Killing Sacred Cows Blog

By Chris Miles

One of my clients recently asked me a question regarding whether or not someone needed passive income to truly be financially free. I believe that many of those striving for financial excellence have asked this same question and debated it.

In response to this question, I would ask "What is passive income to you?" How you define passive income will determine whether or not it can really exist and sustain itself.

Passive = No Direct Value Creation

Many believe passive income to be earning income on investments without having to do anything to earn it. Or, in other words, provide little or no value to receive a lot of value. However, if one owns a rental property and gets paid rent, is that really "passive?" Did you really do nothing for it? If you do nothing, will the income last?

Consider having a business as another example. If you provide tremendous value in a business for months, or even years, so that you create conditions to make money while you sleep, was that a passive event, or were you active in creating it? Do you still have to maintain it?

Do you think Garrett Gunderson put minimal time or value into Killing Sacred Cows to help it sell? If he decided to put little effort and time into it by cutting corners and using no research, what kind of "passive" income do you think he would receive from book sales?

On the other hand, if passive income means working smarter and leveraging your abilities, passions, and talents (Soul Purpose), and others' as well, could that kind of income continue for a longer period of time?

The Law of the Harvest

We violate the Law of the Harvest (sowing and reaping) when we believe that we somehow can reap where we have not sown. If one ever feels that they are getting paid to provide little to no value, that income will not likely last. As a result, it becomes a state of bondage due to uncertainty of the returns rather than financial freedom.

When I have had income streams in the past where I was not certain why I was receiving so much income for providing little or no value, the passive income never lasted longer than a few years. The only income streams I have been able to count on are the ones where I have significant control and contribution.

Some may consider maintaining control and applying one's human life value bondage, but is it really? Who is paid more -- one who provides value for others in a way that few can or one that gets paid doing virtually nothing and has a difficult time understanding why they get paid so handsomely?

With regards to passive income creating freedom, did our Founding Fathers say, "Once we are ‘out of the rat race' then we will begin to fight for freedom?" They declared their independence when they were still subject to King George's rule.

What is Financial Freedom?

Is freedom a state of having or a state of being? Could one ever have enough money to buy freedom? Can freedom be purchased with money? Is it possible that many that have passive income could be slaves to doing investments or businesses that they do not enjoy ? If you do real estate investing only to make money, how is that different than a job? Would you call doing an investment or business only for money "freedom?" If that were the case, couldn't one work a typical full-time job and still be free?

I do not believe that living financially free can be purchased. The only ones I have met that believe this theory are the ones that have never had money. I have had times where I have felt more enslaved with more money than living paycheck to paycheck.

Granted, our minds can be put at ease if we are wise stewards with our resources. We may choose to create conditions that cause more stress and worry, such as living on more than we have means. However, the only way to have financial freedom is to live a life of based on purpose, not a life based on our pocket books.

Freedom is a state of being, not a state of your account balance.

I challenge each of us to put money in the proper perspective as a tool to be used to serve others through our soul purpose rather than money being a master that will command us when we will be free.

To hear more, listen to my podcast about this.

The following are tips that one can do to increase cash flow and identify resources more productively to be applied towards your economic well-being and/or Soul Purpose.  Remember, that one's perspective is more important than just going through the motions. The key is discipline to be productive with the money freed up rather than spending it on consumptive or destructive items. Each of these points can be utilized to recapture lost dollars, but can also be abused in a way that could lead to financial misery.

 1. Track income and expenses and eliminate expenses that are destructive to your human life value and Soul Purpose.  This could include overdraft charges, excessively eating out, monthly charges for memberships that aren't being utilized, etc.

 2. Look to getting some food items by finding deals from local "grocery gurus."  Warning - do not just buy things because they are on sale. However, if you are going to purchase certain items anyway, then see if you can capitalize on special sales. For those in Utah, the web link for weekly specials is http://www.pinchingyourpennies.com/forums/forumdisplay.php?f=62 (Yes, I do think the name of the website is very ironic considering the conversation).

