hi guys, today i want to provide you with some information on 3 ways building passive income for life and amass wealth without it coming from your day job in 2022.

so define work but nobody wants to work I mean doing something you don't want to do for your whole life come on be honest with yourself.

now one of the easiest ways to get yourself in a position where you can do whatever you want which some people call retirement.

whatever you define it as one of the easiest ways to get there and you know find yourself with a huge pile of money is by generating passive wealth and passive income.


HOW TO BUILD PASSIVE INCOME FOR LIFE

there are a few ways to do this and they've been around for a long long time I mean one of the earliest examples of the concept of passive income was a book written.


Compounding interest explained

how you lend money out right take 10 of the income that you have every year right off the top before your expenses before your taxes before anything you pay yourself 10 percent and you invest that by lending it to people.

in this idea from way back in the 20s you start to build up interest on that on that those dollars you're lending out and it becomes uh it starts to accrue with something called compounding rates of return and what those are are the secrets to passive wealth.

this is how the wealthiest people in the world have got there without working they're letting their money do the working this idea of compounding rates of return to Build Passive Income.

there's nothing simple about compounding rates of return i'm telling you einstein was once quoted he's a pretty smart guy as it being one of the more difficult mathematical concepts he's ever looked at the essence of it.

first you lend your money out let's say it's six percent interest and you make six percent interest that's making money on your money but compounding rates of return allow you to leave your money in certain kinds of investments.

which will not only make money on the original investment but will also make money on the six percent that's been left in there so if you're a lender the idea would be that you're making money at six percent.

it comes back to you and it's immediately lent back out again it's a kind of compounding rate of return but there are better ways to do it than lending out money one of them is the idea of investing in real estate this is one of the best ways to get long-term compounded relatively passive wealth and income.

you guys probably all know plenty about investing in real estate right now i would say would be one of the more sketchier times to be investing in real estate because real estate has gone right through the roof with everything else and interest rates may not stay low.

when interest rates start going up real estate is going nowhere but nonetheless, when you buy real estate in a good location you don't pay ridiculous amounts for it very likely you're building compounding wealth right.

the reason for that is because you're getting paid for the rents right and you can raise the rents over time but you're also seeing a compounding growth rate in the value of the property.

if you bought it in a good place remember the key with real estate is the three critical things location location location those are the moats of real estate.

so if you've got a good moat in the real estate a good location and you're getting paid to own it you're not money out of the pocket to own it that very likely is going to compound your money over time at some level of return in some places.


Real estate investing

now let's say what that means if you're growing your money in a chunk of real estate at five percent per year by the rule of 72 which i'm not going to explain here.

you can go look it up that should double your money in about 15 years so in a 30-year period of time that real estate investment should double twice so if you paid let's say 200 000 for this real estate investment then that two hundred thousand should grow to four hundred thousand and then to eight hundred thousand.

so a compounded rate of return of just five percent takes two hundred and in 30 years makes it 800 000. all right so that's compounding very very cool.

the best way by far better than anything you can imagine is owning a good business that is a compounding machine that is one of the most unique things that warren Buffett through his mentor ben graham realized and made clear about investing in businesses right through the stock market.

that is that a business that's a really good well-run business with a big moat and good management that business is a compounding machine it's a compounding machine.

now what that means is that the business itself will take in your money that's the equity that you own in the business by being a shareholder and that money that value whatever that is will grow at some return on the equity with apple computer.

it can be 20 per year that that company is growing money consistently over decades now think about it with five percent we went from two hundred eight hundred thousand in thirty years imagine if we own a business to Build Passive Income.

that's so good that its return on equity is twenty percent per year and by the way there are a number of these out there and the trick is just buy them when they're on sale.

but let's just see what that will do at 20 a year you're doubling your money every three and a half to four years let's just call it four years okay so we've got 30 years to go out here and let's make it 32 for round numbers.

we're gonna get eight doubles right if we double every four years four into 32 is eight so we get eight doubles on our 200 000 so 200 in that same period of time that went from 200 to 800 for that piece of real estate growing at a 5 compounded rate.

now that 200 is growing at a 20 compounded rate based on just that company's management team and fabulous moat and great products growing in the world.

 here's what we get 200 becomes 400 that's one 800 1.6 million 3.2 million 6.4 million 12.8 million 25.6 51 million dollars 51 million dollars in that 30-year period of time compared to 800 000 in that very good real estate investment.

you guys see the difference the power of compounding in a compounding machine like a wonderful business can make you very rich.


Investing explained

what do you have to do to Build Passive Income what you have to do is understand that business which means you gotta read a lot about different businesses and find the ones that are these compounding machines.

okay you got to do that it's not hard we can teach you that then you've got to be patient and buy it when it's on sale because things can change out there right.

so we need to have a margin of safety we're going to buy it on sale all right in order to buy it on sale we've got to wait for an event that creates fear if there's no event.

it's probably not on sale because everybody knows it's a great business and they all want to own it all those guys who are investing in funds on wall street they're not stupid.

so we need fear that causes their investors to want to get away from the market so those are the things you guys are going to learn when you come and take our class.

we'll be glad to teach it all to you the key thing is when you get it right these are compounding machines that'll make you wealthy and warren said probably if you looked at your investing career and you said well if all i'm going to do of my whole lifetime is have a punch card with 20 punches in it.

when i'm done punching out 20 companies i'm done investing as the only companies i can buy he said if you will be willing to do that and you just get four or five of them right you will be wealthy.

that's how powerful this is you guys so instead of going out and making 800 grand with your 200 grand over the next 30 years why not make 50 million.

why not why not get really wealthy and let those guys who are running the company do all the hard work you just sit home passively and chill i think that's a pretty cool way to do things.

So this was our top 3 best & proven ways to invest your money & build a passive income for life.

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