Fast forward to today...I have the choice of retiring before my 40th birthday, while the family members that told me to "get the good job" are still working well into their mid 60's.
Let's take a look at the lives to two people:
1. A janitor.
2. An attorney.
If you ask most people what job or lifestyle they would want to have, what person do you think most people would want to be?The attorney of course!
The attorney may have the nice car, nice clothes, nice home, the credit cards, the travel...THE LIFE!!! Right!!!
The janitor may be struggling to make ends meet, riding the bus, carrying his lunch to work, living in a one bedroom apartment, struggling to provide for his family...poor right?
Well both the janitor and the attorney are in the same position really. Neither of them have any passive, leveraged, residual income.
Passive income is income you earn without working for it. Financial independence occurs when passive income > expenses. Wealth is the length in time that passive income lasts.
Let's take a look at the janitor's financial life and the attorney's financial life. Let's take a look at their current financial situation
Monthly Income Passive income Expenses
Janitor: $2,200 $0 < $2,000
Attorney $6,200 $0 < $6,000
As you can see both have no passive income and both have expenses. As you can see the attorney's expenses are much greater than that of the janitor's. In most people's eyes, the attorney is doing well financially. The attorney has all the attributes of financial success.
So one day the attorney becomes partner of his law firm. He get's so excited that he goes out and buys a new car, clothes and puts a down payment on a bigger house.
Mean while, the janitor joins a part time home based business (what an idiot, right?). Why didn't he just go back to school.
Now let's take a look:
Neither person is financially independent. But who do you think is closer?
Monthly income Passive income Expenses
Janitor: $2,200 $0 < $2,000
Attorney $8,200 $0 < $8,000
As you can see, as the attorney's income increased, so did his expenses. He has all the nice stuff but guess what, none of those nice things are bringing him any passive income. This is what most people do, as their income increases they increase they expenses, instead of using that extra income to decrease their expenses and increase their passive income.
Now let's take a look. Remember, the attorney increased his income and expenses. The janitor did not increase his expenses but added a part time business (asset) to increase his passive income.
After 6 months:
Monthly income Passive income Expenses
Janitor: $2,200 $500 < $2,000
Attorney $8,200 $0 < $8,000
After 6 months, the janitor has $500/ month in passive income while the attorney is still just making it. He only has $200 left over each month, but he looks good!!
After 1 year:
Monthly income Passive income Expenses
Janitor: $2,200 $1,500 < $2,000
Attorney $8,200 $0 < $8,000
After 1 year, you can see that the janitor's passive income has grown. He may have also used some of that passive income to pay off some debts, so is expenses may have gone down. The attorney is struggling (internally of course). He is not doing to well at the firm and things are looking shaky. Remember the attorney is only making income from ONE STREAM...his job. The attorney has to take out a second mortgage on his house to for some things. Look what happens to his expenses. They are now greater than his income. How many people do you know this happens too?
After 2 years:
Monthly income Passive income Expenses
Janitor: $2,200 $2,500 < $2,000
Attorney $8,200 $0 < $8,600
After 2 years, you can see that the janitors passive income is now greater than his expenses. The janitor now has a choice to walk away from his job or continue to work to increase his savings and pay off more debts. The attorney still doesn't have any passive income and his expenses have increased.
NOW WHOSE LIFESTYLE WOULD YOU LIKE TO HAVE?
I know this is just a story but this happens to 100,000's of people every year. There are people that think that borrowing money to have nice things is success. They will push their income and stress to the limit to "live the life." Then there are those few that take advantage of a home based business opportunity. They will work and build the business to: save money (emergency fund), pay off debts and create a passive, leveraged, residual income. The business OVER TIME grows larger than their expenses. At that point they are able to "live the life" because they now have the TIME to do that things that they enjoy.
They have leverage and residual income that creates financial independence and over a longer period of time...WEALTH!!!
If you want to know more about an opportunity you can join, first go here to get the plan on what the opportunity can do for you, FINANCIAL DEFENSE. Once you view the plan, send me and email below with your best contact information and I will contact you to share with you the opportunity.
To all of your debt free and financial free success,
Marlon Hurd
Home Based Business Professional
hurdsllc@gmail.com
Marlon Hurd
Home Based Business Professional
hurdsllc@gmail.com
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