How to Turn Active Income into Passive Income with the Passive Income Operating System with Joey Muré

0:01Boom! Shake the room, Fire Nation. JLD here and welcome to Entrepreneurs on Fire. Brought to you by the HubSpot. Podcast Network, the audio destination for business professionals with great shows like Truth, Lies, and Work. Today, we'll be breaking down how to turn active income into passive income with a passive income operating system. To drop these value bombs, I have brought Joey Murray into EO Fire Studios. Joey is the co-founder and partner at Wealth Without Wall Street, an online community that seeks to re-educate business owners and families on how money truly works. Wealth Without Wall Street exists to help people who want to become financially free without ever having to invest through Wall Street or becoming debt-free.

0:42In today's foundation, we will be talking about creating financial freedom, organized storing, automating, the key characteristics of the perfect place to store cash, and oh so much more. And a big thank you for sponsoring today's episode goes to Joey and our sponsors. The Next Wave, your chief AI officer, hosted by Matt Wolf and Nathan Lance, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals, AI technology is transforming the way we do business and the media landscape is fragmented. The Next Wave strives to be the leading podcast on AI technology and how you can apply it to growing your business.

1:17Listen to The Next Wave wherever you get your podcasts. Joey, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with. What's up, Fire Nation? Man, I am so fired up to be with you today. And I'll tell you what I have done with my business partner over the last 15 years is create financial freedom. And the thing I would tell you that most people would disagree with is that you shouldn't do what I've done to have the same result of getting to financial freedom by investing in the same things that I've invested in. That is the difference.

2:01Most people say, oh, well, Joey and Russ invest in raw land and they've done a short-term rental business and they do private lending. That's what I should do. But instead, you miss the point that you need to invest according to how God has created you to see the world and do it in accordance with your unique investor DNA to get to financial freedom as fast as possible. Fire Nation, I hope you can tell that this is going to be a special episode. We'll be talking and focusing a lot on how to turn active income into passive income with the Passive Income Operating System, P-I-O-S. Now, Joey, you and Russ started Wealth Without Wall Street to share with people the way to get financial freedom as fast as possible because we don't want to wait around.

2:49Why would we? So why was financial freedom important to you? Tell us that story. Man, I'll tell you. I actually started my career in the mortgage business. And for any of you out there who have been in the real estate or mortgage or high commission sales job or even business owner role, you know that it feels like a hamster wheel, right? You get this great income. It's high income, but it's like if I ever take my foot off of the pedal, what happens? The whole thing comes crashing down. And in my world, that was, I have to be available for those realtors to send me the next referral. And I remember a JLD, just like it was yesterday, being at the beach with my family, the people who I said I was working so hard to provide for.

3:45And me saying, by the way, I have five daughters, JLD. So my wife and five daughters, they're at the beach. This is their happy place. And I say, Hey girls, why don't you go down to the beach? I just have to take this one more call. Right. And then three hours later, I'm walking behind the condo on that beach on the boardwalk to the beach. And there's my family walking the opposite way and their faces tell exactly what they're feeling. Like you're here, but you're not here, right? You're not present. And man, for me, it was that just gut wrench that, man, I am working so hard because I don't have money at work.

4:31Like I'm the only asset at work. So for me to stop working so much, I've got to have my money creating money. That's where that passive income idea really came from. Fire Nation, many of us listening, myself included, have been in a situation very similar to that. And that's why sometimes we want to say, hey, how could I work really hard during a set period of time so that I don't have to be turned on when I want to be on vacation or, you know, when the day is over and my family's there or that, you know, sports game is on and I want to spend it, you know, with my son or my daughter or someone in my family or friends.

5:12And there is a reason why the tagline of my book is 17 Steps to Financial Freedom and Fulfillment. Because I know you, Fire Nation, want both of those things. You want financial freedom, but you want the fulfillment that comes along with the right kind of financial freedom. So they know, Joey, that we need both money and passive income to create that financial freedom. So since we have the knowledge, where the heck is the gap? Why aren't more people creating financial freedom? Man, I think it goes right back to the same analogy of why are more people in America overweight right now? It's not that they don't know that exercise is important or diet is important.

