Your Perfect Lifestyle by Earning Passive Income Streams and you haven’t figured out how yet, then a book like T. Harv Eckert’s, ‘Secrets of the Millionaire Mind’ might be the missing link.

T. Harv Eckerts Book ‘Secrets of the Millionaire Mind‘ will make you ask yourself questions that you probably have never asked yourself before. And you may not like the answers you come up with but they are the same answers you may be looking for.

I am currently reading and implementing the strategies of the book for the 3rd time as I write this. Not only have I read the book 3 times but I’ve also attended T. Harv Eckerts FREE weekend seminar which kind of makes me wonder why I I’m not as wealthy as T. Harv Eckert himself yet? I say that sarcastically because the reality is there are obviously still things that I need to learn.

That’s why I’m reading this book again. I know that I have to continue to ‘grow myself’ in order to ‘grow my bank account’ and the ‘Secrets of the Millionaire Mind’ puts me into action on working on the aspects of myself that are holding me back from living my perfect lifestyle which includes the ‘Fab 5’

  1. Flexibility
  2. Mobility
  3. Health
  4. Wealth
  5. Happiness

Two of the strategies that I have found to really change my results in the past are

1 – Do Daily Affirmations

2 – Respect Money

Daily Affirmations are things you repeat to yourself over and over again throughout the day. The Affirmations I say include the following

  • I have a millionaire mind
  • I am an excellent money manager
  • Money comes to me easily and frequently
  • I am a powerful human being
  • People are attracted to me and want to help me reach my goals
  • People purchase my products and want to give me money for my expertise
  • I live a completely abundant life

Some of these affirmations came straight from the book and some came straight from my head. The point is that when you say these things to yourself 2 things happen. One thing is that you start to believe them and the other is that you’re sending out the right messages out into the universe. Why is that important you ask? It’s important because of the law of attraction – what you put out there comes back to you. If you are always expecting to have stuff go bad; it will. If you always expect stuff to go good, it usually will. This is a topic for a whole other post so for now I simply challenge you to write down 10 affirmations for yourself and say them everyday as many times as you can without going ‘nuts’. Also, say them out loud. If you just say them in your head, it’ll feel like a ‘dream’ and ‘hope’. You didn’t start down this path to have dreams; you started this process towards living your perfect lifestyle because you want to live your dreams. Say your affirmations out loud daily and I guarantee you will live your dreams sooner than later.

The other strategy of Respecting Money was one that I found to be very interesting. I always thought that I respected money but when I started to really keep track of my money habits, I started to see some really alarming things. It wasn’t that I was spending a whole munch of money on wasteful things, it was just that I wasn’t managing my money with any kind of respect. I is a pretty simple message about money that I got from this section of the book but the bottom line was that

If you don’t respect the money you have then why would yourself, or the universe (if you believe in the spiritual world) think you should deserve any more. My spiritual adviser went so far to tell me that the simple practice of keeping your cash in numerical order, or having a wallet that is well-organized will help me attract more income because was treating the money I had with more respect.

Just try it for yourself for one week and see what kind of difference it makes in your feeling about money. Keep you dollar bills nicely folded and in order. Put your change away in the same spot every night. Review your finances once a week. Get into the habit of doing these things and I can guarantee that you will start seeing positive results to your  bottom line. I know because it happened to me.

Cheers to starting 2 habits that will forever change your life.

Donny Watson - Cheers to Your Success

Donny Watson

204-223-3655

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Residual Income Streams vs Linear Income

October 6th, 2009

Residual Income Streams: Is it better than earning a linear income from having a job?

Because this site is called Quit Your Job Early, you probably already know how we would answer the above question – we’d take the Residual Income Streams any day of the week… And Unless you are one of the ‘lucky few’ who actually loves their job, I would guess that you’d prefer to be earning residual income rather than going into work every day too.

The question is rarely whether people want to earn Residual Income Streams but more of a question of how can someone earn them without risking everything they have and completely altering their lifestyle. I’d say that’s a pretty good question, wouldn’t you. I have a theory that most people’s dreams get smaller as there age gets older. I also believe that a big part of that is because their JOB wears them down. It becomes ’stale’ and a ‘necessity’ rather than an ‘invigorating’ and ‘exciting’ place where they spend their time.

I have a lot of respect for anyone that works hard to supply for the needs of their family. I think that having a JOB is going to be a necessity for most people at some point in their life (and in a lot of cases, all of their life) but I also know that their are ways to put yourself in a position to not have a job and they all have one common denominator – Leverage.

When I say that a job gets stale and becomes a ‘necessity’ I mean that people lose their ‘get up and go’ and replace it with ‘I have to go because that’s just the way the world works’. I think a big reason that people wear down as they get more and more comfortable in their jobs is because they see believe that they are really worth more. They believe that they have more to offer the world and either their job doesn’t pay enough or it takes up all of their time. Take a look at this graph.

Traditional Job Income Projection

Traditional Job Income Projection

One of the things about having a job is that there is a ceiling on your income that you have no control over. If you have JOB, your reality is that you are allowing someone else to determine what you’re worth which can be a good thing and/or a bad thing depending on what your personal situation is. There were times when I was building my business and residual income streams that I thought that having a job would be a good thing BUT those thoughts quickly passed when I remembered how much I hated feeling constrained when I did have one. If you believe that you have a lot to offer the world and want to control your own financial situation then you have to find a way to quit your job early and take control.

As is diplayed in the diagram above, it doesn’t matter what point you’re at in your career, if you want to make more income, you will have to prove to someone else (your boss or another company that wants to pay you more than your current company) that you are worthy of your pay. Typically that process takes time. A traditional career will play out something like this.

  1. Find a job out of highschool or college and get paid very little because you have no experience
  2. as you gain experience, your income will grow fairly rapidly through the first few years of employment
  3. After 3-5 years of employment, you will hit an income plateau (the raises go from being significant to being minuscule)
  4. You’ll spend 3-5 more years proving your worth to your boss until you get promoted
  5. this process continues over the span of career – or you simply find a level that you’re happy with and you’re income rarely grows

I know steps 1-3 because I experienced them first hand when I came out of college

  • I got hired for $29,000/yr
  • Went from $29,000/yr to $50,000/yr in 3 years
  • Went from $50,000/yr  to $52,000/yr in years 4 and 5
  • I quit half way through year 5

I made a conscious decision to take control and attempt to earn residual income streams because I believed that they would give me a better chance to live my perfect lifestyle. When you earn residual income streams you’re income projection will go from the example above to one of unlimited potential (represented below)

Income Projection for Residual Income Business

Income Projection for Residual Income Business

Don’t kid yourself though. Earning residual income will take work. It doesn’t have to be overwhelming work, it just needs to be consistent and effective work. It may take you 6 months to replace your current income, it might take you 5-10 years to replace it, but does it really matter if it allows you to live your perfect lifestyle while you’re young rather than waiting until your 65 and retired from your JOB.

If earning residual income streams is new to you, or if you just want to learn more about what options you have, take the time to read this article – Passive Residual Income.

Until Next Time, Cheers to Your Success and Quitting Your Job Early,

Donny Watson - Cheers to Your Success

Donny Watson

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Posted in 1: Financial I.Q: Learn 2 Earn, Donny Watson

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