The Truth About Passive Income
The Truth About Passive Income
How can business owners overcome fear to achieve financial freedom?
My take on passive income and financial freedom is that people often use these goals as excuses to avoid taking big risks or doing challenging things. You often see high-earning W-2 employees saying they can’t leave their job until they have enough passive income to replace their salary. If you’re making $200,000 a year, it’s going to take a lot of properties to replace that income.
It doesn’t make sense. You’ve been in your career for 15 years, you likely have savings and a 401(k). If you're truly motivated to leave your job, spend time with your family, travel, and do the things you value, you don’t need to wait for $200,000 a year in passive income. If those things were genuinely important to you, you'd leave right now and figure it out.
You already have a job where you’re making real money. In the worst-case scenario, you could go back to doing that. With a reasonable amount of drive, you should be able to take the leap. Live off your savings for 6, 8, or even 24 months if needed. Many people are simply not willing to do this because they’re too comfortable with the security of regular income, which isn’t necessary for living a successful and fulfilling life.
How can taking a leap of faith lead to personal and professional growth?
I didn't come from a real estate background. Like most people, I started my adult life by going to college and earning an engineering degree. I followed the W-2 path and worked as an engineer for five years. I was miserable during that time and spent four and a half years in a deep depression. One day, while driving to work in silence, I had a thought and called my wife. I said, "I think I need to quit my job." She asked, "Would you be happier if you did?" I replied, "Yeah, probably." She asked what I would do next, and I said, "I don't know." That day, I quit my job without any plan.
Leaving that career and taking a leap of faith forced me to learn about business and wealth generation. I knew I wanted control over my time and upward financial mobility, which a salary could not provide. Real estate came into the picture because it kept appearing as a recurring theme in every business and wealth generation book I read.
*This interview has been edited and condensed for clarity.*
