Billy Keels  00:00

Today's conversation is sponsored by first generation Capital Partners. If you're an accredited investor, and you want to know about how we're helping other accredited investors keep more of their income, go to firstgencp.com forward slash going long.

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00:12

You're listening to the going long podcast with Billy keels, the number one podcast for long distance real asset investing.

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Billy Keels  00:22

Welcome to the going long podcast, we're back once again to continue to help to educate you so you feel much more comfortable as well as confident investing beyond your backyard. And yes, I'm your host, Billy keels. And I'm really looking forward to today's solo episode. So this is one of the solo episodes, we're gonna get out there, I'm going to share a couple stories with you and hope to help to move you forward faster. And also just really quickly want to say thanks to everybody who continues to screenshot share across social media, your thoughts about the going long podcast, don't forget to tag us when you're you know, when you're doing those screenshots on LinkedIn, or Instagram, or whatever the case may be, because we'd like to be able to respond to you. It's one of those things that we really, really appreciate. So also too, if you want to leave an honest written review, as well as writing, go ahead and do that. And if you want to check out any of the previous episodes, just go to first gen cp.com forward slash podcasts. So one of the things that I been doing, as I talked about the solo episodes is I want to make sure that I'm also recognising you, because you continue to leave your honest written reviews as well as ratings. And I just want to be able to share that, like I said, these are shared across multiple, almost 40 Some countries at this point in time, which is actually phenomenal, and continue to have 10s of 1000s of downloads. So I want to share today's comment, and this comes from serving with class and style. And the honest written review here says Billy is here to help. I'm very appreciative of Billy's approach to his craft and his desire to help others achieve their, the life of their dreams. He's very easy to talk to and get to know I really love his candour and thought behind the questions he asked us to help his listeners and encourage them to take the right action. I had so much fun sharing with Billy what I love to do. And I'm thankful for the opportunity to share my story to help others. So serving with class and style, it sounds like you were a previous guest as well. So really appreciate you sharing that. And also to hey, listen, if you want to have your honest written review, read and shared across multiple countries, feel free to leave that and we'll share it here as well. But today, I want to talk to you about something that actually even talked a little bit about in episode 235, when we talked about what to do to increase your education around money. Today, I really want to come back to this whole concept of understanding your income, because it is something that really costs me a lot of time, energy and effort. And had I been clear on this concept earlier, it I probably would not have spent 26 years in the corporate world, I would have been out of the corporate world much sooner. But I didn't really understand this concept to help me to feel free and to make my nine to five optional. So the thing that I want to share is it goes back to in terms of being able to understand your income, right bringing it into today was one of the things that I saw growing up was I watched my parents constantly work, you know, many times multiple jobs. And so as I watched them work, it was always a question of how much how many more hours could they work because more hours meant more income, meant more money coming into the house to pay the bills, and all that kind of stuff. So growing up when I saw that, that was just kind of inherently in what I did. So I started in one of my very first jobs. I was 12 years old. And I started working because I was delivering newspapers like the typical movies, right? I was the guy who was delivering the community newspaper and they would get delivered, I'd wrap them up and paper and sit in the living room and I can then go out on my bike and throw them out and deliver them to people's doors. afterwards. I wanted to get a moped so I started working and I wanted to work and I knew that I had to work more hours I was working at Burger King at the time and so more hours meant that was going to get closer to getting my getting my my moped. And then even after that I started delivering I started selling knives door to door like Cutco cutlery. Amazing, right. So I was doing this all these different jobs, but always thinking the more hours that I worked in, the more time that I spent on that the more income that I would have. And it actually wasn't even until my late 30s. Right, that I started recognising that there were I started as I started getting closer and closer to real estate, specifically in terms of hard assets. I started recognising hearing that, you know, real estate was going to do all these great things. And it was going to help to create more income that I could control, which was something that I really, really liked. income that I could control, right, that was like ding ding, ding, ding, this is fantastic. This is something I'm like, and then the icing on the cake was it was also going to lower my taxes, or at least that's what I heard. That's what real estate was going to do for me. And so as I started to recognise this, and I started recognising, well hang on a second. It sounds like they're talking about different types of income. And this is in my late 30s. And as I started recognising it, I started hearing it, but I didn't actually even understand it until my 40s Right, because I started reading books like Tom wheelwright to tax free wealth and I heard about things like pigs and pow wasn't which are passive income generators and passive activity losses and how these types of passive income streams work with one another. And so that was one of the first lights that went off. And I thought, Well, okay, well, this is passive income. And then I was working at my job, and my day job and I was, you know, earning more income. And I recognise that, hey, listen, this is going to be absolutely phenomenal, because I'm making more income, but it was earned income from my job. And so I started recognising that the thing that was bringing me the highest return giving me the highest return on my time was without a doubt, when I got started was my day job. Great, because I was a high wage earner, I found out that I was an accredited investor. And I think we've talked about that before. And if not, you can check out our blog at first ncp.com forward slash blog. And we talked about accredited investor and what that is, I found out that I was an accredited investor later. But without a doubt, the best return on my time, because this is what I was thinking about before as well was going to work in my day job, which was earned income or active income. The assets that I had now started investing in the small multifamily the the development projects, the hotels, the value, add real estate stuff that I was investing in ATM machines, these things that I started investing on early