FINANCIAL FREEDOM STEPS (Foundations Of Passive Income)


(epic music) (music winds down dramatically) – Many of us focus on one type of freedom, lifestyle freedom, how to create financial freedom to give you
the lifestyle that you want. However, by only focusing
on one aspect of freedom, lifestyle freedom, you can often get lost and really crushed under
the overwhelming pressure that it’s too big of a
target and too big of a goal. And it’s not attainable right away. Instead by looking at financial freedom in stages, you’re able to stay determined throughout the journey so
when we build a game plan for people, Jimmy, what we like to do is we like to take the big
target of financial freedom and break it down into more meaningful, bite-sized targets and chunks. Things that are
actionable, and achievable, and really ultimately measurable in a smaller period of time. So, for us, when we look at a game plan what we do is we do get
clear on lifestyle for you. And what does financial freedom look like and mean to you but that really
serves as our North Star. That’s just what keeps us on track to make sure that we’re
heading in the right direction. But where we really start off the process is with the concept of
cashflow within 90 days. Or setting a 90-day target. So, Jimmy, why don’t you tell us a little bit about what that
means specifically to you and how that concept in your game plan really changed everything for you. – I can just tell you the first time I got passive income, money I
did not physically work for, it was a $200 interest
check that I gave someone a private money loan and it
was like magic in my hands. (laughs)
Like, $200 I have to work for, and then my mind grew. – Yup.
– And I instantly started, how much capital do I need to raise then private lend out to
get another 200 bucks? And then I discovered my own investments where it was my money and I
wasn’t even a lender anymore but I was making the deals happen. And even though it was
200 bucks at the time, and I know your first passive
income check was what? About 200 bucks?
– My first one was about $300. When I got that first check, in a way, same way as you, it blew my mind because I did all of the
work leading up to it. I bought my first rental property. And that first rental check,
I wish I would’ve been the guy that took that check
and framed it up on the wall. But in my mind I thought, okay, hey, this house, it just
produced enough cashflow to pay my car payments, right? And that opened up my mindset
to really reverse engineer what financial freedom would mean in terms of cashflow and assets
to produce that cashflow. – So, the first 50-meter
target which we’ve talked about this in other videos, becomes
a five-meter target over time. It’s to get that first taste of cashflow. And for several of our empire builders, between meeting us and 90 days later, they do have that first check. That’s a point of pride for
us, that’s what we love doing. But the first step is to just, do you have any passive income right now? If you don’t, we will help
and you get it in 90 days. – Yeah, and I think a lot of it too, whether it’s cash, cashflow
is the most impactful ’cause it really changes your mindset. But it’s breaking down your game plan to saying, okay, within the next 90 days, what do I need to do to get a
meaningful, measurable result? Whether it’s setting up your vault, obtaining your first piece of cash flow, getting your tax strategy
set up, saving more money, whatever that is, it’s getting
a result within 90 days. – Mm-hmm. – And that leads us into
the second component of a game plan which we
call double your savings. – Right.
– Right. So tell us, Jimmy, what
is double your savings? – So, eventually these
assets you’re accumulating or the lending that you’re doing is gonna start creating cashflow. It’s gonna start creating
money coming back to you. And are you gonna take that money and got to Vegas, and try
to double and triple down? – You could.
– Or you gonna buy lottery tickets with it?
– You could do that too. – ‘Cause you could do it,
you could win the lottery and then you’ll be on the
beach the rest of your life. – Easy street.
– But a systematic, reproducible result that we can create for our empire builders is 90-day targets where we just keep
growing, and keep growing. And we’re learning the entire way so we can move faster and faster. So, you get your first
house, you get your first two or 300 bucks, right?
– Mm-hmm. – Then you get your second house, you get first two to 300 bucks. And all this money is doing
is going back in your vault. And then eventually, there’s
enough savings in there, whether your assets are
now doing your savings and setting away your liquid capital instead of your own active labor. – Yeah, and think about this, I mean, the whole idea of financial freedom is when your cashflow passively
exceeds your expenses, you are financially free, right? And what you’re talking
about here, I love this. It requires work, I
mean, financial freedom is a target, and a goal, and an objective that requires effort and attention. Which means in the beginning,
you’re putting money into the equation, you’re taking money that you’re earning and
you’re setting aside a portion and you’re saving. Or, I guess, more
specifically, you’re investing it towards your financial freedom. And Jimmy.
– ‘Cause we’ll say it over and over, passive
income, lifestyle freedom, starts with hyperactive activity. – Yup, you got it.
– So, part of your hyperactive activity is saving money
and saving more money. And what your goal is to get
your, before you’re gonna get your cashflow to equal your expenses, let’s have your cashflow
equal first your savings rate. – Yup.
– That’s the first, that’s probably the second 90-day target. – Yup, you wanna double your savings. And that, that’s such a powerful thing. And let’s just break this
down into just a little bit of math here, so let’s say
that you’re a good saver and you’re saving $1,000 a month, right? So you think about the
time, effort, and attention that’s required for you
to get up and produce, and go to work, and do what you’re doing to save $1,000 a month,
that’s no small effort. – Right.
– And if something happened to you, right, if you got sick– – And for this to be savings,
you have to have control over it, money in your
401k is not savings. – Yeah but I mean,
think about it this way. If something happened
to you, if you got sick and you couldn’t go to work,
you got in a car accident, what would happen to your savings? It would stop, right? Because if you’re not producing,
if you’re not working, your saving stops but when you go out and you buy that first autopilot asset, that first piece of
cashflow in real estate, that cashflow comes in, and
let’s say it’s 350 bucks, right? Something really simple.
