Peter Vander WallFounder driving creative community growth

“Passive Income” Is A Myth #shorts

Name: “Passive Income” Is A Myth #shorts
Uploaded: 2023-09-19T13:00:27+00:00
Duration: 42 s
Channel: Peter Vander Wall
Description: Short YouTube clip ("“Passive Income” Is A Myth #shorts") by Peter Vander Wall arguing that earning active income and running a business for cash flow is…

19 Sept 2023 · 1 min

Watch on YouTube

0:42

Short YouTube clip ("“Passive Income” Is A Myth #shorts") by Peter Vander Wall arguing that earning active income and running a business for cash flow is valuable for purpose and that profits should be invested into appreciating assets (real estate, stocks, crypto) because professional service businesses (e.g., CPA firms) typically have low valuation multiples and are less likely to create long-term wealth on their own.

Chapters

There is no reason you shouldn't have earned income, right? Like, you need to be a contributing member to society. That's how we get a sense of purpose and accomplishment. It makes us feel good. That's why you started your business to make money by helping people with their taxes or their investing or their contracts or whatever. And let's be real, professional service companies don't trade on a high multiple like software companies do, for example, CPA firms. I think they trade on like a 1x multiple. That's not a lot considering all the blood, sweat, and tears that you poured into this thing to build it. Personally, I'm much more a fan of keeping keeping the business as a cash flow machine for as long as possible and then investing the profit into real estate, stocks, crypto, whatever you're into, because those are the actual appreciating assets that are going to make you wealthy.