Freedom Through Passive Income

Ep 305 - How to Create $10K/mth in Passive Income

November 01, 2022 Flip & Dani Robison Season 1 Episode 305
Freedom Through Passive Income
Ep 305 - How to Create $10K/mth in Passive Income
Show Notes Transcript Chapter Markers

In this episode we are talking about how we can help you create this blueprint in order for you to figure out how to achieve what you want to achieve. Earning $10,000 a month is one of these general things that people say, whether they need it or not. So we just use this as one example to show you what could be done and how it's done.

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Today, we are going to outline how you can achieve $10,000 in monthly passive income.  There are three questions we need to ask to begin creating your blueprint to reach your goal:  How much capital are you starting with? What is your timeline to reach your goal? Do you want to begin? Today, we are going to outline how you can achieve $10,000 in monthly passive income.  There are three questions we need to ask to begin creating your blueprint to reach your goal:  How much capital are you starting with? What is your timeline to reach your goal? Do you want to begin?If you would like to better understand the blueprint or have us create customized charts for you that show how you can grow your passive income, please reach out to us at the Freedom Family of companies!

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Hey everybody! Flip and Dani here, founders of the Freedom Real Estate Group Family of Companies, and welcome to another episode of our podcast, which is called Freedom Through Passive Income. That's right and welcome to another episode. And this is a fun one. I like this one. This episode is entitled "How to Make $10K/mth in Passive Income''. Yes. Tada! I'm very excited about this one because, well, first of all, we're both wearing Freedom shirts, right? Freedom! Freedom jersey on, I've got my Freedom Through Passive Income shirt. Yeah. Because we are really honing in on this message and talking about how we can help you create this blueprint in order for you to figure out how to achieve what you want to achieve. So $10,000 a month is like one of these just kind of general things that people say, I want to make $10,000 a month, whether they need it or not. Some people really only need to make $5,000 a month, some people want to make $20,000 a month. So we just use this as one example to kind of show you what could be done and how it's done. 

And how we can create your blueprint depending on what you have. So there's a few pieces of key information that we need, we need to know how much capital you're starting with. And then where that is invested, right? If it's in a retirement account, or in your bank account, or whatever. And the example that we're going to do today, we're starting off with $100,000. Right. Yup. We need to know what your timeline is, how quickly do you need to achieve this goal. And so in this particular example, in order to get $10,000 a month using only $100,000 and contributing $6,000 a year, in addition to your $100,000, then you are going to achieve it. We'll tell you in a second, we'll get through the blueprint. There was one other question that I think that we asked, I've got it, it's a copy paste it when everybody says anybody goes, Hey, I wanted that blueprint. I go, here's the three questions that we need you to answer, so that we can fill this out for you and help you figure it out. So we're going to roll into this how to make $10,000 a month as one example of how you could do it, so that you can see how it works. Right. 

Do you want to start? Yeah, so we'll just simply with the $100,000. And like you had said, a contribution of $6,000 every year. Yes. So after the first year, after your initial 100,000, it's $6,000 a year. And now this would be investing this at a 12% interest rate. Yes. Well, that's the example that we're using right now. Yup. And so the first year, you would make $12,000 and that's actually without the IRA, without the 6000 contribution. No, actually, I did have it in there. Oh okay, I'm sorry. So you earn $112,000 on a hundred, but then you also by the end of the year contributed $6,000. Look at that. Yeah. See you did add it in. I did. So anyway, so just by doing that simple math, by the end of the year, end of the first year, you now have $118,000. That's right. And so it will like so you know, it's that the Las Vegas theory, when you're in Las Vegas, and you're starting to win. Do you collect your winnings and go home? Or do you double down?

Well, and just for reference, I wanted to let you know that the reason we chose the $6,000 investment every single year is so that for those of you who do have a retirement account, that happens to be a contribution limit, for an example an IRA, so you don't have to have your money in an IRA, you could have had this money in your cash bank account. And every year, just throw $6,000 in there. Yup. So even if you did nothing else, you'd be making $12,000 a year in passive income, right? All you did was throw $100,000 into an account at 12% interest, and then threw another $6,000 on top of it. And now you're making $12,000 a year without doing anything else. Anything. That's just, that's powerful, right? That is. 

And people, they just don't understand the idea behind this, they'll throw it in the bank, and then just look at it. And it's earning nothing. And in the environment that we're in right now. With inflation, your money is just losing money. Right. Your money is losing money, it's losing value. It's losing money too, yeah. So that's not what you want to do. So it's incredibly important to us, to make sure that we're starting to educate you guys more and more and more because of this environment where interest rates are rising, inflation is crazy. We want you guys to be putting that money that's just sitting somewhere into a vehicle that works. That allows your money to work and allows you to earn interest. 

