This page is part of the Zero To Hero series of Financial Freedom Blueprints and provides information on generating passive income through “money machines” (aka “wealth machines”).
What They Are For
The primary reasons for acquiring money machines are as follows:
- To bring in passive cash flow that does not require you to work on an ongoing basis
- To ensure that you achieve ongoing, perpetual wealth
- To break the slavery of the time-money correlation paradigm that most of the world is stuck in
What They Are And What They Do
Money machines (aka “wealth machines”) are assets (things) that generate money for you, without your direct involvement. This is generally referred to as passive income and can be contrasted with active income which comes from you putting in a specific number of hours for each dollar you earn.
In addition to generating passive cash flow for you (which allows you to reduce or eliminate your dependence on a day job), these money machines allow you to break the time-money correlation that has most of the world in slavery.
Acquiring money machines – by either building them yourself or buying them with some of the money you earn – should be your primary concern when it comes to earning money. The freedom that money machines can offer your far exceeds the benefits of living in the slavery of having to constantly work for money.
Your Life Is Worth More Than Money
Your life is worth far more than money, so don’t trade your time (i.e. your life) away for money any more than you have to. Using money machines, you can break the chains that bind most people to time and money. In doing so, you will have escaped financial slavery and achieved perpetual wealth. This is a fight worth the effort! I talk more about this concept here.
How To Use The Machines
When you build or buy a money machine, you need to decide what to do with the money that the machine generates.
If you desperately need the money right now, spend only what you need. Leave the rest in the machine by re-investing that money back into the machine. Never spend the principal – only spend the earnings (or a portion of the earnings). This ensures that the machine keeps running and keeps generating money for you.
If you don’t need the money right now, re-invest the money you receive back into the machine so it runs faster and produces more money for you in the future. If you can’t re-invest the money in the same machine it came from, put the money to use by buying an additional machine.
Machines You Can Build
I believe that the easiest and fastest money machine that you can build on your own (and without money) is a book. So long as you have access to a computer and the Internet, you can write a short e-book and publish it on Amazon.com without any cost to yourself. You put in a one time cost (in terms of time) to create the book and you have an unlimited opportunity to produce income from it. I give more information on how to create e-books (and on how you are absolutely capable of doing so) here.
Some other money machines that you can build include:
- A smartphone app that you create
- A software application that you create
- A YouTube channel that you monetize
- A blog that you place Google Adsense ads on
- An online course or seminar that you create
Machines You Can Buy
Once you get in a financial position where you have extra money, you can begin to buy some money machines. Any type of assets that provides you with interest payments, dividends, or earnings of some kind is a money machine.
Some simple money machines that I suggest you look into acquiring (e.g. investing in) include the following:
Real Estate Investment Machines
Fundrise.com – This allows you to become a real estate investor without having to get a mortgage, become a landlord, or fix broken toilets. This money machine returns quarterly dividends.
Peer To Peer (P2P) Lending Machines
LendingClub.com – This allows you to lend money to people who want to refinance credit cards, student loan debt, etc in return for interest. This money machine returns monthly interest payments.
StreetShares.com – This allows you to lend money to veterans who are looking to start their own small businesses. This money machine returns monthly interest payments.
High Interest Savings Account Machines
Wealthfront.com – Their high interest savings account return much better interest than regular savings accounts. This money machine returns monthly interest payments.
Dividend Stock Machines
Dividend stocks are individual stocks from companies that usually pay a quarterly dividend. When starting out investing in dividend stocks, it is generally recommended that you start by investing in long-running, solid companies – especially those referred to as the “Dividend Aristocrats“.
There are many other money machines available across different asset classes that you can buy into. More information on these can be found in my book Perpetual Wealth.
Best Of Luck
I wish you the best of luck in all your endeavors – financial and otherwise!
– Ethan Galstad, Founder