Your way to “ring up” and out of RING 5 is to implement a “Private Family Bank” entity structure to mitigate taxes and protect your growing portfolio of businesses, assets, cash and insurance during this lifetime, and a “Private Family Office” succession structure that activates upon your passing, as the foundation for dynastic wealth creation in your family lineage for generations to come, long after you’re gone.
Somewhere along the way, you learned the distinction that when you have truly AUTOMATED income sources, they require NONE of your time. Once you see that, you can’t unsee it.
You begin to have a narrower view on investing and acquisitions, as you qualify opportunities through the lens of automated income, not just passive income in general. You learn that all “passive income” is not created equal.
For example, ACTIVE | Passive Income from real estate investing is generally the only way that many of us are familiar with, to try to tap into passive income. But ACTIVE | Passive Income is not AUTOMATED income, because it still requires a trade of SOME of our TIME managing people, process, etc in order for that money to keep coming in.
To truly be in RING 5: Financial Autonomy, it requires that 100% of our monthly living expenses (survival) + our monthly lifestyle expenses (leisure) are covered by exclusively AUTOMATED income from PASSIVE | Passive Income generating assets or income streams we own or have, and or by PASSIVE | Automated Recurring Revenue generating businesses we own.
This is the requirement for AUTOMATED income, so we’ve got bad news for some of you…if you’ve only invested in real estate up to this point, you’re actually still in RING 3: Financial Flexibility, no matter how much property you own, and no matter how much money that real estate generates for you monthly.
Conversely, if you’ve got one or more businesses generating millions of dollars per year, but you still have to trade even a single hour of your time ongoingly for those businesses to run, all that cash you’re making doesn’t move you out of RING 3: Financial Flexibility into RING 4: Financial Independence or RING 5: Financial Autonomy.
Being in RING 5: Financial Autonomy has nothing to do with how much money you make or have, or whether or not you’re investing IN GENERAL. It is about the specific types of assets and or businesses you are investing in or buying, such that you are covering 100% of your monthly living expenses (survival) + monthly lifestyle expenses (leisure) with AUTOMATED income.
In that moment, waking up and working every day is truly optional, because your lifestyle is 100% paid for, on autopilot, before you ever roll out of bed in the morning. Said simply, in FINANCIAL AUTONOMY, your focus from an investment standpoint is finding ways to send your money out, and have it come back with friends.
Royalty income…monthly revenue share payouts from minority ownership stakes in or direct loans to fast growing but boring, predictable businesses…investments in private funds with boring, predictable investment models that give qualified returns to investors monthly, like clockwork…these are the markings of FINANCIAL AUTONOMY.
In RING 5: Financial Autonomy, your money works for you, and you don’t have to spend a second of your life laboring with your brain or body to make the money that pays for your lifestyle. There are specific things you need to KNOW, people and resources you need to HAVE or have access to, and things you to need to DO in order to “Ring Up” to RING 6: LEGACY / GENERATIONAL WEALTH, in the shortest amount of time possible.