The fastest path to $1M

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For 99% of people, this is the quickest path to having $1,000,000 in the bank.

Welcome to another issue of Passionate Income.

Today, we’ll be discussing what I believe is the quickest path to a $1M net worth without having to sell feet pics, rob a bank or do anything shady!

Let’s dive in.

If you’ve read Robert Kiwosaki’s Cash Flow Quadrant (which I highly recommend), you know not all forms of income are created equally.

For example, if you’re an employee or self-employed, your livelihood is always dependent on you trading dollars for hours.

However, if you’re a business owner, it’s your staff, systems and processes that make you money. Or your intellectual property, which others pay you royalties or licensing fees to use.

And if you’re an investor, its your investments generate profit (money makes money). What’s great about investing is, once your investments generate enough money to live off of, you never have to work again a day in your life.

But similar to how there are different ways to generate income, there are also different ways to hit millionaire status.

Below we’ll discuss some of the most common so you can decide which one makes the most sense for you.

1. The Compoundooor

This is the slow road to wealth. If you don’t mind living middle class for your entire life, and have 4-5 decades of time to let compound interest do it’s thing, this the road for you.

• Income: Low (< $5,000 per month)

• Career Type: Doesn’t matter

• Investing Strategy: Stock market index funds / ETFs

• Monthly Investment Contribution: ~$500

• Business Strategy: None

• Acceleration Strategy: None

• Time to $1M Net Worth: 40+ years

2. The Higher Earnooor

High earners go above and beyond Average Joes in the sense they understand the importance of investing, and put effort into generating extra income so they can fuel their investments.

With that said, high earners still suffer from an employee mindset and are highly risk averse. And because of that, they stick with trad investments like stocks and bonds instead of building a real estate portfolio or making asymmetrical bets on things like crypto, small cap stocks, etc.

• Income: Middle (~$15,000 per month)

• Career Type: Doctor / Lawyer / Corporate / Sales / Expert Freelancer

• Investing Strategy: Stock ETFs, REITs, Bonds

• Monthly Investment Contribution: ~$2,500

• Business Strategy: None

• Acceleration Strategy: Pour earned income into investments

• Time to $1M Net Worth: 15-20 years

3. The Real Estate Portfolio Buildooor

Back in the 1990s Tony Robbins was famous for saying how real estate has minted more millionaires than any other wealth building vehicle on the planet. And based purely on the numbers, that’s true.

Unfortunately, real estate in 2023 is a much different ballgame than it was 10 years ago. With sky high home prices and 8% mortgage rates, RE is not nearly attractive as it used to be. Despite this, it’s highly likely homes will continue to appreciate. So if you can get your foot in the door, RE can still “work.”

• Income: Middle (~$15,000 per month)

• Career Type: Doctor / Lawyer / Corporate / Sales / Expert Freelancer

• Investing Strategy: Rental Properties (Single or Multi-Family)

• Investment Contribution: ~$50,000 Lump Sum (down payments)

• Business Strategy: Acquire and rent out homes / apartment units

• Acceleration Strategy: Real estate price appreciation

• Time to $1M Net Worth: 5-20 years*

*The reason the timeframe is so varied is because if home values decline and stay depressed for years on end, it could take 10+ years just to break even (like it did between 2006 and 2016).

4. The Micro-Business Buildoooor

If the options above have you feeling a little depressed, don’t worry. Because as you’re about to see, there are easier (and safer) ways to bank your first MIL.

• Income: Doesn’t matter

• Career Type: Doesn’t matter

• Investing Strategy: Doesn’t matter

• Investment Contribution: Doesn’t matter

• Business Strategy: Build micro-business to $38,250 / mo Net Profit

• Acceleration Strategy: Sell company

• Time to $1M Net Worth: 18-36 months

If you’re like me, the idea of banking $1M in 18-36 months is way more exciting than having to wait 15-40+ years. Below I’ll explain the “how,” but for now, it’s important you understand the numbers behind the above example.

🤑 The Math

First, most digital businesses sell for 39x Monthly Net Profit (which means 3.25 Annual Net Profit). And that monthly net profit has to be consistent over 12+ months. Meaning, if you can grow a micro-business to $40,700 per month Net Profit - and keep it there for a year - you can sell it for ~$1,500,000.

Next, federal taxes at the highest income bracket (in the US) are 37%.

Meaning, if you sell a company for ~$1,587,000, you would pocket a cool $1,000,000 after paying federal taxes. Admittedly, this assumes you’re smart and move to a state like Florida or Texas where there’s 0% state income taxes.

With that said, if you’re addicted to touring the Statue of Liberty - and just can’t pull yourself away from a state like New York - you’d need your micro-business to make somewhere around $46,000 / mo Net Profit. That way you still pocket $1M after paying both federal and state taxes.

🛠️ The How

Look, the odds of me teaching you how to build a $41K per month Net Profit business in one email are about the same as Taylor Swift breaking up with her Super Bowl winning, NFL Quarterback boyfriend to go out with me: 0.0001%

But here’s what I can tell you: First, you don’t have to build ONE business to $38K. Instead, you could build four micro-businesses to $9,500 / month each and bundle them into a holding company.

As an example, my IG page makes well over $10,000 / mo Net Profit. Now that I know how to build IG pages that generate revenue, I could duplicate my process and build another two or three.

Further, there are tons of micro-businesses you can build. From drop shipping stores to Amazon Kindle book brands, the options are limitless.

Last, it’s easier to take a company from $10,000 per month to $40,000 than it is to go from $0 to $10,000. Meaning, once you get something working, you might be surprised how fast it scales.

Where 99% of people fail, however, is never getting started.

Meaning, if you want to hit a $1M net worth any time soon, the #1 thing that matters most is getting started and never giving up.

I'll leave you with this quote…

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