In this episode, I break down the Indestructible Wealth Method, using real life examples from poker, Crypto mining and real estate investing. I also drop some hints about my new book, and what it takes to write one. Let ‘er rip!
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A Deeper Look into The Indestructible Wealth Method
Welcome back to the show. It’s great to be with you. I violated my principle last time by not staying consistent. I missed an episode to be released for the first time. I have to say I get super hyperintense focus when I start a project. Writing this book is taking everything that I’ve got but I’m happy to say that I finished up the rough draft. I’m at 52,500 words, which sounds like a ton but that’s not exactly that long of a book. It’s probably going to be around 150 to 180 pages. I’m very excited about the book.
The very first launch of the book is going to be a digital download. I’m not going to go to the printing press. It’s not going to be on Amazon. It’s going to be a quick digital download that somebody can get instantaneously. I’m going to take the feedback from that first launch and see what everybody thinks. If there are parts where they’re intrigued, I checked them out. I’m going to dial the book in one more time and then take the time to get it printed, get it on Amazon and go for a full-scale launch.
Mainly the way that I’m going to sell the book initially is through Facebook ads. My social media presence, as you guys are probably aware if you’ve been on my social media, is not staggeringly large. I have 1,500 followers on Instagram. A few thousand on LinkedIn is not enough to promote a book and get too many sales. I’m going to utilize Facebook ads and serve it up to people. I’ll write on Facebook and see what people bite on. I’ll probably split test 3 or 4 different titles and see which one is most appealing.
The book is getting submitted to my book coach. She’s going to go through it and make suggestions of what I can do to dial it in. This is a company whose entire business model is helping people to write a book and establish themselves as an expert with credibility so that they can expand their business and offer other products and services to a larger audience. From there, it’s going to go over to the editor. I got an editor all lined up. She’s super excited and ready to tackle it. I’ll take all that feedback from them and dial it in one more time. Sometime at the end of January 2022, I’ll be ready to rip.
That has been a super intense process. I love it. I enjoy writing. It’s a bit lonely I have to say because if you want to be effective at writing, what I’ve found is that you need to block off chunks of time like multiple hours so you can stay engaged. By stopping and starting the writing process, it takes a long time to get it done. If you’re starting for fifteen minutes, by the time you’re into the groove of it, you’re onto something else. You never got a whole lot of traction.
I’m guessing every one of you has a book inside of you that at some point, you’ll feel compelled to share with the world. It’s your way of expressing yourself. It feels great to get it on paper and get it all flushed out. If you have that on your heart, maybe it is not the right time but at some point, you want to tackle it and take it on. It’s not as difficult to write as you might think. You can use technology like Dictation, talking into your phone and then that will dictate your words for you. You can use that to speed up the process. I’d love to hear when you launch your book. I’ll certainly order it and read it. Let me know when that happens.
The Indestructible Wealth Method
When I was writing the book, one of the things that were adamant on the book coaching team is to get clear on what your framework is. The framework is in a way your overall message. What’s the thing that you most want people to pull away from when they read it? It’s your central theme. When I boiled it all down and looked at it, what is it that I teach? If I could summarize what the Indestructible Wealth Method is in one sentence, it’s the focus on converting earned income.
You’re taking earned income and turning it into passive income. You take the passive income and invest that to create capital gains. I’m going to explain what I mean by each of these and how they work but I’m going to first give you some examples to get you excited about the possibilities for yourself. There are infinite ways to earn money. I have mold ways that I earn money.
I’m going to talk to you about an example of playing High Stakes Poker. It’s a fun way to earn money. Is it my most profitable way to earn money? Not even close. However, it still is profitable. I do make pretty good money playing poker. I cashed out in 1 night for a $16,000 profit. That’s about as much as Kara brought home during her first year as a teacher. I made that in one night. There is some money to be made. You do have nights where things don’t go so well. When you average all out, it certainly does not average out that high. Let me tell you that it’s not even close at any rate.
In the last couple of years since I started playing again, I’ve earned right around $100,000. The problem with poker as an income source is if I don’t put the hours in, then they don’t continually earn on that time. That’s where most people find themselves with earned linear income. It means that you’re trading time for dollars. If you stop trading time, then the income stops flowing in. This is where so many Americans are in a very tough position because they have one form of linear income coming in.
