Build Income Beyond Your Paycheck (SB1790)

What It Covers

Mel Abraham explains how to build income streams beyond active employment through five income levels, creating financial freedom by generating 80% of lifestyle costs from asset-based, residual, and portfolio income sources.

Key Questions Answered

• •Five Income Levels: Progress from active income (trading hours for dollars) through business income (delegating tasks), asset-based income (real estate rentals), residual income (royalties, licensing), to portfolio income (stocks, bonds, ETFs) for maximum time leverage.
• •Savings Rate Priority: A 10% savings rate at 1% return reaches $100,000 in 9.6 years, while 5% savings at 10% return takes 11.7 years. Savings rate matters more than investment returns, especially early in wealth building journey.
• •80% Freedom Target: Structure income so the top three levels (asset-based, residual, portfolio) fund at least 80% of lifestyle expenses. This creates freedom to stop active work during life emergencies without selling assets or draining accounts.
• •Value-Based Income Growth: Increase hourly value by solving more complex problems rather than working more hours. One CPA increased rates from $175 to $350 per hour in one year by specializing in business valuations with specific certifications.