June 27, 2023 • 22 mins
Ever wondered what it would be like to earn money while you sleep? Imagine a life where your bank account thrives, regardless of you working or not. This episode unveils the magic of passive income and its potential to unlock true financial freedom. We tackle the difference between active and passive income, shedding light on why the latter deserves your attention. We illustrate the importance of diverse income streams and an epic analogy of a chair with 62 legs (yes, you read that right!)
Moving beyond the theory, we journey into the practical realm of generating passive income. We discuss intriguing methods from renting out your car to teaching online courses, and how they can bump up your income without demanding your active participation. In our conversation, we underscore the importance of faith in the product or service you're selling, and the power of a supportive community.
Get ready to redefine your financial future with passive income!
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Dream Chasers is not a registered investment, legal, or tax advisor, or a broker/dealer. All investment/financial opinions expressed by Dream Chasers are from the personal research and experience of the owner(s) of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur. Do your own research. Our content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Eric (00:01):
This is the Dream Chasers Show.
Hey guys, what's going on?
It's Eric and Kate here withthe Dream Chasers and we're so
excited to have you here today.
Thanks for showing up, andtoday we've got a fun topic with
you to talk about.
to you, with you, for you.
Kate (00:20):
We're going to do stuff.
Eric (00:20):
We're going to do stuff.
Kate (00:22):
And I think you're going to be involved.
Eric (00:24):
I think you'll be.
I hope you're there.
Kate (00:26):
So we're talking about some income.
It's been a topic that's beenreal heavy in our household.
I call it an RV hold because wedon't live in a house.
Eric (00:38):
We live in the RV.
Kate (00:39):
We live in an RV, so let's talk about passive income.
What's passive income?
Eric James Heidrich?
Eric (00:47):
Well, so I guess my definition of passive income has
always been pretty simple.
And it's money coming into youraccount while you sleep.
It's money that you're notactively having to work for.
It's passive, not active.
Kate (01:00):
So it's the tooth fairy.
Eric (01:02):
It's a tooth fairy.
Yeah, it's imaginary, no, but Imean you check your bank
account on your app or whatever,and there's money showing up,
right.
Kate (01:10):
So there's not just fat stacks that are showing up under
your pillow.
Eric (01:13):
Or even kids when they put their tooth under the pillow.
That's passive income.
Kate (01:18):
Yeah, well, that's what I was thinking Like.
I just pictured a tooth fairysneaking into a grown adult's
house and sticking like rolledup ones underneath your pillow
while you're sleeping.
Eric (01:28):
So all right then.
What's the difference betweenpassive and active?
What is the active side of?
Kate (01:34):
income.
Well, i mean, you're activelyworking for it And I feel like,
well, like there are some caseswhere active and passive kind of
flow in and out of each other.
sometimes Some of our we'regoing to be talking about the
different forms of real estate'sour passion.
So there have been times whenwe purchase real estate, we're
(01:56):
actively working on it, you know, getting contractors out there
and, like Airbnb, we're activelymanaging the Airbnb.
But then there are times when,like the long-term ones, we
stick a tenant in there and thenit turns into passive.
Somebody else is managing it.
We just sit there and collectsome money off some passive
(02:17):
income.
Eric (02:18):
So yeah, that's a good point, And I think so.
As we go into this podcast,we're going to talk about
different types of passiveincome, But what I noticed about
them, both from the researchand from our own personal
experience, was that it usuallystarts out as active and then
later on down the line it turnsinto passive.
(02:39):
So it's not just magical toothfairy although I wish it were.
That would be awesome.
Kate (02:43):
Yeah.
Eric (02:46):
Let's dive in real quickly .
We want to talk about a fewreasons why passive income is so
stinking important.
Kate (02:53):
Okay.
Eric (02:53):
And why you should be focusing on it.
Kate (02:55):
Well, who doesn't love waking up and just seeing some
fast stacks roll into youraccount?
Eric (03:00):
Yeah, I think another reason that passive income is so
important is that it gives youfreedom.
Like how many times have we met, either met somebody or had our
own personal experience wherewe work all the time right, like
40 hours a week used to be thestandard And now it's like if
(03:20):
you're not working overtime, youain't working hard enough, so
it's your trading all this timefor money And for the most part,
as an employee or whetheryou're on salary or hourly, you
pretty much know how much moneyyou're going to get year over
year, whereas this passiveincome is just a little bit
extra and a little bit extra andthe more streams you add to
(03:41):
that, you just start building itup.
It's like different streamsgoing into your pond And if you
can get five or six streamsgoing into one, it just builds.
It's amazing.
Kate (03:50):
Eric's the king of analogies.
He likes to.
He also has this analogy aboutchairs that if we were, if Eric
was actually a carpenter, everychair would have 62 legs.
62?
.
62 legs because he talks abouthow adding each stream of income
is like another leg to yourchair.
So if you ever want to seesomething freaky, ask Eric to
(04:12):
build a chair.
It's going to be the moststable chair there is The most
stable chair there is.
Eric (04:16):
Well, i mean think about that, though.
It makes sense Like if you lookat your income as like a leg to
a chair.
If you just working and that'syour only income.
If you get sick, injured, hitby a car, lay it off, yeah, if
you have your leg to your chairto get cut off and that whole
chair collapses.
But if you have some rentalproperties, if you have some
(04:38):
businesses working for you maybeyou wrote a book or something
and that's bringing you in moneyyou have more legs to your
chair.
You can stay in your hospitalbed and still make money.