If they stop working for whatever reason, a multitude of things can happen. Health issues, family emergencies, complete and total burnout, all of those things can happen. It’s called life. When you stop working for linear income, the income does not continue to flow in. That’s why I’ve been so passionate and enamored with creating multiple sources of passive income so that if anything should ever happen to me, where I did run into any situation in life where I needed to take some time away or was forced to take time away and I wasn’t able to earn income, I would still have passive income flowing into our household.
Over the last several years, life has happened. We’ve had situations come up where I simply had to take time off or I was working but I was distracted and wasn’t at my peak earning capabilities. This is the question I ask myself all the time, “How can I convert this earned income into passive income?” In this situation, I’ve been taking my winnings and I did do something fun. We converted half of our storage room into a game room. It’s not only a game room but it’s the sauna room. We had a big storage room that honestly, we had filled up but we didn’t need that much space for storage. This thing was gigantic.
We took half of it and turned it into something that we could do to enjoy that space. In addition, I bought a pontoon boat for $7,000 or $8,000. It was a massive pontoon boat but it was a piece of shit. It took about another $7,000 or $8,000 to put all new seats into it and flooring. We did some demo work and then put up a new platform on top. I have a cool boat. I’ve posted about it on my Instagram and Facebook. I have a ton of fun with our family on that boat. I did do something fun.
That’s important to do. You don’t want to have delayed gratification and never take time to enjoy the moment. I do both, enjoy the moment and also invest in the future. I’ve been taking the winnings and using this to buy up Bitcoin mining machines. Certainly, I could spend all of it on clothes and electronics. I could even buy a new power boat but what I want to create is passive income to buy those things.
In other words, I want to buy things that then buy me things. With a little bit of extra earning power from some other areas, I’ve been able to purchase twenty Bitcoin mining machines. I’m getting these from China. With China cracking down on Bitcoin mining, they said, “We’ll probably shoot you if you do it or you’re going to prison for the least of it.” That created an opportunity where all these machines hit the market at much-reduced prices because they got to liquidate them. There are probably hundreds of thousands of machines sitting over there in storage rooms that need to find a place in the marketplace.You want to buy things that then buy you things. Click To Tweet
I’ve been able to jump on this because I have a partner. We were already mining Ethereum. I have a partner that knows how to make them work, fix them when they break and get mining. That’s the technical nature that I don’t have. I don’t even know how these things work, to be honest. I know that they send thousands and thousands of guesses to validate transactions on the Bitcoin network. The network rewards me with little pieces of Bitcoin. The more machines I have running and guessing, the more I’m going to get.
The Bitcoin that flows into my crypto wallet will continue as long as the machines last. I can sell the Bitcoin right away as soon as it comes in from the mining, convert it to cash and then spend that on whatever I want or I can hold onto it and hope that it goes up. With all of the research that I’ve done, I firmly believe that Bitcoin is going to eventually reach $500,000 per coin. It’s a certainty within the next decade. I’m holding it all for the increase in value, which is called capital gains.
This gets me excited talking about it, taking that earned income, converting it to passive income and then the passive income eventually producing capital gains. There are always a lot of ifs in investing and things have to go right. They certainly do not always go your way. A lot of times, things don’t go my way, especially initially these take longer to get things rolling, get set up and get the income flowing in.
Typically, it’s like Murphy’s law. Something could go wrong. A lot of times it does and that’s okay. That’s part of the game. For example, if the machines work for five more years, which that’s a big unknown, they could burn out quicker, if they mine as much Bitcoin as we are projecting and if Bitcoin goes to $500,000, we’re talking about converting that $100,000 into over $7 million in value. If Bitcoin stays at $50,000, we’re still talking about generating $500,000 in passive income and there would not be any capital gains.
Profits Over Wage
You can plug a scenario of earning income here into these examples. I could take another way that I earn income, plug that in and say that I’m using that income to buy the Bitcoin mining machines and then on and on. I picked the poker example because that’s a lot more fun. I want to explain in more detail what earned passive and capital gains income were all about. We already talked about earned income. That’s trading your time, energy and skills for dollars.
