As a child and many decades as a young adult, I understood money as something I earned, spent, or saved. In order to have more money, I could make three changes.
I could work harder and earn more.
I could not spend and keep more.
I could save for emergencies or vacations or peace of mind. And feel rich with lots of money sitting in my bank account.
My exposure to mastermind groups awakened me to a new concept of investing.
My money can make me money.
In order for my money to make me money, I needed to save money. Rather than look in the bank to see what was left and hope I had savings, I could evaluate how much I earn, how much is removed by taxes, how much I spend and control what I have saved and can invest.
The money I work hard to earn is called vertical income. I need to be vertical to earn it.
Money which makes me money that does not require my time each day is called horizontal income. I can be horizontal in bed or on a beach or anywhere and not working. Passive income is also used for this term, but even horizontal income is not 100% passive unless you inherited it or won the lottery. It requires education, decision making and management.
As soon as I wrapped my mind around this concept, I became committed to horizontal income. Actually, no.
I became obsessed with my money making me money rather than obsessed with working harder and more sweat, stress and time like most doctors do.
When my IRA or real estate investments or surgery center gave me a distribution, I earned horizontal income without my clocking in and out of medicine.
I began measuring how much money I earned from other sources besides my practicing medicine. When I divided my annual horizontal income by my annual expenses, I discovered the percent of financial freedom I had attained.
My goal became earning enough money from other sources, my horizontal income, that it exceeded my expenses so I would be a 100%er. This percentage signifies the degree by which my investments and horizontal income can pay for my expenses. This represents my financial freedom or financial independence.
Have you ever calculated how much you need to be financially free?
It’s never too late to become financially independent.
Warren Buffet says “If you don’t find a way to make money while you sleep, you will work until you die.”
Where can you invest your money for a return on your investment?
How much of your income is vertical?
How much of your income is horizontal?
How far are you on your journey to financial freedom?
BOOMM shares many of the concepts and strategies that taught me how to expand my income from medicine to leverage other businesses, opportunities and relationships to make me money.
I don’t want to have to work until I die.
I want to be free to choose and make money while I sleep.
Do you want to make money while you sleep?