 3. Increase tax exemptions.  If you receive a tax return each year, increase exemptions to receive it on a monthly basis rather than yearly. Consult with your tax accountant to know what number is optimal.

 4. Temporarily pay minimum payments on credit cards and other loans.  If you are making extra principal payments or anything beyond the minimum payments, identify that as a resource. If you do not know what else could be more productive than paying down high interest credit cards, then please put it towards your credit card payments.  If you are paying extra on your loans, be willing to question if that is the highest utility of your dollars.

 5. Consider stopping contributions to 401(k)'s and IRA's.  This may be an obvious choice considering the volatility of the markets. Most would have been better in money market accounts over the last few years, if not the last 10 years.

 6. Sell off any unutilized assets.  This may be time to clean your clutter and get rid of things that are only taking space but providing no utility in your life. Look to sell these off or donate to increase tax exemptions.

 7. Get rid of duplicate insurances.  If you have life insurance tied to certain loans, it will likely be more cost efficient to get an individual term policy. Most life insurance offered through banks or credit unions are expensive for the coverage and benefit the banks more than the client.

 8. Consolidate, refinance, or negotiate lower interest rates on loans.  Many of us can call our credit card companies and ask if they will lower the current interest rates on credit cards or other loans. Try it!  You may be surprised.

For more details and podcasts on the subject, go to the Fire Your Financial Adviser website.

How To Influence the External Economy With Internal Decisions

Every expert in America agrees that our economy is under serious strain. We even hear speculation that the U.S. is headed for another Great Depression. The government bailout of Fannie Mae and Freddie Mac will cost taxpayers $5.3 trillion. The proposed $700 billion bailout of other notable financial firms is a Band-aid approach to a gaping-wound quandary.

So what is the long-term solution? Does the current crisis represent the end of America as we know it? What can you do to contribute to a more secure and prosperous economy? Is it possible for you to prosper in economic downturns?

The first step to identifying solutions is to accurately diagnose the problem. While the reasons are diverse, our current predicament is the product of three primary factors, on three different levels: 1) the government manipulates the economy with the money supply, creating artificial demand and warping natural market forces, 2) corporations have been guided by shortsighted greed, and 3) average Americans consume more than they produce.

Since corporate behavior and government policy represent individual action, the only long-term solution to America’s economic woes is for individuals to be the change they wish to see in the world; to focus more on their internal economy than on the external economy.

Internal v. External Economy

The external economy represents everything outside of you: GDP, the Federal Reserve, international trade, supply and demand, manufacturing, etc. Your internal economy is the sum total of the value you offer to others minus the factors that limit your production. It is your human life value—your knowledge, skills, abilities, relationships, confidence, etc. It is what happens within you that determines your material and spiritual prosperity, or lack thereof.

Our pressing crisis hasn’t happened in a vacuum; it’s the result of a steady shift in culture, based on personal, internal decisions. We can blame the government and corporations all we want, but government agents and corporate executives are common Americans like you and I, doing common things. There’s little you and I can do to influence government policy during this crisis, but there’s an infinite number of things we can do to ensure security and prosperity regardless of what happens in the external economy.

Do you want to learn and grow, or complain and wallow in the misery? If you choose the former, then it’s time to grow your internal economy. But how, exactly, is this done? Your personal economy will be strengthened and vitalized by living the following five principles:

1. Entitlement is the enemy of prosperity.

Stop waiting for someone else to solve your problems and give you economic security. Contrary to New Deal lies and cradle-to-the-grave propaganda, the only things you’re entitled to are life, liberty, private property, and the pursuit of happiness. The government owes you nothing but the protection of your unalienable rights. Corporations can give and take benefits as they please.

