Today our expert guest is Rachel Richards, a 27-year old former financial advisor who’s made a name for herself in the personal finance realm when she quit her job in 2019 and retired with over $10,000 a month in passive income. She’s the best-selling author of “Money Honey” and “Passive Income, Aggressive Retirement.” She’s been featured on The Penny Hoarder and the New York Times and has been contracted to speak at several colleges. Her money lessons have helped thousands of millennials work their way out of financial despair. She’s done the impossible—making the topic of money management fun, entertaining, and simple.
Being financially responsible from a young age, Rachel and her husband were able to buy a duplex in Kentucky after graduating from college debt-free. They saved up enough money for a downpayment in a few years and began their real estate journey. In that same year, Rachel also published her first book, “Money Honey,” which became another valuable income stream. By last year, they had 35 rental units and two books making significant amounts of money and allowing Rachel to retire. Now, she wants to help others duplicate what she’s done.
Everyone’s situations are going to be different, and your path likely won’t be exactly the same as Rachel’s, but she does have some advice for getting started. The first thing you need to do, before you start thinking about passive income, is to make sure everything else is in order financially—that your high-interest debts are paid off, you have money in emergency savings, and that you’re prepared for when there is a recession. The next step is to start thinking of how you can diversify your income. If one piece of your income dries up, you still have other income streams coming in. And that’s where you start thinking of passive income.
When you’re first starting out with passive income, the first question to ask yourself is: Do you have more time or more money? If your answer is neither, ask yourself which you can free up more of, because you will need one or the other to create passive income. If you’re trying to free up money there are two main approaches: Spending less or making more. Reducing your expenses is important but there’s a hard limit to how much you can do there. The flip side of that is increasing your income, which has unlimited potential.
Rachel’s main avenues for passive income were through real estate and book royalties, but those are far from the only options. In her book, “Passive Income, Aggressive Retirement,” Rachel outlines 28 different passive income models—there is something out there for everyone, and you only need to find the one or two that work for you. Coin-operated vending machines and laundromats are two popular models of passive income. If you have a skill that you are knowledgeable in you can create an online course and generate income through that. There are so many options, and there is something for everyone.
The Biggest Helping: Today’s Most Important Takeaway
“Anybody can do this. I am no more special or smart or hardworking than anybody else out there. Anyone at any age and on any income can absolutely achieve financial independence.”
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- Learn more: moneyhoneyrachel.com
- Passive Income Bonus Kit: moneyhoneyrachel.com/bonus
- Read: “Money Honey”
- Read: “Passive Income, Aggressive Retirement”
- Instagram: instagram.com/moneyhoneyrachel
- Facebook: facebook.com/moneyhoneyrachel
The Daily Helping is produced by Crate Media