After her husband died in 2018, Speaker A had 13 passive income streams that let her take a year off to grieve with her teenage twins. Speaker B outlines seven income categories, from earned income to dividends, and argues that assets should fund your lifestyle, not the reverse.
Chapters
This was created after my husband had passed away in 2018 very tragically. And I, through a whole series of events, had actually created 13 streams of passive income for my family. So I was emotionally devastated, but had I not created those 13 streams, like that gave me the freedom to take a year off and grieve with my 14-year-old twins at the time and figure out what we were going to do next. Again, we didn't plan for my husband to die. We didn't plan for the economy to crash. We didn't plan for, you know, any of these other 5 Ds to happen, but they happened. And so having those multiple streams of passive income in place to be able to take care of our family during those very devastating times makes a huge difference. And then we go on and we create multiple streams of like income 8, 9 through 40. And those can actually go make an impact in the world, which is what Tracy had alluded to., a few minutes ago.
The concept of the 7 streams of income is built on the idea that true financial stability comes from diversification. Instead of depending on one paycheck, you build multiple sources of income that work together to create consistency and growth. Um, each stream plays a role, and together they form a resilient financial foundation. There's different, different streams. So you've got your earned income, which is your active income that you're, you know, maybe it's your W-2 job, and then there's residual residual income. That's the ongoing royalties and systems that you've built using your earned income. You've got capital gains, which is your asset appreciation. You have rental. So maybe you are able to invest in a short-term rental or even in a multifamily, and then you'll have, uh, you know, rental income coming in. They call that mailbox money. And profit from selling products or services. Um, interest, lending capital. So I've been a private money lender now for many years. I have a hard money lending company, and in those We've learned how to use money to make more of it, and that's the whole idea. Uh, and then you have dividend, which, um, is like owning equities. So there's all these different streams, and inside those streams there's a gazillion strategies, and we can teach you lots of those strategies, but you've got to get your mindset right. You got to get it all lined out just like Catherine said, where your earned income is, is supporting the asset. Acquisitions, and then that supports your lifestyle. When people do it backwards, all you see them have all these things, but they're stressed to the max because all of the money that they're earning is, is being used and they can't even invest even though they have plenty of money. So you got to, you got to be able to prioritize and just change your mindset, like she said.
