The Rachel Cruze Show - The Myth of Passive Income (What No One Tells You)

Starting point is 00:00:05 The idea of earning passive income seems like it's everywhere lately, whether it's real estate, digital products, investing, AI side hustles, you name it. And I saw a reel the other day, and it made me laugh out loud because it perfectly called out the problem that it feels like some influencers are pushing. It's like this trend out there. So we're going to watch that clip and then I'll break down what no one is really telling you about passive income. So before we dive in, make sure to like, subscribe, and share this episode with a friend. Okay, here's the clip that I saw. I was just served a reel of a woman who makes $5 million a year selling a course to other women that teaches them how to sell the course. But don't worry, you don't need your own course.

Starting point is 00:00:47 You just use her course. Sorry, what? A course about what? Oh, a course about how to sell the course. Okay, figuring out more and more, nothing is real. What are you talking about a course that teaches you how to sell the course? And by the way, she apparently has nine other revenue. streams because when someone buys the course and then goes to sell the course about how to sell the

Starting point is 00:01:08 course, they then also probably need these other platforms that she has affiliate links to. Sorry, what? Now listen, I'm not saying all courses are evil or bad, but also I'm like, oh my gosh, there is so much out there, y'all, because social media makes things look instant and easy and beautiful and profitable and all this stuff. And it's like, buy my course here and learn how I got 80,000 Airbnbs, and I make four. billion dollars a month, you know, and it's like, buy my course, buy my course. You're like, what? It's basically like the MLM of today. You know what I mean? It's crazy. But here's the deal.

Starting point is 00:01:41 Passive income is not really passive. It takes so much work and it's not usually like, oh, I lucked upon this one course that's going to like change my whole life. No, hard work, strategy, you making smart financial decisions, that's what changes your life. So listen, you are not missing out on millions of dollars a year because you just didn't get that right digital hack. I'm telling you that is not true. It's just not true. Now, there are some exceptions, obviously. Some people have done things well, and for the moment, it's working for them, and that's great. But again, the wise way of going about this is slow and steady wins the race. So you don't have to find this, like, niche way of wealth building. And it's this one influencer,

Starting point is 00:02:21 and they have the secret to everything. You just got to like buy their thing. It's not always the case. No, no, no. So when you focus on making fast money, that really shakes this foundation under you. So again, be slow, be methodical, put good rhythms in place, and that is how you build wealth. So when we're talking about passive income, let's talk about what actually works. But first, let me tell you about something that is quietly draining your time and energy. And that is your personal information online. And that is where Delete Me comes in. They find your data, like your address, past addresses, even your relatives names, and they remove it from data broker websites. And that's so helpful because what happens is your information just floats around

Starting point is 00:03:02 for strangers to find. And they also keep monitoring and removing it over time, which means more peace of mind and fewer spam calls and texts. It's a simple step that adds a layer of protection for you and your family. And you can get 20% off an annual plan when you go to join deleteme.com slash Rachel. All right. So instead of burning your energy and trying to like find passive income that looks really easy. Let's talk about what things you can actually put into your life and habits that are actually going to help you long term. First, get clear on your monthly expenses. Do an audit on your spending, you guys. If you need some more income, instead of, again, looking for a quick, easy way of getting passive income, look at what money is actually coming into your bank account and

Starting point is 00:03:47 where it's going. So if you don't have a plan for that, that is one of the fastest ways to feel like you've got to raise is doing a budget. I love every dollar. It's a budgeting app that Ramsey's created and it's amazing. I'll put a link down below for you to check out. But do that. Tighten up some things again so that you can get margin. This feels boring. It's not exciting, but I'm telling you it works. The second thing to do is to increase your income in a reliable, realistic way. Okay. So this means I want you to look at what you are doing currently for a job. And if you are able to work overtime, you know, do what you are good at, that is going to be the best way for you to earn money. Honestly, if you can go direct to a consumer, whether you are a

Starting point is 00:04:26 photographer or graphic designer, like, whatever it is. And you're able to help someone specifically and they're able to pay you, that's where you're going to make the most bang for your buck. Now, if you don't have those skills, it's okay, we love you. You're wonderful and talented. But maybe it is, you know, driving for Uber or doing something else. It's a side hustle. But these things are great because you can be in and out of these things and they're under your control versus putting a heavy investment up front, which is what a lot of these passive income things are, whether you're paying for something or even if you go and do like crazy real estate stuff. You'll see guys on TikTok. You have to put so much money out there. Most people

Starting point is 00:05:00 don't have that money, so they go and take a loan out for this passive income, and then it's a disaster. So use your talent. That is the best way for you to earn money. Now, if you're curious about a side hustle that would be great for you to fit your lifestyle, make sure to take the side hustle quiz. I'll put a link down below. All right, third, you're going to use that margin that you've created to actually invest in things for your money to grow. So your goal is to grow your money over for time, that is a good thing. So you want to focus on appreciating assets. So once you are out of debt and you have your net worth come up to above ground, because when you have debt, that's the negative, right? So you're out of debt. You have a fully funded emergency fund. Then I would use

Starting point is 00:05:40 that money, extra money you have, to invest. Okay, this can be things like your 401k or a Roth IRA. Again, even saving up and paying off your home. Like, that's a great thing, a great plan, right? It's the idea of staying consistent and doing the boring thing. And I think that's what so hard today is that what's flashy and exciting and fast and fun usually has the most risk. And usually that's where people get burned. But if you have consistent patterns with your money over time, that is what's going to create true wealth. This is really an important part that people don't always talk about because one day you're going to live off of those investments. So that actually does become passive, like truly passive. Now it takes decades of work to become that

Starting point is 00:06:18 passive. But with compound interest, it's an incredible thing. When you put your money in, I mean, the number you put in of your actual initial investments over time versus the growth over decades is insane. And that's what you live off of. Like, that truly is real passive income. It takes work and years and years and years to get there. But that is something that is true. Now, if this hits home for you, you definitely want to watch my episode, why being

Starting point is 00:06:44 boring is the best way to build wealth because it goes hand in hand with this. All right, you guys, remember to take control of your money and create a life you love. Thank you.

The Rachel Cruze Show - The Myth of Passive Income (What No One Tells You)

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.