I’ll never forget the day I resolved to never work for anyone again. I was only nineteen and had gotten started in my direct sales business. I wasn’t making very many sales. I was still trying to get acclimated and find my way and confidence. I needed to raise some additional cash to enjoy the summer. My uncle, an entrepreneur with three different businesses, owned a farm. He farmed a lot of acres, over 500. He had purchased some adjacent land to his house that needed to be cleared of all the sticks, leftover logs and timber from clearing off the land so he could start farming that land.
I don’t know what I was thinking. It was dumb because that was not fun work. It honestly felt like a little menacing leprechaun was hiding out in the woods and the little fucker kept throwing the sticks back into the land thwarting my every effort. Every time I threw a stick back in, another two replaced it. I don’t know if I was done clearing off the parcel. I can’t remember or if I was done with the work.
I turned in my time sheet showing that I worked twenty hours. My uncle gave me $100. Even back then, that was 1998, I couldn’t believe it. $100 for that much terrible work was awful. Right around that same time, I had managed to finally make a pretty nice sale. It was a nutrition program that I sold for $200. I made a $100,000 profit on that sale and it took me not quite an hour to finalize. That moment having that side-by-side comparison, I realized I could never go back to working for wages.
Jim Rohn always reminded me, “Profits are always better than wages.” Those words couldn’t have rung any truer at that moment. That side-by-side comparison of an entrepreneur and an employee was all the lessons that I needed. When you’re in business and you make a sale, you were paid for your time and expertise. If you stop clicking clocking in at your job or making sales, then your income stops.“Profits are always better than wages.” Click To Tweet
Earned income is the starting point of wealth creation. However, its big limitation is that it’s not scalable. It 100% resides in your efforts. To build wealth so you can retire rich and financially free at a young age, you need either people at work or money at work. In the earned income stage, you have neither. This is why a high income doesn’t guarantee wealth.
My massage therapist told me something at my last appointment. She’s the best therapist that I’ve ever worked with. She said, “I got a divorce. I’m interested in building wealth. I got all that behind me.” Her challenge is that she’s very highly skilled. I’m booked up for months. What do I mean? She only earns money when she’s hands-on and will have to hire other therapists to have people at work. Being highly skilled is her main challenge because no one can do it like her.
If she can get someone to do it 70% as well as her, then she should expand and hire. In that business, the only way to produce meaningful wealth is by having people at work. My mom used to drill something into me. She grew up on the farm. She got all these little quotes and sayings of motivation. She said, “Many hands make light work.” That was always one of my favorites.
For a massage therapist, many hands not only make light work but they produce a lot more income. In my real estate business, I started making sales. The sole intention was to take that income and convert it into long-term rental properties to produce passive income. I had no intention of making real estate sales for very long. I was going to do it long enough so I could build up a larger portfolio.
When you invest in long-term buy and hold real estate, not only do you get passive income but you’ll likely get capital gains from the property increasing in value over time. Unlike any other asset class, I can take a smaller amount of cash, put a down payment and leverage the rest of the purchase price with bank money.
A simple example is if I have $100,000 cash to invest, I can buy 1 property or I can get a loan from the bank or whoever will loan me money to buy. It could be a private investor. I’ve done that before. I can put $25,000 down on 4 different properties and have the bank finance the rest of the purchase price. This allows me to buy more properties and create more cashflow. Instead of 1 property increasing in value, I have four. The tenants by paying their monthly rent, not only provide positive cashflow. Unless things go very wrong, which honestly in real estate can happen. They also pay down my note to the bank.
I sold a property that only had about $12,000 of my own cash I made over 5 years and went up $150,000 in value. Not only did I capture that capital gain or increase in value but I had 5 years of positive cash flow from the rents and 5 years of my loan being paid down. This is exactly why more millionaires have been created in real estate than any other asset class. There are so many different ways in real estate you can increase your net worth.
However, you don’t stop here. You take the rental free cashflow and use that to buy something speculative like crypto. You have the opportunity to safely grow some incredible wealth. Even if the crypto doesn’t work out and goes to zero, which I don’t see that happening unless you buy a bunch of pull-up garbage shit coins, you still have cashflow cranking out each month. Your property is still going up in value and you’re paying down the loan with the renter’s money.
This is a classic example of how powerful the Indestructible Wealth Method is. Your lifestyle isn’t affected. You continually keep taking these swings for the fence with your safe passive income. In my direct sales business, I sold a nutrition program to a customer, not because I wanted the income from the sale but because I wanted the customer to get a physical life-changing result.
