HAVE IT ALL

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1440 Moon River Dr.
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email: [email protected]
phone: 801-691-0375

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ISBN (softcover): 978-1-7379209-0-8

Copyright© 2022 UpLife Press

All rights reserved.

First Edition

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Cover and Interior Designer: Marisa Jackson
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The contents of this book are for informational and educational purposes
only. They should not be considered investment, financial, legal, or tax
advice. Kris Krohn is not licensed in the insurance or securities industries
and is not in the business of selling, soliciting, or negotiating the sale of any
insurance contract, security, or other investment vehicle.
Mr. Krohn does not recommend the purchase of any particular security,
insurance contract, alternative investment, real estate, or other investment
vehicle, and nothing in this book shall be deemed to constitute the
solicitation, recommendation, endorsement, or offer of any such item. He
does not opine on the likely return of any investment vehicle, on the
comparative advantages of one investment vehicle over another, nor on the
tax treatment or legal protections afforded to any investment vehicle.
Before making any investment or other significant financial decision,
readers should consult with qualified and licensed professionals, who will
assess the appropriateness of the decision in light of each individual’s
specific goals, experiences, and financial status. Readers should also
conduct their own research and due diligence prior to any investment or
other significant financial decision.
To the maximum extent permitted by law, Mr. Krohn disclaims any and all
liability in the event any information, commentary, analysis, opinions,
advice, and/or statements contained in this book prove to be inaccurate,
incomplete, or unreliable. Readers’ use of any information contained in this
book is at their own risk.
Mr. Krohn has a financial interest in EPIC Insurance Services, LLC (EPIC),
a licensed insurance brokerage agency incorporated in New Jersey, and is
compensated by EPIC.
 DEDICATION

To all of the individuals who should have been educated about

money but weren’t. The information in this book should have been
given to you in high school or college, but it wasn’t. The good news
is it’s never too late!
This book is the financial foundation that you need to have it all. It
is destined to become the new gold standard for financial and
wealth education—the foundation upon which all financial success
is built.
For everyone determined to have it all, you’ve got this one life to
live. I want you to make the most of it in every possible way.
 ACKNOWLEDGMENTS

SOCIETY DOES NOT CURRENTLY FURNISH US with a sufficient level of

financial education. This means that my acknowledgments are not
dedicated to anyone from my formal years of schooling.
Instead, my acknowledgments belong to dozens of wealthy individuals
whose books I’ve read, courses I’ve taken, or events I’ve attended. I’m
talking about the most successful people in the world—people that I worked
hard and invested time and money to get into proximity and mentor directly
with them.
There are more names to mention than I possibly could fit into a few pages.
However, I want to take an opportunity to express profound gratitude to a
handful of individuals that made the most remarkable contributions to what
has become my complete financial freedom roadmap laid out in this book:
To Dolf de Roos, who was once one of Robert Kiyosaki’s financial
advisors. He is someone who has become a friend, an investment partner, a
business partner, and an instrumental part of my journey in so many ways.
His first book, Real Estate Riches, planted the seed that helped me fully
catch the “real estate bug.”
To Robert G. Allen, who in time became one of my key business partners.
I’m grateful for his books on creative, no-money-down real estate.
To Tony Robbins, who got me out of my funk many times and helped me
learn the dynamics of a successful business.
To Roland Frasier, who has had over 100 successful exits and is now my
business partner. He taught me the power of building value in the world that
can be captured through selling a business for a lot of money.
To Kevin Harrington, who was one of the original sharks on ABC’s Shark
Tank. His influence taught me the power of scaling a business, franchising
it, and selling it.
To Garrett White, who inspired me to own my personal power so that I
could show up at home and in business.
To Sean Callagy, who has been an incredible mentor and master of the
universe when it comes to a genuine, authentic influence.
To Rob Gill, who taught me the most intelligent way to stash cash for my
investments.
To Keith Cunningham and Tim Weeks, who taught me how to fully
understand accounting and financials to maximize my margins while
creating even more value for my customers.
To Carson Tietjen, who is my CEO and who kindly pushed me out of the
way so he could lead and build an empire so much bigger, stronger, and
more inspired than I ever could have.
To Chris Milliner, who is my Director of Operations. He reminded me to
always watch my six, protect what we’ve grown, and be faithful to the
mission.
To Tyler Bennett, who helped me build the systems to transact thousands of
properties, completely turn-key.
To Marianne Hickman, who is my sales floor manager and masterful
breakthrough artist. She has been with me every step of the journey to
empower people and help them crush their limiting beliefs.
To my wife, Kalenn Krohn, and our children, who remain my central
motivation for how I spend my time.
Finally, I give the ultimate credit to God for countless revelations that led to
my purpose and understanding of how to build wealth so I could then share
it with the world.
 TABLE OF CONTENTS

PART ONE:
EXPOSING SOCIETY’S BROKEN PLAN
CHAPTER ONE
Just Another Gimmick?
CHAPTER TWO
Are You Doomed?
CHAPTER THREE
Are You Ready for the Truth?

PART TWO:
AWAKING YOUR FINANCIAL GENIUS
CHAPTER FOUR
The Financial Freedom Roadmap
CHAPTER FIVE
Your Financial Reserve Vehicle: Single-Digit ROI
CHAPTER SIX
Your Passive Income Vehicle: Double-Digit ROI
CHAPTER SEVEN
Your Asymmetric Risk Vehicle: Triple-Digit ROI
CHAPTER EIGHT
Your Active Income Vehicle: Quadruple-Digit ROI
CHAPTER NINE
Your Strategic Partnership Vehicle: Infinite ROI

PART THREE:
CREATING THE ULTIMATE ROI
CHAPTER TEN
Your Personal Growth Vehicle: Unlimited ROI
 CHAPTER ELEVEN
Your Best Investment: Giving Back
CHAPTER TWELVE
It’s a Wonderful Life: Financial Freedom in Five Years

ABOUT MEET KRIS KROHN

NEXT STEPS WHERE DO YOU GO FROM HERE?

 ONE

JUST ANOTHER GIMMICK?

MOST THINGS IN LIFE come and go.

Who won the Superbowl in 2001? Chances are you don’t have a clue. What
did you have for dinner this time seven months ago? It’d be a little weird if
you knew. Remember that day you spilled ketchup on your shirt in middle
school? Probably not.
However, a few things seem to affect everything, whether we want them to
or not—and money is the most obvious one.
While money should never be the sole focus of your existence, let’s face it:
Money dictates so much. From the car you drive, your home, and your
neighborhood to the schools your kids have access to, the vacations you
take, and the donations you give to others, money rules.
With money, the sky’s the limit. Without money, there’s pretty much
nothing but limits.
So, let’s get one thing straight. If you are looking for an emotional healing
book, this isn’t it. I highly recommend you study a balanced range of topics,
and emotional health is as much a part of having it all as is financial health.
But right here and right now?
This is a book about money.
Even more than that, it’s about how to outsmart old money rules and follow
new ones that grow your net worth to new, unfathomable heights. Money is
a game, and every game has rules. If you learn the rules, you win; and if
you don’t? You can figure that one out.
Tragically, society is a terrible money coach. Like, the worst. Society
teaches us to want flashy cars and big houses, but it doesn’t tell us how to
actually acquire them. College doesn’t have any “Rules of Money” course
that I ever saw. And financial planners? They pretend they have all the
answers, but, like every other industry, the financial world’s genuine experts
are few and far between.
If you’ve been following society’s established money rules until now, you
have learned how to place that money into the hands of “experts” to yield
insufficient, single-digit returns. At some point, it may have dawned on you
that, with your current returns, retirement is looking a little more terrifying
with each passing year.
Are you going to outlive your money?
The odds are stacked against you—if you continue to play by old rules.

The Only Constant is Change

The good news is that if you put five specific investments to work for you,
you will create the kind of wealth you thought only the “lucky” few ever
make. We will be discussing some sizeable returns—but why would you
read a book about money that didn’t promise a healthy return on investment
(ROI) on your time? I have no idea why anyone would read a book about
money that does not promise to deliver a plan to build massive wealth.
Would you buy a book that promises,“Read this, and you might make
more money at some point?” I hope not.
So, why another book about money? Hasn’t it all been said?
I’ve observed this attitude a lot over the years—about everything. Since I
was a kid, people have said things like, “It’s all been said,” or “There is
nothing new under the sun.”
For the sake of argument, let’s assume that is true.
Before the Internet, the world thought that business would always be
conducted in person. That changed, didn’t it? Before social media, the
world believed that the only way to advertise was TV, email, newspaper,
and billboards. Now, the only advertising with decent returns is done
through social media.
There are other examples—the changes in how we buy, how we network,
how we teach, how we practice medicine, how we travel, how we eat, and
much more. I laugh when I think about how I used to invest in real estate by
driving around neighborhoods all day long and meeting with realtors. Now
I make more than ever, all from my couch.
Let’s face it: The only thing we can count on is that everything changes.
That means you have a choice.You either use the new rules and stay up
to speed, or you use the old rules and get left behind.
When it comes to money, getting “left behind” means you use broken,
outdated investment rules that force you to live with a scarcity mentality.
You forge ahead toward your retirement years, devoid of any confidence
that you’ll have enough money to enjoy life after the daily grind.
Let’s say you trusted the commonly held beliefs about wealth accumulation
and did what you were told by financial advisors for years. You then realize
decades later that you have to live on only 10 to 20 percent of your pre-
retirement income, or else you’ll run out of money.
I can’t speak for you, but c’mon. Wouldn’t that make you feel hoodwinked?
Well, it happens to people every single day in this country—to people who
are using the old rules. That is why I say that everything you need to know
about money has not been written and will never be written.
The way we earn and spend money in the present constantly changes so
the way we invest that money for the future should change as well.
I’m dumbfounded at the financial plans that the industry considers to be
sound advice—from 401(k)s and IRAs to “balanced” stock portfolios filled
with nothing but blue-chip stocks. Experts also claim that paying off your
mortgage is a sound investment. All of this planning and saving is for
single-digit returns at best!
You deserve better.
You deserve to know that as long as you put your money into an investment
that produces single-digit returns, you will only have a small fraction of
what you hoped to one day call your nest egg.
The Storm That Revealed My Purpose
I have spoken with many highly successful people over the years. Each of
their stories seems to have one fascinating thing in common. During their
lives, there was a point at which they felt they were going through the
motions.
Have you ever felt that way? Like you’re on autopilot? That mode of
operation tends to make you feel emotionally devoid. It could also make
your life feel a little light on meaning.
Until one day, when you experience “the moment” that sparks your
awakening. You suddenly realize you have choices—and you recognize
you’ve been making the wrong ones. You finally understand this is your life
and your one shot.
My awakening came after I nearly died.
I had just graduated high school. My five younger siblings and I were on
vacation with our parents, the last holiday I would have before I left to
serve a two-year church mission. We were enjoying some lazy days in
Cannon Beach, Oregon, just outside of Portland. It’s a quaint little town—a
sleepy place to get away from everything.
One afternoon, my sister and I decided to go wave jumping. The water was
unusually shallow in one area of the beach. We traveled about a tenth of a
mile out from the shoreline, and the water was still only waist high.
Looking back toward shore, the rest of our family were tiny specks on the
beach.
My sister must have been feeling brave or reckless because she continued
walking further and further out. The blustery day had produced frigid, bone-
chilling water temperatures—and with the freezing temperatures came a
sudden tempest. We began rolling in waves that were rising what felt like
10 feet high. One colossal wave lifted me up into the sky, pushing me
further out to sea.
Still, we pressed on. Ah, the stupidity of youth.
Suddenly, as a wave I was riding crashed down, I could no longer find my
footing. I instantly knew we had pushed Mother Nature to her limits, and
she was now going to put us back in check.
A riptide pulled my feet right out from under me and sucked me
deeper into the ocean.
I quickly started swimming back, but I looked in horror when I could stand
up again as I saw my sister being carried out even further by the waves. I
could tell from the terror in her eyes that she knew she was in imminent
danger. But she was already fatigued, and her strength was quickly fading.
I panicked and turned toward the shore to ride the next wave as high as
possible into the sky. As I reached the peak, I thrust my body up and flailed
my arms in an attempt to signal danger to my family (who looked like ants
at this point). Somehow, I could tell my dad saw me, and he appeared to be
running to get help.
Once again, to my horror, by the time I turned around, my sister had been
pulled even further away.
I knew in my heart that my dad would not be able to get help in time. To
make matters more dire, my lifeguard training told me not to attempt a solo
rescue in these conditions. If I tried, there was little chance either of us
would survive.
However, I also knew that I would never be able to live with myself if I
watched my sister drown. There was only one decision to make—I dove in
after her. At first, a sense of heroism washed over me as I swam quickly out
to her, and that gave me superhuman (albeit momentary) strength. As I
reached her, I could see how tired she was.
Still, I thought, “I’m going to save my sister.”
I was utterly unprepared for how difficult it would be to keep her head
above water as I attempted to swim for both of us. Panic set in yet again,
and all of that heroic strength faded. Swimming turned into barely treading
water, and both of us were being swept further out to sea again.
The moment finally came when I stopped trying to make it back to shore.
Hopelessness washed over me. I was moments away from watching my
sister drown, and then I would be next.
That’s when it happened.
My life flashed before my eyes, and it was a more painful experience than I
thought it would be at the tender age of 19. My thoughts immediately
drifted to everything of which I felt ashamed:
I haven’t given anything. I haven’t created anything. I’ve only been a
drain on others.
I knew there was only one more thing I could do. I shouted to God.
“Save me!”
I’m here to tell you that miracles are real. At that moment, a massive, non-
breaking wave carried my sister and me back in the direction of the shore—
and back to where the water was waist-high again.
As our feet felt the softness of the sand, we knew we were saved. I should
have been dead, but instead, I was alive. As I walked my shaken sister
toward the shore, I couldn’t stop thinking:
Why did God save me? Why me?
Since that day in those frigid, turbulent waters, I’ve never taken life for
granted. I’ve pursued life with fiery passion. I’ve lived in pursuit of having
it all since the moment I emerged—alive, breathing—out of the ocean.
That moment has led me on a journey of self-discovery, mentorship,
learning, and growing. There are so many times it would have been
effortless to settle back into mediocrity or take it easy—to take my foot off
the gas and enjoy life. But I can’t let myself do that.
I have to find and test every limit.
I have to find out how to explore every possibility.

Why Have It All?

Over the years, the mentality that began forming that day in the water has
materialized into something that I can teach to others. That is why I built
this book upon my “Have It All” philosophy that I’ve worked to exemplify
since that day with my sister. I was saved for a reason, and I believe part of
that reason is to teach as many people as possible to have it all.

HAVE IT ALL (VERB):

Striving to live a life worth pursuing by pushing yourself to steadily and
endlessly grow in three areas: health, relationships, and finances.
This philosophy has been the driving force in my life, and it all started with
that one moment at sea.
When I think of what it means to have it all, it does not mean possessing
earthly riches, majestic mansions, or incredible cars. Earthly possessions
can be gone in the blink of an eye.
Having it all encompasses the privilege of being on a journey of
personal growth and achievement.
For me, that journey often manifests in the form of physical results. Having
it all is a health, wealth, and relationship matter, which means I pursue the
most enriching relationships. It means that I endeavor to build and maintain
the healthiest body possible.
It also means that I consistently transform money into meaning.
Money is merely a tool that opens the door to possibility. The better you are
at making money, the more opportunities you will have to create a more
meaningful life.
The Internet is literally overflowing with books and resources that can
transform the health of your relationships and help you grow spiritually,
mentally, and physically. Where the advice falls short is in the area of
financial health.
For some reason, we have yet to see a massive disruption in the financial
education space. Why is that? I’m not sure, but it may have something to do
with the fact that there is so much fear of the unknown regarding the way
investments really work.
Instead of learning how money really works, people choose to put blind
faith in a person with a few acronyms in their title.
Dave Ramsey is currently the closest thing the sector has to a recognized
expert in finance. His message is targeted at those who can’t control their
spending and need to get out of debt. That’s important! But getting out of
debt and then investing that money into single-digit return investment
vehicles is not enough for those of us who aspire to have it all.
If you want to get out of debt, then get out of debt. This is not a debt
solutions book (although I could easily argue that you can get out of debt
much faster by increasing your return on investments). At its core, this book
is about transforming money into infinitely more wealth that will give you
the security, peace, and freedom you want and help establish a lasting
legacy.
Now, I don’t believe in get-rich-quick schemes. I also know that significant
results always require action and implementation to attain. What you have
to remember is that most of the skeptics in the world don’t implement.
People talk a good game, but precious few commit to the follow-through.
Is it laziness? Fear? Limited mindset?
That’s a discussion for another book, perhaps.
If you are a doer and an implementer, you will absolutely thrive by
following the new investing rules laid out in this book.
I’m going to be talking about money, and I freely admit that my views are
polarizing (the transformational stuff always is). You’ll discover that I’m
highly opposed to the universally accepted, traditional investment models. I
will show you how society’s accepted game plan for wealth accumulation is
not only flawed—it’s utterly broken.
In other words, you stick with the old model, and you’re guaranteed to lose.
Traditional financial advisors are playing according to old rules. The
excellent news is I have the scoop on the new rules—the ones that enable
you to actually win.
Do you want to win? Of course, you do! Who doesn’t want to win?
Ultimately, my “superpower” is teaching people how to be resourceful.
Resourceful is a word coined in 1807 that is a combination of resource and
full. There is a myriad of resources at our disposal. Is your life full of
resources, or does your “options tank” feel empty?
My goal is to awaken your ability to maneuver the resources at your
disposal (money, people, talent, skills, knowledge, and time) to produce
a specific outcome. This outcome will ultimately manifest the life you
want while creating immense value for others.
That is why I’m here, and it’s the impetus for this book.
Thanks for trusting me—and if you are an implementer, I am excited to
welcome you into the millionaire’s club very soon.
That day in turbulent waters taught me that our time on Earth is too short to
be on autopilot. Life is not all about money, but money can give you the
freedom to find your purpose. I invite you to explore your purpose as we
dig into the meat of this book.

CHAPTER ONE CHECKPOINT

1. This is unapologetically a book about money.
2. With money, the sky’s the limit. Without money, there is nothing
but limits.
3. If you play the money game according to obsolete rules, you
won’t win. You need the new rules.
4. Changes in the way we make and spend money mean that the
way we should invest money must also change.
5. The origin of the Have It All philosophy is rooted in a harrowing
life experience that taught me to see life through a different lens.
6. To have it all means that you strive to live a full life by pushing
yourself to steadily grow in three areas: health, relationships,
and finances.
 TWO

ARE YOU DOOMED?

I WAS SITTING in my tiny gray cubicle, trying to whip up the motivation to

“smile and dial” the next prospect.
Anyone who has ever been a telemarketer just felt a chill run down their
spine as they read that sentence. As a 22-year-old, newly married college
student working a 100-percent commission job, I felt a sense of dread the
moment I woke up every morning. I’d think to myself:
Am I destined to spend my days talking to people who don’t want to
talk to me?
I was expected to pick up that phone and dial a new number at least 100
times a day. It was torture, but I thought it was necessary. Then I was
instructed to talk to people who were looking for solutions to their broken
financial situations. After that, I was supposed to offer them the answers
they needed. I quickly noticed something odd.

On paper, it would be easy to assume that my prospects didn’t need a

new financial solution. Most of my prospects:
Graduated from college at least two or three decades prior.
Had respectable degrees and followed society’s financial game plan.
Were faithfully stashing money into their 401(k)s.
Were thrifty and saved money as best they could.
 Were dutifully attempting to get tax benefits by depositing money in
their IRAs.
Believed that extra cash should go toward paying off their
mortgages.

Fast-forward 20 to 30 years. Some young punk was now trying to gather

their financial information so his company could offer them inadequate
financial solutions.
Something didn’t add up.
At first, I dreaded my job because it was stressful and demeaning. Then I
began to dread it for a much more disturbing reason. Every time a prospect
picked up the phone and said hello, I couldn’t shake the feeling that I was
talking to a future version of me. I was on the same path as these desperate,
aging solution-seekers.
I, too, was doing what everyone (even our parents) tells us we are supposed
to do.
I had already begun forming my Have It All philosophy since that day in
the riptide. And now something told me that none of this made any sense. I
was about to figure out why.

