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.

“Riches secured on the competitive plane are never satisfactory and permanent; they are yours today, and another’s tomorrow. Remember, if you are to become rich in a scientific and certain way, you must rise entirely out of the competitive thought. You must never think for a moment that the supply is limited. Just as soon as you begin to think that all the money is being “cornered” and controlled by bankers and others, and that you must exert yourself to get laws passed to stop this process, and so on; in that moment you drop into the competitive mind, and your power to cause creation is gone for the time being; and what is worse, you will probably arrest the creative movements you have already instituted.” - Wallace D. Wattles

How does your paradigm affect how you treat yoursef and others?

Scarcity is characterized by adversarial, win-lose relationships. When people compete in scarcity they try to do so at the expense of others. Those in scarcity say or believe things like, "It's a dog-eat-dog world," or, "If you want a piece of the pie, you have to take it from other people." They feel they have to take from others to get what they want. They believe that there are never enough resources to serve all human desires.

In abundance, however, you fulfill your needs and wants by helping others to fulfill theirs; it’s always win-win. In abundance all your thoughts, speech, emotions, and actions are motivated out of love and faith. You look for opportunities to serve and give, rather than to take. You know that helping others to get what they want is the best way to get what you want. You know that there are always enough resources to fulfill all human desires.

Scarcity leads to pride, jealousy, envy, selfishness and covetousness. Abundance, on the other hand, leads to humility, confidence, and service. You cannot be jealous or envious of someone’s looks or money in abundance because you know that there are infinite forms and expressions of beauty, and infinite wealth to be accessed and utilized.

Those in scarcity often feel threatened or insecure when people disagree with them. Those who are the most secure are enjoying a high degree of the abundance paradigm. When you are in abundance, you don’t feel insecure about anyone disagreeing with your views, even if they are wrong and are at direct odds with principle.

The more abundant you are the more secure you are, and when you feel secure you are more able to get outside of yourself and listen to and deeply understand others. This in turn dramatically increases your ability to get others to listen to you. As James Allen said, “The more tranquil a man becomes, the greater his success, his influence, his power for good…The strong, calm man is always loved and revered.”

Become a "strong, calm" man or woman by ridding yourself of scarcity thinking and embracing the abundance paradigm.

“A person can have many talents and gifts and do many things exceptionally well, but your vein of gold, ah...That is the thing you do superbly.”     -Julia Cameron  

America's earliest citizens believed in an ideal that they called Providence, which is something that has been largely forgotten today. To believe in Providence means two things: 1) You believe in a Creator that governs, and 2) You believe that you were born with a unique mission that you alone can perform, and that the world suffers if you don’t fulfill your mission.

Providence is having a relationship with your God that gives you the faith and motivation to fulfill your unique mission regardless of the consequences.
Another way to say Providence is “Soul Purpose.” Soul Purpose is your unique set of talents, abilities, and passions applied productively and effectively, making tremendous impact upon the world and bringing the highest levels of joy and fulfillment for you and everyone you touch. It’s the mission that you were born for; it’s what you would do every day even if you didn’t get paid for it. When you’ve truly found your Soul Purpose, you create so much value for others that you’re almost inevitably paid very well indeed.

How do you know if you are living Providence and Soul Pupose? A good indication of that is if you can't wait to jump out of bed and begin every day with excitement and purpose. If you find yourself dreading going to work you know that something must change.

The best thing you can do for yourself and for society is to find and develop your passion--to revive the spirit of Providence in your own life and live your Soul Purpose.

Recommended Resources to Help You Find Your Soul Purpose:

Kolbe A Index

Strengthsfinder

Enneagram Institute

Do you serve people as they want to be served, or as you would like to be served?

A young boy and his father were once shopping for a Mother's Day gift. The boy eagerly found toys and asked his father if they could buy them. "No," came the reply, "We're shopping for a gift for Mommy today." The boy quickly answered, "I think Mommy wants an action figure!"

Too often we project what we would like onto others. The Golden Rule says to treat others as you would like to be treated. But the Platinum Rule says to treat others as they would like to be treated. To live this higher law we must get outside of ourselves to ascertain the needs and desires of others.

Value follows value, but if we want this principle to apply in our lives we must give to others the value that they want to receive, not the value that we want.