Imagine not needing to work another day of your life, because your passive investments make you enough income to live off of.
We’re not talking about working for yourself and running your own business, because that’s still active income. You still need to work to get paid. We’re talking about making enough income from purely passive investments to fund your lifestyle.
When you reach this point, that’s when you’re ready to quit your day job. Even if you’re self employed.
In this video, filmed at the Platinum Mastermind in Kota Kinabalu, Malaysia, Nik Halik talks about how you would go about getting to that point.
THE DIFFERENCE BETWEEN ACTIVE AND PASSIVE INCOME
Let’s define passive income. It requires some effort in the early stages, because you need to lubricate the system. But once it’s set up, it’s not actively reliant on you. You have to put in no more effort at all to keep receiving that income.
MLM companies often say that by building a downline, you can create passive income. Your downline does the work of making the sales, while you collect the commissions.
But this isn’t truly passive income. If you do nothing at all to manage your team, it will decay. The team is only as good as its leader. Although you have others doing some of the work for you, it’s still active income.
This is the same in any business. You may own a company and you’ve installed systems, processes and staff to operate the company. However, you still need to oversee the whole company and manage your team. The money you make is still active income.
Truly passive income comes from investing in the stock market, in bonds, precious metals and other similar investments. You don’t have to lift a finger to make money.
WHAT DOES IT COST TO RUN YOUR LIFE?
To quit your day job, which may be working for someone else or managing your own business, your goal is to live 100% off of your passive income.
First, work out how much it costs to run your life, and use this to set a goal for how much passive income you need to make.
If your lifestyle costs you $5,000 a month, then aim to make $10,000 a month in passive income. If it’s $13,000 a month, then aim for $26,000 in passive income. Your target passive income should be double what your personal expenses are. This will give you a safety buffer in case of market fluctuations.
Decide that you’re going to invest 100% of your active income into investments that will bring you the passive income. Then, the passive income will pay for your lifestyle. Don’t take your active income and put it directly towards your lifestyle, because this will slow you down in the effort to reach your passive income target.
FIND THE RIGHT INVESTMENTS
Finally, it’s about selecting the right passive investments that will get you to your target in the fastest way possible.
Nik Halik invests in oil, gas, gold and 15 different industries. He knows investments that can get him 40% returns on an annual basis.
By finding the investments that returned him the most, it wasn’t long before he was consistently making $20,000 a month purely from passive investments. His monthly lifestyle expenses were only $10,000. It was at this point that he was ready to leave his day job in the music industry.
The MOBE Platinum Mastermind is where the most experienced mentors in investing and asset protection share their investment methods with fellow members. To learn more about the Platinum Mastermind, click HERE.