My Breaking Point
When I was a kid, my parents fought about money. I have eight brothers
and sisters, and there was never enough to go around. My father, a German
immigrant, owned his own business and would work long hours (16-hour
days were not uncommon for him).
My dad made business ownership seem like a curse.
He worked more than anyone I knew, but we barely had enough money to
pay bills. He regularly used his own life as a cautionary tale. He would
instruct me, “Son, get good grades, go to college, work for somebody else,
and you’ll do much better financially than working for yourself.”
His grueling pace and his miniscule paycheck made for compelling
arguments, and his advice seemed to be the same guidance everyone else
my age was receiving. So, I believed him and worked hard to fulfill his plan
for my life.
In high school, I did my best to get straight A’s, but not every subject came
easily. As a result, I’d often have to burn the midnight oil just to scrape by
with a B. That wasn’t good enough. My dad wasn’t happy unless it was an
A. He meant well—he just wanted me to have the best possible chance of
getting accepted into college.
My hard work and persistence paid off because I got into a fantastic school,
Brigham Young University (BYU). After I had served my two-year
Christian mission, I was all set to follow my dad’s game plan and secure the
degree that would enable me to work for someone else my entire career.
Everyone around me was fed the same, echoing rhetoric: “Getting good
grades and going to college will lead you down the road to success.”
Society trains us all to be an innocuous cog in a great machine.
The cogs do all the work, while the people controlling the machine reap all
the benefits. Within this system, precious few have the opportunity to live
an inspiring, financially successful life.
I went to college, and, while there, I got the kind of job I thought I was
supposed to have. It came with a cubicle, memos, sales leaderboards,
meetings, and utter dissatisfaction.
As I sat in my little cubicle, those walls started to close in on me. It was a
gray nightmare. I could tell from the different scribbled notes on the desk
that many other cogs in the machine had come and gone before me. It was a
high-turnover job, and that was no surprise—it was soul-draining work.
One day, I reached a breaking point, unable to find the courage to pick up
the phone and make my next call. I decided it was an excellent time to take
my lunch break. I got in my 1993 Subaru Justy (a car so small that I had to
tilt my head to fit my 6'3" frame in the driver’s seat) and drove home.
When I walked through the door of our postage-stamp-sized apartment, I
found my young wife, Kalenn, in tears.
At first, I wasn’t sure why she was crying. Maybe it was because our rent
was due in five days, and we had already spent my paycheck. Perhaps it
was because our college tuition was due, and we couldn’t pay that either.
Maybe it was because I had to give up my dream of becoming a doctor after
I attempted to retake chemistry but failed.
I quickly found out why she was crying. She had gone grocery shopping
and was utterly humiliated when the check she wrote had bounced. I will
never forget that feeling of total failure.
My wife was home alone crying because I had failed to provide her
with two of the most basic necessities in life—food and security.
The following day as my alarm went off, it hit me like a ton of bricks. I was
waking up early to go to class at BYU when I knew that degree wouldn’t
break my financial chains. I was then rushing off to talk to people who were
financially failing even though they were faithfully following the same path
as my current trajectory.

After talking to over 1,000 people, here is what I discovered about my

current track:
Most 401(k)s hold little promise or security because they are so
small.
IRAs save you very little in taxes and lock your money away.
Paying off your mortgage creates a false sense of security that
doesn’t last long. Eventually, you’ll have to sell, remortgage, or do a
reverse mortgage in a desperate attempt to squeeze out a few more
years of income.

Society’s game plan was massively insufficient in every way. It was time to
unplug from the matrix and stop the insanity. If I did not escape, I would
one day find myself on the phone with a commission-only telemarketer and
wonder why I was still struggling to find financial freedom.
I finally learned the truth! Money represents freedom, but the amount of
money waiting on my current path would never allow me to be truly free. I
knew I needed to become a self-made millionaire, and that meant I had to
blaze a new trail.
No Such Thing as Luck
The term “self-made millionaire” is both accurate and deceptive. First of
all, self-made millionaires never got to where they are today entirely by
themselves. There is always an unspoken army behind every success story
—whether in the form of support, wisdom, encouragement, or just insight.
I get the sentiment that the term is supposed to represent. I really do. There
is a certain amount of “blood, sweat, and tears,” hard work, and traditional
investing that becoming a “self-made millionaire” represents.
But I also think the term does a disservice to the quest to “Have It All.”
In my decades-long study of the world’s wealthiest people, I have never
once seen an ambitious lone wolf who just so happened to luck into success.
I’ve also never seen someone follow only the traditional wealth rules and
actually arrive at their desired destination.
Instead, here’s the real truth: Self-made millionaires live and operate
according to a unique set of rules, particularly a specific set of superior
practices related to their money.
Millionaires treat each dollar that comes across their plate differently
than the rest of the world.
It’s not that they have some secret “no-pain” shortcuts or just got lucky.
They play by a distinctive set of rules that ensure their success.
But what about famous millionaires and billionaires who tell you to buck
the system and be a rulebreaker? After all, Richard Branson once said, “You
don’t learn to walk by following rules. You learn by doing and falling over.”
I don’t know Mr. Branson personally, but I’ll bet he’s talking about
breaking the rules that everyone else is using—the rules that lead to
financial failure rather than freedom. It’s the rules that keep people feeling
stuck in unhappy careers, living paycheck to paycheck, and fearing they’ll
outlive their retirement.
Yeah, well, I wouldn’t say I like those rules either.
I’ve made my share of mistakes, but I was also fortunate to discover early
in my career that there is a seldom-used rulebook for attracting wealth. I’m
talking about the rules that enabled me to enter my forties with fifteen years
of financial freedom already behind me.
We all know the primary differences between the classes. The poor
consume, while the rich invest. The poor have a fixed mindset, while the
rich have a growth mindset.
But is that all there is to it?
Absolutely not.
So, where are the rich investing their money, and is that what the working
class should also be doing? Aren’t we all putting our paychecks into the
same investments—401(k)s, IRAs, mutual funds, and money market
accounts?
Hardly.
The wealthy make specific investments that set them apart in more ways
than just the zeroes in their bank accounts. These underused strategies
enable these men and women to become the thought leaders of our future
with fresh ideas, undeniable influence, and meaningful impact.
I intend to share five investment secrets to awaken your financial genius
and help you become a self-made millionaire. But, every life-changing
revelation needs a disclaimer, so here goes mine:

DISCLAIMER:
This book will not be popular with traditional financial professionals.
And they will judge you for reading it.

Financial planners don’t want you to know this information (chances are,
they probably don’t know it themselves).
Your broker won’t share this knowledge with you.
Your CPA won’t recommend this financial advice.
Your older relatives may even shun this advice because it goes against what
they were taught (cognitive dissonance is real and very powerful).
The reason is not that these folks want you to fail. It’s merely that this
information runs so far against our system’s economic grain. And yet, I
have never met a millionaire who wasn’t using at least two of the five
strategies in this book.
Although financial professionals may mean well, their livelihood comes
from offering products designed to deliver significant percentages for them
and minuscule gains for you.
In truth, the financial experts need you a whole lot more than you need
them.
I say all of this to prepare you to be criticized for seeking out this
information. Licensed financial planners may condemn it as too risky and
unrealistic. But, to the wealthy, these are not foreign or dangerous ideas.
They are common-sense rules that deliver seismic returns with the proper
execution.
Get ready to understand the how and why behind the good luck of
today’s wealthy. (Spoiler: No luck is involved.)
If you are young like I was when I discovered these investments, you are
ahead of the game. And if you are already mid-career or later, there is still
time! I’m honored to help be a part of the wake-up call that will transform
your life and secure your future.

You May Be a Genius

One of my primary goals for this book is to awaken the “financial genius”
inside everyone.
Suppose you implement even a few of the five secrets in this book. Your
financial outlook will be significantly better than those following society’s
game plan. That makes you a financial genius!

FINANCIAL GENIUS (NOUN):

An intelligent person who earns, saves, and borrows money through five
specific investments that produce superior returns to fund their ideal
lifestyle.

If you are 50 years or older, you may have already received an alarming
financial wake-up call that you don’t want to answer. You hit the snooze
button, but you can only ignore a problem for so long.
Suppose you stop and calculate what you’ve accumulated in your 401(k),
IRAs, home equity, and stock portfolio. My prediction is you’ll discover the
sum is not even close to what you’ll need to retire—that is, if you’ve even
saved for retirement at all.

Statistically speaking, you are probably not feeling warm and cozy about
your financial future. In fact, according to Bloomberg: “Half of
Americans have nothing in retirement savings.”1 CNBC also reported
that according to Northwestern Mutual’s most recent Planning and
Progress Study:2
Almost a quarter (22 percent) of Americans have less than $5,000 in
savings reserved for retirement.
Another 5 percent have between $5,000 and $24,999.
Only 16 percent of our fellow citizens have saved $200,000 or more.
And perhaps the most disturbing percentage, 46 percent of
respondents say they don’t know how much they have saved for
retirement.

You don’t have to be an investment finance expert to recognize that this is

genuinely terrifying for most Americans. Even $200,000 (a whole pile of
money compared to what most have saved) won’t get you very far if you
plan to live for at least a few years after you retire. You could spend a
meager $40,000 a year and still only have enough money for five years of
retirement.
Yikes.
Add to this the fact that people are living longer than ever, and it’s a recipe
for disaster. The truth is 76 percent of Americans are worried about
retirement.3 Still, they start waking up to the insufficiencies of their
financial plans way too late in the ballgame.
The clock is ticking, and you’re squandering your most crucial asset:
time.
A New York Post article claimed that it’s reasonable to expect people to live
to over 120 years soon based on longevity trends and advances in medical
technology. They call these soon-to-be long-living humans
“supercentenarians.”4
Sounds cool! That is, until you consider the fact that only 10 percent of
Americans believe they have enough saved to even retire at all!5 The
Employee Benefit Research Institute estimates that nearly half (41 percent)
of American households with working-age adults will run out of money
during retirement.6 This means they will be forced to:
Re-enter the workforce.
Rely on other people or relatives or charity.
Rely on social security as their sole income (this is already what over
half of the households age 65 and older do, according to the U.S.
Government Accountability Office).
Do you want to bank on the fact that you’ll die shortly after retirement?
And what if you don’t? What then? Not to mention the exorbitant medical
bills that often accompany growing older. And we haven’t even brought up
retirement homes, in-home care, or nursing home expenses.
When you do the math, the truth will smack you in the face.
I say this not to frighten you but to wake you up and correct your course
before you have to push the panic button. Start now and leverage the five
secrets of financial geniuses so that you’ll never need to hit the panic button
in the first place.
Phew! Let’s all breathe a collective sigh of relief over how good “no
panic button needed” sounds.
I want to help you avoid the panic button and get on the road to financial
freedom sooner rather than later. The reason is that the longer you go
without money, the more you sink into “scarcity mode.”
When you don’t operate from a place of abundance, you operate from a
place of lack. This represents the difference between the “We can’t afford
that” mentality and the “We have the means to do what makes us happy”
mentality.
People with scarcity mentalities are misers who obsessively pinch their
pennies. They are worriers, constantly living in a state of anxiety. Fear
replaces joy at every opportunity. The real goal should not be to pinch
pennies but to work to create more than enough to retire and use the rest to
build a legacy of generational wealth.

GENERATIONAL WEALTH (NOUN):

Placing your assets into a private endowment fund that continues to grow
and generate cash flow for your family and others you can impact. This
wealth lasts for generations, continuing to create value for those it
benefits.

You can arrive at exactly where you need to be, and it doesn’t have to take
decades like you’ve been told. In four and a half years, I went from broke to
self-made millionaire by using my custom roadmap.

Picture Yourself Wealthy

You need the proper roadmap, and you also need suitable investment
vehicles to take you on your financial journey. Just as importantly, you are
the one who needs to be driving that investment vehicle—not your CPA or
your financial planner.
You are the driver, not just a cog in the wheel!
As the one in the driver’s seat, you must also be careful to choose the right
vehicle. So, what is the “right” investment vehicle? Well, in 1908, Henry
Ford invented the Model T. And while it may have been an impressive
vehicle in its day, I don’t see any more of them on the road, do you?
If society’s traditional financial solutions are the Model T, then the five
investments in this book are Tesla.
Notice I didn’t say Rolls-Royce. The five investments are the way of the
future, but they are also attainable for the average person who is willing to
learn. The sad thing is that right now, the world teaches people that real
wealth is not within their reach. And the fact that well over 80 percent of
the wealth generated goes to the world’s richest 1 percent only makes that
seem truer.7
What about the other 99 percent? Why can’t they cultivate wealth?
Make no mistake—I am not a socialist. I simply believe that everyone
willing to take risks and work smart should have the opportunity to create a
more abundant life.
The bottom line is that broke people spend money till it’s gone, and rich
people invest their money and understand how to manifest superior ROIs.
So, that means it’s time for a lesson in ROI and how calculating it will soon
become the most important action you take.

ROI Crash Course

This book is all about return on investment (ROI).
Don’t let your eyes glaze over yet! There is an excellent chance you don’t
want to talk about math ratios right now. The thing is, there is a good
chance that this same feeling keeps you from learning the ins and outs of
your financial plan. It’s also one of the reasons why Americans are in the
mess that they’re in today.
You are in charge of your financial destiny—nobody else. It’s not your
boss’s or your spouse’s job to sort out your money. It’s not the custodian of
your 401(k)’s job, your CPA’s job, or even your financial planner’s job.
You can’t awaken your financial genius unless you can effectively
compare investment opportunities to each other.
Your ability to do this simple math is a key to your financial freedom. So,
here is the quick and dirty lowdown on ROI.

RETURN ON INVESTMENT (ROI): [NOUN]

A financial ratio used to measure how well an investment is performing.
It is calculated by taking the total gain or loss on an investment and
dividing that number by the total amount invested. Then, multiply the
result by 100 to determine the ROI as a percentage.
There are two commonly used ROI equations—and you’ll need the first one
(Total ROI) to calculate the second one (Annual ROI). Once you calculate
the Total ROI, you divide it by the number of years it took to achieve those
gains to calculate your Annual ROI.

Now, we will put our ROI formulas into practice with a simple example.

Let’s say you invest $50,000 (total investment) and that investment
produced a $50,000 return (gain in addition to the initial investment, also
known as total gain).
Calculate the Total ROI based on those two numbers:

Translation in English? You doubled your money. You took $50,000 and
turned it into $100,000.
Now, let’s say it took five years (number of years) for your $50,000
investment to earn that additional $50,000 that brought you a 100 percent
 Total ROI.
With that information in hand, now you can calculate your Annual ROI.

It’s easier to leave the Total ROI percentage as a whole number when
calculating the Annual ROI rather than convert it back into a decimal. This
simplifies the equation, so you just divide the Total ROI (as a whole
number) by the number of years and the answer is your Annual ROI. Done
this way, there is no need to multiply the answer by 100.
I know math isn’t everyone’s favorite subject, and you may have thought
you escaped it forever. However, if you want to be financially free and
retire without worry, there is no escaping it! Fortunately, all of the math you
will find in this book never gets any more complex than this.
Here is one more example to get you warmed up to the idea of doing math
again.

Let’s say you invest $80,000 (total investment) and that investment
produced a $160,000 return (total gain).
Calculate the Total ROI based on those two numbers:

Nice! Another solid triple-digit ROI.

Now, let’s say it took just two years (number of years) for your $80,000
investment to earn that additional $160,000 that brought you a 200%
Total ROI.
With that information, now you can calculate your Annual ROI:
ROI is a critical fundamental for creating real wealth. In the next chapter,
we’ll explore society’s top five outdated investments, and then I’ll introduce
you to the five underutilized investments that the wealthy use to get
wealthier through superior ROI.
When it comes to money, most people are running blind. It’s time for your
eyes to be opened to the truth. So, consider this your wealth wake-up call.

CHAPTER TWO CHECKPOINT

1. I was on a traditional life path, doomed to remain financially
chained until I realized there had to be a better way.
2. You are squandering your biggest asset—time. But it’s never too
late, and you are not doomed!
3. Society’s financial game plan is broken, outdated, and incapable
of producing the retirement you need.
4. There is no such thing as luck when it comes to wealth. The rich
just have a different plan than yours.
5. You are in charge of your financial destiny, not your parents or
peers, and definitely not your traditional financial planner.
6. There is a viable solution to society’s broken game plan. ROI is
the key to that plan by bringing you wealth and financial
freedom.
 THREE

ARE YOU READY FOR THE TRUTH?

IN 1973, PRINCETON PROFESSOR Burton Malkiel made a startling claim. He

wrote in his book, A Random Walk Down Wall Street, “A blindfolded
monkey throwing darts at a newspaper’s financial pages could select a
portfolio that would do just as well as one carefully selected by experts.”8
Well, it turns out that Malkiel was wrong. Monkeys can actually do better
than the experts at picking stocks. A group of researchers from Research
Affiliates proved this by gathering 100 monkeys and having them throw
darts at a newspaper’s stock pages. The result?
The average monkey outperformed the index by an average of 1.7
percent per year since 1964.
Of course, those who invest heavily in stocks know that they can reasonably
predict ROI based on their portfolio’s beta, size, and value. But think about
the rest of the population—those who don’t live, eat, and breathe small-cap
tilts and value versus growth stocks. What do they do?
They rely on their financial expert to do the thinking for them.
If that describes you and your financial plan, it’s not your fault. We trust
people with the right degrees and the proper certifications for everything in
life. Would you go to a five-star chef to do your taxes? Would you go to a
taxidermist for open-heart surgery?
Of course not. We trust the people we are supposed to trust because that’s
how life works.
We live within well-defined societal constructs. However, after this
book, you will know better—and when you know better, you have a
responsibility to do better.
The investment vehicles that everyone should be using are not the ones that
receive all the attention. I’m talking about vehicles that provide maximum
ROI plus the added benefit of receiving cash flow throughout their use.
The investments that society wants you to use do not provide this cash flow
advantage.
When you do the math, you’ll see that the traditional financial game plan
doesn’t actually work for anyone—from the average American to those
earning a higher income. Through the use of some calculations, you’ll
discover how society’s plan will leave you devoid of 90 percent of the
money you need to retire with confidence.
The best part about the new plan you will soon be using?
No monkeys required.

The Tunnel of Broken Dreams

Let’s do a quick breakdown of society’s currently accepted retirement path.
I call this inferior path The Tunnel of Broken Dreams. These phases will
likely sound familiar since there is a good chance you are currently
somewhere in the tunnel yourself:

Phase 1: Get a degree and a full-time job.

First, you must go to college. This is the only possible way to earn enough
money to carry out the remainder of the steps. After college, you’ll need to
work for someone else within a company that provides a steady income and
(hopefully) benefits. This will ensure you have a regular paycheck’s safety
net and can provide security for your family.
Once you get this job, just keep doing it without ceasing for the next forty
years. You are, of course, welcome to climb the corporate ladder and/or
make lateral transitions to find a company culture that suits you best.
Maybe you’ll even find a company with a PlayStation in the break room
and free snacks! Dare to dream.
Phase 2: Plan for your retirement.
According to this plan, real living and freedom begin at retirement. Sure,
you’re going to have to work extraordinarily hard for 40 plus years and
scrimp and save and get that 30-year mortgage paid off in 12 years. But the
good news is after you retire, you will be able to live off your investment
income, savings accounts, and the no-doubt ample Social Security you’ve
amassed (because everyone knows that Social Security provides us with
more than enough).
Of course, a critical piece of the plan is to buy a house and pay off the note
as quickly as possible. Have extra cash one month? Then why not take that
surplus and make extra mortgage payments? The more money you can
throw at your mortgage and keep out of higher-ROI investments, the better!

Phase 3: Live the dream forever.

Follow this rock-solid plan, and you will be able to retire with enough
money to live out the rest of your days comfortably and in style. And that’s
it! Simple as that. Listen to the experts, work hard, do what you’re told, and
retire in peace. (Note: You won’t actually have enough money to retire in
peace. But at least you can feel good about the fact that you did what you
were told.)

Statistics and reality have both proven this plan doesn’t work, but who
cares about statistics or truth, right?
So, where does this plan break down, and why does it fail for most average
Americans?
While I take issue with the idea that everyone must go to a four-year
university, the real problem with this plan surfaces in Phase Two. The
recommended investment vehicles all only produce single-digit ROIs—and
compounding single-digit ROIs just don’t produce enough money.
In summary, the failure with society’s plan comes down to a failure to
understand and utilize ROI.
Society tells us to deposit our money into 401(k)s, IRAs, annuities, home
equity, and the S&P 500. Then, we are also told to “diversify” our
retirement plan. But does society’s game plan really leverage
diversification? Let’s take a closer look by defining the word.

DIVERSIFICATION (NOUN):
Investing in a wide variety of different asset classes in multiple
industries. Diversification does not mean investing in different assets
(various S&P 500 stocks) within the same asset class (the stock market).

But wait—401(k)s, IRAs, annuities, and money market accounts are all just
single-digit ROI derivatives of the stock market. Does that really represent
diversification? It does not. When all of your investments produce a small
ROI derived from the same place—well, that’s not exactly the definition of
“diversified,” is it?
Failure in one asset class (such as losing money in the stock market) does
not always correlate to failure in other asset classes (such as losing home
values in the real estate market).
The big picture idea here is that in your lifetime, nearly every asset class is
bound to experience a loss. So, true diversification is about spreading the
risk over several asset classes. One of my mentors Ray Dalio says you have
truly “de-risked” your portfolio when you have allocated your assets into at
least 15 different asset classes (yes, there are that many).
 THE FIVE OUTDATED INVESTMENT
VEHICLES
As of now, there are five primary vehicles allowed inside The Tunnel of
Broken Dreams. Although you may be familiar with these vehicles, take
a moment and read these brief descriptions to understand their underlying
concepts and inherent flaws.