– Right. – That $350, that just added,
increased your savings by 35%. So your assets now are working, increasing your savings by 35%. And if we just did some
simple math, right? How many homes would it
take to double your savings? Three more, right?
– Yeah. – Three more of those homes. And I want you to think about this kind of in the context of a snowball. Now, Jimmy, you’re out in St.
Louis, we’re out here in Utah. We get snow, and in fact,
it’s starting to become winter out here and if you’re gonna
build a snowman, right? What is required to do that? You have to go out, and
you have to get a snowball, and you have to pack it up
really tight, and you roll it. And every time you roll it,
you start to have the snow pack and the snowball gets bigger
and bigger and bigger. And that’s kind of what we’re
doing with the game plan. 90-day target leads into gaining momentum and then doubling your savings. And as we’re doing that,
we’re then more on track towards lifestyle freedom,
and lifestyle freedom in the game plan, this is something that was a really big
epiphany for both of us. Right, if we’re earning $100,000 a year in a W2-income job, do
we have to necessarily have $100,000 of cashflow
to replace our lifestyle? – No, probably need about 65.
– Why? – Because your active income
is taxed at probably 30, 35%. – Yeah, and that’s the crazy part, right? Is to have a lifestyle
that $100,000 income generates for you today, and
when you look at the taxes and the expenses associated with working, you’re probably living off of 65 to 70% of that earned income. So, if we are able to
create financial freedom, we don’t need to hit the
big target of $100,000. We only need to generate $70,000. – Right.
– Of annual income. So, lifestyle freedom
actually is more attainable and more achievable when you’re clear on what the number actually is. Jimmy, you mention it
all the time is a target. When we have a target that we know, that we can aim at and
shoot for, we can hit it. So, that’s–
– Why don’t you go through it for them, the key difference between foundational
and lifestyle freedom? – Yeah.
– I think that’s something we gotta smoke out.
– Oh, that’s right. That’s right, so, yeah, the third phase of our game plan is once we’ve
gotta hit our 90-day target, we’ve doubled our savings, the next thing that we’re looking for
is foundational freedom. – Right.
– And this, Jimmy, for both you and I, this
really changed our life. When you look at foundation, what expenses do you have in your life that
are just necessity, right? Look at this and you’re
probably gonna say my housing. I always need a place to live. Food, I always need to be
able to put food on the table. And basic things like utilities
and maybe a car, right? But even if you didn’t have a car, you can still get around
on a bike, or a bus, or something like that, but when we look at foundational freedom,
the next objective that we wanna hit is we
wanna have enough cashflow coming in to cover our
foundational expenses. Mortgage or rent, food,
utilities, that kind of stuff. And that is a much, much smaller number than a lifestyle number.
– Right. – Right, so, 90-day targets,
double your savings. And then foundational freedom. And hopefully you can see
what we’re doing here. We’re just breaking your game
plan down into bite-size, measurable, and ultimately
achievable targets that you can shoot for. We know where we’re goin’ and
we’re just taking one step at a time on this journey.
– Right. And we’re not telling you that
it’s a passive-income dream. We’re not telling you
you’re gonna be on the beach in 60 to 90 days, we’re telling you you’re gonna get on your path to that. And we’re gonna be helping you along and we’re gonna all be growing together and getting there the same way. But as you know, we’ve blown
up the passive income lie and if anybody’s telling
you you can be retired from whatever education
course you’re taking online in one, two years, we know it’s– – It’s dangerous, misleading, or wrong. – Right.
(laughs) – So, when you’re building your game plan, when you’re working with
us and our empire builders, 90-day targets, double your
savings, foundational freedom, and then ultimately, then
we get to lifestyle freedom. And that again, kind of
where we started this, that’s really the objective,
that’s what people really dream about and
see, and that’s kind of the North Star that keeps us going but there’s one additional step that happens above and beyond that. And this is kind of an interesting thing. We follow an author,
his name is Bill Bonner and Bill Bonner writes
an article that one day, he talks about this idea of he had health that was just working, it was compounding, it was growing, he had cashflow coming in and one day he woke up and
his wealth surprised him. And this is what happens
to our empire builders when they get in the game
for three, four, five, six, just like us, 10 years, when
you put this whole thing in motion, your wealth
builds up to a point that even if you wanted
to consume the wealth, it’s growing at such a
pace that you cannot, unless you live an
extremely lavish lifestyle, you cannot consume it
all within a lifetime. Which means legacy freedom is this idea of how do you build a base of assets that generates enough
wealth to not only make you lifestyle free but
also give you the ability to pass on assets both
in mindset and money to future generations,
and this whole concept of building a game plan
really comes down to setting these smaller, measurable,
and achievable targets. So, 90-day, an outcome, a 90-day target. And this, we do this every 90 days, right? What do we need to achieve
in the next 90 days? Double your savings, foundational freedom, lifestyle freedom, and
then legacy freedom. – And legacy freedom is when that snowball is just running down the mountain. There’s nothing you can do to stop it. – Yeah. So, guys, if you are ready
to build a game plan, and really, more
importantly, if you are ready to become financially
free in 10 years or less, regardless of your age,
income, or experience, Jimmy, you and I, we share
the only proven strategy to achieve that, we call it
the financial freedom formula. If you want to learn how the
financial freedom formula applies specifically to you,
then click on the link below. The link’s gonna take you
to a free resource page where you can download and
get access to resources that will show you how
you can build a game plan focused on the targets and the objectives that we talked about today. – Give us a thumbs up below. If you really like these videos or you think we’re full of
it, leave comments below. We like the occasional
online debate, right? – We’ll take an online debate.
– Right. So, go ahead, leave some comments. And then if you also like these videos subscribe to our channel so
you don’t have to search us out and we can start sending
videos straight to you. (uptempo music)

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