Kate (04:46):
So that's 62 leg chairs.
Eric (04:47):
Looking pretty darn good, looking super stable right about
now.
You know what I'm saying, so.
Kate (04:55):
Another thing, like the passive income.
It gives you the ability tolive and work anywhere, and over
the last two, three years sinceCOVID, like we've really been
blessed with the opportunity torealize that we don't need to be
at work in order to work.
Now, granted, there are somesituations where that doesn't
work out, but if you'recurrently in a situation like
(05:15):
your job, where you are workingremotely more and you get maybe
work part-time at work,part-time at home, how stinkin'
cool is that?
And the more passive income youget, the more you get to step
away from the job too, which ispretty neat.
Eric (05:34):
Yeah, and spend time with your kids.
If you've got kids or going onvacations, get hobbies.
And it's funny because Inoticed especially in my own
life as I was younger, i had awhole bunch of hobbies.
Kate (05:48):
Yeah, you did.
Eric (05:49):
And it's things I did scuba diving, motorcycle,
whatever all of this stuff.
But then you start working moreand more and more at your job
And then you lose those hobbies.
The motorcycle sits there withcollecting dust and whatever
else, like the sewing machinecollects dust because we don't
have time to do it, yeah, andthen if you start building
passive income, you get to goback to those things.
(06:11):
But I realize now I have lesshobbies, like as we build the
passive income stream, i havemore time, which is great.
And now I'm like shoot, i needto find something to fill my
time with, i gotta get somehighs, yeah.
So it's a blessing and a curse,but it's still a good thing.
Kate (06:26):
Yeah, and I think that it provides people the ability to
kind of choose what they wantfor their future and how they
want to live retirement.
And yeah, if we're relying onsocial security to whenever we
get to retire 65, 67, whateverit is you're on a fixed income
If that's your only leg to yourchair, but if you have some
(06:48):
passive income that's paying youuntil you die, you got more
play money.
Eric (06:54):
Yeah, exactly, and even with that social security, i
feel like it's not a whole lotof money.
Like most people that are on it, they're still paycheck to
paycheck.
They're not living superlavishly, going on vacations and
stuff like that.
For the most part, it's justenough to get by.
Who wants that?
Just to get by, you know.
Kate (07:16):
And we really don't know what the future holds to, but we
do know what we've been seeinglately is inflation.
So, yeah, if that's, if thathas been your plan, there's
nothing wrong with it.
But maybe just open.
Be open to the idea that passan additional passive income is
actually a pretty good idea,because we don't know when, the
next time that eggs are going totriple in price or you're just
(07:40):
forced to cut out eggs, icontemplated cutting out eggs
from our diet there for a while,because I'm like who could
afford $12 eggs?
Eric (07:48):
It was just stupid.
Yeah, and gas too.
Milk, Milk went through theroof.
Kate (07:52):
Yeah it did.
Eric (07:53):
But just pretty bananas, So let's move on.
All right, so we have just beatthis with a dead horse.
You need to get passive income.
Clearly that's what we'reshooting for.
So how do we do it?
Kate and I are gonna break downa few different ways that both
we do it, and also ways that wedon't do.
But we know about, We've readabout it And we wanna do it.
Kate (08:16):
There's a couple things on that list that I wanna.
Ooh, that looks like fun.
Eric (08:20):
Yeah, so let's dive in Number one that we're I wanna
talk to you guys about.
This is something that we bothdo, And that's real estate
rental investments.
Yeah, Fun stuff, And I thinkit's kind of a big scary subject
if you've never done it, Butit's important to know because
real estate has this triplewhammy.
(08:42):
It's like it goes up in valueover time.
For the most part It does havecycles, but it goes up in value.
There's tax benefits to it Andyou get month after month
paycheck from your renters.
Kate (08:52):
Yeah, we love real estate, and we're not just saying that
because we've got a real estatebusiness to do it.
Oftentimes, i convince a lot ofmy sellers not to sell their
properties, and then they turnthem into rental properties,
which, you know, that screws meover because they don't get a
commission right then and there,but it turns would be investors
into actual investors, andthat's a game changer, and
(09:15):
that's what I love about thegame of real estate, though, is
that anybody could get into it,and it could change their life
drastically, and that's prettyexciting, yeah, yeah.
Eric (09:24):
Totally.
Kate (09:26):
All right.
So we've had a couple offriends do this And I think it's
a really neat idea Rent outyour car.
Eric (09:34):
Oh yeah, there's a thing called Turro Is the only one I
know about.
It's like the app, but rentingout your car.
Kate (09:40):
So it's like an Airbnb, but for your car, and how neat
is that?
Like I'm sure there's drawbacksto it, but like Enterprise,
they made a solid, they anentire business about renting
out cars.
Eric (09:54):
Yeah.
Kate (09:54):
So people like you and me are just tapping into that space
.
We're not doing it because wehave one car and we can't.
Eric (10:01):
Can't pull several vehicles behind the RV.
Kate (10:03):
Yeah, we'll be flint, just one Right, and we'd be flint,
stoned out of everywhere if wedidn't have that.
But yeah, i thought that's areally, really cool idea.
Eric (10:13):
We've got a buddy that does it And I've talked to some
other people that have done it.
The benefits are obviouslysomeone pays for your car
Anywhere to the tune of 40 to$100 a day, depending on what
kind of car it is and thecondition, But they'll even come
to your house to pick it up.
You usually have that twooptions You want to bring it to
that person or they want to justcome to your house.
