We’ve always been of the opinion that the swankiest lifestyle of all is the one that allows you to work less and earn more. Sounds like an oxymoron, doesn’t it? But to those lucky few who have set up shop in the land of passive cash flow via income property investments, it’s a reality. There are essentially four ways to produce income in this world (leaving out the trust fund kids and welfare recipients). Let’s take a look at each and decide which path a real swankster chooses.
Employee (Time = Money)
There’s no shame in working for an hourly wage. You’re in good company with the majority of the population. The only problem is that your wealth is limited by the number of hours in a day. You might be comfortable and paying your bills but you won’t likely find your way to financial independence this way.
Self-Employed (Time = Money)
Self-employment allows you a bit more in the way of self-determination of how you go about your day but you’re still stymied by that little booger called time. There are only 24 hours on the clock and, like the traditional job holder, your wealth is limited by your stamina and willingness to be away from the family.
Business Owner (Others’ Efforts = Money)
Now we’re talking about the potential to earn a serious amount of money. As a business owner, you’ve developed a system that allows you to put the combined efforts of a group of people to work towards your own wealth enhancement. Sure, they get benefits too, but the point of being a business owner is to catapult yourself out of the wealth/time constraints of the first two methods.
Investor (Money = Money)
This is the land Jake Swank is talking about, where you put your money to work earning more money. The first three methods require intensive time spent in either work or management of those who are working. With investing – income property is our favorite by far – you can completely escape the constraints of both time and management. Spend as much or as little time with your properties as you want, all the while earning a rate of return that generally far exceeds what the modern mafia on Wall Street can produce.
The question you have to ask yourself is: “Do I want to be part of the 95% busting my back or the 5% kicking back?” We know which we would choose. (Top image: Flickr | 401(K) 2013)