Your suffering during hard economic times will be directly proportionate to the degree to which you feel entitled to “security” and benefits from any person or institution. You’re entitled to the fruits of your own labor and ingenuity—nothing more or less. Don’t abdicate your responsibility to prosper to funds that you don’t understand, investments that you can’t control and that are not collateralized, and managers that you don’t know. Take full responsibility for your money and your life.

2. Produce more than you consume.

The average American—while complaining about the federal budget deficit—spends more than $1.20 for every dollar that he earns. Contrary to the crippling myth that “consumer spending drives the economy,” production drives the economy. Production—creating value for others in a way that they compensate you for it—is what gives any individual or entity the ability to consume.

You can’t control government spending. But you can control your own. Spend less than you earn. Never, ever borrow to consume. Pay off consumer debt as fast as you are able. Cut up your credit cards if that’s what it takes. Increase your production through education, better marketing, a career change, etc. Save and invest ten percent of your income. Do whatever it takes to ensure that your home economy produces more than it consumes; this is the best way to fight inflation.

3. Value creation comes before desire fulfillment.

Who has more money—you, or other people? Obviously, other people. How can you get others to give you money? By providing something to them that they value more than their money. Greed and selfishness are at the basis of so many of our current problems. The wise understand that they can only get what they want by first focusing on what other people want; they are still self-interested, but they are not selfish.

What do you have to offer that other people want? What suffering exists in the world that you have the ability to alleviate? What do other people need and how can you provide it efficiently? Dollars follow value—creating value for others is the only legitimate way to meet your own needs.

4. Integrity is worth its weight in gold.

Corporate executives are being caught in lies like flies to honey. But what about you? Are you going to unfairly take advantage of others in the name of “Everyone else is doing it?” Or will you take the road less traveled and be a person of your word, a person who others can trust in and rely upon? Does your private life reflect your core values?

When times are hard, people look for stability. Integrity provides stability of character, drawing others toward you. Integrity alone is a magnetic marketing tool and will boost your ability to influence and serve others, and therefore profit in spite of crises.

5. Find and live your Soul Purpose.

Soul Purpose is your unique set of talents, abilities, values, and passions applied productively and effectively, making tremendous impact upon the world and bringing the highest levels of joy and fulfillment to you and everyone you touch.

You were born for something wonderful. Are you doing it? Do you love to get up every morning? Are you energized by your career? Does it continually stretch you to achieve your fullest potential? Are is it time for you to choose something different?

Prosperity is much more than dollars, investment accounts, and toys; it’s the internal joy that you experience by applying your best work to pressing problems. Soul Purpose is the best long-term investment.Find what you were born to do and do it—your prosperity will increase exponentially.   


The problems we face are big—which means that there’s now more opportunity than ever to create value by alleviating suffering. Big problems require bigger solutions, and bigger solutions pay bigger dividends. The positive side of the financial meltdown is increased awareness; there is now enough pain for us to course-correct and overcome the economic myths of the last century.

The solution isn’t to elect new leaders any more than changing drivers on a broken car makes the car run better. The solution is for common Americans to reform the economy from the inside out by eliminating the entitlement mentality, producing more than we consume, creating value for others, developing impeccable integrity, and living Soul Purpose. If you don’t know what to invest in—especially during hard economic times—your best bet is to invest in yourself through education. After all, the external economy is nothing but a reflection of the aggregate of internal economies.

Garrett had a great opportunity to be on the KTLA Morning News. Watch the video.

Garrett had a unique oportunity to be on the FOX News show "Your World" with Neil Cavuto. Here is the video:

By Chris Miles  

This is an essay I recently wrote about independence which I feel pertains to our discussion of overcoming myths and becoming financially free.

Could independence be no more than freedom from oppression and domination? Conversely, is independence merely unobstructed freedom to do anything we desire with no fear of intentional or unintentional consequences? Absolutely not! The more freedom we expect, the more responsibility we inescapably accept.