1. 401(k): The Front-End Loader

A 401(k) is a retirement account that allows you to divert a portion of
your salary into long-term investments. In many cases, employers match
their employees’ contributions up to a specific percentage. The return on
investment (ROI) from a 401(k) is based on diversified stock market
investments.
I call a 401(k) the front-end loader of investment vehicles because it does
pick up some money for you along the way and dump it into your
retirement years, but it’s slow moving, clunky, and inefficient.

Here are the relevant ROI stats you need to know about the average
401(k):
The 30-year average ROI is 5 percent.
Returns are based on the stock market.
The time it takes to double your money is 14.4 years.
After a sophisticated analysis of 401(k) performance over thirty years,
experts say a 5 percent return appears to be an accurate number to use for
planning purposes.9 Add to this that Fidelity Investments says a good
rule of thumb is to have eight times your current salary saved for
retirement.10
So, that means if you are 60 years old and make $100,000 a year, your
401(k) balance (if you are relying on it to be a significant portion of your
retirement nest egg) should be at least $800,000.
Unfortunately, reality once again rears its ugly head to show us this is
rarely the case.
The average 401(k) balance for Americans in their sixties (and
supposedly ready to retire) is just $93,400.11 So much for the “eight
times your salary” rule.
And how does that make sense anyway? What kind of person would even
feel comfortable with only eight years’ worth of salary saved? What
happens if you live longer? What about the fact that you are expected to
live on less, even though retirees often spend more due to increased
medical costs, travel, and other expenses? So, the question becomes:
Should I put a portion of my salary into a 401(k)? I think you know my
answer, but here are some other questions you need to be asking yourself:
Is it a good idea to depend on an investment vehicle whose single-
digit ROI leaves me approximately 93 percent short of my goal?
What is the benefit of a company match earning single digits that I
can’t touch or re-invest unless I leave the company?
How do I feel knowing my 401(k) is loaded with hidden fees like
administrative fees, investment advisory fees, and expense ratio
fees?
Do I feel confident knowing that just 6.8 percent of Americans can
rely on their 401(k) as their sole source of retirement income next to
Social Security and pensions?12
The bottom line: Right now, over half (56 percent) of U.S. workers have
a 401(k).13 Yet, studies also reveal that almost half of the people who
have a 401(k) will struggle to maintain their standard of living in
retirement.14 Something just doesn’t add up here.

2. Traditional IRA: The Bicycle

IRAs (both traditional and Roth) are standard, popular vehicles that serve
as “tax-advantaged” investment accounts. Returns from an IRA are based
on diversified investments in the stock market. I refer to an IRA as a
bicycle with a flower basket. It’s cute—and you can plod casually along
with your little basket of pristine pre-tax dollars, happy that you saved a
few bucks on taxes in exchange for a single-digit return.

The difference between the two main types of IRAs is contribution

timing:
With a traditional IRA, you make contributions with pre-tax dollars (and
pay income tax when you withdraw the funds later). The basic idea with
the timing is to take advantage of the fact that when you retire, you’ll
find yourself in a lower tax bracket than you were in pre-retirement.
With a Roth IRA, you make contributions with after-tax dollars. This
means you can receive distributions “tax-free” and penalty-free at your
discretion after the fact, as long as you meet conditions such as being a
certain age.
Here are the relevant stats you need to know about the average IRA:
The 30-year average ROI is 7 to 10 percent.
Returns are based on the stock market.
The time it takes to double your money is 12 years.
According to experts, you can expect between 7 to 10 percent average
annual returns. However, with inflation, it’s wise to be more conservative
and use 7 percent ROI in your calculations.
CPAs and financial planners recommend utilizing an IRA to save money
on taxes, as mentioned previously. Here’s a simple example of how that
works with a traditional IRA:
If you make $60,000 per year and pay 15 percent in federal taxes,
then putting $3,000 a year into a traditional IRA would lower
taxable income to $57,000 and save 15 percent of $3,000, or a
total savings of only $450. Keep in mind that the $3,000 will still
be subject to taxation at the time of withdrawal (but fingers
crossed, you will be at a lower tax bracket).
So, the question becomes:
Should I use an IRA for the minor tax benefits and single-digit ROI?
An IRA can save you a few dollars in taxes, but ask yourself the
following questions:
Does it make sense to pick up minor tax savings now on a
traditional IRA when I am still going to be taxed when I withdraw it
later?
Should I be depending on a secondary single-digit ROI investment
vehicle that leaves me far short of my retirement goals?
What multi-digit investment opportunities am I missing out on by
locking my money in an IRA that, in some cases, tacks on a 10
percent penalty if I try to access it?
The bottom line: In the end, an IRA is great for two things: a single-digit
ROI and a guarantee that you will not have enough money to retire
comfortably.

3. Annuity: The Ice Cream Truck

An annuity is a contract that makes regular payments to you either now
or in the future. Returns from an annuity are based on diversified
investments in the stock market. I call it the ice cream truck of finance
vehicles because it slowly dolls out the goods in bite-sized pieces. It will
also stop making its rounds after the ice cream is gone.

Here are the relevant ROI stats you need to know about annuities:
The 30-year average ROI is 3.27 percent.
Returns are based on the stock market.
The time it takes to double your money is 24 years.
Your financial planner may recommend consolidating all 401(k)s, IRAs,
and other similar investment accounts into an annuity when you retire.
Essentially, your money gets locked into secure stock market-based
investments that allow the financial planner to guarantee an annual
dividend that serves as your “fixed income.” So, the question becomes:
Should I use an annuity to guarantee a fixed income? It’s nice to have a
known amount of guaranteed income, but ask yourself the following
questions:
Is a 3.27 percent dividend sufficient to help me achieve all of my
financial goals?
How do I feel knowing that the average man hits his peak annual
earnings of $95,000 by age 53? This means I would need to save
$2.9 million for an annuity to match that same income post-
retirement (more on this figure in a few pages).15
Do I think this is a realistic savings goal, considering the average
retirement savings for workers in their sixties is just $170,000?
Would I be interested in only needing a third of that amount to retire
by finding a way to significantly outperform an annuity?
I hope you answer yes to that last question because it’s why this book
exists.
The bottom line: The Transamerica Center for Retirement Studies
reports that the median retirement savings amount for U.S. workers in
their sixties is $172,000.16 If you were to annuitize this at an annual
dividend of 3.27 percent, you would receive a mere $468.70 each month
as fixed income.
There is no way on earth that a fixed income of less than $500 a month is
sufficient to fund a carefree retirement.

4. S&P 500: The Tractor

The Standard & Poor’s (S&P) 500 is a market-capitalization-weighted
index that tracks the stocks of 500 of the largest U.S. publicly traded
companies. I call the S&P 500 the tractor of investment vehicles because
it’s reliable for single-digit returns but slow and boring as heck to watch.

Here are the relevant ROI stats you need to know about the S&P 500:
The 30-year average ROI is 7.96 percent.
Returns are based on the stock market.
The time it takes to double your money is 9 years.
Essentially, your ROI from the S&P 500 is the average growth of the top
500 publicly traded companies in America. And the 7.96 percent ROI is
calculated by looking at the returns from 500 stocks since 1957.
Should I rely on the S&P 500 as an investment strategy? It’s great to
earn a solid ROI from the 500 most successful companies in America,
but ask yourself the following questions:
Suppose I already have 401(k)s, IRAs, and annuities based on the
stock market. Does it make sense to have yet another single-digit
investment that is also based on the stock market?
Why would I want to invest my money in a vehicle that requires
decades (to account for market fluctuations) to create an average
single-digit ROI?
What if I need to liquidate my stock portfolio when the market is
down? Wouldn’t it erase years of growth and end up in the red?
The bottom line: There is nothing wrong with investing in the stock
market. But at this point, all four of the accepted investment vehicles
have been based on the stock market and deliver meager, single-digit
ROIs.
Things are starting to feel a little redundant and uncreative, aren’t they?
And yet, traditional financial advisors call this “being diversified.”

5. Home Equity: The Antique Car

Your home equity is your home’s value that is the difference between the
home’s fair market value (determined by appraisal) and the outstanding
balance of all liens on the property. When you take out a home equity
loan or home equity line of credit (often referred to as a HELOC), you
are using your home’s equity as collateral for the loan.
I call your home equity the antique car of the traditional investment fleet
because it’s nice to look at and everyone enjoys owning it and bragging
about it. But also like an antique car, it doesn’t actually take you
anywhere.
Here are the relevant stats you need to know about home equity:
The average home value appreciation is 4.65 percent per year
(comes from average home value increases in the U.S. since 1963).
The time it takes to double your money is 15 years.
I consider home equity to be an investment vehicle because it will
comprise the lion’s share of the majority of Americans’ net worth by
retirement. People love seeing their home equity increase, and that’s
understandable. It’s their “one of a kind” commodity—that rare antique
in their asset column of which they are most proud.
The home equity ROI may appear smaller compared to the other
investments discussed. Just remember that appreciation is not calculated
on the money you invest, but rather the growth of the home and
property’s total value. To further explain:
The median home price in America in 2020 was $320,000.17 With an
average annual appreciation of 4.65 percent, that equates to $14,880 in
growth per year. Therefore, in reality, your home equity growth usually
outperforms your other investments over time because this “investment”
isn’t starting with a zero balance. It’s starting with the value of your
home when you buy it.
Should I view my home equity as an investment? Of course. Still, many
people don’t consider their home equity to be an “investment” compared
to the more traditional market-based investments such as a 401(k) and an
IRA. It’s also hard to convince anyone with any common sense that a
home equity loan is an investment—especially if you are forced to take
out a home equity loan to use as retirement income.
It’s great to earn a solid ROI on your home and work towards paying it
off, but ask yourself the following questions:
Even though my home increases in value over time, how can I call it
an investment when it’s more like a liability? It costs money every
month and does not produce an income!
If my home equity produces most of my assets in life, why am I not
buying a lot more houses?
 Suppose my home equity grows by $200,000 over 20 years. Why
not buy four more houses to produce an additional $1,000,000 in
personal net worth?
The bottom line: It pains me to hear people talk about their “greatest
investment” (their home) but then not amplify what works (buy more
properties). If owning a home is the best way to grow your net worth,
then why not do more of what works?

DEVIL’S ADVOCATE
“I’m happy that you’ve been able to buy tons of houses over the years, Kris. Really, I’m
thrilled for you, man. But I have no idea how to buy houses that actually make money
without creating a nightmare of work and extra hassle.”

I get it! In Chapter Six, I will explain why it’s possible to get into the real
estate game in a way that is turnkey and automated and eliminates the
undesirables (such as becoming a landlord).

Don’t Get Stuck in the Tunnel

A fleet of nothing-but-single-digit ROI investment vehicles gives me all the
wrong emotions. The sheer thought fills me with the same panic I felt when
I worked that commission-only telemarketing job inside four tiny gray
walls.
Let me be clear: There’s nothing wrong with a single-digit ROI unless all of
your investment vehicles produce single-digit returns. If your investments
are all earning single-digit ROIs, it becomes mathematically impossible for
them to manifest your financial dreams. What looks so safe and risk-free
will end up being the riskiest choice you could have ever made.
By investing in society’s accepted investment vehicles, you will not have
enough financial fuel to reach your retirement destination. You’ll be
left stalled in the tunnel, with no end in sight.
Despite the way it might look, I’m not here to wage war against society’s
investment vehicles. I am here to get you to think differently. To think
bigger. To break you out of old programming so that you can discover
something better.
Rather than take my word for it, in the next section, we’ll do some
straightforward math to empower you to understand: 1) what you already
have, 2) what you need, and 3) the best plan to get you there. It’s your
retirement, and that means you need to take ownership of it and gain the
confidence that only comes from educating yourself.
One of my passions in life is to provide a financial game plan that can
predict when you will become financially free with far more accuracy than
society’s defunct plan. In fact, I would go so far as to say that society’s
plan, in many cases, is a total sham because it isn’t a “plan” at all.
Plans are supposed to get you to an end goal, to a target, or to a desired
result. Yet, society’s financial plan accomplishes exactly none of those
things.
Should you find yourself Your retirement path should not be riddled
in a chronically leaking with ambiguities and guesswork. You should
boat, energy devoted to be able to look at your current financial
changing vessels is likely strategy and determine whether it is
to be more productive sufficient to create the future you want.
than energy devoted to Once I did this simple math, I changed my
patching leaks. strategy. Within a few years, I became
WARREN BUFFET financially free. Today I’m earning double,
triple, and quadruple-digit ROIs. I also live
with confidence and joy because I am making more than enough money to
live my dream lifestyle, stash away cash, and have it all.

Rule of 72: Your Valuable Vetting Tool

It’s time to further awaken your financial genius! For today, that starts with
teaching you the Rule of 72. This rule helps you understand how long it
will take for you to double your money and how your money compounds
over time.
I call the Rule of 72 my “financial sniff check.” It’s a very simple litmus
test to quickly determine whether the investment you are considering is
fresh (will help you achieve financial freedom when you want it) or rotten
(is an inefficient or outright unwise way to grow your money).
Here are the basics: Divide 72 by the annual interest rate (denoted in the
formula as R) to determine the approximate time required to double the
investment (represented in the formula as T).

The Rule of 72 is an easy and practical way to calculate how long (T) an
investment will take to double if compounded at a fixed annual rate of
interest (R). The ultimate goal of the Rule of 72 is to show the power of
compounding interest (a principle that Albert Einstein once called the most
powerful force in the world).

COMPOUNDING INTEREST (NOUN):

A powerful way to earn interest on the interest you receive, which
multiplies your money at an accelerating rate.

Speaking of Einstein, he is often credited with being the architect of the

Rule of 72, although Luca Pacioli, a renowned mathematician from Italy, is
reportedly the first person who appeared to reference the rule in his 1494
book on mathematics called Summa de arithmetica.
It turns out that while determining compounding interest the long way is an
extremely complicated equation, someone (maybe it was Pacioli, maybe it
was Einstein) found a cheat code! They discovered that dividing 72 by the
annual interest rate always leads to the right amount of time it takes to
double an investment.
In this way, the number 72 in the world of finance holds the same
mysterious magical power as Archimedes’ constant, otherwise known as
“pi” or 3.14.
Fortunately, that’s about as deep as we need to dive into the history of
mathematics for this book. And even better, the math we will be doing is
straightforward and easy to calculate!
Ready for some easy math? No guesswork required. I’ll walk you through
step by step; each calculation takes just seconds. So, open the calculator app
on your smartphone, and let’s do some basic calculations.

EXAMPLE #1
Savings Account with 0.25 percent Yearly ROI

When we were kids, we learned that a bank account is where you put
money to keep it safe. Today, many adults still keep money safe in the
bank and earn no more than a 0.25 percent ROI. So, let’s say you have
$10,000 in a savings account, earning an annual fixed interest rate of 0.25
percent. How many years will it take to double your money?

72 ÷ 0.25 = 288 years

With a single-digit ROI at 0.25 percent, that $10,000 will take a

ridiculous 288 years to double and become $20,000.

DEVIL’S ADVOCATE
“But Kris, I wasn’t putting my money in the bank expecting it to grow into anything. I was just
trying to keep it safe.”

Did you know that money loses 2 to 3 percent of its value every year? When you store it in a
place earning less than 2 or 3 percent, it actually creates a negative return. Ironically, money
itself provides such an inferior store of value because when this country needs more money,
we just print more money. This causes the value of the dollar to drop slowly over time—and
that is the underlying cause of inflation, which has averaged 3.1 percent over the last century.
We print money like it’s coupons for Wendy’s, and even more concerning, our money is
backed by … basically nothing. Even when the dollar was backed by gold, the U.S.
government would adjust the gold-to-dollar ratio with regularity, essentially muting any effect
of the currency’s gold backing.
But don’t worry because in Chapter Five, I will show you a safer place to stash your cash
reserve that earns a minimum of 5 percent a year!

EXAMPLE #2
401(k) with 5 percent Yearly ROI
Now, let’s do the math on your 401(k). If you invest $10,000 at an annual
fixed interest rate of 5 percent, how many years will it take to double
your money?

72 ÷ 5 = 14.4 years

With a single-digit ROI at 5 percent (your socially acceptable

investment), that same $10,000 will take roughly 14.4 years to double.

EXAMPLE #3
Blended Returns with 8 percent Yearly ROI
 Now let’s blend some single-digit investment choices, such as the S&P
500 with an IRA, for an average return of 8 percent.

72 ÷ 8 = 9 years

With a single-digit ROI at 8 percent, that same $10,000 will take roughly
nine years to double.

You’ve already elevated your financial genius by being able to compare

these three options side by side. Now, let’s look at these three common
financial choices (savings, 401(k), and blended single digit returns)
graphically to see their growth over 20 years.
Even from a quick glance, it’s easy to see how the higher ROI of 8 percent
begins to grow exponentially faster and outperforms the 5 percent ROI and
certainly the 0.25 percent ROI.
I want to pause for a minute to reflect on the word exponential.
There’s a reason why Albert Einstein (allegedly) declared compounding
interest to be the greatest financial invention of all time, and you can see the
logic in that graph. The savings account earning 0.25 percent will take 288
years to double a $10,000 pile of money.
On the other hand, it will only take nine years to double that same pile of
money at an 8 percent yearly ROI!

You’re Getting Left in the Dust

Every job trades time for dollars. You put in x number of hours, and you get
x amount of money in return, or what I call “financial fuel.” When you
pump your hard-earned financial fuel into outdated investment vehicles,
you find they don’t go very far, and here’s why ….
On average, you have a 40-year working life. How many times can you
double your money in 40 years? Let’s assume you’re like most of the
country, and your money is earning an average of 6 percent. That means
your money doubles every 12 years (according to the Rule of 72):

72 ÷ 6% ROI = 12 years to double your money

If you work for 40 years, how many times can your money double if it takes
12 years to do so?
You can double your money, at most, maybe three times.
Meanwhile, all of these financial planners are coasting along on the open
highway, making money hand over fist by managing your money. Your
money is stuck in a traffic jam making other people money.
In short, you’re getting left in the dust.
But before we go any further, I need to ask you an important question:
Have you ever thought about how much money you actually need to
retire comfortably?
Most people save for retirement without ever having an answer to this all-
important question.
How in the world can you reach a destination if you don’t even know what
it is? You can only know if your financial game plan is adequate once you
have a concrete and defined financial retirement goal.
Remember earlier when I said you would need $2.9 million that earns a
guaranteed 3 percent to produce $95,000 of interest each year of
retirement? Let’s just assume for a moment that $2.9 million is your goal.
Here’s an analogy:
You are in Los Angeles (with no money), but you need to get to New York
City (where the $2.9 million awaits). You go to work and trade your time
for money, and each dollar you save over what you spend goes towards that
$2.9 million.
This is the absolute slowest way to amass $2.9 million, and, frankly, it’s like
trying to walk to New York City. You have no vehicle, and you will never
save up $2.9 million by putting a few spare dollars under the mattress with
every paycheck.
When you put your dollars in a vehicle like a
401(k), your money starts to move a little
faster, and the results are far better than
stuffing cash under your mattress.
However, is a 401(k) or the other vehicles
we’ve discussed ultimately the right pick to
get to your $2.9 million destination?
Maybe if you lived for several hundred years. But in this life? Never.
Remember, reality and research tell us that the average amount a person
takes with him or herself into retirement is a paltry $172,000 (only 6
percent of $2.9 million). If you are serious about getting to New York and
having $2.9 million or more, then you need to consider two things:
1. The Right Investment Vehicles. If you use slow-moving vehicles, you
may never make it to your financial destination. You need faster
vehicles.
2. High Performing Financial Fuel. You also need your money to earn a
notable return. You traded your time for it, and now you need to put it to
work. The fuel is your ROI. With a low ROI, your money isn’t working
hard enough. With a higher ROI, your financial fuel will take you
further.
It comes down to this: If you were in a race for financial freedom, which
of these investment vehicles would you want to ensure your future?
In nearly 20 years of interviewing over 10,000 people, I have yet to meet a
single person who chose these inferior vehicles and got even halfway to
$2.9 million or more. You will not have enough money to retire when you
use slow, outdated investment vehicles. Not to mention, you’re going to run
out of financial fuel long before you get to New York City. And I hate to
break it to you, but The Tunnel of Broken Dreams is fresh out of filling
stations.
Bottom line: It’s time to upgrade your investment fleet and power them
all with superior financial fuel.

Get Ready for High Performance

The time has come to talk about upgraded vehicles that give you a real shot
at achieving financial freedom.
My study of the wealthy revealed these five vehicles. My mentorship with
wealthy influencers helped me implement these five investments into my
personal Financial Freedom Roadmap. And my friendships with
millionaires and billionaires continues to accelerate and celebrate my results
and the impact they have on the world—including you!

We are going to spend plenty of time breaking down each of these. But for
now, let’s use the Sports Car (double-digit ROI) and revisit the Rule of 72
and compounding interest.

EXAMPLE #4
Investment with 25 percent Yearly ROI
 Since you’ve already awoken your financial genius, this should be easy.
Imagine for a moment that you are earning 25 percent from your
investments. How many years would it take to double your money given
the same $10,000 starting investment we used earlier?