(10:34):
They can get an Uber pick upyour car and then go drive it
around.
I've heard some things where itcomes back with dings and dents
, but that's pretty standard AndI know like Turro, I think,
even has insurance for your car.
Kate (10:46):
Yeah, so, yeah.
So I thought that was reallycool Yeah.
Eric (10:52):
So rent out your car.
Another way to get some passiveincome is to either start or
buy a business, and now that isnot for the faint of heart.
We can tell you firsthandexperience.
Business is a big one, butthere are a lot of benefits to
it, and I think one of the bestones is you have ownership in it
(11:12):
.
You wake up excited becauseit's your business.
But starting the business andrunning it is definitely active,
but it can pay you dividendsand passive form down the road
when you have employees workingfor you, when you have people
carrying the load or spreadingthe load out.
Kate (11:28):
Yeah, i really like those MLMs, some multi-level marketing
ones.
I think that they're in aspirit like those at home
businesses A lot of people, likethe common ones, like Sensey
they think of, or there's abunch of health ones that are
out there.
I mean, there's just a ton ofthem out there And it's really
cool because they provide a lotof structure and they empower
(11:50):
you to start your own businessand do it on your own time.
And then, of course, how itworks with the multi-level
marketing is that you get peopleunderneath you to also do that.
I think that it's important toonly invest in something that
you truly do believe in.
So if that lines up with yourvalues and what you enjoy doing
and you can stand behind theproduct and you use the product
(12:11):
ideally, that should sell itselfAnd it gets you in the door to
running your own business, whichis pretty neat.
Eric (12:20):
Yeah, that is especially if you like, believe it.
If you believe in the product,i feel like you can sell it much
, much, much easier because youuse it yourself.
Most of the time, people cansee right through when you're
like a fraud, when you're justtrying to make a quick buck And
yeah, but it's still active whenyou're actively working on it.
Kate (12:40):
But once you start building your downline with your
multi-level marketing basicallyhaving people underneath you
running their own business withhow the company works that's
when you switch from active topassive, and I'm sure that you
will still have to be activewith getting more people
underneath you and reallygetting up there.
(13:01):
But I think that that is such acool opportunity where we can
all work together and empowereach other and buy products from
one another so we don't have togo to big brand stores and
continue making Walmart rich.
Eric (13:13):
Yeah, exactly, and whatever price they choose, yes,
whether they want this on theirshelves or if they want.
No people at the checkouts Theyget to dictate everything And
then we just sit therefrustrated with certain things.
But or we can buy from ourfriends, buy from ourselves.
It's pretty cool.
We don't actually do the MLM,but I know people that do And
(13:34):
it's a real thing.
Some are scams, for sure, butsome are legitimate.
Kate (13:39):
Well, Keller Williams was kind of an MLM.
They had this thing calledProfit Share, Profit Tree and
where you would bring on someoneLike, if you influence someone
to join Keller Williams, whichthey're an incredible company to
do it like, we have tocontribute all of our success to
KW.
They empowered us to be thepeople that we are today and
build the business that we havethrough our Hydric Real Estate
(14:02):
Team.
Eric (14:03):
Yeah, absolutely.
Kate (14:05):
I think it's just incredible that there are so
many, that that core concept ofthe multi-level marketing is
really just finding otherlike-minded people and empower
each other with the similarpurpose.
So another one that I saw thatI really like is teaching an
online course.
And well, you can look at thisand say, well, that's totally
(14:28):
active.
Well, what happens if yourecord a seminar and now it's
just one hour of you talkingabout something that you're
passionate about and that youknow?
now you've used technology toleverage that into a passive
form So you can, if someonewants to, handgun safety, for
example.
(14:48):
This is probably a terribleexample, because I know nothing
about handgun safety But say, ifI'm very knowledgeable about
handgun safety and instead ofteaching the course over and
over and over again, i takeseveral days to construct a
course, record it and then nowsell that seminar to people who
are interested in handgun safety.
Eric (15:08):
Yeah, perfect example is our dance classes that we have.
That we haven't used.
We have actually purchased anonline course in dance and how
that one worked and we're not inany way paid to endorse this.
It's called a show her off, buthow that one worked is they
sold it in chunks, like thefirst season, whatever had like
(15:29):
five episodes where you learnhow to dance And then, if you
want to unlock the next one, youbuy the next season And all
they had to do is record it onetime and then they sell it over
and over and over again.
Kate (15:39):
How neat is that?
Pretty cool Yeah.
Eric (15:42):
So, just off the top of my head, i have a friend in one of
my speech classes and she workson little sculptures of clay
And a lot of her times herspeeches are about that.
Like here's how I mold them,here's the products I use,
here's, i stick it in the ovenfor this much time and then I
paint it and like, imagine, andthey turn out cool, yeah, and I
(16:03):
make drawers and houses,whatever out of clay.
Imagine if she went and madevideos and you could sell that.
I mean that's a great idea.
So anybody listening.
If you have any skill orpassion, you could totally turn
that into an online course.
Kate (16:15):
You really could, you really could And seriously, we
can leverage technology and theinternet so much that it's just
bananas.
The things that were amountlike the things that we're able
to do versus what we were notable to do 20 years ago.
Eric (16:28):
Yeah, Yeah, And we'll just touch on another one here,
Probably one of the last.
There's a few more we'll throwin there, but this is the last
one.
We're going to really like pullapart is writing and selling a
book.
So of course, like we said upfront, that is active up front.