Today, we see a pandemic paradigm governing humans to blame anyone when things go awry. Thomas Jefferson proclaimed, "Timid men prefer the calm of despotism to the tempestuous sea of liberty." Why do we shrilly scream for independence and utter whining whispers at the first sight of responsibility?

To many, independence means to be "in dependence." They fancy others slavishly sowing so they can slothfully reap. They "fight" for freedom, but ultimately, beg for bondage. They want what has never existed - freedom from consequence. Indisputable independence is the freedom to pioneer one's path and be accountable for the destination.

My challenge is to consider what areas of our life and finances are we not taking on responsibility. Are we blaming market events, investors, financial institutions, oil companies, politicians, etc for our problems rather than creating solutions? Why can we see so clearly others' errors which are somtimes trivial and are so blind to our own destructive faults? What possibilities would arise if we focused the energy we waste complaining and repeatedly pointing out others' mistakes towards production and creating greater happiness and financial freedom through discovering soul purpose? What blessings are we failing to see because we focus more time and energy on the lack thereof? I challenge each of us to objectively ponder these questions, journal our responses, and identify ways to further focus on our financial independence.

“Over the years, an investor’s financial objectives and tolerance for risk may change. An investor with a longer time horizon may be willing to take more risk for potentially greater reward than one with a shorter time horizon…Generally, the riskier the investment, the greater its possible reward.”

-Taken from a marketing piece of a leading financial institution

How can you increase your investment returns? Is it by increasing your risk, as so many financial professionals and institutions teach?

To say that to increase your returns you must increase your risk is like saying that if you want to increase your chance of winning you must increase your chance of losing. It makes no logical sense.

Peter Drucker, widely known as the "father of modern management," shares a story in his book Innovation and Entrepreneurship that drives the point home. He writes:

"A year or two ago I attended a university symposium on entrepreneurship at which a number of psychologists spoke. Although their papers disagreed on everything else, they all talked of an 'entrepreneurial personality,' which was characterized by a 'propensity for risk-taking.'

"A well-known and successful innovator and entrepreneur...was then asked to comment. He said: 'I find myself baffled by your papers. I think I know as many successful innovators and entrepreneurs as anyone, beginning with myself. I have never come across an ‘entrepreneurial personality.’ The successful ones I know all have, however, one thing—and only one thing—in common: they are not ‘risk-takers.’ They try to define the risks they have to take and to minimize them as much as possible. Otherwise none of us could have succeeded.'"

Drucker continues, "This jibes with my own experience. I, too, know a good many successful innovators and entrepreneurs. Not one of them has a 'propensity for risk-taking.'

"Of course innovation is risky. But so is stepping into the car to drive to the supermarket for a loaf of bread. All economic activity is by definition 'high-risk.' And defending yesterday—that is, not innovating—is far more risky than making tomorrow. The innovators I know are successful to the extent to which they define risks and confine them…Successful innovators are conservative. They have to be. They are not 'risk-focused'; they are 'opportunity-focused.'” [emphases added]

Never accept the propaganda that you must be willing to stomach high risks in order to achieve high returns. The truth is exactly opposite—the better you can mitigate your risks, the higher will be your investment returns. There is, in fact, a direct relationship between risk and reward, but that relationship is what financial institutions practice themselves, not what they want the public to believe.

Does the science of economics have real application in your life, or does it seem like a topic reserved for college professors and "experts?"

The word economics comes from the Greek words oikos (pronounced ee kos) meaning home or house, and nomos, meaning name, organization, or management. To the Greeks, an "oikonomos" is a manager of a home. Economics isn't about charts, graphs, interest rates, and index funds. It's about what you do on a daily basis to create a profitable, thriving, and sustainable home life. It's about learning to create value for your family. An oikonomos is a producer in his or her own home before and above all else.

The science of economics, then, is much closer to home that you may have thought. Be a wise and productive steward of your home and that will be reflected in society. Be the economist in your life.