72 ÷ 25 = 2.88 years

With a double-digit ROI at 25 percent, that same $10,000 that would take
288 years to double in a savings account will double in 2.88 years!

Let’s take that math a step further, so you can really start to see the power of
ROI: A 25 percent ROI will grow 27 times more money than a 6 percent
ROI over 20 years. Want to look at that graphically? You should, because
it’s exciting! Check out the growth of $10,000 over 20 years at 6 percent
versus 25 percent.
If you put $10,000 into the gas tank of a 6 percent ROI investment vehicle
over 20 years, it will produce just over $32,0000.
On the other hand, if you put $10,000 into the gas tank of a 25 percent ROI
investment vehicle over 20 years, it will produce almost $870,000.
Imagine the power of 25 percent ROI or more. Imagine the power of
building your multi-million-dollar financial game plan to turn your dreams
into reality. In Part Two, I will teach you all about your new financial fleet
of investment vehicles and what they can and will do for you:
1. First Comes Security. You’ll learn how to Money makes money.
prepare for security the right way. I’ll
show you my single-digit ROI investment
And the money that
vehicle—the only one I use—that will money makes, makes
help you establish security for the money.
present. BENJAMIN FRANKLIN
2. Next Comes Speed. You will then discover the three investment vehicles
that are like race cars. We’re talking about traveling cross-country from
LA to NYC faster and in style. These are the double-digit, triple-digit,
and quadruple-digit ROIs.
3. Then Comes Exponential Growth. Finally, I will introduce you to my
ultimate financial shortcut—infinite ROI. It’s like flying in your own
private jet! After all, the fastest way from LA to NYC is in the air. Still,
all the vehicles in my arsenal are far superior to society’s broken-down
investment vehicles.
We have reached the end of Part One! The goal of the first three chapters
was to expose society’s broken plan and to preview a new plan designed to
fully awaken the financial genius that is already inside you.
You may not feel like a genius yet, but, believe it or not, you now have the
foundation you need to more readily understand the Financial Freedom
Roadmap in the next chapter that lays the groundwork for the rest of the
book.
Are you ready? Then let’s rev up the engine and step on the gas because
your new financial fleet is going to leave society’s slow-moving investment
vehicles in that dusty old tunnel.

The best way to predict your future is to create it.

ABRAHAM LINCOLN

CHAPTER THREE CHECKPOINT

1. Society tells us we have to trust the “experts” and discourages
bucking the system that has been in place for far too long.
2. The Tunnel of Broken Dreams is a sad place where five slow
investment vehicles (401(k)s, IRAs, annuities, S&P 500, and
home equity) run out of gas and leave nothing behind but regret.
3. The Rule of 72 is a vetting tool to show whether you are being
too conservative as well as how far your current investment
 vehicles will get you.
4. When you apply the Rule of 72, you’ll see that single-digit ROI
can’t earn money fast enough to reach your financial
destination.
5. Compounding is the most tremendous financial force in the
universe. That is, as long as you’re compounding something
more exciting than a single-digit ROI.
6. Diversification is key! In other words, you want a fleet with a
wide range of ROIs (from single-digit to infinite ROIs).
 FOUR

THE FINANCIAL FREEDOM ROADMAP

THE WEALTHIEST PEOPLE in the world are rarely the most intelligent. I’m
no exception to this.
They don’t necessarily have the most enormous IQs. They definitely don’t
have the highest degrees from the most prestigious institutions. The most
successful people are not smarter or “better” than everyone else. Do you
know the one big thing they have that the rest of the world doesn’t?
They have systems. For everything.
Think about the last time you tried to assemble some IKEA furniture. Do
you remember how you felt when you dumped that box out, and countless
pieces spilled all over the floor? There is possibly no worse feeling in the
world (okay, there are worse feelings, but it’s a bad one).
Then you opened up that instruction booklet and saw the steps. You were
overwhelmed but also relieved that someone else figured out how to
assemble it, so you didn’t have to. All of those pieces fit together, and, in
the end, after exerting some effort and following the steps in order, you
created a functional finished product.
Without that instruction book (or roadmap, if you will), that pile of raw
materials would end up in the garbage.
Well, guess what? That’s the way your money feels right now. It feels like
garbage. It desperately wants you to find a system for investing in your
financial future and implement it—but right now? Your money just feels
underappreciated and undervalued.
Maybe you’re thinking, “But Kris, I’ve never even had enough surplus cash
to be able to hurt its feelings!”
That may be true—but it’s not going to be true for much longer. Follow my
Financial Freedom Roadmap, and a time will come when you won’t need
to be shopping at IKEA or assembling your own furniture (unless you want
to).
I delayed all forms of financial gratification for five years at the start of
my journey, and then a time came when I could literally buy anything I
wanted.
On the other hand, I haven’t changed my lifestyle in the last ten years even
though my net worth continues to increase. One of my real estate mentors,
Dolf De Roose, said that his ultimate goal was to own nothing and rent
everything when he needed it. Aside from my estate and a few nice
vehicles, I essentially own nothing. I’ll use a private driver to take me
around when I don’t feel like driving (or can’t trust myself to not use my
cell phone behind the wheel). I also travel in style and visit the nicest
resorts, and I can enjoy private planes and helicopters when needed without
actually buying them.
The lifestyle I have crafted gives me incredible variety and frankly is far
less expensive because I don’t get attached to things. I am obsessed with
making epic memories with the people I love, not the objects I own.
Aside from travel, my favorite thing to spend money on is mentorship from
the world’s leading authorities. I maximize my learning and life experiences
when I engage with the best of the best in every field. Why have home
cooked meals when a personal chef can make healthy food taste exquisite?
If you struggle at the gym, then why not work with the best personal trainer
in the area?
My wife and I also decided to take our four kids’ education into our own
hands and hire private teachers to educate them according to our standards.
My financial roadmap is what enabled us to do this. And can you guess who
is teaching my children about money? It’s certainly not the part-time
assistant football coach/economics teacher.
Even more than a goal to own nothing and rent when needed, my
underlying goal has always been to believe I actually can have it all. Why
not think big? So, before we begin, I need you to do the following:
Set aside any hint of a limited mindset, doubt, or skepticism and start
thinking bigger.
You may be approaching things from a scarcity mindset, as in, I don’t have
the money to invest in any financial vehicle, let alone the ones that Kris is
going to teach me. Instead, I want you to think, I will find the money to set
aside because my future and my legacy depend on it.
In this chapter, I introduce my system for becoming a multi-millionaire. But
here’s the crazy part. Because of what I know about human nature, I also
know that 95 percent of the people who read this will never implement the
system.
Why is that?
I don’t want to turn this into a psychology book, but let’s just say that taking
action is not a strength found in most people’s wheelhouse. I hope you are
the exception. I want you to join the small percentage of people who
develop systems to run their lives. Better yet:
I want you to become a person who saves time by finding and
implementing proven systems and procedures.
The inability or unwillingness to take action is why I can freely give away
my system for becoming a multi-millionaire and know that few will act on
my advice. There will still be many who sit around complaining about how
the wealthy must know some “secrets” that no one else does.
No, they don’t.
The wealthy just use proven systems for making money. Life functions well
when you have systems and processes in place. And the sooner you realize
this, the faster you will have it all.
Ready to learn my system for exponentially growing your wealth? I hope
so. And unlike an IKEA coffee table, there is no assembly required.

And Then My System Happened

Remember my gray cubicle nightmare job? Fast forward a few short years
and picture a 26-year-old me gazing out a storybook window at a rolling
green golf course amidst the luxury of my own custom-built mansion.
What the heck happened?!
My system happened.
I started having success with a few investments, and I began developing my
theory of wealth. That theory and my successes ultimately became the
system you are about to learn.
It started with aggressively saving money through making personal
financial sacrifices. Then I poured my savings into investment vehicles.
Those investments created a monthly positive cash flow. I took that cash
flow and put it right back into more investments.
I did this repeatedly until four years later, when I had a $12,000 surplus
each month after paying my bills. Every subsequent month, the excess cash
grew until it became utterly ridiculous to keep going to my traditional job.

I turned my wealth creation into a systematic machine that took on a life

of its own. The “secrets” that made all this possible were simple:
I reserved money for investing.
I invested that reserve into high-ROI investment vehicles.
I converted those investments into cash flow to reinvest and fund
my lifestyle.

These three steps (set to repeat indefinitely) became my Financial Freedom

Roadmap for exponentially increasing my wealth each year. There are two
core components of the roadmap:
1. The Strategy. My Compounding ROI Investments Strategy leverages the
five core vehicles required to build wealth.
2. The System. I use the strategy as the foundation for my Three-Step
Wealth Creation System—reserve, invest, and convert cash.
The path to financial security is not hidden—study the rich, and you’ll
discover this is how they “do wealth.” In the following two sections, we’ll
break down both essential elements in my roadmap.

The Strategy: Compounding ROI Investments

In the last chapter, we tore apart five inadequately slow investments found
within the Tunnel of Broken Dreams. I also previewed five exciting new
investment vehicles that feature ROIs ranging from single-digit to infinite.
Then we discussed compounding and how powerful it is.
See how much financial genius you’ve already awakened?
You know exactly what’s coming next and what vehicles and destinations
make up the roadmap. So now, let’s formally define the strategy.

COMPOUNDING ROI INVESTMENT STRATEGY

(NOUN):
A system used by financial geniuses consisting of five vehicles for
building wealth. Leveraging all five and reinvesting the surplus produces
a compound effect so powerful that you create a lifetime of wealth within
a few years.

It’s time to meet your new fleet that is an integral part of the plan—the
vehicles that are well equipped to keep you riding from LA (insufficient
savings) to NYC (ample savings) in comfort, style, and class.

YOUR NEW FINANCIAL FLEET

The Armored Truck: Financial

Reserve Vehicle
Single-digit ROI
The first vehicle in the financial fleet is
your armored truck full of investment
funds. It’s the place to stash your cash! With the appropriate Aggressive
Savings Strategy or A.S.S. (more on that in a minute), you will be able to
store reserves in a specific account. The average bank account may
produce a 0.1 percent return, but this is a more intelligent account that
delivers a yield between 5 and 7 percent annually. You trade your time
for money every day—but what have you done with that money so far?
When invested this way, your money starts working for you, not the other
way around. Ultimately, you will use your reserve vehicle as a smart
holding tank for your money (financial fuel) as you prepare to fill up the
tanks of your new investment fleet.

The Sports Car: Passive Income

Vehicle
Double-digit ROI
The second vehicle in the financial fleet is
your passive income investment vehicle
that produces double-digit ROI through real estate. I’ll explain how it’s
possible to tap into passive, turnkey real estate investments that can
consistently deliver an annual ROI of around 25 percent. You can create
as much as 27 times more wealth than conventional retirement vehicles
by utilizing this investment. This vehicle is what allows you to amass
millions throughout your working life. It won’t create financial freedom
overnight, but it will ensure that, in time, you can get there.

The Race Car: Asymmetric

Risk/Stock Market Philosophy
Vehicle
Triple-digit ROI
Your fleet’s third vehicle is an asymmetric risk investment that produces
triple-digit ROI through implementing a unique stock market philosophy.
The stock market intimidates many people, but it doesn’t have to be
complicated. I don’t like 401(k)s and IRAs, but that doesn’t mean I don’t
like the stock market. Let me be clear: The only thing I dislike about
society’s vehicles are boring, single-digit ROIs. I love owning a piece of
the future through carefully vetted companies with incredible upsides.
 Even better, market returns are passive (like the second vehicle), so they
don’t rob you of valuable time.

The Formula 1 Car: Active Income

Vehicle
Quadruple-digit ROI
Your fleet’s fourth vehicle is an active
income vehicle that produces quadruple-digit ROI through smart
business investments. This vehicle requires minimal time investment for
maximum return. It also acts as an accelerator to help you achieve goals
in years instead of decades.

The Private Jet: Strategic

Partnership Vehicle
Infinite ROI
The fifth vehicle in your fleet is the
strategic partnership vehicle that produces infinite ROI. You generate
infinite ROI when leveraging the power of other people’s money. This
strategy is the ultimate accelerator for achieving your biggest results in
the shortest period.

As we continue, you will further awaken your financial genius and learn
how to produce results far exceeding those promised by society’s game
plan. By the end of this book, you’ll understand how to leverage each of
these vehicles to harness the power of Compounding ROI Investments.
Of course, a strategy is only as good as the system in which it is integrated.
Fortunately, I have developed such a system.

The System: Three-Step Wealth Creation

Through my system, you will learn how to properly reserve, invest, and
convert cash into wealth via the following steps:
Step 1. Reserve financial fuel for your fleet. You need an Aggressive
Savings Strategy, or A.S.S., to reserve 20 percent of what you make
for the investments that build your wealth.
Step 2. Invest reserves into your investment vehicles. Once you’ve
stocked your reserves with financial fuel, it’s time to pour that money
into your investment vehicles.
Step 3. Convert investments into further investments and lifestyle
cash flow. Take profits and flow them back into your reserve vehicle to
have more capital for investments. Eventually, you’ll have enough
cash flow to support your dream lifestyle.
 Step One: Reserve
Reserve Financial Fuel
I hope this doesn’t come as a surprise, but you need money for
this system to work. In other words, you need to utilize a single-
digit investment called your reserve vehicle. This is an alternative to a
savings account that grows 5 to 7 percent tax-free every year while it waits
to be deployed.
The entire system is rooted in your ability to set aside a reserve, invest those
reserves into high-ROI vehicles, and convert the outcomes into more
wealth. The good news is you’ve (hopefully) got a job, and you’re already
trading time for dollars. However, you may also be in a situation where
there is no money left after paying your bills. If that is the case, it also
means there is currently no financial fuel for investments.
The natural tendency is to spend 10 percent more or less than you make.
This inclination is actually a derivative of Parkinson’s Law, which states
that “work expands to the time available for its completion.”
We do the same thing with money that we do with time. Our budget
expands to what we can afford—and often to more than we can afford.
If this is a natural instinct, then I guess it’s time to fight nature. You are
already making the most enormous sacrifice you will ever make (trading
your valuable time for dollars). So, now I need you to commit to the
following:
Save at least 20 percent of what you earn for your reserve vehicle.
I call this the Aggressive Savings Strategy (A.S.S.) for leveraging financial
fuel into your investment vehicles. In other words, you now have a reason
to move your A.S.S. to save fuel for your investments if you want your
financial dreams and goals to come true.

DEVIL’S ADVOCATE
“Kris, even saving 20 percent of what I make still won’t amount to much.”
 After a year of saving 20 percent, it may not feel like you have set enough money aside to
make a difference. Here’s the good news: You will be earning much higher ROIs, so you
don’t need to save a lot to have a significant financial impact.

“But Kris, there is no way I can save even 10 percent of what I make!”

You’re not alone. According to CareerBuilder, almost 80 percent of U.S. workers live
paycheck to paycheck.18 More than 25 percent of our country has no savings at all, and 70
percent of workers making less than $100,000 are in debt. Not to mention more than half of
minimum wage workers have to work more than one job to make ends meet.
I say all of that to say yes, it’s going to be a challenge. But yes, you can do it.

For this system to function, you must save $1

out of every $5 you earn. If you’re
accustomed to spending every dime, I know
20 percent seems like a huge ask.
Find a way. Rethink your finances. Look at your budget and see where you
can make temporary sacrifices. If you can’t do 20 percent, start with 10
percent, but then create a 90-day plan to increase your savings to 20
percent.
If you are struggling to save, you may find some reassurance in the fact that
the fourth vehicle in your fleet is designed to make money on the side, so
you do not have to rely solely on your day job for reserve capital. However,
if 20 percent (or even just 10 percent) is still too much of a stretch, go to
KrisKrohn.com/Save to find some smart, easy-to-implement strategies for
saving more so that you can invest more.
You can be an outlier and rise to the challenge. I did it starting with nothing,
and so can you.
Fueling your reserve is a commitment that comes with an almost
immeasurable payoff!
Before I share the next two steps in my Wealth Creation System, I would
like you to intentionally pause. It’s time to decide how much of your hard-
earned income you’ll reserve as fuel for future high-ROI investments.
In reality, 20 percent should be the minimum. That means you may be able
to save more, or you may not be able to save 20 percent yet (in which case
you need a plan to get there). Decide the exact percentage you are going to
set aside each month as financial fuel for your investments.

I am going to commit to
saving ________ percent of
my net monthly income to
fuel my reserve.

Make this your highest financial priority.

You need this reserve for investing like you need air for breathing.
Once you have filled the reserve with financial fuel for your investment
vehicles, it’s time to put that money to work through the rest of the system.

Step Two: Invest

Invest Financial Fuel into Three More Vehicles
The next step in the Wealth Creation System is to invest.
As you begin saving 20 percent of your income (see more in Chapter Five),
your goal is to reserve enough money to fuel the next three investment
vehicles (covered in Chapters Six through Eight). This step empowers your
money to produce double, triple, and quadruple-digit ROIs.
The three investment vehicles include real estate and shares in specific
types of companies as passive income and business as active income. These
investments vary in size and will become easier to understand as you read
about each one.

Step Three: Convert

Convert into More Investments and Lifestyle Cash Flow
Once you correctly implement the first two steps in the Wealth
Creation System, your money will naturally lead you into step three by
converting into two things:
1. Cash flow. Cash flow is money that your investments pay you back (also
called profits and dividends) that can then be reinvested and/or utilized
to fund your lifestyle.
2. Increased asset value. Your investments will become more valuable with
time, so they can eventually be sold for even greater profits.
As your investments start generating cash flow, it is vital to redirect the
flow back into your reserve to reinvest. More investments produce more
cash flow. Allow the cycle to continue moving forward, and you will
eventually have enough cash flow to support your dream lifestyle.
At that point, it won’t even be a “cycle” of cash flow. It will become a
“cyclone” of wealth.
I enthusiastically invite you to get hooked on growing your money and
making it work for you. The goal is to earn an ROI that you can multiply
over and over again. In a nutshell, you are putting compounding interest to
work on something exciting. This starts happening at a double-digit ROI
level and gets more appealing as it goes along.
Imagine earning a 25 percent ROI on a real estate deal. Then you sell that
property in five years and use that profit to invest in two more properties,
both of which deliver similar returns. That means the original investment is
now earning a collective 50 percent ROI. If you repeat the process again in
five years, you will be earning a 100 percent ROI.
Imagine the feeling of doubling your money in 90 days. Feels good, doesn’t
it? Are you the kind of person who will take the spoils of war and go on a
spending spree, or will you take the profit and put it back into the system to
increase the gains?
Your answer to that question says a lot about how well this system will
work for you. And if the idea of reinvesting that money gets you excited,
then you and I have a lot in common.
Even if you start with a small investment, thanks to the power of
compounding ROI, this system can create a tsunami of results as you
reinvest. The longer the profits stay in the system, the more they multiply,
and the bigger your ROI becomes. Your financial fuel (that 20 percent
reserve) is what initially generates this momentum. The more you put in,
the more you get back.
You should become obsessed with investing instead of spending or
penny-pinching.
The more you invest, the more cash flow you generate, and the more it
comes back to you. With every cyclone rotation, the money gets more
significant, which means your net worth
grows, which means your dreams manifest.
Before you know it, you are an ultra-
successful entrepreneur and philanthropist
who is living your best life while preserving
your most important asset, which you know
by now is time.

Financial Freedom Roadmap

Combine the Compounding ROI Investment Strategy with the Three-Step
Wealth Creation System, and what do you get? The Financial Freedom
Roadmap. Check out how it looks visually below.
Step 1: Reserve
Reserve money by implementing your Aggressive Savings Strategy (your
A.S.S.). View this as your top financial priority. Your goal is to figure out
how to save 20 percent of your paycheck every month. That money will
funnel into your financial reserve vehicle that will deliver a single-digit ROI
(Chapter Five).

Step 2: Invest Part Three details two

unconventional
Invest that reserve into the next four
“investments” that you
investment vehicles. In Part Three, you’ll
can’t live without!
learn about two additional investments that
are not “investments” in the traditional sense but are absolutely critical to
your success.

Step 3: Convert
Convert these investments to produce a consistent return that you feed back
into your financial reserve vehicle. Then repeat the cycle (that will soon
become a cyclone of wealth).
This is the Financial Freedom Roadmap that includes the strategy and
system to help you build wealth. In subsequent chapters, I will explain all
five investment vehicles in more detail so you can harness each one’s
financial power. And don’t miss Part Three to discover the remaining two
unconventional “investments” that have changed the trajectory of my life
far more than anything else.
How much financial fuel is in your tank?
Understanding how to invest money into the most well-equipped vehicles is
worthless if you don’t have any financial fuel for your reserve tank. Bottom
line: If you don’t set aside a portion of the money you earn for investments,
this system will not work.
You want this system to work. You need this system to work.
Stop trying to assemble that IKEA coffee table without the proper pieces
and without the instruction booklet. That’s just a lesson in futility and
frustration!
Follow the steps. Trust the system.

