Recently I was wracking my brain on what I could do in order for my money to work even more efficiently for me than it has been. You know, work smarter not harder?
The problem is that, like you, I work a 9-5 and only have limited time to pull something like this off. It’s all on me and what I could figure out.
Luckily I have some partners and mentors I learn from and wanted to pass this onto you.
I was working on a really simple deal that increased my cashflow literally out of thin air that I thought you might want to hear about and take advantage of yourself.
It’s a technique that I learned about from my partners and from Robert Kiyosaki when they talk about “Phantom Income”
Kiyosaki says that phantom income is “the phantom income from debt is the time and money you save renting money rather than working to earn it, paying taxes on it, and saving it.”
So what exactly does that really mean?
It would be best to run you through a recent example of how I used this in my own personal finances.
Recently I finished re-financing a group of properties that I own. Interest rates right now are at an all time low and I just couldn’t pass up on the change to take advantage of them.
What did I do exactly?
I refinanced about $340k worth of debt into a much lower interest rate and it did two things for me:
#1) Lowered my payment on that debt by roughly $200 per month.
#2) Pulled enough equity out of my assets to purchase two more properties, each of which will net me roughly $250 per month over the life of me owning them.
When all is said and done, I’ll have increased my cashflow (which I’ve been talking about with my online family for a while) by roughly $700 per month.
Not an enormous win, but as I keep hitting financial “singles” like this over and over I keep increasing my monthly cashflow one step at a time.
The kicker? Between the phone calls and paperwork it took me to set things up, I spent maybe 5 hours total over a couple months to pull this together and I didn’t spend one single dime out of pocket to do so.
As Kiyosaki says, “Phantom Income”.
With this strategy, anyone with a little bit of equity can flip it and generate more cashflow for yourself.
Kurt “Phantom Income”