Income Streams and Assets

Let's get back to basics a little.

Income streams and assets are essential to build long term wealth...but what ARE they!?

I cover off a few essentials in this ep...because let's face it, parking your money in a savings account is not going to build wealth anytime fast.

So instead, put it to work and make your money make you money!!!!

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If you want to keep on earn more and make more money you're in the right place. I spent over 10 years learning from the most brilliant minds in money, wealth, and investing to take myself from 20 K in debt to a seven figure investment portfolio. Join in. As I share the secret towards money investing and ultimately freedom. My name is Simone messa, Huggins, and welcome to ms. Wealthy's. Kiss my money.

Oh, wait. Yes. So excited to be joking about today's topic, all about passive income streams. And if you're like what the I'm going to break it down, explain what they are and talk to you real about how to build passive income streams to build wealth. Why do you want them essentially? So you can make money in your sleep. These are the kinds of things that literally make your money, make you money. So instead of going to your job day to day, even working in your business, if you're an entrepreneur, instead of trading your time for money, setting up passive income streams allow you to leverage time and leverage money to make more and compound that return to grow massive wealth. Okay. So if you tuned into last podcast, you would have had any slight announcement that I hid deep down in, in this session, which was that just this week we crossed the million dollar Mark in our investment portfolio.

Pretty cool. Right. And listen for a lot of you that have responded to my questions on Instagram or DMD me on Facebook even sent me emails. Listen, I am loving the love. Thank you so much. This is why I love human beings. I have such faith in us as, as a human race because honestly the outpouring of love and congratulations that has happened really just solidifies my faith in us because so much of the time, particularly what I see some of my one-on-one clients struggle with, or even the members in investing bootcamp. And even just when I'm talking to friends and being out at events and networking is this idea of being scared to share wins because of looking a, like you're not at all, or you're a show off or B that you'll shut down, put down, criticize, whatever it is. And I will be honest.

I have also faced those thoughts to thinking that, Oh my God, I'm going to be told it's not true. I'm going to be told, you know, whatever. I mean, we told him rich and greedy and all that sort of stuff, but I, Oh, I only had those mindset beliefs, or I only had those thoughts because I didn't have a solid money mindset. And part of what has got asked is million dollar Mark, seven figures is solidifying a strong millionaire money mindset. Cause I didn't have this, I didn't start with this. I had a really crappy money mindset, really crappy money behaviors. And I definitely wasn't handed a seven figure portfolio on a silver platter. I've very briefly shared my story that I didn't come from wealth. I came from a struggling family, a split family. And you know, I, I grew up with like a lot of kind of low income households, struggling, struggling to get by and you know, essentially just meet day to day needs.

So you need to do

No that regardless of where you are, it is absolutely. Okay. Because I started with less than nothing, literally 20 [inaudible] of credit card debt. So even if you're in this place where you're like I did, how could I possibly get that today is talking about passive income streams. So let's talk about what that actually is. So passive means that you don't actually have to spend that much time on them, right? So you still have to spend a little bit just like the managing, you know, every month or every quarter, every six months managing them, making sure they're tracking fine. You know, just checking up on how things are going. It's like slut tiny, right? That is what is defined as passive. So you're not actually trading your time for money. So in your job, you go in, you're working nine to five or eight til six or whatever it is.

And you trade your time for money. With the expectation that you get paid that salary, or if you're a business owner, you might be able to leverage that more. Maybe you can leverage your time slightly, uh, by instead of being, say for example, a one on one coach, you are for masterminds or you have an online program where you can scale, or you do events where you can get thousands of people in the room or whatever it is, right. Or you can put in systems in place that bring in income without you actually having to work. So that is one way to develop passive income streams.

You still need to port a,

A lot of effort into building those systems in your business. If you're a business owner or an entrepreneur like me, you know that there is a time element, sweat equity, as they call it to put into building that up. Now the other way is obviously through investments. And while we're on the topic of passive income streams, in case you don't know, essentially the rich have multiple passive income streams like six, seven, eight, nine, 10 passive income streams. So that if one isn't working or two isn't working for that year or whatever it is, they can fall back on and rely on other passive income streams. So if you're in a stage right now where say you have a job or you have a career or you have a business, then that is an income stream, it may not be passive, but it's an income stream.

So the goal is to build multiple income streams and then make them passive, right? So some of the investment options, obviously the stock market, do you have to do anything? No. You put your money in, you get income in the form of dividends and you also grow your investment through capital growth. Meaning the stock price goes up, right? The other way is through real estate. So you might buy a property and investment property and rent that out. That covers the mortgage. Plus you also get, you know, it covers additional things and you're in, you have a surplus, a cash surplus, and you use that money to pay down the mortgage for them further. And then the capital growth continues to grow and the rent continues to increase. And that passive income increases over time whilst paying off the mortgage. So real estate and the stock market are obviously to no brainer ways to develop passive income streams.

