Creating Passive Income for Your Kingdom
Now that we have taken on creating Activity Income for your business, it's time to talk about Passive Income and the dream of "making money in your sleep" you hear so many entrepreneurs talking about.
Learning how to create Passive Income is the key to running a sustainable business. The goal is to have your Passive Income equal more than your Activity Income - when you get to that point, that is the true definition of financial freedom.
In the realm of Velocity Banking, your Passive Income is saving and investing. So when I refer to saving, I am mean establishing a tax-free asset. When I save money, I intend not to risk that money - the sole intention is to have an emergency backup. When I refer to investing your money, I mean literally putting your money to work for you - you don't have to do anything with it, and it is "making" more of itself.
So if I'm saving money, I cannot put that money at risk. I need to have that money stored somewhere safe where it'll grow - minimize or avoid taxes entirely, and it will come with other features and benefits.
So when I'm talking about a tax-free asset, I mean a life insurance asset. Because in the event, worst case scenario, something happens your family is set for life. With a life insurance asset, not only do you have these living benefits, but you also have a death benefit. If something happens later down the road, you have this immediate death benefit, that goes right to your family, and what you hope is that you've shared your journey using the Velocity Banking method and they continue your legacy.
This is an essential shift people need to consider when they think about saving money. Instead of having your money sit in a CD or 401k and do nothing, you want to have that money in an asset that produces wealth, that works for us and provides us with features and benefits.
The second part is investing. When you think investing, I want you to stop thinking the closest synonym is "grow" I want you to think MULTIPLY. The only reason why you should invest in anything is with the intention that, that money is going to multiply.
Remember, saving is for growing. Investing is for multiplying.
If you're ready to get into some of these more advanced tactics in the Velocity Banking method that I teach, watch my video on Passive Income below.