5:57Those are the key components. But why is it that they don't lose weight? Why is it that they are unhealthy? The reason is because they don't have a system that they're following. And that to me is the difference maker because as soon as you can put something on autopilot, or in many cases, you create habits that create outcomes for you and results, that is really the difference maker in my opinion. Fire Nation, we're here to talk about difference makers. And Joey, one thing that you and I kind of chatted about pre-interview was being transparent, being open, being honest with people who are consuming our content.

6:41And I've been doing now for 132 months in a row, a monthly income report where I share every dollar I make, every dollar I spend, my mistakes, my successes. I bring a lawyer on, an accountant on to give a tax tip and a legal tip and to verify everything. and you actually did share that you were a little bit inspired by that years and years ago when you saw me speak at a conference and now you and Russ actually share your passive income numbers every month and you've reached over 50k per month so give us the three steps to building such a system before I do the three steps I do want to give you the shout out because it was such a like new way of thinking for us to see like, man, JLD is literally putting himself out there.

7:28Like, if you are going to be in a position of influence of others, if you're going to be in our position, like we saw it as, man, we're interviewing all these people on these passive income ideas on our podcast, which ones of those are actually working? Which one of those are just fluff? and how do we help people really kind of discern the difference? And it was kind of like, well, we got to do it. Like we have to be with, you know, Russ is from Montgomery, Alabama. So he said, we got to eat our own dog food, you know? And I love that about him. He's so country. But anyway, the point is, is we had to be about putting that out there every month so that it's not just talk, it's actual action.

8:15and like we owe it to the people who are looking for these ways to get to financial freedom and get away from wall street so anyway that's just before i talked about the steps um thank you for giving us that kind of example and um is showing us that's a way to really be you know transparent with people but to get to those three steps man it really comes down to you have to organize then you have to store and then you have to automate. So if you're going to organize your cash flows, they have to be in light of what's going to get you to financial freedom as fast as possible. And I can dive into that if you want me to, but that's kind of the first step.

8:59Yeah. Let's go through the three steps and maybe give an example of what that looks like in the real world. Well, I'll tell you as a business owner, this is really going to hit home because we're really good at making money, but sometimes we feel cash poor, right? Income rich and cash poor is what I like to think about. And usually that comes from the fact that, man, we have all this money that we leave in our business because we don't know for several reasons. One, it may be because once it gets into our personal accounts, we spend it. We don't have the right kind of governor on our spending, or we don't know what our expenses are.

9:38So we just kind of put it in there and this hodgepodge of where all the money's going in and coming out, and it gets lost in the shuffle. Or it could be that we don't know what to invest in. We're not an investor, we're a business owner, but we don't know what to invest in. And so what do we say? Well, I'll just reinvest in my business. I'll leave it in the business. I'll put more money towards marketing, more money towards people and systems and other things, which is good. Don't get me wrong. But it doesn't get you to financial freedom if you don't start making that money work for you outside of the business.

10:15And so that's the third thing about it would be is sometimes people leave money in their business because they don't want to be taxed on it. They think, if I leave the money in my business, I won't be taxed on it. And sadly, as you know, JLD, Most people that are listening right now, that doesn't work for them. They're going to be taxed regardless. And so the real concern is, man, let's get the money from our business into our personal life. And then let's organize those cash flows to where I only spend what I have to spend. And everything else I can then put into my new passive income operating system.

10:55Fire Nation, systems are key to everything. What I love about what Joey and Russ have done, they've created a system. It's simple, but it works and it can be followed in a step-by-step process. And we're really going to be talking about a lot more around this system when we get back from thanking our sponsors. But before we take a break, Joey, is there anything else you want to add about this process? This is an audio show, so you're not going to be able to see physically what we're talking about. And so just as a part of this, JLD, I want to give people a free ebook that they can access all of these steps on paper, like on their screen so that they can follow it step by step.

11:37Well, I love that. And let's get the URL right now. Of course, Fire Nation will have it at the end of the show and on the show notes page too. But right now, what is that, Joey? It's wealthwithoutwallstreet.com forward slash EO Fire. And this is going to be free Fire Nation for you to consume to make sure that this is something that feels right for you before taking any steps forward. And we have more to talk about when we get back from thanking our sponsors. Picture this. You're at a party and someone asks you what you do as a marketer. How do you even begin to describe it? Not only do you brainstorm new campaigns, create compelling copy, dream up landing pages that will actually convert and generate leads.

