Rob Rowsell reviews the third act in his Winning the Money Game series. This focuses on the shift to Passive Residual Income (PRI). This involves changing your mindset and strategy for earning and investing your money. Transitioning to exclusively PRI revenue streams is a crucial component to your financial exit strategy.
Passive Residual Income Explained
This third stage of the Money Game focuses on a transition, meaning a “mental shift”. Many of us have an aversion or fear of growing wealthy. We have all heard that “money is the root of all evil”, but did you know that saying is actually a misquote of the Bible? 1st Timothy 6:10 says For the love of money is the root of all of evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows (emphasis in bold by this blog’s author). When we put money in the proper context, we can make that shift in our mindset. Money is a tool to help us live the life God intends for us to, not a false idol.
At this stage of the Money Game, we are shifting from a combination of Active Income and Passive Income to strictly Passive Residual Income. There is a difference between Passive Income and Passive Residual Income. An example of Passive Income is buying a property, fixing it up and holding it awhile, then selling for a profit. Also, you could call that specific situation earning “Capital Gains”. PRI means regular dividends you received from an investment passively – true mailbox money!
As we transition to Passive Residual Income, we need to plan our exit. How and when will we achieve financial freedom? This means no longer being dependent on a job or passive income investment to pay the bills. It also does not refer to the “bag of money” you’ve been saving from your career for retirement. We want a regular check arriving in the mail that will outlast that 401k, and give us the freedom to live comfortably and help others.
Join Our Community
Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
What are the best wealth building books for your shelf? Rob Rowsell, successful multifamily real estate investor, reveals what material you need to read in order to increase your financial IQ!
Best Wealth Building Books – The Wealthy Code
Rob starts the video clip by introducing the book The Wealthy Code by George Antone. Specifically, he covers the three levels of affluence it covers, relative to financial independence. Each level (Rich, Wealthy, Job) centers around businesses. Rich Dad, Poor Dad author Robert Kiyosaki defines a business as an entity that can operate independently if you, the owner, were physically absent for a year. If that statement isn’t true for you, you have a job, and can’t be financially independent. A job requires your time and attention for a minimum of ten hours per week.
If wealth building is your goal, then you must develop passive income. Anyone with a job that pays above their means can start small, investing that extra money into investments that appreciate in value. Eventually, those properties will generate cash flow. Cash flow is wealth. Learning that fact and amassing the knowledge on how to properly redirect those funds was a game changer for Rob Rowsell.
When Rob first started his house flipping business, he was not setting himself up for regular passive income. A mentor advised him to keep every third or fourth property and collect rent from the tenants, rather than selling it. This meant that he could gradually decrease the work hours he invested in his real estate business. Over time, that business became less of a job, and more of a passive income engine.
Best Wealth Building Books – Money: Master the Game
Next, Rob shares a page from Tony Robbins’ book Money – Master the Game. This is one of the best wealth building books, cited by countless successful investors. The page features an illustration of a mountain, outlining a wealth journey. The peak of the mountain, labeled “Critical Mass”, represents the point where we retire. As we climb the mountain, we are accumulating money for our retirement. The de-cumulation phase occurs on our way down from the peak.
The “Nest Egg Theory” says we should have a big enough bag of money saved up to last us the rest of our lives when we retire. However, life happens. The nest egg may not last us the rest of our lives. We may have to work another job in our golden years in order to make ends meet. Ideally, we have a passive income stream instead that ensures that we make it through.
Join Our Community of Investors.
Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!
Multifamily real estate investor Rob Rowsell outlines the 7 Investment Tips for Business Owners. You can take total control of your finances when you invest profits intelligently! Compound interest and your own unique advantages are just two facets of your wealth building journey. Make sure you also have an exit strategy…from life itself! Pass your estate on seamlessly to your heirs, but not all of it. Most of it should be given away to good causes.
Breaking Down 7 Investment Tips for Business Owners
You want to build a business, and not a job, right? Of course you do! These are the seven investment tips for business owners who want to grow into a passive income and out of the rat race.
Once your cash has started stacking up, investing it wisely is key. Set aside some spare time for education outside of your business. When you look at yourself from an outside-in perspective, you can identify your advantages in the marketplace. Some business owners, such as Rob, have found their fortunes in real estate investing. Other investments may play more to your strengths. Over time, the money you put away for your outside investments will overtake your annual salary.
Tip 3: Control Your Personal Spending and “Leakages”
Live within your values, and not your vanity! It’s hard to fill a bucket with water when there are little holes all over it. In much the same way, you can nickel and dime yourself out of untold wealth with unneeded purchases. Think of how much that former smokers estimate they save each year after quitting. Now, think of your daily candy bar or Starbucks habit. How much spending can you avoid each year by giving that up? Better yet, what if you invested all of that money in a mutual fund with high yield compound interest?
Investment Tips for Business Owners – Advanced Steps to the Finish Line
Tip 4: Actively Reduce Your Tax Drag
It’s not what you make, it’s what you keep! Saved taxes is an income bucket. If you find (legal!) ways to save on taxes, investing that money can equal huge cash returns over time! Remember, you are the quarterback of your finances. Nobody will care as much as you should! That includes your CPA and investment strategists, so don’t just blindly trust them to do the right thing every time. You’re not their only client, and everybody makes mistakes, so keep an eye out.
Tip 5: Avoid Foolish Capital Losses
We’ve all been tempted once in a while by new financial trends promising big short term returns. Hopefully, you have not been conned by cryptocurrency schemes or other random investments with no due diligence. Everyone (including Rob!) has fallen for this kind of snake oil. Don’t get fooled into thinking that you can successfully invest as easily as you can run a profitable business. Line your pockets, and not a con artist’s!
Tip 6: Let Time Compound My Net Worth and My Advantages
When you put the previous tips into practice, the goal is to build an additional wealth engine. This engine is independent of your business. The longer you work at establishing it, the less work you will need to put into it, as the engine will start running without your help. How? Once again, remember that the keys to starting this engine and keeping it running are using the education you’ve acquired in the marketplace to gain experience. Nobody starts out as an expert in any given field. If it were easy, everyone would do it. Putting in the work over time will both compound your net worth and your advantages.
Tip 7: Build My Estate Plan and Philanthropic Legacy
As you approach the finish line of your career and life, money will be less and less of a worry. Since you have built passive income over time that will serve you in retirement, you should turn your thoughts to what that money can do for others after you die. After all, you can’t take it with you! You invested your wealth both to provide a comfortable retirement and to help your survivors.
A staggering 70% of all wealth transitions do not end well! Regarding inheritances for your family, Rob recommends the book Preparing Heirs. It’s a game changer! Bottom line, choose an amount of money that can help your heirs live comfortably. This shouldn’t be an extravagant figure. Then, you should pick an age when your heirs will be mature enough to wisely invest that money. You should give the majority of your wealth away to philanthropic causes. We all know that helping others through scholarships, church mission funds, or other good causes will do exponentially more good than just giving it all away to our kids.
Conclusion – Investment Tips for Business Owners
That was Rob Rowsell’s quick and dirty outline of seven investment tips for business owners. These are the same strategies Rob has used for years, literally working his way up from nothing. From a homeless drug abuser to working in an auto repair shop, to then owning multiple shops, to finally selling those businesses in order to concentrate on real estate investing. Most importantly of all, he also teaches others to build wealth like he has. That means you! If Rob did it, then you can too! Why not join the ATL Community and let Rob guide you personally? Sign up today.
Passive Residual Income Explained