You've got to take the time towrite it.
(16:49):
You've got to take a time toget to do the publishing whether
you do it yourself and you edityourself and all that market it
yourself.
But if you are able to actuallyprovide something quality, good
service that people will enjoyreading and it actually helps
somebody, that thing over timewe'll sell.
Throw it on Amazon or you finda way to sell yourself.
Kate (17:10):
Spoiler alert that's actually been on Eric's dream
sheet for quite some time.
You told me, like two years ago, that you wanted to write a
book.
Eric (17:18):
I know I do.
How's that?
Kate (17:19):
book coming along, Eric.
Eric (17:21):
It's so weird because, i'll just be honest, i feel like
I have a lot to teach, that Icould maybe help, but I also
don't know if anyone would buyit.
It's that weird like faith andfear, like I'm like, oh, i have
faith that I do have somethingto write, but I'm fearful it's
going to fall flat on its face.
I'm fearful it's not going tosell.
Kate (17:41):
And it very well could.
Eric (17:42):
Yeah, very well could.
Kate (17:43):
It very well could.
Eric (17:46):
I think, yeah, you know, you don't know until you try.
So I think that's a big one.
I feel like a lot of peoplehave things that they can teach
through a book and they want to.
You know, i've heard a lot ofpeople say they want to write a
book, but it's like, where doyou even start?
So?
but I know it's obviouslypossible.
We read a lot of books and Iknow that the guys that wrote
(18:07):
them if especially if it's agood book and comes a New York
time bestseller, you become megamillionaires.
You know, it might seem likeit's overnight, but it probably
takes some time to really get itdown.
Kate (18:17):
Yeah.
Eric (18:18):
But writing a book could be a huge one.
Kate (18:20):
And I'm sure they were scared.
They thought that it wasimpossible.
Here I am just giving myhusband a pep talk.
Eric (18:25):
Now Write the freaking book Eric All right, when we
hang up, i'm going to write thetitle to the first chapter.
That'll at least be a start,right?
Kate (18:35):
Yeah.
Eric (18:37):
All right.
Kate (18:39):
All right.
So we those are just a coupleof the ones that we really like
to deep dive into, but we don'thave.
We got like a whole list here,like 20 some of them, and we
don't have time to discuss themtoday.
But if you're thinking like,hmm, this passive income, this
is pretty cool.
Eric (18:54):
But I don't want to write a book and I don't have real
estate and I, whatever, you know, whatever, like you said
earlier, if whatever the excuseis, which, if you don't have
those things, work on it.
Kate (19:07):
Excuses are results.
You can have both right.
Eric (19:10):
Hey, yeah, exactly.
So anyway, we've got a listhere, We're going to go through
some of these things and so juststart writing them down.
One of these, hopefully, canstrike a chord with you.
Kate (19:20):
Yeah, if you like one of them, stick with it.
Eric (19:24):
Yeah, and go back through this, hit pause.
Go back and you'll be able tohear some of these, because
we're just going to basicallylist them out for you, some
ideas that you can use to makesome passive income.
Kate (19:34):
Yep.
Eric (19:36):
All right, number one.
So all right, we're just goingto go down the list here.
Teach online courses We talkedabout that.
Sell photos online.
Become an Instagram influencer.
Buy a rental property We talkedabout that.
Invest in the stock market andyou can earn dividends through
certain stocks.
Kate (19:54):
Rent out a spare room or, like a spare garage, rent out
your car.
Lend money to peers.
Maybe be a little bit cautiouson that one.
Eric (20:05):
Yeah, unless you know what you're doing.
Kate (20:07):
Yeah, and then start a YouTube channel or start a
podcast.
Eric (20:12):
Sell different designs online.
Invest in businesses.
Rent out some unused space,either in your house or even a
rental that you're in.
Earn royalties throughinventions.
I would love to inventsomething, but dang it.
I don't know if I'm smartenough.
Kate (20:29):
No, that's not true, you've come up with a handful of
inventions over the lastseveral years.
Eric (20:33):
You just got to commit.
Kate (20:34):
Yeah, but no, it seems like every time that you do do
it, you come up with theinvention.
You're like babe, this is goingto be the next thing.
Well, we look online.
Somebody asked me.
Eric (20:44):
Dang it.
Curse all these smart peoplethat are inventing stuff.
Kate (20:48):
All right, write and sell a book, eric.
Get on it.
Invest in vending machines.
That one's kind of a fun one.
Sell a photography online.
Eric (21:00):
You could do some peer-to-peer lending, which is I
don't know a whole lot aboutthat, but research before you
lend money to anybody.
Yeah, create an app.
Rent out a parking space.
This would probably be forpeople in large cities that own
some small amount of real estateor parking out in front of
their area.
Invest in CDs or high-yieldsavings account and rent out
(21:24):
your house on a short-termAirbnb or VRBO.
Cool, cool.
Kate (21:29):
I hope that some of these, i hope that at least one of
these, inspires somebody outthere to really get into the
passive game because it's fun.
Eric (21:37):
Oh, it totally is.
You get addicted to it, you gethooked on it.
Kate (21:40):
Yeah, once you really find your talent too, then it just
seems easy after that.
Eric (21:45):
Yeah, you start getting focused, money-conscious and
focused on it.
Kate (21:52):
All right.
That concludes our episode onpassive income.
Why you should do it?
why it's important, and findingsomething that you're really
passionate about and continue toget paid during it, because
that's a beautiful thing, isn'tit?
The adult magic tooth fairy.
