The 2 Stages Of Passive Income, 4 Unique Way To Generate It, And How To Retire Early On Your Terms | Rachel Richards

Apr 20, 2020

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In this episode of the Millionaire Mindcast, we have a magnificent guest, Rachel Richards who shares amazing tips and insights about passive income and how to retire early, what are the two (2) stages of passive income, the framework of passive income streams and what are the different types of it, how to maintain the right mindset and motivate yourself, and how to manage anxiety and impostor syndrome!

Rachel is an entrepreneur, real estate investor and analyst, former financial advisor, finance guru, professional speaker, and business owner, and bestselling author of "Money Honey," and "Passive Income, Aggressive Retirement." With over 35 rental units, Rachel has made a name for herself in the personal finance realm. She has been featured on the Penny Hoarder and the New York Times and contracted to speak at colleges. She has inspired and helped thousands of female millennials work their way out of financial despair. She has made the topic of money management fun, entertaining, and simple.

This young lady was in 6th grade when she became obsessed with finance. Instead of playing with her friends in summer camp, she was sitting in the pool reading The Motley Fool Investment Guide for Teens book. Rachel loves reading about the magic of compounding interest and as many as finance books as possible. She grew up witnessing her parents’ struggle in money matters. At a young age, she definitely knows what she wanted in life. Rachel wants something different out of life like freedom, flexibility, and financial independence.

Rachel has always tried to save 50% of her income. She lives frugally and gives importance to save money at a young age. She believes that if you can save money and start investing in the stock market or create a passive income at a young age then you’ll get much further than anybody else that waits 10 years to start investing. Consequently, Rachel maintains her discipline in finances, made some sacrifices, and is responsible for managing her money.

Besides, Rachel has learned the essence of learning the value of time. She ingrained in her mind that if she can start earlier, it’s a big advantage for her. Therefore, Rachel and Andrew started in real estate investing in 2017. That summer they started the Print on Demand business. As an entrepreneur, Rachel is very ambitious and driven. Later that year, she turned her passion for writing into a passive income stream. She wrote her first book Money Honey.

The couple is so intentional that they’ve worked full time and worked their passive income in the night time. They were grinding so hard when they started their income streams. Later, Rachel at the age of 27, quit her job and retired, living off $10,000+ per month in passive income.

Rachel insists that you don’t need to start a multiple passive income at the same time. It only takes one passive income stream to make it work, so find the one that works for you. Likewise, don’t hesitate to render your money or your time or both in starting your passive income stream. Remember, there’s no getting rich quick scheme in creating passive income or an automated income stream without putting any effort. Make an effort to step closer to your goal. Utilize the resources out there that will surely help you like books, blogs, podcasts, Google, and more.

At the moment, passive income provides some incredible lifestyle benefits for Rachel and her husband (freedom, flexibility, financial independence). It allows them to work anywhere and anytime. They have total control over their time and location. She relies on the passive income of $10,000-$15,000 a month. Rachel continues to grow her book business because it’s her passion and it’s not about the money. She wanted to make an impact and change as many people’s lives as possible for the better.

Some Questions I Ask:

Where did your passion for personal finance and financial freedom come from and your journey start? (00:52)
What was it that got you so excited about financial freedom and how did you really push into that at such a high level? (02:05)
How did you own the right to quit your job at the age of 27 and rely on the passive income of $10,000 a month that you built for yourself? (03:52)
Talk about the importance of living below your means during this time. (07:36)
Besides real estate, which passive income have you built personally? What are some of the other ones that you see a lot of people leveraging in their passive income portfolio? (09:55)
What did your framework or process look like for building these three passive income streams? How much time did that take? (12:35)
What are some of the challenges that you experience as you get into these things that you’re doing? (15:25)
What are some of the other things you think people can do to combat the depressed nation or the impostor syndrome to keep pushing towards their financial goals? (18:58)
What are some of the other passive income ideas that you’ve written about in your book? (24:14)
Where should people start and what should people know as they start? (26:49)
Why have passive income or was this pursued of passive income so important for you and your family and future? (28:27)
Who did you have to become and challenge yourself to grow into? What did that look like in order for those results to show up in your bank account? (30:56)
What have been some of the biggest struggles that you’ve had as an entrepreneur? What did you do to overcome that? (34:59)
Why are you still pushing hard doing what you’re doing knowing that you are already financially free and you can do what you want? (40:13)

In This Episode, You Will Learn:

Money Fears. (02:32)
Rachel’s main motivation. (02:44)
The essentials of learning the value of time. (03:15)
The first step in money management. (07:59)
One of the biggest predictors in your future success. (09:35)
What passive income is and what passive income is not. (10:48)
The passive income that requires zero work to maintain. (14:02)
2 stages of passive income. (14:26)
One thing that Rachel loves to do when facing challenges. (20:17)
What are the common passive income streams? (24:47)
Free passive income BONUS kits. (27:44)
The great thing about passive income. (30:25)
Tips that are really essential to Rachel’s success. (32:07)
How did Hal Elrod overcome his anxiety? (36:22)
Rachel’s daily activity helps her foster and maintains the right mindset. (41:08)

Quotes:

“I just want something different out of life. “
“Time is your biggest advantage.”
“It only takes one passive income stream to make it work; you don’t need 28 different passive income streams.”
“Find the one that works for you and focus on growing it as much as you can.”
“Don’t go when your head alone because that’s a really scary place.”
“Most of the time it’s not about the tactics, it’s all about the mindset behind it.”
“Make it easy for us to help you, do the homework first.”
“Passive income takes either time or money or sometimes both to create.”
“It’s powerful to be able to make decisions without being constrained by money.”
“Planning was key and it’s still as key.”
“I was a slave to my to-do-list; my to-do-list controlled my life.”
“Time for me is more valuable than money.”

Resources Mentioned:

The Motley Fool Investment Guide for Teens book by David Gardner, Tom Gardner

The 12 Week Year book by Brian P. Moran, Michael Lennington

The Miracle Morning book Hal Elrod

Connect with Rachel Richards on:

Passive Income, Aggressive Retirement book by Rachel Richards

www.moneyhoneyrachel.com/bonus

Money Honey book by Rachel Richards