BONUS

ACCUMULATION MINDSET VS. RESIDUAL

INCOME MINDSET
Our society promotes an accumulation mindset—we are told to go to work
and trade time for money. Experts then tell us to “save as much as possible
for retirement.” You now know that the numbers prove this outdated
retirement model is doomed to fail.
The goal should not be to save a certain amount of money but to empower
your investments to predictably and safely produce a certain amount of
residual income.
Well, the great news is that high-ROI investments also tend to produce a
really high residual income. You may need $2.9 million or more to provide
a six-figure post-retirement income with a traditional financial planner.
However, you can create that same result with a lot less money by
changing your goal from “save x amount of money” to “earn x in residual
income.”
Here are a few of the critical differences between society’s limiting
accumulation mindset and a millionaire’s recurring income mindset.
If you find that you relate to the mindset in the left column more than the
mindset in the right, give yourself a little grace. It takes time to undo the
damaging programming from our childhood. If you’re anything like me,
you saw your parents operate from a place of lack rather than abundance.
You can break that cycle, but it takes time, patience, and discipline!
 CHAPTER FOUR CHECKPOINT
1. The Financial Freedom Roadmap is a battle-tested investment
strategy and a proven three-step system.
2. My Compounding ROI Investment Strategy builds wealth
through five vehicles: 1) Single-digit ROI from your reserve
tank, 2) Double-digit ROI from passive real estate income, 3)
Triple-digit ROI from passive market income, 4) Quadruple-
digit ROI from business, and 5) Infinite ROI through strategic
partnerships.
3. My Three-Step Wealth Creation System is comprised of three key
action steps that work together:
1) Reserve by saving 20 percent of your income (aka your
Aggressive Savings Strategy or A.S.S.),
2) Invest and earn double, triple, quadruple-digit, and infinite
ROI, and 3) Convert into lifestyle cash flow and reinvestment
capital.
4. The more you save, the more you can invest. The more you can
invest, the more you can convert to cash flow and reinvest to
create a cycle that transforms into a cyclone.
5. My Compounding ROI Investment Strategy and Three-Step
Wealth Creation System combine to create my Financial
Freedom Roadmap. You can harness this financial power to
build your wealth to previously unimaginable levels.
 FIVE

YOUR FINANCIAL RESERVE VEHICLE

Single-Digit ROI

EVERYBODY DISMISSES SQUIRRELS as rats with fluffy tails, but I think

they’re pretty clever. Aside from their cunning ability to hack any squirrel-
proof bird feeder known to man, they are also excellent planners.
You can bet there are no foolish squirrels out there eating every single bite
of food they worked so hard to collect. And if there were, those squirrels
wouldn’t even be around long enough to tell the harrowing tale of the
winter they almost didn’t make it.
No, they’re smarter than that. Squirrels instinctively know that they need
their reserves to be overflowing by the time winter comes around. So, they
work hard to collect more than they need to eat in the present to save for the
future.
I bet you never thought you’d be reading this, but you need to be more
like a squirrel.
You must set one acorn aside into the “knothole” known as your reserve
vehicle for every five acorns you collect. Logically, I call this investment
vehicle your armored truck. Utilizing a savings vehicle with a built-in ROI
is intelligent and also an indispensable first step in my roadmap.
Skip this vehicle, and your quest to have it all will stop right here, right
now. I assume that doesn’t sound good to you, so I invite you to read about
this reserve vehicle with an open mind and the curious nature of a squirrel.
Curiosity will take you far in life. The curious people in this world are the
ones who create opportunities and who see closed doors as challenges
waiting to be conquered. So, dig up some curiosity and put it to work as we
continue.

Meet Your Armored Truck

There’s no denying it: Money is what makes more money.
In chemistry, the law of conservation of mass states that matter cannot be
created or destroyed, but it can change forms. An easy way to explain this
concept is to imagine a wax candle with a wick. Once you light the candle
and it burns down, it looks like the wax is gone. What really happened is
that the resin has been transformed into gases (water vapor and carbon
dioxide). But in reality, no matter (and therefore no mass) is lost through the
process of burning.
“What are you doing to me, Kris? First, you make me do math, and
now you are giving me a chemistry lesson?”
Hey, don’t blame me! Your teachers told you all along that what you were
learning would be helpful later. Here is the bottom line and why I bring all
of this up …
As great as it would be, there is no way to manifest money out of thin air—
that is, unless you’re the government. Eventually, however, their money-
printing schemes will backfire in a big way (you can’t defy the laws of
nature and not answer for it).
About the closest a human being can get to “manifesting money out of thin
air” is utilizing the infinite ROI vehicle we’ll cover in Chapter Nine. But
even then, the money still has to be stored up by someone in order to be
available to you.
So, yes, it takes money to make money. Where the finesse comes into play
is how you set up money to attract more money to it. This chapter is all
about that finesse.
You need a reserve earning a single-digit ROI set aside to create peace
of mind but, more importantly, to invest in higher-ROI opportunities.
What you need is that armored truck that stores all of the fuel that will be
used to power up the rest of the investments. On our Financial Freedom
Roadmap, it’s destination number one!
Your Aggressive Savings Strategy (A.S.S.) is that magic savings number
we’ve already discussed. This monthly 20 percent comprises the funds you
must stash into your armored truck. Now, you could place it into a savings
account, but that would earn less than 1 percent ROI with no additional
benefits.
But there is a more innovative way.
Years ago, when I started having success with my new investments, my
reserves began to grow right along with my investment philosophy.
Eventually, I had six figures just sitting around, collecting dust in a savings
account. Seeing that balance inertly staring at me, doing nothing, got me
wondering.
What do the wealthy do with their large cash reserves?
We know they don’t have savings accounts at their local banks with a few
million bucks in there. So, what happens to their excess capital? I began
interviewing millionaires and billionaires to unearth the answer to this
question and others.
First, I discovered that making a lot of money causes an almost
instantaneous and unquenchable desire to find the most tax shelters
possible. With big money comes the big responsibility to be intelligent and
save for other lucrative investments.
The second thing I discovered is a specific type of savings vehicle that
many businessmen and women seem to favor. To my surprise, they stash
cash in an underutilized kind of life insurance policy that provides
numerous living benefits.
Wait—life insurance policies are only payable on death, right?
It turns out that is not always true. Yet, for some reason, this strategy gets
overlooked and even ridiculed in traditional financial investment circles.
For the life of me, I can’t figure out why this is the case. I finally determined
it must result from a combination of cognitive dissonance and a limited
mindset. Because once you start using a life policy for savings, I assure you
there is nothing laughable about it.
Now, let me be crystal clear:
I couldn’t care less about life insurance as an investment based on the
death benefit.
In fact, I’m opposed to it (a topic for another time). Life insurance is
traditionally about investing in a death benefit for your heirs. However, I’m
talking about life insurance policies with living benefits.
To my surprise, a number of my millionaire friends didn’t know about these
policies either. This is probably because most life insurance agents don’t
even know about them! Those who do know about them keep their mouths
shut. Why? Sadly, it’s because insurance companies will cut commissions
by up to 90 percent when these policies are created.
Self-interest is a heck of a thing, isn’t it?
If you’re feeling skeptical, I get it. Fortunately, it’s true—you can earn an
extra 5 to 7 percent ROI on your investments just by using this particular
kind of life insurance savings account. As a bonus, this policy also provides
a death benefit and protection from inflation and lawsuits (in some states
only).
That’s what a cash value dividend-paying life insurance policy (or CVDP)
is all about.
I call it your “life insurance savings account.”
I use it just like a bank account because it gives me a whole slew of perks
that traditional bank accounts do not. Here are the top seven benefits you’ll
be most interested in discovering.

1. Guarantees an ROI.
By having your cash tucked away in this life insurance savings account, you
will receive a certain percent ROI guaranteed by state law (actual rate will
vary by carrier and generally range from 2 percent to 3.75 percent). I love
this guaranteed percent because every year, inflation drives the dollar’s
value down by approximately 2 to 3 percent. This ROI hedges against
inflation while your money waits to be used for the next investment.

2. Pays you dividends.

Most insurance companies pay an additional 1 to 3 percent annual dividend
on some whole life policies. In many ways, these dividends are similar to
traditional investment dividends, representing a share of a public company’s
profit. Your dividend amount depends on the amount you pay into the
policy. For example:

A $50,000 policy that offers a 3 percent dividend will pay you, the
policyholder, $1,500 annually ($50,000 x .03 = $1,500).
Then, let’s say you contribute another $2,000 in premium the following
year. The policy will pay a 3 percent dividend on that as well. So, doing
the math, that comes to $60 dollars ($2,000 additional premium x .03 =
$60).
Add those together, and that means you will receive a total of $1,560 next
year ($1,500 + $60 = $1,560).
Imagine increasing your pile of money and then getting paid 3 percent on
that increase every time you do. These amounts can increase over time to
levels that more than offset some costs associated with the premium
payments!

These dividends are not guaranteed, but if you add their potential to the
guaranteed percent, it means you can produce up to a 5 to7 percent annual
ROI. Remember, a single-ROI savings account of any kind will not make
you wealthy. However, it can counter the effects of inflation and cover the
cost of borrowing against the policy.
If you had the choice to earn up to 7 percent ROI on your insurance savings
account or a 0.1 percent ROI on your local savings account, which one
would you choose? It’s just common sense (which doesn’t seem to be quite
as common anymore).

3. Allows you to borrow cash value to buy more assets.

This is my favorite part! You can pull reserves out of your life insurance
savings account and put them into other investment vehicles.
This is called borrowing against the cash value of your policy.
It enables you to take your money out and still earn money as if it’s sitting
in your life insurance savings account. You’re actually making money in
two places at once, which is an incredible example of leverage. The same
cannot be said for traditional savings. Once you take money out of a
conventional bank, all of the meager benefits stop right there.

IMAGINE THE POSSIBILITIES OF COMPOUNDING

ROI
Let’s assume you are earning a 2 percent ROI, plus a 4 percent dividend,
for a total of 6 percent. Then, you take money out of your policy to fund
an investment property that produces 25 percent annual ROI.
You might be thinking, “What’s the cost of borrowing money out of my
policy?”
Currently, you can borrow that money for as low as 3 percent, while you
are simultaneously earning that 6 percent. Translation: even after you
take that money out for the real estate transaction, you could still be
earning a net 3 percent on your life insurance policy while the money is
sitting in your other investment earning 25 percent for a total ROI of now
28 percent!
That is the power of compounding ROI and a true example of leverage in
action! In case you’ve ever wondered how the wealthy grow their money
—well, this is how.

4. Enables tax-free growth.

As you start earning more money, it becomes increasingly important to
minimize your taxable income. The guaranteed percent ROI and the 1 to 3
percent dividends all grow tax-free. The more money you make and the
more your investments grow, the more critical this benefit becomes.

5. Offers guaranteed protection (varies by state).

The government views a person’s life insurance as a different type of
protected asset class. It means that, currently, any cash value held in an
insurance policy is not litigable in some states (always check with your
specific state’s rules and regulations first, as protection varies by state). If
someone tries to attack you legally, in certain states they can’t touch this life
insurance savings account. In this way, your insurance policies become an
integral and immutable part of your legacy.

6. Provides a death benefit.

Like any other type of life insurance policy, the CVDP life insurance policy
contains a death benefit. There is comfort in knowing that if I make a
premature or unplanned exit from the earth, I will be leaving my family
with a large sum of generally tax-free money. Beyond that, I am also
insured for a large enough death benefit to cover any outstanding liabilities
or debts.
Make a plan that leaves your loved ones with assets and a way to
eliminate liabilities.
Later, I will show you how to acquire real estate, how to invest in the
market, and how to build businesses, all in a way that utilizes leverage. I
love putting other people’s money to work, and I know you will, too. But
this also means you will have some “good debts’’ that are making you
money. So, should you die prematurely, this death benefit gives your
beneficiaries a way to pay off those good debts, ensuring you leave loved
ones with a pile of assets instead of a giant liability headache.

7. Delivers disability protection (for an additional cost).

Suppose you ever become mentally or physically disabled. In that case, the
insurance carrier covers those costs and continues paying for the rest of
your policy. It’s a valuable benefit that you may choose to add to your
policy.
I store my savings in a life insurance policy because I continue earning
dividends and interest even when I borrow the money and put it into my
investments.
This reserve vehicle, my own Loomis truck, supercharges my double-
digit, triple-digit, and quadruple-digit ROIs and provides the benefits
mentioned above.
Utilizing a life insurance savings account makes sense. Who wouldn’t want
to earn an extra 2 to 3 percent or more on top of their existing investments?
 DEVIL’S ADVOCATE
“I don’t know, Kris, this sounds too good to be true. What’s the catch?”

There is no catch. There is only a lack of information. In truth, large insurance companies are
a lot like banks. Many of them have been around for over 150 years, and most of them have
never missed a dividend payment. These are not fly-by-night operations. We’re talking about
large, protected institutions with guaranteed products that have been around for over a
century.

How to Leverage Your Armored Truck

Now that you’ve learned more about your new intelligent single-digit ROI
reserve vehicle, let’s talk about how to intelligently leverage it. Like I stated
earlier, you stash cash in a smart single-digit ROI vehicle for two reasons:
Reason 1:
To reserve financial fuel for future investments.
You now know that the law of conservation of mass proves you can’t
manifest money out of thin air. And unless you’re David Copperfield or
Houdini, you are going to need more than magic. Aggressively saving at
least 20 percent of your current active income is what quickly meets the
needs of your double-digit to infinite ROI opportunities.
That makes setting 20 percent aside for higher ROI investment vehicles
your top priority. The most crucial factor in whether you become financially
free comes down to your discipline in setting money aside for these
investments. I repeat this because it’s too important to miss.
Reason 2:
To reserve financial fuel for your S.W.A.N. Account.
Can you remember a time when you were constantly checking your bank
account to make sure your balance could cover your upcoming bills? Have
you ever woken up to the sinking feeling of seeing a negative balance and
an overdraft notification?
These moments create extreme financial stress, and that’s the last thing you
need when shifting your focus to investing. Your reserve vehicle is more
than just a place to “stash cash” for investments. It’s a way to create a
reserve that allows you to sleep at night. Here’s an important question:
“What is the minimum amount of money you need in an emergency
fund that will enable you to sleep well at night?”
Determine what that amount is, write it down, and then work to make it
happen. I called this your S.W.A.N. account, or your “Sleep Well At Night”
account. Your first goal should be to save that figure and stash it in your life
insurance savings account. There are three different S.W.A.N. savings
levels that can help determine how to proceed with your investments. If
you’d like to learn more about the three levels and how much to invest in
each, go to KrisKrohn.com/SWAN.
According to CNBC, the majority (67 percent) of Americans save less than
10 percent of their income.19 And according to Yahoo! Finance, almost half
of the American workforce invests none of their money.20
None.
These folks are not building any kind of a future where freedom or
confidence exists. They are in survival mode, living paycheck to paycheck.
Don’t be a cautionary tale for your children. You can do better for them and
for you.

YOUR RESERVE VEHICLE IN ACTION

RESERVE: Set at least 20 percent aside in your life insurance savings
account to build up an adequate S.W.A.N. account and higher ROI
investment vehicles.
INVEST: Borrow money from your life insurance savings account to
make your next investment.
CONVERT: Deposit earnings back into your reserve vehicle to build up
for your next investment.

This process becomes exponentially more exciting every time you add new
investments to your portfolio, and your earnings experience the same
exponential growth.
Picture, for a moment, those little toy push cars you may have played with
as a child. You know the kind I’m talking about—they require a little bit of
force to get them moving. But once you get those wheels turning and let
them go, they zoom off with incredible speed.
You may not know those tiny cars are powered by a friction motor operated
by a flywheel. A flywheel is a wheel rotating on a shaft. Its momentum
gives almost uniform rotational speed to all connected machinery.
Flywheels are used to provide continuous power output in systems where
the energy source is not constant. With a flywheel, once in motion, each
rotation requires less momentum and spins faster.
Now picture that concept (a “money flywheel”) driving your wealth.
On its own, your 20 percent savings is just a static number that
provides the ability to sleep well at night. But put it into the machine
and give it a push, and your investments start producing more profits.
Each time you put those back into your reserve vehicle and into more
investments, this speeds up the process again and adds more momentum.
Add to this the momentum you gain by restoring your time, growing your
assets, increasing your cash flow, and achieving your goals.
And this, my friends, is how you reach financial freedom.
Life is all about momentum and energy, and your money works
according to the same principles.
At this point, I hope you’re as excited as I was when I started learning about
life insurance saving accounts. Many people I talk to about these accounts
have the same questions, so I created a case study with an accompanying
FAQs section on life insurance savings accounts that you can find at
KrisKrohn.com/CaseStudy.

How to Add an Armored Truck to the Fleet

Rob Gill is my life insurance company business partner and an authority on
using life insurance to fuel your investments. When it comes to using a life
insurance savings account, here is what he tells his clients:

“Buying and selling property by ‘borrowing’ from a life insurance

savings account is the best way to offset inflation at the same time you
establish cash flow. This method achieves the best results on the most
accelerated timeline. Never pass on a great real estate opportunity
because you don’t have the ability to quickly access a pile of money.”

Rob further agrees that reserving your financial fuel and then pumping that
fuel into investment like real estate is a great way to build wealth. And you
can quickly pay back the down payment borrowed from your reserve
vehicle with the cash flow generated from other investments.
You are paying yourself back with interest. It’s brilliant.
This is not something you can set up yourself. You have to go through a
licensed agent. Remember when I told you that your financial advisor won’t
want you to read this book? That is because the vast majority of advisors
are not well-informed on these types of policies.
That means it’s decision time. Are you going to take action and find
answers, or are you going to stay stuck on the sidelines?
Once you have decided what amount of money you can save (could be
more or less than 20 percent for now), the second action is to visit the link
below and set up your life insurance savings account for free.
Over the years, I’ve met with insurance agents and carriers and interviewed
them on best practices for setting up a functional and maximized life
insurance savings account. I’m sad to share that many insurance agencies
are not up to the task, either due to a lack of understanding or experience.
Fortunately, I’ve come across a few organizations that I trust to put these
policies together correctly.
Remember, there’s a reason why the wealthy don’t put their money in
regular bank accounts. A life insurance savings account protects your
money, maximizes your tax benefits AND doubles your earning potential.
For a complimentary Cash Flow Analysis (that saves the average person
$9,000), and to learn more about getting set up with a life insurance savings
account, visit this link: KrisKrohn.com/CashFlow.
When you contact agents that I have already vetted and approved, you can
be confident that they: 1) understand this vehicle, 2) can expertly help you
set it up, and 3) will show you how to utilize it.
Now that you understand the importance of setting up an intelligent, single-
digit ROI investment in the form of your life insurance savings account, we
can shift to an even more exciting topic—higher ROIs!
Put 20 percent of your income into a reserve vehicle and convert it into
double-digit ROIs. This alone will enable you to create 27 times more
wealth than society’s retirement vehicles create. That’s all it takes to win,
and yet we will discuss even more significant gains later in the book.
Over the next four chapters, you will feel the need for speed as I show you
how to accelerate the process through double-digit, triple-digit, quadruple-
digit, and infinite ROIs. So, buckle up as you prepare to invest in your new
high-performance vehicles. These vehicles will enable you to have it all!

CHAPTER FIVE CHECKPOINT

1. You must save to invest in order to produce double-digit ROIs
or higher. There’s no getting around this step.
2. After years of interviewing the world’s wealthiest people, I
discovered they use a different form of savings than the rest of
us—a cash value dividend-paying life insurance policy that I call
a life insurance savings account.
3. A few of the potential benefits of using an insurance policy as
your savings account include guaranteed percent ROI,
dividends up to 3 percent, tax-free growth, protected money,
and both life and death benefits.
4. There are two underlying reasons why setting up a reserve
vehicle is the first step in my roadmap: to allow for larger-ROI
investments and to create a S.W.A.N. account.
5. Treating your reserves and cash flows this way creates a
flywheel effect that leverages momentum to exponentially grow
your money.
Traditional financial advisors may not be well versed in this
investment vehicle. Utilize my list of vetted professionals who
can help you add an armored truck to your financial fleet.
 SIX

YOUR PASSIVE INCOME VEHICLE

Double-Digit ROI

MOST PEOPLE DON’T HAVE IT IN THEM to buck the system. By and large,
we are a nation of people who will follow the rules and do what we’re told.
I certainly didn’t question the conclusion that college and a full-time desk
job was the path to happiness (or at least to adulthood).
I just did what I was expected to do.
Society and my dad told me to get a degree, so that’s what I was faithfully
doing. The rules also said I needed to get a job that may or may not be
torture. Did it matter if I hated it? Heck no! What was important was that it
provided a stable paycheck and maybe health benefits.
“I’ll just keep my head down, and in 40 or so years, there is a
chance I’ll have enough to retire as long as I don’t live too long
after that!”
Then I met three extraordinary people.
Let’s call them Bill, Bob, and Beth.
Bill, Bob, and Beth had fancy stuff. They lived in nice houses, and they
drove expensive cars. I was in awe and could hardly imagine what it must
be like to have possessions other people admired. (At the time, I drove a
1993 Subaru Justy. Google it for a good laugh.)
But here’s the real kicker: Bill, Bob, and Beth also seemed to be getting the
most out of their most valuable asset. It looked like they had all the time in
the world!
If Bill felt like spending a day on the lake, he loaded up his boat and went
out on the water. If Bob wanted to spend the day riding his Harley, he
grabbed his helmet and fired up the hog. If Beth wanted to have a girls’
lunch and spend the rest of the afternoon at the spa with her closest friends,
she made a few phone calls and was on her way.
What did these folks have in common besides enjoying every day to its
fullest?
At the time, Bill, Bob, and Beth had each made over $10 million in real
estate, which afforded them the flexibility and opportunity to enjoy such
extraordinary lifestyles.
Were they just lucky, or could anyone experience that same success? I
wasn’t sure, but I was ready to find out—and that’s how I first caught the
real estate bug.