Eric (22:10):
All right, we'll just leave it at that.
All right, find your adultmagic tooth fairy.
Kate (22:13):
Find your adult magic tooth fairy.
Hope you guys enjoyed listening.
We'd love to have you staytuned for the next one and
Hydrix out.
Eric (22:22):
Dream Chasers out.
Kate (22:23):
Dream Chasers out, but the Hydrix do the dream.
We're chasing the dreams andwe're the Hydrix.
Hydrix out, we're out.
This is the Dream Chasers Show.
Hey guys, what's going on?
It's Eric and Kate here withthe Dream Chasers and we're so
excited to have you here today.
Thanks for showing up, andtoday we've got a fun topic with
you to talk about.
to you, with you, for you.
Kate (00:20):
We're going to do stuff.
Eric (00:20):
We're going to do stuff.
Kate (00:22):
And I think you're going to be involved.
Eric (00:24):
I think you'll be.
I hope you're there.
Kate (00:26):
So we're talking about some income.
It's been a topic that's beenreal heavy in our household.
I call it an RV hold because wedon't live in a house.
Eric (00:38):
We live in the RV.
Kate (00:39):
We live in an RV, so let's talk about passive income.
What's passive income?
Eric James Heidrich?
Eric (00:47):
Well, so I guess my definition of passive income has
always been pretty simple.
And it's money coming into youraccount while you sleep.
It's money that you're notactively having to work for.
It's passive, not active.
Kate (01:00):
So it's the tooth fairy.
Eric (01:02):
It's a tooth fairy.
Yeah, it's imaginary, no, but Imean you check your bank
account on your app or whatever,and there's money showing up,
right.
Kate (01:10):
So there's not just fat stacks that are showing up under
your pillow.
Eric (01:13):
Or even kids when they put their tooth under the pillow.
That's passive income.
Kate (01:18):
Yeah, well, that's what I was thinking Like.
I just pictured a tooth fairysneaking into a grown adult's
house and sticking like rolledup ones underneath your pillow
while you're sleeping.
Eric (01:28):
So all right then.
What's the difference betweenpassive and active?
What is the active side of?
Kate (01:34):
income.
Well, i mean, you're activelyworking for it And I feel like,
well, like there are some caseswhere active and passive kind of
flow in and out of each other.
sometimes Some of our we'regoing to be talking about the
different forms of real estate'sour passion.
So there have been times whenwe purchase real estate, we're
(01:56):
actively working on it, you know, getting contractors out there
and, like Airbnb, we're activelymanaging the Airbnb.
But then there are times when,like the long-term ones, we
stick a tenant in there and thenit turns into passive.
Somebody else is managing it.
We just sit there and collectsome money off some passive
(02:17):
income.
Eric (02:18):
So yeah, that's a good point, And I think so.
As we go into this podcast,we're going to talk about
different types of passiveincome, But what I noticed about
them, both from the researchand from our own personal
experience, was that it usuallystarts out as active and then
later on down the line it turnsinto passive.
(02:39):
So it's not just magical toothfairy although I wish it were.
That would be awesome.
Kate (02:43):
Yeah.
Eric (02:46):
Let's dive in real quickly .
We want to talk about a fewreasons why passive income is so
stinking important.
Kate (02:53):
Okay.
Eric (02:53):
And why you should be focusing on it.
Kate (02:55):
Well, who doesn't love waking up and just seeing some
fast stacks roll into youraccount?
Eric (03:00):
Yeah, I think another reason that passive income is so
important is that it gives youfreedom.
Like how many times have we met, either met somebody or had our
own personal experience wherewe work all the time right, like
40 hours a week used to be thestandard And now it's like if
(03:20):
you're not working overtime, youain't working hard enough, so
it's your trading all this timefor money And for the most part,
as an employee or whetheryou're on salary or hourly, you
pretty much know how much moneyyou're going to get year over
year, whereas this passiveincome is just a little bit
extra and a little bit extra andthe more streams you add to
(03:41):
that, you just start building itup.
It's like different streamsgoing into your pond And if you
can get five or six streamsgoing into one, it just builds.
It's amazing.
Kate (03:50):
Eric's the king of analogies.
He likes to.
He also has this analogy aboutchairs that if we were, if Eric
was actually a carpenter, everychair would have 62 legs.
62?
.
62 legs because he talks abouthow adding each stream of income
is like another leg to yourchair.
So if you ever want to seesomething freaky, ask Eric to
(04:12):
build a chair.
It's going to be the moststable chair there is The most
stable chair there is.
Eric (04:16):
Well, i mean think about that, though.
It makes sense Like if you lookat your income as like a leg to
a chair.
If you just working and that'syour only income.
If you get sick, injured, hitby a car, lay it off, yeah, if
you have your leg to your chairto get cut off and that whole
chair collapses.
But if you have some rentalproperties, if you have some
(04:38):
businesses working for you maybeyou wrote a book or something
and that's bringing you in moneyyou have more legs to your
chair.
You can stay in your hospitalbed and still make money.
Kate (04:46):
So that's 62 leg chairs.
Eric (04:47):
Looking pretty darn good, looking super stable right about
now.
You know what I'm saying, so.
Kate (04:55):
Another thing, like the passive income.
It gives you the ability tolive and work anywhere, and over
the last two, three years sinceCOVID, like we've really been
blessed with the opportunity torealize that we don't need to be
at work in order to work.
