The 6 Levels of Passive Income Mastery

The proven strategy to build your passive income portfolio

Level 1

Learn the rules to the wealth game

Money is not as simple as it first appears. Most money as we know it is actually currency. The difference is that currency can be reproduced without limit. This is the cause of inflation. Financial institutions have control over inflation and other financial policies such as interest rates. It's very difficult to accumulate wealth without an understanding of these basic economic concepts and how they impact you.

Level 2

Create your money system

It's not enough to set a budget. You won't go broke if you stick to it. But to build passive income you will need a more robust system. The system begins with your mindset. You will always have personal finances to manage. Create a system that manages your money seamlessly the way you want it to be. You can free up time needed for your passive income venture by reducing the friction in your money system.

Level 3

Boost your paycheck

Your paycheck is going to be the primary source of income that builds your passive income. You may work at a job, be self-employed, or run a business but this income is "active income" in the sense that you earn it while you are working. Most people leave a lot of money on the table by inadequately marketing their skills, poor career planning, and misunderstanding the role of employment in their life.

Level 4

Sharpen your high-value skills

One of the most underrated keys to building passive income is the ability to leverage your existing skills. There is a large cost to learning a new skill for your passive income strategy. By leveraging your existing skills and specializing in the ones with the highest income potential you can transition from active income to passive income seamlessly.

Level 5

Choose your passive income strategy

There are countless methods of producing passive income but they all have one thing in common: they make use of an income-producing asset (IPA). There are 7 classes of income-producing assets to choose from. You begin with the class that best suits you and then test out different strategies within the class to fit your needs.

Level 6

Build your passive income empire

With your money system, optimal active income, and passive income strategy you can begin the process of investing heavily and scaling up your portfolio. It is best to work vigorously on one strategy at a time. Once you master one strategy you can start on another. The common advice of having multiple sources of income is misleading in that it requires practice and specialization to become very skilled at anything to the point that it generates ample income.