Once they had that, they would fall in love with the product. I set them up to order for themselves right online. I have customers who still order many years later from what I did in college. I got a guy, John, who every single month, orders $100 to $150. I met him back when I was a sophomore in college. I remember him asking me then, “Why are you working so hard? You’re doing something that no college students are willing to do.”
I remember telling him, “I don’t want to be average. I want to create an extraordinary life. I do not want to be like everybody else.” That initial work of marketing, selling, onboarding the customers and coaching them that’s done yet because it’s a consumable product and I help them to solve a problem, each time they get to the bottom of the can or the bottle, they reorder and place a new order.
That ongoing income stream was what I was always after. I was never doing it to create earned income because earned income always stops at the moment that you stop doing the work. If you look at what I’m doing with my new company here, the intention is not to create another earned income source but to produce assets that will continually sell over and over again once the initial work is done.
It took a lot of work to write my book. I turned it over to the editor and my book coach for their review. It’s taken a lot of work to create my step-by-step video course. It’s not done yet but when it is, those that are reading my book and following my social channels and show, a percentage of them like you will certainly purchase it. The additional products that I offer are the private mastermind group and limited one-to-one coaching.
That’s still earned income. I’m trading my time in for dollars. Once the business has plenty of excess cash flow, I also take that cashflow and invest it into more great financial assets. In the first couple of years of starting a business, my mindset is always to keep investing profits back into the business to hyperdrive the growth and produce more income over the long-term. You should be thinking generally the same way with your business because there isn’t a better investment you can make than your business, provided you have a solid plan and a business model that you can scale.
Passive Income vs Capital Gains Investing
Let’s talk about passive income. The definition is earnings derived from a rental property or another enterprise in which a person is not actively involved. Passive income is paid to you over and over again for work that you did in the past. In some cases, some effort you put in years ago. Some assets can produce both passive income and appreciation or capital gains income. Real estate is probably the best example. Why more millionaires have been created in this asset class than any other because you get income from the rental of the units, whether it’s a single-family home, multifamily, self-storage facility or commercial real estate where people are leasing out actual spots to run their business.
You can also get an increase in value, which is appreciation. It is essentially income on paper. You don’t realize that income until you sell the asset. Stocks provide dividend payouts, which is passive income but they can also appreciate in value. Cryptocurrency is widely invested in for its potential for huge value increases. However, there are ways to lend and stake your crypto that provide passive income. I’m earning over $1,000 per month by simply placing my crypto on exchanges that lend it out to others. That pays me an additional cryptocurrency.
You can also mine it as I’ve described in episode 53 of my show. If you haven’t checked that one out, it is called How To Legally Print Money. I’ve found a way for you to do this without large amounts of capital or any skills or connections to someone that does. That’s a very strong way to create passive income and build capital gains income in the future. It’s one of my favorite plays, to be honest. I’m putting a lot of money into Bitcoin mining.
That leads to capital gains, which is defined as the profit earned on the sale of an asset, which is increased in value over the holding period. An asset may include tangible property like a house, a car, a business, shares of stock or units of cryptocurrency. When I buy $10,000 worth of stock and the stock rises in price to $15,000, then the $5,000 is capital gains income.
The challenge with investing for capital gains is that you are speculating. In other words, you are buying and praying that the value of the asset goes up. The number one biggest mistake that I made as a young college student with that $50,000 was I was burning a hole in my pocket. What I see so many do is skip from earned income straight to capital gains investing oftentimes without knowing and understanding what they’re investing into.The challenge with investing for capital gains is that you are speculating. In other words, you are buying and praying that the value of the asset goes up. Click To Tweet
The memes like Dogecoin to the moon or statements of creating huge wealth on highly risky investments that don’t have any real intrinsic value are speculation at its absolute worse. You can make some quick gains but you can easily go the other way as fast as several of these popular mean bets with no underlying value or starting to see. Capital gains investing shouldn’t be pure gambling on the contrary.
All the capital gains investing I do is extremely well-researched and has very promising long-term value to the marketplace. Capital gains investing is a critical part of building indestructible wealth and retiring young, much earlier than age 65. However, it’s filled with risk and educated guesswork. Capital gains have huge tax advantages. Depending on your tax bracket, it could be anywhere from 0% to 20%, whereas earned and passive income is taxed much higher. Those are taxed debt ordinary income rates.