Now, granted, there are somesituations where that doesn't
work out, but if you'recurrently in a situation like
(05:15):
your job, where you are workingremotely more and you get maybe
work part-time at work,part-time at home, how stinkin'
cool is that?
And the more passive income youget, the more you get to step
away from the job too, which ispretty neat.
Eric (05:34):
Yeah, and spend time with your kids.
If you've got kids or going onvacations, get hobbies.
And it's funny because Inoticed especially in my own
life as I was younger, i had awhole bunch of hobbies.
Kate (05:48):
Yeah, you did.
Eric (05:49):
And it's things I did scuba diving, motorcycle,
whatever all of this stuff.
But then you start working moreand more and more at your job
And then you lose those hobbies.
The motorcycle sits there withcollecting dust and whatever
else, like the sewing machinecollects dust because we don't
have time to do it, yeah, andthen if you start building
passive income, you get to goback to those things.
(06:11):
But I realize now I have lesshobbies, like as we build the
passive income stream, i havemore time, which is great.
And now I'm like shoot, i needto find something to fill my
time with, i gotta get somehighs, yeah.
So it's a blessing and a curse,but it's still a good thing.
Kate (06:26):
Yeah, and I think that it provides people the ability to
kind of choose what they wantfor their future and how they
want to live retirement.
And yeah, if we're relying onsocial security to whenever we
get to retire 65, 67, whateverit is you're on a fixed income
If that's your only leg to yourchair, but if you have some
(06:48):
passive income that's paying youuntil you die, you got more
play money.
Eric (06:54):
Yeah, exactly, and even with that social security, i
feel like it's not a whole lotof money.
Like most people that are on it, they're still paycheck to
paycheck.
They're not living superlavishly, going on vacations and
stuff like that.
For the most part, it's justenough to get by.
Who wants that?
Just to get by, you know.
Kate (07:16):
And we really don't know what the future holds to, but we
do know what we've been seeinglately is inflation.
So, yeah, if that's, if thathas been your plan, there's
nothing wrong with it.
But maybe just open.
Be open to the idea that passan additional passive income is
actually a pretty good idea,because we don't know when, the
next time that eggs are going totriple in price or you're just
(07:40):
forced to cut out eggs, icontemplated cutting out eggs
from our diet there for a while,because I'm like who could
afford $12 eggs?
Eric (07:48):
It was just stupid.
Yeah, and gas too.
Milk, Milk went through theroof.
Kate (07:52):
Yeah it did.
Eric (07:53):
But just pretty bananas, So let's move on.
All right, so we have just beatthis with a dead horse.
You need to get passive income.
Clearly that's what we'reshooting for.
So how do we do it?
Kate and I are gonna break downa few different ways that both
we do it, and also ways that wedon't do.
But we know about, We've readabout it And we wanna do it.
Kate (08:16):
There's a couple things on that list that I wanna.
Ooh, that looks like fun.
Eric (08:20):
Yeah, so let's dive in Number one that we're I wanna
talk to you guys about.
This is something that we bothdo, And that's real estate
rental investments.
Yeah, Fun stuff, And I thinkit's kind of a big scary subject
if you've never done it, Butit's important to know because
real estate has this triplewhammy.
(08:42):
It's like it goes up in valueover time.
For the most part It does havecycles, but it goes up in value.
There's tax benefits to it Andyou get month after month
paycheck from your renters.
Kate (08:52):
Yeah, we love real estate, and we're not just saying that
because we've got a real estatebusiness to do it.
Oftentimes, i convince a lot ofmy sellers not to sell their
properties, and then they turnthem into rental properties,
which, you know, that screws meover because they don't get a
commission right then and there,but it turns would be investors
into actual investors, andthat's a game changer, and
(09:15):
that's what I love about thegame of real estate, though, is
that anybody could get into it,and it could change their life
drastically, and that's prettyexciting, yeah, yeah.
Eric (09:24):
Totally.
Kate (09:26):
All right.
So we've had a couple offriends do this And I think it's
a really neat idea Rent outyour car.
Eric (09:34):
Oh yeah, there's a thing called Turro Is the only one I
know about.
It's like the app, but rentingout your car.
Kate (09:40):
So it's like an Airbnb, but for your car, and how neat
is that?
Like I'm sure there's drawbacksto it, but like Enterprise,
they made a solid, they anentire business about renting
out cars.
Eric (09:54):
Yeah.
Kate (09:54):
So people like you and me are just tapping into that space
.
We're not doing it because wehave one car and we can't.
Eric (10:01):
Can't pull several vehicles behind the RV.
Kate (10:03):
Yeah, we'll be flint, just one Right, and we'd be flint,
stoned out of everywhere if wedidn't have that.
But yeah, i thought that's areally, really cool idea.
Eric (10:13):
We've got a buddy that does it And I've talked to some
other people that have done it.
The benefits are obviouslysomeone pays for your car
Anywhere to the tune of 40 to$100 a day, depending on what
kind of car it is and thecondition, But they'll even come
to your house to pick it up.
You usually have that twooptions You want to bring it to
that person or they want to justcome to your house.
(10:34):
They can get an Uber pick upyour car and then go drive it
around.
I've heard some things where itcomes back with dings and dents
, but that's pretty standard AndI know like Turro, I think,
even has insurance for your car.
Kate (10:46):
Yeah, so, yeah.
So I thought that was reallycool Yeah.
Eric (10:52):
So rent out your car.
Another way to get some passiveincome is to either start or
buy a business, and now that isnot for the faint of heart.
We can tell you firsthandexperience.