I’ve Got a Fever (and the Only Prescription is More Real

Estate)
When I met these successful real estate heavy hitters, I was making a scant
$18,700 a year working a full-time job that I loathed. But I had also started
formulating my roadmap and had worked diligently to amass $5,000 in
savings (even though I didn’t have a life insurance savings account yet).
Reserve in hand, I went hunting for my first property. With a mentor’s
guidance, I bought a home valued at $150,000 for just $110,000. I closed on
the house, wholly consumed with feelings of terror, excitement, and pride. I
invested less than $4,000 (a 3 percent down payment, which is still
common today) and was officially the newest player in the real estate game.
Instantly, that $4,000 increased my net worth to $40,000, a ten-fold return. I
went from a negative to a positive net worth with a few strokes of the pen.
What an exhilarating feeling!
Even better, I rented out the basement of our new home for $550 a month,
which covered the entire mortgage. My wife and I were now living “rent-
free” with our monthly mortgage payment completely paid for by our
basement dwellers. The excitement of it all encouraged me to want to do it
again. And again. And then again after that.

DEVIL’S ADVOCATE
“You got lucky, Kris. Try doing that in today’s economy!”

Sorry, but that’s just an excuse (and not a very original one). I have thousands of students
following this exact strategy today. It worked then, and it works now.

Twelve months after my first purchase, I got an $18,900 home equity line of
credit (HELOC) on the property. If you aren’t familiar with a HELOC, it’s
like a credit card tied to your home’s equity. Because it’s a secured loan (a
loan in which you pledge some asset as collateral), the interest rate is
substantially lower than those associated with unsecured debt like
traditional credit cards.
I used this credit line to buy my next house through a bank foreclosure
worth over $210,000 that I acquired for just $150,000. The monthly
mortgage payment on my new property would be $1,000.
I decided to do a rent-to-own, or lease option, based on another mentor’s
advice. I found a family willing to pay $3,000 as a down payment (common
with a lease option) and then $1,600 a month in rent. This amount was $300
higher than it would have been with a traditional rental.

WHAT IS A LEASE OPTION?

When I purchased my second property, I offered it as a rent-toown. or
lease option. based on one of my mentor’s recommendations. This is
leasing a home with an option for the tenant to buy it. One of the most
obvious benefits of this option is you can collect a higher monthly rent
than with traditional rentals (in the example above with my first lease
option, I earned $300 more than I would have with a straightforward
rental agreement).
 My mentor explained that this strategy, compared to a straightforward
rental, can be twice as profitable while creating a valuable benefit for the
investment home’s family. Your tenants can work toward buying the
house rather than just renting it.
I used this lease option strategy with my first 25 homes, and it provided
over $12,000 a month in residual income. This cash flow allowed me to
quit my job, multiply my portfolio, create greater cash flow from high-
ROI investments, and live the good life. I wrote a book documenting this
entire DIY strategy called, The Strait Path to Real Estate Wealth.
VISIT KRISKROHN.COM/BOOK TO GRAB A FREE COPY.

Just like that, I was making an additional $600 every single month ($1,600
rent less my $1,000 mortgage payment).
Add the $600 cash flow to the $550 we collected each month from renting
out our basement, and I felt pretty darn good about the investments I was
making. Not to mention, my total net worth was now over $100,000
between the two properties.
My monthly income from my full-time job was just over $1,500. Without
taking on a second job or working double shifts, I had just added $1,150 to
my bottom line every month.
After just two real estate transactions, my monthly income increased
by close to 75 percent but required virtually no additional time.
Needless to say, I was hooked.
My wife came to me one day for a bit of clarification. “Hey, Kris, I’m not
sure where this extra $600 belongs on our budget spreadsheet.”
I thought for a minute. “I guess we need to create a new job income line
called ‘real estate income.’ What have we been doing with the $550 rent?”
Kalenn responded, “I’ve been aggressively paying down our debt.”
“It’s probably a good idea for us to create two extra line items in the income
category.”
I was totally caught off guard when she then asked with a smile, “So, when
can we buy our next house?”
A new property meant hundreds of extra passive dollars each month to help
us get out of debt more quickly. Kalenn wanted more—and so did I.
I’ll never forget how elating it felt working as a team to create an aggressive
plan for achieving our financial freedom. We decided that with a $10,000
residual income each month, I would no longer need to work a traditional
job. To meet that goal, I needed around 20 properties, with each of them
producing $500 a month.

Here is the simple math it took to figure that out:

Passive income needed: $10,000

Average income per house: $500

$10,000 / $500 =
20 rental homes needed to reach our goal

I had specific income and time goals, and now I knew what it would take
to achieve them.

DEVIL’S ADVOCATE
“But Kris, I’ll never be able to get my spouse/partner on board.”

Spouses offer that all-important stabilizing opinion. Their perspectives can keep you from
either being too aggressive or too conservative. Just remember that you may have decided to
invest because you gained the knowledge it takes to have confidence in your decision.
Respect your spouse by offering them the same—give them the gift of knowledge by helping
them understand the why behind your plan.
Come to them with real numbers and reasonable expectations (don’t be “pie in the sky” about
it because that will lead to disappointment and an erosion of trust).
I wanted my wife’s support, and I eventually got it. She was terrified at first, but after the first
two homes, she felt more confident in me and the plan. In the beginning, I asked her to trust
me and take a leap. Still, I would have made the real estate decisions I did with or without her
confidence. I had simply determined it was the best way to fulfill my promises to her.
 I took a risk, but I did so intelligently. And I wasn’t alone. I had mentors who guided me.
Having a subject matter expert with a proven track record watching diligently makes up the
difference for what you may lack. Gain the knowledge you need, enlist the help of the right
mentors, and that is how you simultaneously honor your partner and your goals.

The Science and Speed of Real Estate Investing

In case it isn’t obvious, what we’ve been talking about so far is the next step
in the Financial Freedom Roadmap. It’s the second vehicle in the fleet—
your double-digit ROI sports car.
Let’s review our roadmap and where real estate fits on the path to financial
freedom.
As you’ll learn in this chapter, cash flow from real estate becomes passive
income that you can use to re-invest or fund your lifestyle. When executed
properly, it can consistently and predictably provide you with solid double-
digit ROIs.
This sports car was the original investment vehicle that enabled me to ride
on the fast-track to wealth accumulation at a young age. I went to work
finding 20 properties that would produce at least $500 a month in cash flow,
and within a few years, I said goodbye to the cubicle life forever.
I became financially free using this double-digit ROI vehicle, and we
haven’t even gotten to triple-digit ROIs and beyond!
Real estate has the potential to be a robust wealth foundation as long as you
leverage it correctly. This vehicle allows you to put money down and sit
back and watch it generate a cash flow, when done correctly.
One of the keywords I don’t want you to miss is “potential.”

POTENTIAL (ADJ, NOUN):

The inherent ability or capacity for growth, development, or future
success that has not yet been reached.

Going back to science again (roll your eyes if needed), let’s talk about
potential energy in physics. Potential energy is the stored energy an object
has because of its position or state. A few examples are a bicycle on a hill, a
person at the top of the stairs, and a coiled-up spring not yet released. These
are all things that have what it takes to exhibit great power and/or
movement but haven’t used that potential yet.
This kind of energy is often contrasted by kinetic energy. Potential energy is
stored energy, while kinetic energy is the energy of motion or doing. When
potential energy is used, it is then converted into kinetic energy. You can
think of potential energy as kinetic energy waiting to happen.
When it comes to your wealth roadmap, the “potential energy” of your plan
is represented by two things:
1. The accumulation of savings in that single-digit ROI vehicle.
2. The proper knowledge required to earn sizable ROIs (or in other words,
knowing where to invest your money).
Without the proper knowledge, the “potential energy” found in your
reserves will be wasted.
Almost every person I talk to easily understands the idea that it takes money
to make money. However, the critical ingredient most miss in the potential
energy equation is the proper knowledge aspect. Instead, most people lose
their potential by allowing their misguided fears (based on lack of
information) to rob them of their momentum.
Suppose you are mistrustful of real estate investing because of horror
stories you’ve heard or hesitations you have about market fluctuations. If
that’s the case, I understand because I’ve heard and felt them, too.
But while investing in real estate can be intimidating, most people don’t fail
because of the market or a “bad deal.” They fail because they are missing
that essential ingredient—the proper knowledge.
The absolute fastest way to gain the knowledge you need is by partnering
with a mentor who has made all the mistakes. As a result, he or she figured
out the most direct path to investing success.
Why would anyone want to reinvent the real estate investing wheel?
Find the right mentor who can walk you through it all properly.
Shorten the time horizon by leveraging the knowledge of others!
That is why I’m here. I will remove the guesswork and provide the
knowledge you need. This isn’t magic or luck. There is a precision and a
science to it, just as there is with every other consistent and reliable income-
producing endeavor on the planet.

DEVIL’S ADVOCATE
“Listen, Kris, I’m not interested in becoming a landlord. Taking calls from frustrated tenants
and chasing after my rent sounds like a nightmare. I’m not signing up for late-night trips to
the hardware store because a tenant’s toilet sprung a leak.”

This is not a plan for becoming a full-time landlord. It’s really about using the strategy that
takes the least time, effort, and risk while producing the most profit. Later in the chapter,
we’ll discuss two different ways to invest. Relax in the knowledge that not all real estate
paths lead to The Home Depot.
To further help you understand how to leverage real estate as a means of
guaranteeing financial freedom, it’s time to cover three critical components
to your real estate knowledge base: 1) the seven most dynamic benefits of
investing in real estate, 2) the six criteria for property selection, and 3) the
number one strategy for building a passive portfolio.

Potential Energy Ingredient #1

The Seven Benefits of Real Estate Investing
Most people don’t understand just how profitable real estate can
be, and I get it. On the surface, making multiple five- and six-figure
purchases on mostly borrowed money can be more than a little intimidating.
The good news is there are seven specific benefits of investing in real estate
that make the decision to invest the obvious choice. If you leverage these
benefits, you will consistently produce double-digit ROIs and make as
much passive income as your heart desires.
Let’s do a quick dive into each benefit and see them in action.

1. Appreciation
Owning a Rapidly Growing Tangible Asset
The amount of land that exists today on Earth is the same amount of land
that will exist tomorrow. There is no way to create more land (they did
build islands from scratch in the shape of a palm tree off the coast of Dubai,
but that is a wild and crazy exception, not the rule).
As a result of the fixed nature of land, property value increases over time.
More people vying for the same amount of land means higher values, year
after year. And, just by owning a home, it appreciates by an average of 4.68
percent every year.

APPRECIATION IN ACTION:
Let’s say you buy a $200,000 home in a market that is appreciating at 5
percent a year. That 5 percent is equivalent to $10,000 a year, and that
 increase will continue to compound year after year. With simple interest
alone, that same home will be worth $250,000 after five years. Your net
worth will have increased by $50,000 just by owning it.
Now, imagine having 20 houses of the same value. In five years, your net
worth will have increased by $1 million.

2. Cash Flow
Building a Powerful Residual Income
The cash flow from real estate represents the amount of money left after
paying all your bills from collected rent. If you purchase property correctly,
there should always be leftover money. I call this cash flow your “freedom
dollars” because the more you accumulate, the less you need to work for
your money. Your money starts working for you.

CASH FLOW IN ACTION:

If you buy a home and rent it for $1,500 a month, but your mortgage and
expenses are only $1,100 a month, you are generating a $400 monthly
cash flow in the form of residual income.

3. Leverage Control
Earning High ROI with the Bank’s Money
Producing high ROIs in real estate is possible because of the leverage banks
provide. If you have $50,000 in cash, you can only buy $50,000 worth of
stocks. There is zero leverage in that transaction. However, with real estate,
$50,000 in cash can purchase $250,000 worth of real estate. That’s because
banks allow you to leverage, on average, $5 for every $1 you invest. Your
returns are five times greater because of the leverage!
This leverage is a critical part of how we get to a minimum 25 percent
ROI through real estate investing.

LEVERAGE CONTROL IN ACTION:

 A great deal on a single-family home in a good cash flow area hits the
market at $200,000. The bank requires a 20 percent down payment of
$40,000 to buy this home. If the home increases 10 percent in value, it is
now worth $220,000. That $20,000 increase came from a $40,000
investment. In this illustration, that’s a 50 percent ROI on this benefit
alone.

4. Tax Benefits
Writing Off and Deferring Capital Gains
Can you imagine earning an income but paying no taxes on that income?
That’s what happens when you purchase real estate the right way. You are
legally allowed to depreciate an asset over 27.5 years, which produces
massive tax write-offs. Typically, this write-off cancels out all taxes on the
positive cash flow you earned that year, with additional write-offs
remaining. Even though you’re showing a positive cash flow, the
depreciation and interest expenses cancel that income!
The end result is you have more money in your pocket, but you don’t owe
any of that money to the government. The wealthy understand this benefit
and therefore work to max out their real estate holdings.

TAX BENEFITS IN ACTION:

You earned $5,000 in positive cash flow in a single year on a rental worth
$220,000. The U.S. government allows you to write off that $220,000
over 27.5 years, which comes to $8,000 per year ($220,000 ÷ 27.5 years
= $8,000).
The $8,000 write-off first cancels out the $5,000 you collected as a
positive cash flow, with $3,000 in depreciation write-off left over ($8,000
- $5,000 = $3,000) to lower your other income. This allows you to pay
even less in taxes.
So, you pocket $5,000 tax-free, and you don’t have to pay taxes on
another $3,000 you made elsewhere. You are getting wealthier with cash
in hand while enjoying extra tax write-offs.
 GOOD TO KNOW
DEPRECIATION
When you buy a computer, the IRS determines that it will wear out in
five years, so they let you take the entire cost of the computer and write
off a 20 percent (one-fifth) of the cost for each of the five years. Well, the
IRS determined that most parts in a house need to be replaced within
27.5 years—so they let you take the total cost of the property and write
off a twenty-seventh of it each year.

5. Market Resilience
Earning High ROIs Across Market Conditions
Real estate comes in all shapes and sizes, ranging from single-family homes
to apartments, commercial real estate, raw land, and more. Most real estate
sectors see their value negatively impacted during a recession. However,
entry-level, single-family homes priced below the national median (more on
this type of property a little later in Potential Energy Ingredient #3) are the
most recession-proof type of real estate.

MARKET RESILIENCE IN ACTION:

Take a look at the projected potential decrease in home values during a
recession. The most expensive homes lose a significant amount of their
value (as much as 50 percent), while homes below the median lose
notably less (a $200,000 home loses 9 percent by comparison). This
demonstrates why properties at or below median value allow for the most
remarkable market resilience:
A $1,000,000 home can decrease to $500,000 in value.
A $500,000 home can decrease to $300,000 in value.
A $300,000 home can decrease to $200,000 in value.
A $200,000 home can decrease to $180,000 in value.
A $180,000 home can decrease to $170,000 in value.
If you purchase real estate below the median, you insulate yourself from
steep market price drops. You continue to hold this property during the
down economy while still earning income in the form of rent. With homes
going back to the bank during recessions, rentals become even more
popular during recessions, and rent prices on entry-level homes increase an
average of $50 to $100 per month.
So, when a recession hits, you can buy more single-family real estate at
better prices, with lower interest rates, while cashing in on higher cash
flows.

GOOD TO KNOW
ARE RECESSIONS HARMFUL TO REAL ESTATE?
In a few words? Not as much as you’d think. On average, real estate
values only diminish in two out of every five recessions.
Translation: Just because the stock market takes a hit doesn’t mean real
estate will. Real estate prices decrease almost exclusively when there is
too much supply of homes and not enough demand for purchase. This
causes a “bubble burst” of inventory and inflated prices, leading to a
correction.
Another factor that helps protect real estate is the fact that investors buy
property differently than the average homeowner. Investor property
purchases are countercyclical. When everyone else is buying, they are
selling, and when everyone is selling, they are buying.
During a recession, fear is at an all-time high, and consumer confidence
is ultra-low, which leads people to sell their real estate at the wrong time
for the wrong reasons. After the 2008 real estate crisis, I made my
investors over $100 million in profits because we were buying when
everyone was selling. Others were terrified to even enter the game during
that time, but my strategy enabled me and my team to remain calm and
increase profits.
When it comes to real estate, timing can be the difference between a
massive ROI and no ROI. For more on the best time to buy real estate,
check out “The Two Best Times to Buy Real Estate” at
KrisKrohn.com/Timing.
6. Passive Investment
Reclaiming Your Time to Live Your Ideal Life
Besides compounding interest (the thing that made me fall in love with real
estate), my other favorite part about real estate investing is that it’s passive
as long as you pick the proper strategy. In other words, you don’t need to be
a landlord, take midnight phone calls, or even talk to tenants unless you
want to do those things. Some investors want that, but I certainly never did.
You can outsource nearly every part of real estate ownership. All you
are left with is cash flow and the maximum return on your most
valuable asset (you know by now I’m talking about your time).

PASSIVE INVESTMENT IN ACTION:

Real estate investment companies exist to make real estate investing
passive and turnkey. After researching your best options, you select a
company with a track record for having facilitated thousands of high-ROI
deals in the best markets. They help you acquire properties earning
double-digit ROI by:
Acquisition—Researching, finding, and vetting the best deals.
Purchase—Lining up financing with the top investment banks.
Rehab—Coordinating any and all property repairs.
Property Management—Selecting vetted tenants and managing the
day-to-day process.
Exit Strategy—Assisting in selling properties and doubling your
portfolio every five years.

A stellar management team handles the day-to-day business of property

ownership and rentals. You maintain the control, check in monthly on your
investments, and make executive decisions on buying and selling. Then,
you let your trusted team do the rest, thereby reducing your time
commitment to a few hours a month.
7. Combined Interest That Creates Double-Digit ROIs
Making Financial Freedom a Reality
I saved the best for last because this one is my absolute favorite!
Every year you collect cash flow, your property appreciates, and your
renters pay down the mortgage. All of this can combine together to form an
impressive ROI that outpaces all traditional investments. This section is a
little longer because we’ll need to calculate the net positive monthly cash
flow. You will need this number (it’s the amount that goes into your pocket
after rent is collected and all expenses are paid) to calculate each of the
three ROIs we will then be combining later in the example. Here is a quick
reminder of the ROI formula to use for our calculations:

First up is the net cash flow calculation:

COMBINED INTEREST IN ACTION:

You purchase a single-family home for $200,000. You make a 20 percent
down payment of $40,000, plus pay $10,000 in closing costs and reserves
for a total investment of $50,000. Let’s evaluate how three financial
benefits combine to form a 25 percent ROI on this property. Here are the
relevant numbers:
Purchase price: $200,000
Down payment (20 percent): $40,000
Closing costs and reserves: $10,000
Total investment ($40,000 + $10,000): $50,000
Monthly rent (what tenant pays): $1,600
 Monthly mortgage payment: $1,000
Gross positive monthly cash flow ($1,600 mortgage – $1,000 rent):
$600
Net positive monthly cash flow: $600 monthly cash flow – $267
expenses = $333 (expenses include monthly breakdown of property
tax, property insurance, property management fees, repairs, and
vacancies).
So, now let’s calculate our ROIs based on these figures.

1. Cash-on-Cash ROI: 8 percent

This ROI takes into account the positive cash flow you earn after using
rent to pay expenses on the property.
To calculate ROI, we’ll need the total gain for the year (or the yearly
positive cash flow):
Total gain: $333 net positive cash flow x 12 months = $4,000
So, now we can calculate ROI:

$4,000 total gain / $50,000 total investment x 100 = 8 percent

cash-on-cash ROI

2. Principal Reduction ROI: 5 percent

This ROI comes from your renters paying the mortgage every month.
With a 30-year mortgage, a portion of each payment to the bank goes
towards interest. A portion also goes towards paying down the principal.
I love having tenants help pay down my principal because someday I will
sell the house and receive tremendous gain because of it. This factors into
a part of my total ROI.
The math is a little complex on this one because of the way banks do
their amortization schedules. (An amortization schedule shows how
much money you pay in principal and interest over time.)
But on average, for a 30-year mortgage of a house priced below the
median, the annual principal reduction ROI is 5 percent.