12:17you also have to gather all the data to make sure it's even working. And tomorrow, you'll do it all again. Marketers are spread way too thin, but HubSpot has a better way. With the help of Breeze, HubSpot's collection of AI tools and features like Content Remix, you can turn one piece of content into a whole suite of assets. This helps you reach more potential leads and save time on creating new content. You can also pinpoint the best prospects with predictive lead scoring and level up your campaign's KPIs with a new analytic suite. so your day-to-day becomes less busy work and more driving revenue through the roof.

12:52And most importantly, you'll have a way easier time describing what you do at parties. Visit HubSpot.com slash marketers to learn more. You're a startup founder. Finding product market fit is probably your number one priority. But to land bigger customers, you also need security compliance. And obtaining your SOC 2 or ISO 27001 certification can open up those big doors. but they take time and energy, pulling you away from building and shipping. That's where Vanta comes in. Vanta is the all-in-one compliance solution, helping startups like yours get audit ready and build a strong security foundation quickly and painlessly.

13:28How? Vanta automates the manual security tasks that slow you down, helping you streamline your audits. And the platform connects you with trusted VC SOs to build your program, auditors to get you through audits quickly, and a marketplace for essentials like pen testing. So whether you're closing your first deal or gearing up for growth, Vanta makes compliance easy. Join over 8 ,000 companies, including many Y Combinator and Techstar startups who trust Vanta. Simplify compliance and get$1 ,000 off at vanta.com slash fire. That's V-A-N-T-A dot com slash fire. Joey, we're back and I want to talk about something that I think a lot of people have actually never even thought about before.

14:09using a P &L statement in our personal lives, not just our business, that will fast track our path to financial freedom. So talk about that P &L statement. Man, if you're a business owner, you know better than anybody that you live and die by a profit and loss statement every single month. This is your scorecard. How did we do? What was our income? What was our expenses? What is left over? That is the key, is if I don't know that I have a profit. What am I even doing? I didn't start a business to make money for a business. I started to make a business to make money for myself. And this is that really key thing.

14:52But the funny thing is, JLD, was what we find with thousands of owners, entrepreneurs, is they don't have the same consistency when it comes to their personal lives. right? They don't run their family and their personal finances by a P &L statement. And I think that's a huge miss because at the end of the day, if I have money going into a checking account that everything is flying out of, my mortgage is due, the daycare is due, the credit card is due, and they're all at different times of the month, and I don't have any true understanding of what's left over, that means I'm the last one at the trough.

15:33That means I don't know how much I can save, how much I can invest. And that is one of the biggest hurdles to getting financial freedom is because I don't know what I have to work with, the raw materials to then start investing to create that passive income. That's a huge miss for most entrepreneurs. Fire Nation, I don't want you to have that miss. So I hope you're understanding what Joey's talking about right here because having that understanding and then really being able to implement a plan to execute on is critical. But now I really do want to talk about the key characteristics of the perfect place to store cash.

16:13Because I think a lot of people don't even think about this more than, well, I'm just going to keep dumping everything that I earn into the bank. I'm just going to get my 2%, 3 % return if I'm lucky and just kind of go with that. But talk to us about this. The ideal here is once we've done that first step and identified what is our family P &L, what is left over every month, that is then it begs the question, what's the best place to put it? What are the characteristics? Well, in order to get to financial freedom, we're going to identify and define that as when your passive income exceeds your monthly expenses.

16:53Your passive income exceeds your monthly expenses. Well, what does that mean? That means it immediately gets rid of things like qualified plans, right? 401ks, IRAs, 529 plans, you name it, all the alphabet soup that you've been told are good for you. They are the absolute opposite of getting to financial freedom today. Because why? Because of one key characteristic. They're not liquid, right? You can't get access to the money. If I go ahead and take every excess dollar that's in my family P &L and I put it into a 401k because I want to save money on taxes, I've now locked that money up until I'm 59 and a half.

17:35Well, if you're 35, if you're 40, do you really want to give up the next 20 to 25 years of your life? Absolutely not. So your characteristic has to be liquid. It has to be protected. In other words, I'm not going to put it in the stock market and lose it tomorrow. Right. That it goes against the idea of creating passive income. And then lastly, I want it to be tax efficient. I want the government to come in and take over and over and over from me because it just reduces how fast I can get to financial freedom. And so what we've really discovered, JLD, over the time is, and we learned this 15 years ago from a book called Become Your Own Banker, is that, man, don't overthink the recipe.