Business is a big one, butthere are a lot of benefits to
it, and I think one of the bestones is you have ownership in it
(11:12):
.
You wake up excited becauseit's your business.
But starting the business andrunning it is definitely active,
but it can pay you dividendsand passive form down the road
when you have employees workingfor you, when you have people
carrying the load or spreadingthe load out.
Kate (11:28):
Yeah, i really like those MLMs, some multi-level marketing
ones.
I think that they're in aspirit like those at home
businesses A lot of people, likethe common ones, like Sensey
they think of, or there's abunch of health ones that are
out there.
I mean, there's just a ton ofthem out there And it's really
cool because they provide a lotof structure and they empower
(11:50):
you to start your own businessand do it on your own time.
And then, of course, how itworks with the multi-level
marketing is that you get peopleunderneath you to also do that.
I think that it's important toonly invest in something that
you truly do believe in.
So if that lines up with yourvalues and what you enjoy doing
and you can stand behind theproduct and you use the product
(12:11):
ideally, that should sell itselfAnd it gets you in the door to
running your own business, whichis pretty neat.
Eric (12:20):
Yeah, that is especially if you like, believe it.
If you believe in the product,i feel like you can sell it much
, much, much easier because youuse it yourself.
Most of the time, people cansee right through when you're
like a fraud, when you're justtrying to make a quick buck And
yeah, but it's still active whenyou're actively working on it.
Kate (12:40):
But once you start building your downline with your
multi-level marketing basicallyhaving people underneath you
running their own business withhow the company works that's
when you switch from active topassive, and I'm sure that you
will still have to be activewith getting more people
underneath you and reallygetting up there.
(13:01):
But I think that that is such acool opportunity where we can
all work together and empowereach other and buy products from
one another so we don't have togo to big brand stores and
continue making Walmart rich.
Eric (13:13):
Yeah, exactly, and whatever price they choose, yes,
whether they want this on theirshelves or if they want.
No people at the checkouts Theyget to dictate everything And
then we just sit therefrustrated with certain things.
But or we can buy from ourfriends, buy from ourselves.
It's pretty cool.
We don't actually do the MLM,but I know people that do And
(13:34):
it's a real thing.
Some are scams, for sure, butsome are legitimate.
Kate (13:39):
Well, Keller Williams was kind of an MLM.
They had this thing calledProfit Share, Profit Tree and
where you would bring on someoneLike, if you influence someone
to join Keller Williams, whichthey're an incredible company to
do it like, we have tocontribute all of our success to
KW.
They empowered us to be thepeople that we are today and
build the business that we havethrough our Hydric Real Estate
(14:02):
Team.
Eric (14:03):
Yeah, absolutely.
Kate (14:05):
I think it's just incredible that there are so
many, that that core concept ofthe multi-level marketing is
really just finding otherlike-minded people and empower
each other with the similarpurpose.
So another one that I saw thatI really like is teaching an
online course.
And well, you can look at thisand say, well, that's totally
(14:28):
active.
Well, what happens if yourecord a seminar and now it's
just one hour of you talkingabout something that you're
passionate about and that youknow?
now you've used technology toleverage that into a passive
form So you can, if someonewants to, handgun safety, for
example.
(14:48):
This is probably a terribleexample, because I know nothing
about handgun safety But say, ifI'm very knowledgeable about
handgun safety and instead ofteaching the course over and
over and over again, i takeseveral days to construct a
course, record it and then nowsell that seminar to people who
are interested in handgun safety.
Eric (15:08):
Yeah, perfect example is our dance classes that we have.
That we haven't used.
We have actually purchased anonline course in dance and how
that one worked and we're not inany way paid to endorse this.
It's called a show her off, buthow that one worked is they
sold it in chunks, like thefirst season, whatever had like
(15:29):
five episodes where you learnhow to dance And then, if you
want to unlock the next one, youbuy the next season And all
they had to do is record it onetime and then they sell it over
and over and over again.
Kate (15:39):
How neat is that?
Pretty cool Yeah.
Eric (15:42):
So, just off the top of my head, i have a friend in one of
my speech classes and she workson little sculptures of clay
And a lot of her times herspeeches are about that.
Like here's how I mold them,here's the products I use,
here's, i stick it in the ovenfor this much time and then I
paint it and like, imagine, andthey turn out cool, yeah, and I
(16:03):
make drawers and houses,whatever out of clay.
Imagine if she went and madevideos and you could sell that.
I mean that's a great idea.
So anybody listening.
If you have any skill orpassion, you could totally turn
that into an online course.
Kate (16:15):
You really could, you really could And seriously, we
can leverage technology and theinternet so much that it's just
bananas.
The things that were amountlike the things that we're able
to do versus what we were notable to do 20 years ago.
Eric (16:28):
Yeah, Yeah, And we'll just touch on another one here,
Probably one of the last.
There's a few more we'll throwin there, but this is the last
one.
We're going to really like pullapart is writing and selling a
book.
So of course, like we said upfront, that is active up front.
You've got to take the time towrite it.
(16:49):
You've got to take a time toget to do the publishing whether
you do it yourself and you edityourself and all that market it
yourself.
But if you are able to actuallyprovide something quality, good
service that people will enjoyreading and it actually helps
somebody, that thing over timewe'll sell.
Throw it on Amazon or you finda way to sell yourself.
Kate (17:10):
Spoiler alert that's actually been on Eric's dream
sheet for quite some time.
You told me, like two years ago, that you wanted to write a
book.
