MOB #4: An Illustration of How the Different Approaches Achieve Different Results
Harry works and earns $3,000 per month. Notice: I didn’t specify if he works at a job or works for himself.
Jennifer spends her time each month acquiring passive income streams, focusing on
creating an additional $500 per month cashflow. She is starting off broke.
Let’s see what happens over the course of the year, assuming they both work full time.
Income
| Month | Harry | Jennifer |
| January | 3,000 | 0 |
| February | 3,000 | 500 |
| March | 3,000 | 1,000 |
| April | 3,000 | 1,500 |
| May | 3,000 | 2,000 |
| June | 3,000 | 2,500 |
| July | 3,000 | 3,000 |
| August | 3,000 | 3,500 |
| September | 3,000 | 4,000 |
| October | 3,000 | 4,500 |
| November | 3,000 | 5,000 |
| December | 3,000 | 5,500 |
| Earnings at year-end | 36,000 | 33,000 |
Now at the end of the year, Harry has made $3,000 more than Jennifer, but who would you rather be?
If they both had living expenses of $3,000 per month, which one could quit working and be very comfortable?
Obviously Jennifer would be fine quitting since her income is passive. It comes in every month whether she works or not. As a matter of fact, she could have quit in August and
she’d still be putting $500 a month into her bank account to build up her wealth.
Also consider that she is focusing on only creating $500 per month additional cash flow.
How about if she reinvested some of that money to leverage her efforts and add larger cash flows each month instead of the same amount? She’d reach her goal even faster!
Now it is time for you to see how YOU can do this! I am going to walk you through the strategic planning process that I went through. What is a strategic planning process? Determining the goal or objective of the business and then identifying the best means of accomplishing that goal or achieving that objective.