Passive Income Is a Lie

0:00Passive income is a lie. If you think about how money is made, you make money during time because every minute we're alive, a minute passes, time passes, and we make money over that time period, which means every single person on planet Earth has a dollars per hour that they make. And so, it's not that passive income doesn't exist just as much as active income doesn't exist. It's a spectrum where it's how active is it or how passive is the activity that I'm doing relative to the time that I'm investing. And so, I would eliminate active versus passive and simply say, "What is my return on time or how much do I make per hour?" It's just that most people get really scared of that cuz like, "No one should trade their hours for money." Everyone trades their hours for money. It's just that when they receive the money, it's just not denoted in hours. And so, I think there's two downstream impacts in terms of changing your behavior around this that I had to apply. Number one is that I was obsessed with trying to find quick, easy, low, you know, effort money things. And so, I ended up spending tons of money on things that I was obsessed with hoping would cost me no time to make, and I would put not nearly enough time to the things I was actively making money with and thinking, "How could I just make my active income significantly higher?" And I would get obsessed with the idea that everything I did actively had to be scalable or it wasn't worth it because if it's not scalable, then why why should I bother?

1:32I shouldn't trade my time for money. But, if I looked at what I was making over the last year and divided it by the amount of money I made per hour, this activity was 15 times what I was averaging per hour. So, I should absolutely do as many hours of that until all of my hours are that, and then I should find something else I can trade my time for that's even higher. And so, if you want a very humbling experience, look at how much you made last year and then divide it by 2,000 if you want to know how much you made just in a 40-hour workweek. Now, if you want to look at how much you made per actual hour of being alive, you can divide it by around 8,000 or just take that number and divide it by four. And that's actually how much you make per hour. And so when you're looking at is this worth my time, if it's more than that number, it probably is. And so what I should have done and what changed for me was that I stopped trying to invest my money from my active into trying to find more passive things and try to say, "How do I invest my money more into my active to multiply my active that I know is working." Real quick, if you're a business owner and you're not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 scaling roadmap, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources and finance. And so no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can book a call with my team and we will look at the business, see if we can help and if we can, we'll invite you out to Vegas and we'll do this in person live.