3. Appreciation ROI: 12 percent

 This ROI comes from the value of the home increasing over time.
For more than 50 years, the average home value in America has
increased 4.85 percent annually. Let’s assume for the sake of being
conservative that the home in this example is appreciating at 3 percent.
To calculate appreciation ROI, we need to determine the annual
appreciation:
Annual appreciation: $200,000 property value x 3 percent (.03)
= $6,000 annual appreciation
So, how does this figure into my Appreciation ROI?
If the home increases $6,000 in value over a year, let’s use our trusted
ROI formula once again to do the math:
$6,000 total annual appreciation / $50,000 total investment x
100 = 12 percent appreciation ROI

4. Total Combined ROI: 8 + 5 + 12 = 25 percent

This ROI comes from adding together the separate ROIs on the
investment.
The math is simple on this one. We’re just adding together the three
previous ROIs we calculated:
8 percent cash-on-cash ROI
+ 5 percent principal reduction ROI
+ 12 percent appreciation ROI
= 25 percent total ROI

I truly hope this straightforward example and simple math accurately

demonstrates how real estate provides stable and predictable double-digit
ROIs when you combine all the ways you make money on your portfolio.

Potential Energy Ingredient #2

The Six Criteria for Selecting the Best Strategy
Understanding why real estate is beneficial is one matter.
Learning what strategies will make each of these benefits work for you is a
different matter altogether. When I started my real estate journey, my
mentors were engaged in a cornucopia of real estate transactions, from flips
and foreclosures to land development and commercial deals.
I quickly became obsessed with determining which of these real estate
strategies was best. I needed some answers!
So, first, I asked my mentors which strategies they recommended. Imagine
my disappointment when none of them would give me a definitive
response. They all said it depended on what I “valued most.”
Ugh! What does that even mean? Well, turns out it’s actually pretty
straightforward:
I had to decide my priorities that fit the unique goals that I set and the
expectations I had for investing in real estate.
The most profitable strategy might also be the riskiest, or be more time-
intensive than you bargained for. You may be more or less risk averse than
the next guy. You might want to be a hands-on real estate investor and save
money by doing all of the day-to-day management, or you might want to
buy real estate from a beach in Tahiti.
After I realized how these different expectations changed the type of real
estate investor I would be, I did some soul searching and asked myself what
my investing standards were (or, in other words, what priorities were
driving the sports car). I came up with six criteria, and then I measured
where I fell on each spectrum:

1. Time Investment: LOW

Do you want a strategy that uses a majority of the workweek or the
bare minimum?
I was looking for investments that required the absolute least amount of my
time. I was not interested in being a landlord. I would gladly pay someone
else to do the day-to-day work of managing my properties.

2. Effort Investment: LOW

Do you want management of the property to be complex or easy?
I am always interested in the least amount of effort. I don’t want a property
that is so high maintenance it causes my total ROIs to decrease from the
sheer amount of effort it takes to manage it.

3. Risk Level: LOW

Do you want the most risk or the least risk?
I find comfort in knowing that there is the least risk possible in most market
conditions.

4. Profit Level: HIGH

Do you want it to make a lot of money or just enough to supplement
your income?
I was seeking a way to make enough to quit my job. So, yes, I wanted the
most profit possible.

5. Market Conditions: ANY

Do you want your investments to work in only good markets or in all
markets?
The properties I selected must provide double-digit ROI in both up and
down markets since my plan was to leave my job and rely on cash flows
from real estate to fund my lifestyle.

6. Provide Value: ALWAYS

Do I want it to help or hurt people?
I know this one seems like a no-brainer. Still, anyone who has ever dealt
with unethical or dishonest people knows that providing value to others is
not at the top of everyone’s list. For me, any transaction in which I engage
must offer a valuable service or benefit to myself and others.

After I determined where I landed on each spectrum, I compared the top

thirty real estate strategies against each other based on these criteria. I then
selected the real estate strategy that I’ve now been using with massive
success for eighteen years in all market conditions.
Ready for it? Good, because it’s ingredient number three.
 Potential Energy Ingredient #3
The Number One Strategy for Building Your Portfolio
Based on these six criteria, a reliable strategy with massive
returns emerged, and it’s now the one I teach all of my coaching
clients.

MY WINNING REAL ESTATE STRATEGY:

Purchase entry-level single-family homes, in the best markets, below the
median, with a short-term buy and hold of approximately five years.

This is the strategy I used to create financial freedom by my mid-twenties

and has since allowed me to grow a nationwide team of 200 experts who
help other investors utilize this same strategy. Let’s take a closer look at
each of the four elements of my strategy that work together to make it so
effective at consistently producing double-digit ROIs.

Element 1: Purchase entry-level single-family homes.

Entry-level, single-family homes represent the American dream—the most
popular real estate, always in the highest demand. We’re talking about
three-to-four bedroom, one-to-two-bathroom homes in desirable
neighborhoods (nice schools, low crime rate, American suburbia).

Element 2: Purchase below the median.

If you purchase homes below the median, you will possess the most
desirable real estate with the greatest demand. This price range also
experiences the most significant growth.
The simplest way to think about median home price is what the average
person can afford. From the time the housing market recovered after the
2008 bubble burst until about mid-2020, the median home price hovered
near $250,000. Since then, it has risen and is expected to continue doing so.
But, even when another correction happens, remember that this investing
strategy is designed to work in all market conditions.
Being under the median also keeps you reasonably safe from a recession.
Homes above the median decrease the most in value (as we saw earlier,
with the massive losses the most expensive homes take in a down
economy). In a downturn, single-family homes below the median are the
most resilient. In a sense, they are “recession proof” given that in a down
economy, middle America will still need places to live.

Element 3: Purchase in the best markets.

Most investors purchase homes in their backyard, and indeed, you can find
great deals nearby. However, suppose you have saved a considerable
amount in your armored truck and want to consistently access only the
highest ROIs. In that case, you will need to invest in the markets nationwide
that have the best advantages (and you may or may not be living in one of
those markets).
After buying and selling my first round of properties, I determined that the
amount of time it took to manage the homes in my backyard required more
time than I was willing to invest. I wanted passive—not active—real estate
investments.
So, I did some experimenting and discovered something interesting:
Owning rentals in the top-performing, out-of-state markets earned the same
double-digit ROIs as my local lease options. However, the national strategy
ended up being the more passive of the two.
And we have a winner! I’ll take the more passive investing option every
time.
The U.S. has over 324 defined real estate markets. A select number of these
markets at any given time are experiencing the highest population increase,
migration, and job growth (all great things for rental property owners).
Markets also vary in other macro-economic forces that determine how well
your investments produce cash flow and appreciate.
Every five to ten years, the top markets shift to different parts of the
country. It’s essential to keep up with the changes and know where your
investment dollars will have the most impact. To learn more about the
current top three markets, go to KrisKrohn.com/Markets.

Element 4: Utilize a short-term buy and hold.

The highest profitability on a single-family home occurs in the first five
years of the hold before your ROI begins to diminish. As a result, I
generally sell off and multiply my portfolio every four to seven years.
The ultimate goal is to double my portfolio every five years on average. If I
start with five homes today, my goal is to trade them for ten houses within
the next five years, give or take a year.

WHAT IS BUY AND HOLD REAL ESTATE?

“Buy and hold real estate” is an investment strategy where an investor
buys a property and holds it for an extended period of time (rather than,
say, buying the property and flipping it right away). When you utilize my
strategy, you will be selling a property within four to seven years of
purchasing it. But in the meantime, it will be a source of cash flow, tax
benefits, and appreciation.

Understanding the seven benefits of real estate investing and the six criteria
for selecting the best strategy led to my customized strategy that works for
most real estate investors.
When I was brand new to the real estate game, I set my goal at 20 homes
with approximately $500 each of cash flow to produce $10,000 a month.
That was the magic number that allowed me to quit my job and be well on
my way toward creating financial freedom.
And the rest, as they say, is history.
It only takes that first property to get you hooked. Once you experience it,
the feeling of making money while you sleep is one that you will not want
to live without.

Which Path Should You Take?

The more investors I worked with over the years, the more I discovered
there are ultimately two things that determine what kind of investor you
will be:

1. The amount of capital you have.

2. The level of involvement you want (active vs. passive).
With this graphic, you can see how straightforward it is to determine the
path you should take based on those two factors (whether you have money
to invest and how involved you wish to be). By using the diagram—along
with the criteria in this chapter—you will be able to more easily decide if
you will look for properties locally or expand your search nationwide. You
will also have a good idea as to whether lease options or rentals suit you
best.
Here is a little more about the four possible investing paths:

Path #1
No Money + Hands On (Active)
If you wish to be hands-on in real estate but have no savings to invest, focus
on local lease option deals. Whether you have the money to buy real estate
really doesn’t matter—there’s always a way to buy if you have the proper
training and the right mentor. I started with almost nothing and built a
meaningful portfolio with this local lease option strategy. I explain this in
detail in my book, The Strait Path to Real Estate Wealth.

Path #2
No Money + Hands Off (Passive)
If you have no savings to invest and no interest in being actively involved
with your properties, I have good news. In Chapter Nine, I will reveal how
to leverage strategic partnerships to purchase property with other people’s
capital. You will also discover how you can partner with me and leverage
my track record.

Path #3
Money + Hands On (Active)
Once again, the lease option strategy is the way to go. It allows you to mix
little to no-money-down, seller-financing deals that don’t require a bank
with standard investment deals that require as much as 20 to 25 percent
down. If you want to learn about executing a local lease-option strategy in
one hour, check out my digital master class, “How to Make $5K In 30
Days,” which breaks everything down for you. You can sign up at:
KrisKrohn.com/LeaseOption. No matter how much savings you have, this
class will help you jump into the active real estate game.

Path #4
Money + Hands Off (Passive)
When you have money to invest but don’t want to be involved, your ideal
strategy will include buying properties in the top five makets in the country.
Successful investors know that the people they choose to surround
themselves with make the difference between fleeting luck and sustainable
success. That is why I began developing a team that I couldn’t find
anywhere else. As I continued leveraging a passive strategy to build my
wealth, I discovered that my team could facilitate more deals in the hottest
nationwide markets than I could ever possibly purchase independently.
That’s when we created the concept of becoming facilitators for other real
estate investors, from newbies to the most experienced.
Today, my team of over 200 experts facilitate the best deals for me in the
top five markets. People also partner with me from all over the world as
passive investors. They put up the capital, my team does all the work, and
we split everything. To learn more from my investment team about building
a winning portfolio, contact us at KrisKrohn.com/Portfolio.
Whether you do or don’t have money to invest in real estate and no matter
what level of involvement sounds most appealing, there is a real estate path
made just for you! To learn more about how to enact a hands-on versus a
hands-off strategy, check out the Bonus entitled, “What’s Your Real Estate
Style?” at KrisKrohn.com/Style.

Excuses are Rooted in Fear

It’s easy to assume that lack of knowledge, money, luck, or timing are the
reasons why people give up on real estate investing. Surprisingly, that’s not
the case. Those are just excuses people tell themselves to justify their
decisions to jump ship. Don’t sell yourself short! The reality is most people
do have what it takes. So, before we conclude this powerful chapter, we
need to address the elephant in the room.
I’m talking, of course, about a little thing known as fear. The only time fear
serves any purpose is when you’re in danger (being chased by a mountain
lion would qualify). Other than that, fear is harmful.
Fear stifles dreams, dampens bright futures, and robs you of joy.
Still, I know what you’re thinking: What if?

1. What if I lose all my money?

2. What if the economy tanks?
3. What if one of my properties stays vacant too long?
4. What if my tenant hammers my property?
5. What if I fail?

All of those “what ifs” represent so much fear! From my research and from
thousands of conversations over the years, I have discovered the top five
reasons why real estate fails to deliver for many who dabble in it. Spoiler
alert: These reasons are all based on emotions like fear, not logic!

1. They give up way too soon.

From a young age, we are programmed to quit when things get tough.
Somewhere in our pre-teen or teenage years, people start telling us we can’t
do big things, and, for some reason, we actually believe them. So, we try
something a few times, and if it fails to deliver, we chalk it up as an
inevitable failure.
You fail, assume you’re “just no good” at this investing thing, and give up.
Let me tell you that you are capable of doing so much more. Real success in
life takes more than a few attempts!
The number one reason for real estate failure is giving up too soon.
Don’t be a quitter! Trust the process.

2. They lack motivation.

You need practice and training to stretch outside of your comfort zone, to
go above and beyond. You also need a reason to make that effort. You have
to be able to see what that effort will bring. You have to recognize that the
steps you take now will bring you financial freedom in the not-too-distant
future. You have to want that freedom.

3. They doubt their abilities.

Self-doubt can be one of our biggest enemies, and if you’re hanging around
with the wrong people—people who don’t push you to go further—then
you need to find some new friends. You CAN do this.

4. They assume the worst.

If you believe you’re going to fail, then I promise you this: You will be
correct. What we think, we become. So, tell yourself that you can keep
going no matter what! You will get there.

5. They exhibit wrong thinking.

Everything goes back to mindset. Everything.
The most important real estate you own is between your ears. Train your
mind. Tell yourself that you can do anything and everything. A coach or
mentor can see what you can’t see, so find one and trust them. Lone wolves
die—alone. With the right mindset and help from a capable mentor, you can
be more than you realize.
When you move past your fears, you’ll realize just how much there is to
gain by investing in real estate. But (and this is a big but) it has to be done
right. In my book, The Strait Path to Real Estate Wealth, I document the
journey that enabled me to arrive at the battle-tested real estate strategy we
just discussed.
It’s critical to select the proper real estate strategy and set it in motion. It’s
the only proven way to immediately start earning double-digit returns on
the money you have in your reserve vehicle.
Even if you aren’t sure what kind of investor you want to be (active or
passive, local or national), start building your real estate portfolio now.
Don’t wait!
If you think double-digit ROIs are impressive, you’re going to love the next
chapter. I’ll show you how to shift to a triple-digit ROI by doing the
opposite of what most investors do—by leveraging more risk, not less!
Let’s keep going, and we’re only going to pick up the pace from here.

CHAPTER SIX CHECKPOINT

1. Within a year of investing in real estate, I was hooked, thanks to
massive double-digit ROI and increased cash flow.
2. Real estate investing is only as lucrative as you make it with the:
1) reserves you bring to the table, and 2) the knowledge you
gain, ideally from an expert mentor in the industry.
3. Real estate investing has seven benefits: appreciation, cash flow,
leverage control, tax benefits, market resilience, passive
investing, and combined ROIs.
4. There are six criteria to consider when selecting the right real
estate strategy for you: time investment, effort investment, risk
comfort level, profit goals, market conditions, and desired value.
5. After years of research and experimentation, I determined the
ideal strategy for building a passive real estate portfolio is to
purchase single-family homes below the median in the nation’s
best markets on a short-term buy and hold.
6. The type of investor you will be is determined by your available
capital and the level of involvement you wish to have (active vs.
passive investing).
 SEVEN

YOUR ASYMMETRIC RISK VEHICLE

Triple-Digit ROI

I REMEMBER WELL THE THRILL of Friday nights as a kid, primarily because

of two words:
Blockbuster Video.
If you were blessed to be a child of the 1980s as I was, there is no doubt
you can recall the feeling of going to Blockbuster. You pulled up and gazed
across the parking lot at that glorious blue and yellow sign, a beacon of
entertainment beckoning you to come try out a new cinematic delight.
As you walked inside, fluorescent lights illuminated the towering wall of
new releases (and the center aisles filled with old favorites). There was
always that worn-out copy of Caddyshack. Then there was E.T., Back to the
Future, and anything by John Hughes. When in doubt, you could always
fall back on the Star Wars trilogy (there used to only be three Star Wars
movies, not 287 like there are now).
I remember the first time I saw DVDs sitting beside the VHS copies of
some of the classics. I stood in amazement, wondering how in the world
such a thin, tiny disc held an entire film.
Back in those days, there was no button on your remote that brought movies
up in two seconds. There were no smartphones with 100 different movie
apps (the only mobile phones we had required actual bags to carry the giant
phones and chargers). No, you went to Blockbuster, browsed, and bought
Twizzlers and root beer while you were at it.
Imagine my surprise when I first heard about this new company that mailed
movies to you, and then you sent them right back! What sorcery is this?
Who could have ever imagined such a fanciful concept?
Apparently, Netflix did. Because even before their streaming service,
Netflix had sealed Blockbuster’s fate simply by figuring out a way to rent
movies via snail mail. Netflix became the standard for what it means to be
an industry disruptor. And for those savvy investors who bought a slice of
the Netflix pie early in the game, their ROIs were in the five digits by the
mid-2015 stock split.
Imagine that you could go back to 2014 and purchase stock in Netflix
before their ROI increased by 23,865 percent. That means:
If you had bought $1,000 worth of shares in Netflix in 2014, you’d have
made over $230,000.
What if you had predicted that Amazon would become the e-commerce hub
for the planet, and it would grow more than 21,487 percent? What if you
had anticipated that Shopify was going to help small-shop owners
worldwide sell their products. And because of that, it would grow 6,717
percent?
With the benefit of hindsight, it’s easy for us to say, “Well, of course those
are winners!” But when these companies were first emerging, investing in
them would have seemed like a risky bet to most people.
Risk—it’s a word that elicits many different reactions depending on how
much you know about it and how you are wired. So, let’s talk about the
word risk and why the planet’s wealthiest people actively seek it out.

Risk: The World’s Greatest Investing Tool

Our bodies are innately designed to respond to risky situations in two ways:
fight or flight. So, in a nutshell, risk either makes people run screaming in
the other direction, or it makes them plant their feet in the arena like Russell
Crowe in Gladiator.
Me? I’m an arena guy.
That’s why I became obsessed with the concept in this chapter when one of
my mentors, the legendary Ray Dalio, first explained it to me. Risk is the
stuff that makes life worthwhile. Some people jump out of airplanes. I buy
shares in exciting companies within emerging markets.
I highly value risk, as long as it meets two requirements: It has to be
intelligent, and it has to have a huge potential payoff. We’re talking about
race-car-speed growth—three-digit and higher returns. That makes it the
third vehicle on our Financial Freedom Roadmap. Here is our roadmap
again for a reminder of where we are on the path to financial freedom.
The most intelligent risks are also going to be high-risk. The reason is that
low-risk investments guarantee failure. I don’t invest in failure. I invest in
winning, which is why I actively seek out the highest risk investments.

HOW DO TRADITIONAL INVESTMENTS FAIL?

Low-risk investments guarantee failure, but it’s not “failure” in the
traditional sense. If you have a certain goal for retirement or financial
freedom, and that goal requires double-digit returns or greater to get you
there, what do you call it if your returns are too low to compound and get
you to your desired end result? I call that failure.
If your plan is guaranteed to not hit the goal, then it’s a broken plan. If
your average ROIs are too low across the board, you’ll never make it to
your goal, and you’re actually guaranteed to fail. If the plan or aggregate
ROI is broken out the gate … don’t do it.

The kiddie pool is shallow. You can swim in it (sort of), and the upside is
it’s tough to drown (but not impossible). It’s also boring. I want to be able
to dive in and swim freely. There is an inherent danger to swimming in
deeper waters. But that danger is necessary if you desire the financial
freedom it takes to have it all. So, yes …
This chapter is about taking the kind of risks where you could lose.
Honestly, though? This isn’t as scary as it sounds. I can’t guarantee
anything, and neither can anyone else. It’s not even a guarantee that you’ll
wake up in the morning. However, the numbers (i.e., the high returns you
want) heavily favor intelligent risk.
Buying stock in someone else’s business is all about leverage. You invest a
little, other people do all the work to turn a profit, and you get to reap a
percentage of the rewards.
It almost sounds too good to be true if we didn’t already know this is
how the stock market actually works.
Now, I hesitate to even use the term “stock market.”
The phrase means something entirely different to me than it does to
everyone else. Most people equate stock market investing with the S&P
500, IRAs, index funds, mutual funds—everything I absolutely can’t stand.
People think they are ultra-diversified and cleverly hedging their risk by
using “so many different types of investments.”
Let’s think about that logic for a second. Every one of those vehicles I just
listed banks its success on the exact same thing—owning a bunch of
minuscule fragments of the world’s biggest companies.
How diversified does that sound?
When you think about it, that is literally the opposite of “diversified.” It’s
also a sign that someone really doesn’t understand the concept of using risk
as an investment tool.
Ray Dalio is the founder of the world’s largest hedge fund firm,
Bridgewater Associates. He has successfully managed over $140 billion for
his stock market investors over the years. One of the best things he ever told
me is this:
“Having 15 different asset classes eliminates 85 percent of your risk.”
In this book, we’re only talking about four different asset classes. Yes, there
are many more—and the more ways you seek to diversify, the better. So,
it’s time to face the music by hearing this truth: Having multiple
investments based on blue-chip stocks is not “being diversified.” It’s also
ironically pretty risky (and not the intelligent kind).
Owning multiple versions of indexes is what I consider no diversification at
all. Even when you “win big,” let’s be honest—it’s a pretty small win
(especially now that you are learning how many other great investment
vehicles exist). However, owning multiple slices of various up-and-coming
companies in an assortment of emerging industries is diversification in
multiple asset classes.
I would rather have a slice of watermelon than an entire grape!
For me, here is what investing in the stock market is:

STOCK MARKET (INVESTMENT VEHICLE):

Carefully picking companies that you believe in and want to own. It’s
about investing in winners who will redefine the future—not for 10
percent or even 100 percent returns. Owning a piece of a company should
create midthree- digit and higher ROIs.