This type of investing can also provide huge leaps of wealth. My friend, Lance, the landscaper whom I’ve described in previous episodes who bought 10 Bitcoin for $1,000 each is the benefactor of some incredible capital gains investing returns. He was turning $10,000 into 500,000 in a few short years. That’s dang near impossible to do with passive income investing. You don’t get those kinds of huge leaps and wealth as you do there. You’re not taking on the same level of risk as well.
What should you expect from each of these three buckets in terms of immediate rewards? When you do earned income, you have a pretty good idea of what you’re going to get for the time that you put in. It’s a little trickier for business owners and commission sales reps. Although they do know with some precision after doing the job that they do or selling the product or service that they sell that after some time, what they’ll earn from a given amount of time and activity, they start to figure it out like, “I’ve been doing this for a year.” They start to figure out what they’re going to earn for the effort that they put in.
With passive income investing, you should know what you’ll earn when you buy the asset. When I buy a piece of real estate, I have a reasonable chance of being able to forecast the cashflow profits that I’m going to get based on all the numbers that we analyze when we buy the asset. Things can go wrong but if you’ve done your homework and bought a great asset that produces ongoing cashflow, then your chances of an immediate downswing and price are not too high. Although you can buy a piece of real estate and the market could drop instantaneously. At the wrong time, however, you can wait those out because you have positive cash flow coming in.
With capital gains, I almost expect when I buy the asset for it to drop in price. I’m not pessimistic about it but it’s the reality of that type of more speculative risk you’re investing. You cannot time the bottom of stocks or crypto. You can’t be at all surprised that when you buy in the very short-term that they drop in price. The key is not to panic. Remind yourself that you bought good projects that have incredible long-term potential. Hold your ground. Timing the market will always trump timing the market.
To wrap it up, I’m guessing you have some mixed feelings after this one. On the other hand, you’re excited with the prospect of converting your earned income dollars into passive income and then taking your passive income and speculating with some high-growth capital gains investments. On the other hand, you could be saying to yourself, “This all sounds great but I have no idea how to implement this. What should I buy? Where do I find these types of investments?”
There’s not much that I can do to immediately move the needle on your earned income ability as each individual has a unique situation. That’s something that you have to work through yourself or hire an actual coach to help you in that particular area to help you increase your income. I do recommend that you go through previous episodes of this show. I’ve given out for free several specific tangible investments that you can do to help you pick the right things.
These are all things that I’ve talked about on my show and that I’ve personally invested in. Some of them have done very well right out of the gate. For example, the picks in the psychedelics area where we’re buying more of a riskier type of asset but have humongous growth potential. That has dropped in price quickly. It didn’t well read out of the gate at all but I’m not worried about that because I’m playing the long game. I believe in the long-term value of that asset and where that is going.
The research that I’ve dove into is very strong and supporting that that will become the next trillion-dollar industry. I’m going to buy more. When the price drops, I’m going to get more because I believe in what I’m buying and the long-term outlook of that asset. I have no problem and am not worried about a short-term immediate drop. You have to think the same way when you’re doing this type of investing and for appreciation or speculation.
I do want to put a plug in. I don’t have it ready for release but I do have the private mastermind group. If you’re like, “I would love more guidance on what to buy in terms of passive income type investing and capital gains investing,” I’m going to be doing a private mastermind where you’re going to get to do everything right alongside me.
Whatever I’m investing and buying into, I’m going to post privately within the mastermind group, educate you on why I’m doing it and show the research behind it. You’re going to be able to do everything that I’m doing in that group. That is going to be open very soon in the 2022 first quarter for sure. If you’re interested, make sure you go over to MyIndestructibleWealth.com. Hop on the email list. It pops up within a few seconds of you opting in. You’ll get the seven-step video series right there.
You’ll be on the email list so that anytime I update or release a product, you’re going to be right there first ones to be able to join. I recommend that you do that as soon as possible. I do see this going to be launched very shortly. You want to be the first one to get it because it’s going to be a limited number of slots that are going to be available on the first go around. With that, I hope you enjoyed this episode. This is the Indestructible Wealth Method. Have a great day. Talk to you soon.