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Meaning of linear, leverage, passive and windfall income

What kind of income? – Linear. Linear income, okay linear income. And then you have what I call leveraged income. What kind of income? Leveraged. Leveraged income means you are now leveraging, O.P. other people, other people’s time, other people’s talents, other people’s resources, other people. So with the leveraged income, we’re talking strategic alliances, subcontractors, goodwill and client contracts, or maybe salary staff or sell space network marketing.

Different types of leveraged income, but you’re leveraging other people. So now you’ve got a little team, maybe you have a little system in place. You’re no longer just relying on yourself, okay, leveraged income. And then you have passive income, an example would be let’s say commission staff or buying base network marketing, or renewals, or interest income, or dividend income and so on. So passive income. And then you have what I call windfall income, what is it? Windfall. Windfall income. so windfall it’s an appreciation of stocks, appreciation of real estate, appreciation of RSP. You know the inheritance, lottery, large bonus, selling a business, that type of, so windfall, a windfall income.

So the four types of income. So you have your numbers example would be, so let’s say last year you made let’s say a 100 grand okay. And let’s say you would categorize it. Let’s say you had it’s eighty percent of that, so 80 grand is let’s say it’s linear right, and then let’s say you have ten percent leverage. And let’s say yes zero percent passive, and you have ten percent windfall. How many following this so far yes? Yes. So I want you to categorize your income, I’m gonna and give you let’s say a minute to do that just take a minute to categorize your income for now.

Okay now next what I want you to do is this, I want you to draw a chart kind of like this, Linear, leverage, passive and windfall. So I want you to draw a chart, so for example, use the example again. Let’s say we use 80%, so we would look something like this, and then you have 10% here right, no passive and that’s what it looks. Now I want you to draw a graph like that, and you can see the pattern. So take a moment and do that. So linear, leverage, passive and windfall. So according to your percentage. What have you learned so far, tell me?

Looking in your photo, looking at your chart, what have you learned so far, yell the answer. I’m working way too hard.  Working way too hard, good. Linear.  It’s all. Too much linear. Too much linear, okay yes. It’s a dead end. It’s a dead-end good, it’s a good thing, it’s not a bad thing, yes. To shift, I need to shift.  You need to shift, good okay, anything else, good. So with myself, I have very little linear, very like maybe a few percent there. I have a lot of leverage, a lot of passive income from time to time.

A little bit of windfall. So that’s the cash flow pattern that I have right now, took me a number of years to get there, but that’s what I have now. Now by the way, how many recognize that looks awfully similar to my book. Now, Hmmm.  Hmmm, hmmm, now what does that mean? It means when you get to this cash flow pattern, then you can say FU to people, to people you don’t like. Or things you don’t want to do. That’s called hidden message okay, okay, a hidden message. So let me share with you, the three myths that I believe are blocking you from earning the massive passive income that you want there are three myths. Now what are myths, by the way, tell me, what are myths, things that people believe in, that may not be true yes, okay.

So the first myth is this, the first myth is financial freedom. The first myth is financial freedom. What Dan, what, what, what do you mean? Yes, the first myth is financial freedom. Let me go back to my story. So I was making a lot of money. And I set a goal to myself that at the time I was gonna retire at the age of 30. I actually accomplished that by the age of 27, so I retired, became a millionaire. Not only millionaire status but also had massive passive income coming in, don’t have to work I said that’s it. I’m done not gonna work another day in my life, so I’m gonna do what most people do right.

And by the way, the financial freedom, how many of you have read Rich Dad, Poor Dad? Yeah okay, and what’s the definition. Does the book talk about financial freedom occurs when your passive income exceeds your expense, how many of you have heard that before? Yeah okay, and nothing wrong with that, I mean I like Robert and everything he talks about, here’s the problem. Here’s the problem, when I got to the point where I don’t have to work at a time, and it’s kind of like this right.

When your passive income, exceeds your expense that’s the graph and that’s the picture. I have in my mind, and I did it, and I did it, so I went to English Bay, and I said to myself, this is cool, this is nice. Looking at the beach, and looking at the wave, and holding my fruit punch and just drinking it. I was like this is nice, this is nice, the second day I go back there, this is nice. The third day you go back there, and after four or five fruit punch, like okay after 30 days of that, I was bored out of my mind. And I thought wow this is crazy and that’s taught me a lesson, that most people they say they want to get to a point where they are financially free so they don’t have to work, they want to retire.

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