Trust me, I get it. Working a W2 job or being a 1099 contractor isn’t going to qualify you to make the 1% club of wealthy individuals. Fortunately, we don’t need to be in the 1% club to be financially free, but we do need some degree of wealth. Building Wealth isn’t a “get rich quick” scheme, rather we have to leverage our primary income to slowly build wealth to a point where our wealth then works for us. I have often said that the key to financial freedom is turning earned income into passive income.

The biggest challenge earned income employee’s have with making more money is quite simple. Most people think about making more money in a 2 dimensional manner. What I mean by this is that people wait to get the yearly raise, be promoted, or hope something magical will happen that will impact their earned income. The reality is that most earned income employees won’t become wealthy because of their salary. Even executives at companies make their millions through the equity stake in the company they operate.

Earned income employees should think more about these things.

1. Pay down bad debt (tip: like high interest credit cards)
2. Build a personal budget (tip: living below your means doesn’t mean you’re going to cheat yourself. Try and find things you can cut down on, versus things that you have to have. Trade up and trade down.)
3. Pay yourself first (tip: try automatic saving transfer)
4. Invest in smaller passive income vehicles (tip: Blue chip dividend stocks that pay more than inflation)
5. Grow your investments into hard assets like real estate (tip: real estate syndication is a good one)
6. Negotiate Everything. (tip: I live by don’t ask, don’t get. I always ask for better terms. I can tell you some of the free things I have gotten just by asking. Its fun and you’ll be happy.)
7. Invest in yourself. (tip: I use audible for $9.99 a month and learn from some of the most successful people. This doesn’t hold the same value of a $30k mentorship, but its also just $10). If you like what you hear, then you can research something more expensive.
8. Credit is important. (tip; I use a paid credit site, but there are free one’s. The higher your score the better you can negotiate terms. Lower payments means more disposable income. Less stress means you’ll be a happier person.
9. Stay Healthy. (tip: I run a lot. I do it to stay fit, but also to have a healthy mind. Strong body, strong mind.)
10. Consult a financial advisor. I am a very good real estate investor, but not a financial advisor.

Today, I have a six figure passive income stream. It wasn’t easy, but I learned that I needed to build some very good disciplines and invest in myself. As my savings grew, I deployed it more and more into additional passive income streams. I think about retirement, but I am still young. You would think that I would be incredibly busy with the real estate portfolio, but that’s the purpose of passive income. It allows you to have more time to do the things you love. Personally, I just enjoy hanging out with my family.

Make sure to schedule a call with me, so we can stay connected!

The above is the opinion of the writer and not financial advise. Consult a financial advisor.