By Mike Johnson
The fastest and most effective way to generate wealth is to use
“The Ice Cube Theory”
This requires a short, initial effort to “fill the tray,” followed by letting time and physics run its course.
School does not teach financial literacy. Worse, it teaches nothing about inflation – the force that causes money to perpetually lose its purchase power.
Unless you can hedge against inflation, saving becomes a doomed attempt to fill a bucket that has a huge hole in the bottom.
So the only way to gain financial and time freedom is to self-educate.
This is best done by studying people who have already achieved what you desire.
As someone who has financially mentored thousands, I long ago learned that time is far more valuable than money.
Anything that saves or creates time is good.
So I built a time machine.
I realized that I needed to invest in things that rose in value as inflation rose. The two best things I discovered were businesses and multi-unit,
residential income properties.
Income properties were better because they were mostly passive AND they more than paid for themselves due to tenants paying monthly rent.
The sooner I bought income properties, the sooner I’d be earning income, equity and freedom 24/7/365.
Yet income property loans typically required a 30% down payment. With a fixed income, this would take me many years to acquire, if ever.
Hence the time machine. "Good debt" became my time machine. I gained decades of time by using borrowed money to buy those income properties.
I learned how to buy them with little to no money down.
Once I owned them, I’d filled the ice cube tray and time and physics starting building my wealth 24/7/365. That income paid for a manager too, so I only had to manage the manager. This only took a few hours a week, so I was freed from working a schedule, forever.
As my monthly income surpassed my monthly bills, I invested the surplus in other income properties and a nicer personal home. These too, increased in value at or above the rate of inflation.
This explains how to use “good debt” to gain time and build wealth.
Most people use “bad debt” time machines to buy homes, cars and toys that do not generate income. This traps them in employment and work schedules to repay that debt. Their time machine loans give them LESS time rather than more time.
Unless you’re a celebrity or a sports star, you just cannot physically work enough hours to create financial and time freedom. You need to leverage income properties or business ownership to get there.
In today's world, self-taught financial literacy is the only way to make that happen.
The Case For Living Tomorrows Today
Income Property Saves Decades
Close the Circle
Return on Investment
Back to Mike's Warm, Wealthy Wisdoms
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