on these assets, eventually, energy equipment began to also provide income, most of that income was designated as passive streams of income. So in my mind, I was thinking, Okay, after all these years, I started noticing a few things. Because number one, I was still working my day job, right. And I was working my day job, I was high performer, I was, you know, going to Hawaii because of the achievements. And in also, because of this, the income that was coming in the bonus checks that were coming in. These were fantastic, because I was feeling that the highest return on my time was through my going to my job. At the same time, I started recognising that over a number of years, that the things that I'd heard about my multifamily. I recognised that, you know, in the first couple of years, because they were multifamily value added projects, the preferred returns that I was expecting, they weren't happening early on, because while it takes time to develop a project, execute a business plan. But eventually, once that stuff started happening, the income began to come in after a couple of years, or in the development projects that I was investing in, by their very nature, you're really playing for more upside. In the beginning, the first couple years, there's no money because, well, they're developing the project, they're constructing things like that. But after a while, I started recognising that these passive streams of income through the real estate that I was investing in, they were extremely tax efficient within that specific investment. But I was confused because I was still paying 40 plus percent in taxes on my income tax. So it wasn't actually lowering my income tax bill, it was making the passive investments that I was investing in, it made them much more efficient. And why is that important? Well, what that helped me to start to do was saying, Okay, well hang on a second, what are some of the different these are different types of income? Like, it wasn't making sense? So I invested money with my tax strategist, my tax professional, because I wanted to understand like, why are these passive incomes and like streams, not lowering my my income tax. And that's when the light really went off. Because he explained to me that these are different buckets of income, you have your active income or non passive income, which is what the IRS looks at. And that is really the stuff that I'm doing. When I was going to my job, my day job, the bonus checks the checks every two weeks, or every month for me at the time. That was all non passive or active income, the things that I was investing in, were generating passive income. And typically, there's very, there's a very specific exception, but these these buckets don't normally mix. And so once I realised that, and I invested with my tax professional to help me help him, have him help me understand the difference, then I started asking different questions. Right, it was now that I was clear on because I wasn't clear. Imagine this up until my 40s. I wasn't even clear that the different types of income interacted or didn't interact the same because I kept getting money. And I thought it was all the same. But the way that we generate our income is very, very different. So once I started understanding how I could effectively utilise and leverage the job that I was working in during the day, and that income that I was generating, and being able to not only generate more, I started also figuring out how can I actually start to keep more of that income while I was generating returns. But if I could keep more of the highest, highest level generation, which was through my job, which I liked a lot. If I could keep more of that income, then I could actually use that in other streams of passive investments which are more tax efficient by their nature. Maybe I'll talk about that in another episode. I don't want to get too deep into it. But the whole point of the matter is, is I started recognising and it took me into my 40s I want you to recognise now through what were my trials and tribulations that there are different types of income. These different types of income, whether they are non passive or active, are not the same as your passive streams of income, they're taxed differently. They are looked at differently, and they're generated in different fashions. So if you can at least start to get your head around this concept today. And whether you're in your 70s, and you're looking to learn something brand new, or you're just getting started, you're in your 20s, you will get more of your time back. And that's what this whole thing is about. Understanding your income is about understanding how you can control more of your time because that's what I started understanding, I started understanding that once I understood the different vehicles that were available to me, each one of these vehicles is doing a different job to help me and my family get to our investing destination, the lifestyle that we're designing. And if you can understand this in your 70s, enjoy more of your life in your 70s or do it in your 20s, you're just getting more of your time. That's what I started realising. And actually, because of these, like two bucket theory kind of thing, we've actually made a very simple like, if you want to start today, you can start today by literally downloading a guide, it's going to talk to you about the different two buckets. And this is based on my experience, right the things that I took me until my late until my 40s. To learn, I want you to start that today. You can find out more about that if you go to first gen cpe.com forward slash going long, it's going to help you understand the different types of income so that you can actually get to your investing destination faster, get more control over your time and start living the life that you really want to live today. So just go to first ncp.com forward slash going long. Learn more about that. And hey, listen, if you want to talk about it afterwards, we'll we'll make it really easy, you can find a way to connect with me. And I can share more of my experience with you and help you get to your destination even that much sooner. So hopefully this has been very, very helpful that you've given you a better idea as to how to start really drilling into the different types of income, how you can leverage the types of income to get to your investing destination much sooner than I did. And also be able to get to their lifestyle that you're really wanting to lead even sooner. So listen, with that. Once again, go to Christian cp.com forward slash going long. I really enjoyed doing these episodes. And so I'd love to get your feedback what you think about them. And if you want to have a conversation, definitely leave Deva leave us an honest written review as well as rating we'd appreciate that. And listen, go out and download that. Download that guide and I'll be here waiting for you because I want to talk to you about what you think about it. So until then go out and make it a great day. Thank you very much. Trust that you enjoy today's conversation and once again today's conversation was sponsored by first generation Capital Partners. If you're an accredited investor want to find out more about how we're helping accredited investors to gain their personal freedom even faster. Go to firstgencp.com forward slash going long.

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