Eric (17:18):
I know I do.
How's that?
Kate (17:19):
book coming along, Eric.
Eric (17:21):
It's so weird because, i'll just be honest, i feel like
I have a lot to teach, that Icould maybe help, but I also
don't know if anyone would buyit.
It's that weird like faith andfear, like I'm like, oh, i have
faith that I do have somethingto write, but I'm fearful it's
going to fall flat on its face.
I'm fearful it's not going tosell.
Kate (17:41):
And it very well could.
Eric (17:42):
Yeah, very well could.
Kate (17:43):
It very well could.
Eric (17:46):
I think, yeah, you know, you don't know until you try.
So I think that's a big one.
I feel like a lot of peoplehave things that they can teach
through a book and they want to.
You know, i've heard a lot ofpeople say they want to write a
book, but it's like, where doyou even start?
So?
but I know it's obviouslypossible.
We read a lot of books and Iknow that the guys that wrote
(18:07):
them if especially if it's agood book and comes a New York
time bestseller, you become megamillionaires.
You know, it might seem likeit's overnight, but it probably
takes some time to really get itdown.
Kate (18:17):
Yeah.
Eric (18:18):
But writing a book could be a huge one.
Kate (18:20):
And I'm sure they were scared.
They thought that it wasimpossible.
Here I am just giving myhusband a pep talk.
Eric (18:25):
Now Write the freaking book Eric All right, when we
hang up, i'm going to write thetitle to the first chapter.
That'll at least be a start,right?
Kate (18:35):
Yeah.
Eric (18:37):
All right.
Kate (18:39):
All right.
So we those are just a coupleof the ones that we really like
to deep dive into, but we don'thave.
We got like a whole list here,like 20 some of them, and we
don't have time to discuss themtoday.
But if you're thinking like,hmm, this passive income, this
is pretty cool.
Eric (18:54):
But I don't want to write a book and I don't have real
estate and I, whatever, you know, whatever, like you said
earlier, if whatever the excuseis, which, if you don't have
those things, work on it.
Kate (19:07):
Excuses are results.
You can have both right.
Eric (19:10):
Hey, yeah, exactly.
So anyway, we've got a listhere, We're going to go through
some of these things and so juststart writing them down.
One of these, hopefully, canstrike a chord with you.
Kate (19:20):
Yeah, if you like one of them, stick with it.
Eric (19:24):
Yeah, and go back through this, hit pause.
Go back and you'll be able tohear some of these, because
we're just going to basicallylist them out for you, some
ideas that you can use to makesome passive income.
Kate (19:34):
Yep.
Eric (19:36):
All right, number one.
So all right, we're just goingto go down the list here.
Teach online courses We talkedabout that.
Sell photos online.
Become an Instagram influencer.
Buy a rental property We talkedabout that.
Invest in the stock market andyou can earn dividends through
certain stocks.
Kate (19:54):
Rent out a spare room or, like a spare garage, rent out
your car.
Lend money to peers.
Maybe be a little bit cautiouson that one.
Eric (20:05):
Yeah, unless you know what you're doing.
Kate (20:07):
Yeah, and then start a YouTube channel or start a
podcast.
Eric (20:12):
Sell different designs online.
Invest in businesses.
Rent out some unused space,either in your house or even a
rental that you're in.
Earn royalties throughinventions.
I would love to inventsomething, but dang it.
I don't know if I'm smartenough.
Kate (20:29):
No, that's not true, you've come up with a handful of
inventions over the lastseveral years.
Eric (20:33):
You just got to commit.
Kate (20:34):
Yeah, but no, it seems like every time that you do do
it, you come up with theinvention.
You're like babe, this is goingto be the next thing.
Well, we look online.
Somebody asked me.
Eric (20:44):
Dang it.
Curse all these smart peoplethat are inventing stuff.
Kate (20:48):
All right, write and sell a book, eric.
Get on it.
Invest in vending machines.
That one's kind of a fun one.
Sell a photography online.
Eric (21:00):
You could do some peer-to-peer lending, which is I
don't know a whole lot aboutthat, but research before you
lend money to anybody.
Yeah, create an app.
Rent out a parking space.
This would probably be forpeople in large cities that own
some small amount of real estateor parking out in front of
their area.
Invest in CDs or high-yieldsavings account and rent out
(21:24):
your house on a short-termAirbnb or VRBO.
Cool, cool.
Kate (21:29):
I hope that some of these, i hope that at least one of
these, inspires somebody outthere to really get into the
passive game because it's fun.
Eric (21:37):
Oh, it totally is.
You get addicted to it, you gethooked on it.
Kate (21:40):
Yeah, once you really find your talent too, then it just
seems easy after that.
Eric (21:45):
Yeah, you start getting focused, money-conscious and
focused on it.
Kate (21:52):
All right.
That concludes our episode onpassive income.
Why you should do it?
why it's important, and findingsomething that you're really
passionate about and continue toget paid during it, because
that's a beautiful thing, isn'tit?
The adult magic tooth fairy.
Eric (22:10):
All right, we'll just leave it at that.
All right, find your adultmagic tooth fairy.
Kate (22:13):
Find your adult magic tooth fairy.
Hope you guys enjoyed listening.
We'd love to have you staytuned for the next one and
Hydrix out.
Eric (22:22):
Dream Chasers out.
Kate (22:23):
Dream Chasers out, but the Hydrix do the dream.
We're chasing the dreams andwe're the Hydrix.
Hydrix out, we're out.
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