So if you have investment property or investment properties and a stock portfolio, that would be two different income streams, right? Plus you would have your income stream in your job. That's not passive, but at least it is an income stream. So if you were to be fired, made redundant, if you had to change your job, if you had to step down whatever it is, then you can have these other streams that you can rely on. Then the other way is the business. And then there are a bunch of other income streams as well. I'm not going to go into other ways because, because I want to keep it really top line really simple for the streams of income that you can set up to build wealth, that it easy to access because everyone understands that there is a basic requirement of holding investments to grow wealth.

Because holding your money in a savings account is never going to grow wealth, getting your 1%, maybe 2%, let's be real. It's probably more in the 1% range, right? And with inflation, it ends up being less than that. Freaking scary. So let's talk about other things. Other things like, uh, cars, for example. So a car is not an income stream. No. Does it grow in value unless you have some vintage old school car, which is probably unlikely for the majority, you already have you, a car is actually a liability. It is not an asset. So if you look at property, what is it? It's an asset, right? It's an asset, which means that it makes money. A car does not make money. It's a liability. Meaning you have to pump petrol or gas into it. It depreciates time, meaning it loses its value over time and it costs you money to continue mostly run.

So it's a liability. The other question, big question, Mark, that is, comes up around assets. First liabilities is homes. So if you have a home loan on a property, it is not an investment. It is only class is an investment when it's making you money. And when you live in that home and you pay that home loan, it's not making you money. And yes, there's this big argument against rent money, verse loan money on a property. And honestly, I invite you to re question, any thought pattern or belief that you have around rent, money being dead money. It's this saying that I think, I don't know who, who initially started it, but I think, I think the culprits could probably be the big banks because they've perpetuated this idea, DIA, that having a home loan is better than having right, are having to pay rent because at the end of the day, you end up with a property after you've paid down that loan, the thing is with the home loan, there is no guarantees that your house, your home will increase in value over time, zero guarantees. And there is also no guarantees

Is that okay,

Interest rates won't increase or even double. And when you actually do the numbers and you sit down, look at rent money, what you pay over time versus what you pay on a home loan on a 30 year loan at four five, whatever it is percent you end up putting in hundreds and hundreds and hundreds of thousands of dollars on that property and the less you're selling it for considerably, you know, high percentages on top of what you bought that property for. It actually doesn't work out to be the better way to go in some places, some places it does work out that it's better to have a home learning versus rent. But honestly, when you actually do the numbers, I invite you to question the false belief that rent money is dead money anyway, getting slightly sidetracked. So recover cars, which is a liability home loans in that gray area. But I wanted to talk about passive income streams and just income streams in general,

To start to let it start to help

You think about different ways to grow your wealth over time and consider other options over having it in a savings account, which as I said, does not grow your wealth over time because the percentages are so incredibly low. And if you're an entrepreneur or business owner, chances are, and this is this scary statistic is that chances are the majority of you, uh, not actually putting in money aside into a, an account or into an investment. And so years down the track after you've been working in your business, it's five or 10 years, whatever it is, and you decide to exit or take a break or change, you know, paths. So many actually end up in a worse financial position than the equivalent person who worked in a job. Because most of the time you have a retirement account, right? A 401k or a super fund or a pension fund, regardless of where you are in the world. And so someone with a career on the equivalent salary was forced to put money aside into that retirement account and grow wealth over time. And so many entrepreneurs and business owners do not do it partly because they don't have the right money systems set up, partly because there is this such an attraction to continuously

Port all of the

Additional income back into the business to grow it. And I get it. A business is an opportunity to continuously grow money. And it's essentially, uh, you know, it has no income cap, but when you are not diversified and putting everything back into that one thing, and

Literally there's like all bets. Yeah.

In that business, you are not setting yourself up

To be properly

Diversified to grow wealth in different ways. And like I said, you are sometimes. And unfortunately, based on what the data is showing based on research, so many are putting themselves in a worse position, long term because the stats are that a large majority of businesses actually fail. I don't really like to use that term bail. You know, we don't know just because they stopped going out of business. That that was a failure. Might've been a conscious decision to. But when I'm saying, if you're an entrepreneur or business owner, you need to get your money systems down Pat and make sure that you have the proper setup to put money aside, to make sure you are well ahead of someone that has a Korea job earning an income equivalent to you because likely is they're putting themselves further ahead financially because it's not about what we earn. It's about what we keep,

Because what we keep

We can invest to make more money on. I don't mean keep and put it in a savings account and 1% interest and pretty sure that you probably know my thoughts and feelings on that. By now I'm talking about keeping and banking, that amount of money and putting that into investments that grow over time. Whew. I know I've just spoken about so many different topics and I barely even in fact, I didn't even share any of my story about how I got there, what I've built, what I invest in, which was kind of my intention, but I wanted to keep this short and not too long. So I'm going to do that in the next episode. Next episode, I'm going to talk about what I invest in and how I actually built out portfolio to grow this to where it is now. So make sure you tune into that and DME and Instagram, you know, I love getting them, send me messages on Facebook or however it is that you like to contact me. I am loving getting your responses after this week and this week's announcement on hitting 1 million. And I also want to hear your stories. Tell me about where you're at, what you're struggling with. Like, why do you feel like you can't get ahead? What questions you have? You know, that I put them into future podcast episodes. And I love hearing about where you're at and what you're struggling with. All right. Babes until next time. I'll see you then.