How Passive Income Can Be Your Ticket to Financial Freedom

By Harv Eker


Let’s talk about financial freedom because a lot of my students like to ask me questions around this.

One of the most important things to know is this:

Being rich doesn’t necessarily mean you’re financially free. 95% of people have this misconception.

So the biggest question on financial freedom is about advice on:
  • How to create passive income,
  • The fastest and easiest way to reduce their working hours, and
  • Still earn the same amount or more money.

The bottom line is that passive income simply comes from earning money without having to work for it. Meaning you aren’t paid by the hours you put in. There is no direct correlation.  

So how do you create passive? It comes in two ways:

  • One, your investments working for you, or
  • Two, a business working for you.

The reality is that you want to have both investments and business always working for you.

1. Earn Passive Income by Having Investments Work for You

This means that you have to first save some money. Without saving any money you cannot become financially free, especially on the investment-working-for-you side.

I recommend taking a minimum of 10% of your income and placing it into what I like to call a Financial Freedom Account.

After you save some of it the next thing is you have to use some of it. Take at least 10% from your FFA account and invest it. In other words, people are paying you for the use of your money.

There are all kinds of vehicles: stocks, options, currency exchange, real estate, and a host of other investments. Pick up any investment book or magazine. Maybe it’s Forbes or Money Magazine. You’re going to see 100 investment opportunity situations there.

Now Follow This 3-Step Guide:

1. Go with an investment vehicle that resonates with you, what feels good for you and what you like.

2. Make sure that vehicle has a decent chance of working well. Ask friends or professionals; do some research. The information is out there for those who really want it.

3. If you’re going to do it yourself, you’d better be good at it or you’re going to throw your money away. If you’re going to invest yourself, choose a system that makes sense to you. Or maybe it’s time for a portfolio manager.

Should you go for the high investment returns or the low investment returns?

I would divide my 10% savings for investment. With some you take manageable risks; the rest is money that cannot be lost at all, period.

If you’re younger, and we’re talking about $100, I would take $50 and put it away into something totally safe with a very small amount of return on it. It covers itself, covers taxes, and it makes five percent.

If you’re not getting a five-percent return on your safe investments, you need to take some of our programs because that’s the low end.

Either way, you choose the system, learn it, do it on paper first (if you can), and then invest that way. Otherwise, you’re going to have to find an investment manager who is doing well.

That’s money working for you. What about a business working for you?

2. Earn Passive Income by Having a Business Working for You

There are passiveincome-based businesses. What can you do to your business or future business so you aren’t working in them for 10 hours a day forever?

The keyword is forever because when you first start a business it takes a lot of energy and effort. 10 hours will be your minimum but if you set it up correctly you will be able to spend less time working in the business as you systemize it.

You’re trying to create a system where you build something one time, and it works for you on an ongoing basis. That’s why I love our online business, Harv Eker International. It can do that.

Writing a book and getting royalties, that’s an ongoing thing. If you create an intellectual property and license it to somebody else to use, you get a royalty from that. That goes on without you.

My book, Secrets of the Millionaire Mind, was published in 2005. A decade later, I’m still getting 5-6 figure checks on just royalties.

Talk about passive income!

You want to look for things that allow you to do something one time, or on one set up. It might take you a week, month, a year, or more, however, then you don’t need to do anything except for maintenance. You could be off on the beach or doing the things you love most and still make money!

Good or good?

Remember, if you can’t set your business up in three years to work without you, you don’t have a passiveincome business.

Now that doesn’t mean you’re never involved at all. You still have to do some work on it, but a whole lot less than what you’re doing now!

About the Author

Harv Eker is the author of the #1 New York Times bestseller “Secrets of The Millionaire Mind”. He also founded and then sold one of the largest success training companies in the world! He’s taught just under 2 million students worldwide and has helped changed the financial lives of literally thousands upon thousands of students.

Harv’s mission is to provide you with the tools and knowledge to help you spread your message and create wealth with your passion, so you too can enjoy your freedom while helping thousands of people across the world.

MaryEllen About MaryEllen

MaryEllen Tribby has helped thousands of people start a new business or grow their existing ones. MaryEllen is the Founder and CEO of WorkingMomsOnly.com, the world’s leading newsletter and website for the empowerment of the working mom. Prior to founding WMO, MaryEllen was Publisher & CEO of Early to Rise and President of Weiss Research where she added millions to their bottom lines in just a few months. She also ran divisions at Forbes, Times Mirror Magazines, and Crain’s New York Business. MaryEllen is the best-selling author of Reinventing the Entrepreneur: Turning Your Dream Business into a Reality and co-author (with Michael Masterson) of Changing the Channel: 12 Easy Ways to Make Millions For Your Business.