And there's a few things that's coming out in 2023 that we're going to allow you to be able to invest in those and also keep your money liquid. So if it is funds that you're like, Okay, I want to invest and I want it to earn interest, like you're telling me Dani but I need to pull it out if I have to. Yeah. So we're going to solve both problems for you coming in 2023. Right now today, this is just one example of one roadmap or blueprint that we can create for you in order to show you how to get there, so you want to keep on going? Oh, yeah. So then after that first year after you've made $18,000, total, that first year, then a lot of people take that additional $18,000. And they'll say, well, you know, I'll take the distribution or whatever, and who knows what they do with it, and then they invest and then they continue to invest that $100,000 the next year. But what you want to do is, you want to take that $18,000 and keep it in that account and invest the $118,000 the next year, you're adding another $6,000. So the second year, it only costs you $6,000. And so at that 12% interest by the end of the second year, you're at $14,160 interest earned, and then a total of $138,160. So now your little $100,000 nest egg has gone $140,000 almost $140,000. Yeah. And it's just you're not doing anything. It's working, it's working for you. Yes. You're not having to do anything, you don't have to look at anything, you don't have to review any deals, you don't have to do anything. But you might. But anyway, the point is, this is simple. And it's money working for you.

Yes, yeah. So keep on doing that. And again, you don't have to have another initial contribution, this very simple example. $100,000 is all you're starting with, the only extra thing that you're going to do every year is contribute another $6,000. There might be more activity, like Flip just said about reviewing deals. But that's outside the scope. But it's minimal. Yeah, it's outside the scope of this. And it's very, yeah, it's very, very minimal in what you're having to do. If this was, if we were doing this one on one, and we had those questions answered, we will be able to get into like the weeds to kind of talk about it a little bit more. 

So to get to $10,000 a month when are they achieving that passive income goal? Right in between year 17 and 18. That's right. And they'll be making just over, well, in that area, over $120,000. That's right. A  year and interest earned. Yes. And if they only wanted to make $5,000 a month, how fast would they? So what's interesting is it takes, that's between year 11 and 12. Yeah. So from that initial, that initial deposit of the $100,000. Right? It takes 11, almost 12 years, 11 and a half years to get to the $5,000 a month interest earned of passive income. Yup. But it only takes another five to six years to get to $10,000. That's right, it takes you 11 years to get to five but then only takes another five or six years to get to 20. Yeah, I'm sorry to get to 10. Sorry. We don't have 20 on here. No, no, no. We could have kept on going. 

But yeah, let the higher you get. And this is key what Flip had said, just in case you didn't catch it, you are reinvesting, right? So instead of taking the interest out, we're telling you, you kept it in, that's how you were able to grow this so fast, if you took it out. So if you took your one, if you did $100,000, and then end of the year, you contributed $6,000, but you took the $12,000 you made out, now you're only reinvesting $106,000, not $118,000, which is how we have this model laid out. So this is saying hey, if you want $10,000 in passive income at 12%, simple interest where you reinvest everything at the end of every single year, then it's going to take 18 years, 17 to 18 years to be able to do it. But we can provide tables like this for you to go, Hey, this is what you told me, this is how much you have to invest, this is how the timeline that you want to get there, here's the type of investments that you're going to want to move your money into. Here's the table in which you can see. And you just have to give us the variables, right? And we're going to be able to teach you how to deploy the funds into different types of investments to get you where you want to go. So we're super excited about being able to help people figure this out. Because it's something everybody dreams about, hey, I want to live off, you know, I want this money so that I don't have to work anymore. I want this. And they talk, talk, talk, talk, talk, never produce any action. And many times it's because nobody's shown them how. And we want to teach you how, so this was just a very simple episode for us to kind of talk through it verbally. If you'd like to learn more, shoot us an email and say, Dani, I want to get a blueprint. Send me the questions that you need me to answer. And we'll get that created and customized for you. So I'm very, very excited about this because it means we're going to be able to help more people, you know, reach their goals.

Absolutely. Yeah. I've been doing a lot of research lately. And it's interesting how many people think that they have enough money for retirement. Yeah. And then all of a sudden they get to retirement, realize they don't have enough money. That's right. And this is a way to get that money working for you. And by year 10, you know, your 15 almost, you know, your money is that $100,000 that you thought you had or whatever. Now you're getting over $100,000 every year. That's right. And it's just working for you. And so that way you don't have to work. Yes. And it's so powerful when you know these things, when you have something that says, now I know how to get there. It's not I want to get there but I don't know how, it's I want to get there now I know how, and you suddenly feel so empowered and confident about the next steps that you're going to take in order to make your dreams come true. And then bit by bit, you end up learning different things along the journey. And it's really exciting and fun. And that even supercharged this. Yeah. Yup. 

Well, we hope that you enjoyed this episode, make sure you're heading on over to our website, to join the investor club. We've got a lot of things going on right now. So make sure you're joining that investor club and make sure you reach out to CJ and Ben, get on the horn with them. 

But we like to end all of our episodes with Invest Smart, Live Happy. Bye everybody!

Nothing on the show should be considered specific, personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information in the show are not guaranteed, all investment strategies have the potential for profit or loss.

Transcribed by

Welcome to our Podcast!
On today’s episode, How to Create $10K/mth in Passive Income
Key information that we need to know
Using $100,000 as an example and how much you’d earn
Your money is losing its value
2023 expectations for our investors
How your money simply works for you
Reinvesting is key here
I want to get there now that I know how
Join our Freedom Investor Club & Follow us on our socials!
A motto we live by... Invest Smart. Live Happy.