18:23Where do big banks, where do massive wealthy families store cash? Well, they do it in billions of dollars, with a B, in high cash value life insurance by mutually owned companies. And you may think, that's crazy. Like, why would anybody do that? And the reason is because it has all those characteristics we talked about. It's liquid, right? It's protected. It's tax efficient. And even more so, it allows you to have the key component to building wealth, which is leverage. I can borrow against it at any time for any reason to invest in the assets that produce cash flow back to my family. So there's a whole lot more behind that.

19:08And our ebook actually has some free training about this whole concept called infinite banking, which is kind of behind this whole part of storing cash. But that's kind of what we have used to get to where we're at. Fire Nation, one thing that I always say is follow the smart money. What are the smart people doing? What are the successful people doing in this world? Let's follow them. Now, we hear from the Ramseys of the world, like pay down your debt, you need to get rid of all of your debts. Talk to us. Does debt freedom equal financial freedom? Absolutely not. And I'll just keep it super simple.

19:45If the formula is passive income greater than monthly expenses, well, let's think for a second, if you've paid off all of your debts, don't you still have to pay taxes on your property? Don't you still have to pay for groceries every month? Don't you still have to pay for utilities? Like the cost of living never goes away. So if all I've done in my life is focused on paying off debt, I still am not in a position to get to financial freedom if I've never worked on the other side of the equation, right? If I've never worked on actually building passive income, then I never will get to financial freedom.

20:27So it has to be a little bit of both. And I'll tell you, if you ever played the game cashflow that Robert Kiyosaki came out with, the people that win in that game and the people that win in this game that we're talking about right now, focus on passive income. Fire Nation, if smart people are focusing on passive income, I think we should be too. Now, Joey, bring us home. What is the one thing, the key takeaway that you want to make sure Fire Nation gets from our conversation today? And then give us that call to action one more time where we can get your free ebook, and then we'll say goodbye. At the end of the day, you owe it to yourself, you owe it to your family to start taking the income that you've created, this amazing active income as business owners, as entrepreneurs, and start to systematically turn that active income into passive income.

21:22If you follow the steps that we outlined today, not perfectly, like if you go and download this ebook, which I'm going to give you, you can literally put this at work for your life right now and automate it in such a way where you have automatic transfers, you have sweep accounts and all of these things working on your behalf. you will be able to look up in a few years and say, man, look at the difference it's made. Look at the time. It saved me. The amount of opportunity I can now invest in my family, these years that are flying by as my kids get older and older. And man, I'm so glad I slowed down to create a system to get me there.

22:06That system you can get again at wealthwithoutwallstreet.com forward slash EO fire. And again, within there, you have access to the investor DNA profile. You have access to our infinite banking 101 course. All the things that we've charged money for good money for are now included in that ebook for free. So I'm prayerful that this will be the game changer that you've been looking for. Fire Nation, we're looking for game changers on this podcast. So hey, what's it going to take to actually go to the URL, get the free ebook and learn more? Just your time, your energy. And if this is something that's going to make an impact in your life, it is worth that time.

22:49It is worth that energy. Because you're the average of the five people you spend the most time with. You've been hanging out with JM and JLD today. So keep up the heat. And for links to everything we talked about, visit eofire.com. Just type Joey in the search bar and the show notes page will pop right up. And Joey, thank you for sharing your truth, your knowledge, your value with Fire Nation. For that, we salute you and we'll catch you on the flip side. Hey, Fire Nation, a huge thank you to our sponsors and Joey for sponsoring today's episode. And Fire Nation, successful entrepreneurs accomplish big goals.

23:21That is why I created the Freedom Journal to guide you in accomplishing your number one goal in 100 days. And we're talking step-by-step. Visit thefreedomjournal.com and I will catch you there or on the flippity-flip side. The Next Wave, your chief AI officer, hosted by Matt Wolf and Nathan Lance, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. AI technology is transforming the way we do business and the media landscape is fragmented. The Next Wave strives to be the leading podcast on AI technology and how you can apply it to growing your business.

23:53Listen to The Next Wave wherever you get your podcasts.

24:03Thank you.