I love the stock market because I live for the thrill of buying, building, and
selling businesses. That is, in essence, what you’re doing when you buy and
sell shares. And I’m gonna let you in on a little secret: The world’s
wealthiest people are business owners. They own their own businesses and
a stake in the businesses of many others.
I’m a passionate “business ownership enthusiast.” If you aren’t yet, I’d
consider becoming one.
I have attempted multiple times to build thriving, successful businesses, and
it’s never been easy. I’ve had my share of successes, but can those wins
compare to those of up-and-coming industry leaders that will eventually be
household names? No, don’t delude yourself—the winning approach is to
own multiple businesses, including your own.
Of course, if it were as easy as “own a piece of other companies and get
rich,” then there’d be no need for this chapter. So, if it isn’t already clear,
allow me to clarify: We are not talking about the standard methods of
investing such as mutual funds, index funds, 401(k)s, IRAs, or the S&P
500. You’ll never earn multi-digit ROIs with the obvious winners (more on
that in Step 1 of The Asymmetric Risk Investing System).

The Boring Way vs. the Better Way

The S&P 500 consists of the most successful 500 publicly traded companies
on the planet with the absolute highest ROIs in profits. And yet, investing in
these giants doesn’t earn the average investor anything above single digits
over an investment’s lifetime! But people do it every day because it’s safe
and predictable.
Seriously, why even bother?
The most accelerated path to wealth is not littered with teeny tiny fragments
of huge companies. These only serve to bring your risk so low that your
ROI drops to single digits. This conventional type of investment strategy
utilizes symmetric risk exposure.

SYMMETRIC RISK (NOUN):

The low risk associated with traditional investing that delivers lackluster
returns but promises safety in the sense that potential gain and loss equal
each other (hence, symmetric).

Here is a classic example of symmetric risk:

You bet $100 on a coin toss. If it lands on heads, you win $100, but
if it lands on tails, you lose $100. Because the potential gain and
loss equal each other, you are facing a symmetric risk exposure.
People are always talking about work-life balance and a balanced portfolio.
We shun asymmetry and seek equilibrium. Look at these two images and
tell me which one your brain likes better. The one on the right looks lumpy
and less appealing. Maybe you feel the urge to fix it or re-draw it.
And yet, most great art is asymmetrical, often profoundly so. Artists call
this asymmetrical balance. Think about the works of Van Gogh and Picasso
—not an ounce of traditional symmetry to be found.
So, maybe asymmetry isn’t so bad after all. In fact, we should strive for
asymmetry when it comes to the stock market.

ASYMMETRIC RISK (NOUN):

The intelligent risk an investor faces when targeting investments with
high upsides and low downsides.

Remember the Netflix example from earlier in the chapter, where a $1,000
investment in 2014 increased to $230,000? Well, if Netflix went to zero,
you would be out $1,000, but instead it went up 230 times. This is a classic
example of low downside (losing your small investment) and high upside
(multiplying your money many times over).
In the 1949 book, The Intelligent Investor, Benjamin Graham, the father of
value investing, said, “The essence of portfolio management is the
management of risks, not returns.”
Traditional investors focus on returns rather than risk. By focusing both on
the risks and returns, you can find ways to maximize your returns while you
simultaneously minimize your risks. In other words:
When you utilize asymmetric risk, your shares can go down 100
percent, but their growth is unlimited.
Asymmetric risk is an intelligent risk because it looks at the big picture and
systematically weighs the pros and cons. Using an established system
enables you to rely not on emotion or hunches but on research, logic, and
mathematics.
That said, there is still a place for “safe” traditional investments that provide
a stable return. It’s for those who are already extremely wealthy. When
people with large sums of money do not require growth but consistency,
they can turn to single-digit ROI models. However, it is not for those who
are in the wealth-accumulation phase.

The Quest for Moonshots

Ironically, asymmetric risk also relies on losing as a fundamental part of the
strategy. If you do it correctly, you will lose a majority of the time, which
also means that it has to be money you are willing to lose. It’s
counterintuitive, to be sure.
So, how did Ray Dalio become one of the most successful hedge fund
managers of all time through the use of asymmetric risk? He explained the
principle to me in a simple manner:

Imagine you have $500 to invest in the stock market. After some
research, you discover five companies who meet all of your criteria for
asymmetric risk investments but are not yet in the spotlight. Let’s assume
your criteria of asymmetric risk is to pick companies that can go up 500
percent or multiply five times. You invest $100 in each of the five
companies. Here is the end result:

1. $100 investment #1: $0 return

2. $100 investment #2: $0 return
3. $100 investment #3: $0 return
4. $100 investment #4: $0 return
5. $100 investment #5: $500 return
 With that one investment split five ways, you created a 500 percent ROI
on one of your $100 investments. You also broke even. And you
accomplished this even though four out of the five investments were total
duds.
Now imagine that two of your $100 investments each delivered a 500
percent ROI. In other words, both produced $500.
So, you took the initial $500 (the total investment spread out over five
companies) and made a total of $1,000 despite losing $300 out of your
original $500 investment.
This represents a net 100 percent ROI.

In essence, you have doubled your money despite losing out on three out of
five of your investments! Let me say that again: You doubled your money
even though you lost 60 percent of your bets. That is the essence of
asymmetric risk exposure, and it’s brilliant.
The key in this example is that the two investments that won were 500
percent ROI investments. In reality, the higher the potential ROI, the better
(and 500 percent is just the beginning).
The higher the upside, the less the downside risk.
This isn’t day trading. This is a logical commitment to adhering to a strict
philosophy that requires research and patience. In other words, this is
allocating a percentage of your reserve vehicle to invest in moonshots.

MOONSHOT (NOUN):
An ambitious, exploratory project that possesses little expectation of
short-term profitability. In the long-term, however (five to 10 years),
there is a clear expectation of at least a 10,000 percent ROI because the
company increases 100 times in value.

If you know how to harness moonshots, then asymmetric risk can generate
triple-digit and higher ROIs. However, I need to make an important
distinction. This is not a “pick one horse and bet the farm” strategy. That’s
foolish—and that’s what gamblers do.
The majority of your picks won’t be 10,000 percent-ROI moonshots, and
that’s okay. The key is to take your total investment and spread it out (more
on that in just a minute).
If you think it’s impossible to find companies with such potential, I’d like to
ask you to think bigger. You also need to break out from that tiny box your
conventional financial planner stuck you into years ago. He put you in there
with the vehicles that make him the most money and leave you
disappointed. Once you step outside that box, you will realize that there is a
more intelligent and faster way.

The Asymmetric Risk Investing System

Investing in companies in emerging industries is what the world’s richest
men and women do every day. It’s not a theory, and it’s not an idea. It’s
standard practice for the wealthy. Make no mistake:
These are the steps the wealthy take. These are the rules the rich live by
and how they craft their legacies.
To put this asymmetric risk into action, here’s what Ray Dalio would tell
you to do. It’s a system that involves five steps.

Do your research.
I’m amazed by interviews with former CIA operatives and spies
when they talk about being able to walk into any situation and
know, within just moments, where exits are, how many people are in the
room and approximate ages and heights, who looks suspicious, and more.
Being an adherent to an asymmetric risk philosophy requires you to become
an enthusiastic, intelligent, and keen observer. Moonshots don’t just appear.
You have to know where to look for them. You need to see not where things
are now but where things are going.
I’m talking about finding future-focused startups and emerging industries in
their relative infancy today that will dominate the world tomorrow. The
question then becomes:
Who will be the most influential disruptors within the next decade?
Disruption is a buzzword—and for good reason. It’s the key to finding
high-ROI investments! Think about the disruption Uber created in the
world of transportation. Taxis have been on the streets since the 1880s. And
yet, since 2017, without owning a single vehicle, Uber gives more rides a
day than all the taxi services combined.
Without owning a single piece of real estate, Airbnb rules the hospitality
industry.
Without owning a single physical movie, Netflix rules the film industry.
Look to the industries that are changing life itself and the way we live it.
For example, here some things to consider:
Tesla has paved the way for electric vehicles to become the standard.
But, who else is in the running to become a household name? Think
about this: Who will win the contract once the government decides to
make all government-issued vehicles electric?
What happens when we replace semi-trucks with electric semis that
drive themselves, and who will be responsible for making this happen?
Who are the up-and-coming players in cryptocurrency, and what will
they do to the way we buy and sell everything?
Who is responsible for bringing 5G to the world, and what companies
are developing 6G? It’s coming sooner than you think. Within a few
years, you’ll be able to download an entire movie in five seconds. You
need to find out who is going to be responsible for that.
Artificial intelligence (AI) is changing the world, from manufacturing
to the tech industry and beyond. Who are the most exciting AI players,
and what are they doing today to generate five-digit ROIs within a
decade?
The medical field is being transformed through rapidly emerging areas
like augmented reality (AR) for operating rooms, telehealth, biotech,
and genetic engineering. Which companies are starting to stand out as
disruptors in these spaces?
The most intelligent stock market investments aren’t going to be in your
face. They aren’t the ones offered at your neighborhood investment firm,
and they’re not making headlines all day long. Companies with prominent
visionaries at the helm are already in the spotlight—and the thing about the
spotlight is that everybody else can see it, too.
Avoid companies with well-established high book value, stable cash flow,
and high current share price. In contrast, the most significant indicator of
high and promising upside potential is anticipated or projected earnings.

I’m not asking you to become a fortune teller, and you don’t need
magical skills to see into the future. There are plenty of tangible signs of
future success for those who know what to look for. Look to the future—
and you do this by leveraging emerging market research firms that know:
Who tomorrow’s star players will be.
What kinds of earnings you can reasonably expect.
When you can expect moonshots to start producing these returns.
Where these players will emerge.
Why the risk is more than worth the reward.
That is how it’s done.

I recommend you align with research

services that study future niches and share
their findings. Every year, I spend thousands
on research services and then I turn their advice into significant returns.
You can research yourself or leverage the knowledge, insight, and analysis
of others—leverage rocks!

Pick wisely.
After aligning yourself with research firms who are constantly
searching for moonshots, pick 15 of the most explosive, under-
the-radar companies showing a 10,000 percent potential ROI. This means if
the projections are correct, those investments will grow 100 times in value
during your ownership.
Because you can invest in thousands of companies (thanks to the ease and
accessibility of online trading), there are plenty of opportunities to discover
investments that have the combination you want:
Limited downside with tremendous upside potential.
Pick your projected winners and spread out your allotted investment evenly
among all 15 of them. If you spread your investment equally amongst 15
opportunities, each with 10,000 percent ROI potential, and 12 of your 15
picks fail but three succeed, here is how you win:

DETAILS:
15 investments ($1,000 each) = $15,000 total investment
Time period: 5 years
RESULT:
12 investments fail, 3 investments win.
The three winners each have a 10,000% (100x) ROI:
$1,000 Investment #1 = $100,000 (100x growth)
$1,000 Investment #2 = $100,000 (100x growth)
$1,000 Investment #3 = $100,000 (100x growth)
Total earned after 5 years = $300,000
(from a $15,000 investment)
ROIS:

That’s an exciting triple-digit ROI!

Now, it’s never this simple. In real life, most failed picks don’t go to zero,
and not every winner increases 100 times in value. However, you can still
reasonably expect mid-three-digit returns by following this strategy.
You need 15 companies that research confirms to have a strong likelihood
of being a winner in the future. Remember when investing $1,000 in Netflix
would have made you over $230,000?
Why not look for more opportunities like that?
This is not speculation. I have been applying this strategy—and owning a
piece of the most exciting and fastest-growing companies—for over a
decade.

DIY with your selection.

Purchase an equal piece of all 15 companies through a simple
online trading platform (many of them are commission-free)
rather than a financial planner. Financial planners are greatly incentivized to
push only a handful of products. Those are typically the only ones they’ll
ever share with you. You also have to pay a financial planner, but you skip
unnecessary fees if you do it yourself.
So, purchase your share in 15 companies and manage them yourself. This is
a passive investment—but doing it yourself is an important reminder that all
other experts, tools, and advice are secondary to YOU being in charge and
not the other way around. Remember, becoming a self-made millionaire is
your responsibility. And while I believe in delegating everything I don’t
want to do (which is quite a bit), there are some things you simply can’t
outsource, and this is definitely one of them.
You also need the discipline to divide your money evenly into at least 15
opportunities. No matter how excited you get about a particular company,
never favor one over all the others. You are not trying to pick the triple
crown winner. This isn’t “hunch” work. It’s a system that delivers triple-
digit ROIs—but only when used correctly.

Commit to the plan.

Commit to holding your carefully chosen picks for five to 10
years, focusing on long-term growth before selling.
If you have done your research correctly and allocated your funds equally,
this is less risky than it seems. Besides, you are banking on these businesses
becoming trailblazers in emerging industries, not fleeting overnight
successes. This type of success takes time.
Now, because this is a long-term play, you should only invest money you
can afford to lose—because you will. But losing is part of winning big.
I admit that this philosophy requires you to mix two different qualities that
do not always go together: boldness and patience. Those two virtues can be
like oil and water. I get it. One always seems to be at war with the other.
Removing the emotion associated with stock market fluctuations helps a lot
in this arena. Hence, the reason for Step 5.

Rebalance annually.
Every year (not every day, week, or month), rebalance your
portfolio and ask whether there’s one or two that you should be
adding or selling.
We all know people who have the stock app pulled up on their phones
constantly, nervously watching every dip and gain, day in and day out. This
is not a habit you want or need. You shouldn’t be looking at the market
every day. Keep the long game in mind.
Don’t allow the market to control your feelings. Many years ago, I dabbled
in day trading. I was an absolute train wreck when I lost money and was
overjoyed when I won. This type of emotion has no place in asymmetric
risk investing.
These days, I’m the kind of investor motivated by stock dips! I already
know that at least some of my picks will be massive winners (more than
enough to offset my losses). So, instead of panic-selling, I buy more.
See? I told you this was counterintuitive.

Key Strategy Takeaways

What should you take from this? First, I hope this inspires you to become
even more of an excellent saver. Putting the maximum number of dollars
into your reserve vehicle should be priority number one.
The reason is that once you do the research, you need to be able to act on
opportunities as quickly as possible. You also want to get in on moonshots
while they are still affordable.
There is no minimum requirement to get started in either real estate or the
stock market.
That’s the beauty of both—do it right, and the minimums you need to play
the game are low. Find the right real estate deal in the right market, and
your initial investments can be minimal. The same is true for the stock
market.
Get into the game with minimal investments but still experience high ROIs.
It’s the best of both worlds, and it’s why we focus on the percentages rather
than static piles of money as our goals.

A few words of caution as you prepare to gas up your race car and take
asymmetric risk for a spin:
1. Allocate evenly. If you are putting all of your eggs in one or two
baskets, you’re doing it wrong. My minimum number of investments
is 15 companies.
2. Invest in research. This strategy is useless without intelligent analysis.
Don’t rely on hunches or your cousin Billy’s recommendation based
on the hot tip he got from Todd in accounting. Find experts and
leverage their knowledge and experience.
3. Quit obsessing. This strategy does not require any daily consideration.
Don’t be the obsessive guy at the party who spends his time in the
bathroom checking his stocks. Commit to an annual re-balance and
know that dips happen (and when the market dips, I double down).
You’re playing the long game, not investing in a get-rich-quick
scheme.
4. Check your emotion. The moment this becomes emotional, you should
get out of the game. You are winning by losing most of the time. If
that thought gives you hives, this may not be the right strategy for
you.
 5. Never chase the market. If you are buying only because a stock is on
an upward tear, you are reacting to the market. This is a terrifying
habit that will lead to major problems over time. Sure, you can
experience a few wins this way, but in the long run, it will slaughter
your portfolio. Stick to the system.

Here is what you need to remember:

I regularly interact with my mentors and online investing groups, and I have
multiple financial subscriptions that keep me well informed. I also leverage
connections to allow me to find the next great opportunity. I am always
researching emerging markets and identifying moonshots.
If you’d like free information about my own portfolio, where I go for
research, and who helps me stay ahead of the game, or if you want to see
more of my passive trading strategies that earn me solid triple digit annual
returns, visit: KrisKrohn.com/Stocks.
You could put this book down right now and be set for life once you fuel up
the first three vehicles in your fleet, but, if you’re anything like me, you
want to go faster. If that’s so, proceed to the next chapter. I will show you
an even higher ROI gained when financially successful people leverage
business to produce incredible (dare I say “blockbuster” level) returns.

CHAPTER SEVEN CHECKPOINT

1. Risk is inherent in anything with a reward, and the stock
market is no exception. That is why, if you want better results
than with traditional investments, you have to become a studier
of emerging markets and commit to risk.
2. The traditional form of investing is symmetric—the potential
gain and loss are equal in value. It doesn’t utilize the upside of
risk and so is lackluster and inefficient.
3. On the other hand, positive asymmetric risk means you’re
selecting investments with an extraordinarily high upside and
low downside period. It’s a way to leverage both risk and return.
4. The five-step plan for utilizing risk includes leveraging research
to identify at least 15 moonshots (up-andcomers with potential
returns of at least 10,000 percent).
5. After doing your research, DIY purchase stocks in a minimum
of 15 companies that you believe will have at least a 10,000
percent ROI.
6. Be prepared to hold these stocks for at least five years before
liquidating and commit to a yearly reevaluation rather than
obsessing over periodic fluctuations.
 EIGHT

YOUR ACTIVE INCOME VEHICLE

Quadruple-Digit ROI

WELCOME TO THE RAT RACE.

Isn’t that just about the most depressing sentence you could ever read? Who
in their right mind enjoys being likened to a rat?
I shudder whenever I hear this comparison. It also makes me sad that
people see themselves as faceless cogs in the vicious and never-ending
wheel of life. These cogs go through life believing someone else is meant to
have control over when and how that wheel moves.
One person who felt trapped in the rat race is my friend Trent. For 10 years,
Trent worked tirelessly to build a digital forensic analysis business.
Whenever a law enforcement agency or even a concerned spouse felt that
someone was embezzling, cheating, or committing a major crime with a
traceable digital footprint, they’d call Trent. He would then seize the
suspected party’s electronics and ultimately prove their guilt or innocence
through careful analysis.
He’d seen so much over the years he wished he could forget—things that
would live in his mind forever as a reminder of man’s depravity. Some of
the stories he told me were beyond disturbing. It’s mind-blowing to fathom
the things that one human being is capable of doing to another. I was
disheartened to hear about humanity at its worst, but I was simultaneously
captivated by Trent’s vigilante-style heroism.
Trent eventually sold his business for various reasons. Then, he decided to
stay on to work for the new owner. Trent quickly found himself doing soul-
draining work for as many as 80 hours a week. He desperately wanted to
escape, but a steady income is a powerful force.
One morning at the gym, Trent looked understandably perplexed as he told
me he was about to lose his job and income. The 2020 pandemic had forced
cutbacks, and his company could no longer afford his six-figure salary. He
had grown to despise the work itself but still relied on the paycheck.
It dawned on Trent that his livelihood was in someone else’s hands. He had
lost the ability to determine his future path, and it was a helpless feeling. He
asked me if I had any ideas. Helping people free themselves from the prison
of a thankless job just so happens to be one of my life’s greatest passions,
so, obviously, I had some ideas.
I began to share with Trent some insights about business ownership and
how he could be free from his daily grind within a few months. I will share
some of that same information here with you, but, just as I asked Trent, I’m
going to ask you to promise me three things. These are non-negotiable if
you are genuinely interested in becoming the author of your own destiny:

1. Dedicate at least two hours a day to the process.

2. Follow the instructions without wavering.
3. Remain fully committed to the plan.

This chapter will explain the fundamental pieces necessary for a business to
bring you an ample active income. What do I mean by active? Well, our
double-digit and triple-digit ROI vehicles are both fairly passive incomes. I
made sure to design and present each one in a way that protects your time
while still helping you have it all, because I truly believe that time is our
ultimate asset.
But now, we need to shift gears.
 For the first time since we started this journey together, I’m going to ask
you to set aside several hours a week. But there’s a good reason: This
vehicle holds the key to enabling you to leave your current full-time job.
Like Trent, 85 percent of our fellow Americans do not like their jobs. So,
the odds are you are among those who wish they could find a more
fulfilling way to pay the bills and save for retirement.

My financial freedom origin story also began with a desire to exit the rat
race. But regardless of whether your goal is to replace or supplement your
income, I want you to understand just how powerful a quadruple-digit ROI
can be.
The Rule of 72 helps explain how easy it can be to double your money
through an active income vehicle. Here is what I mean (and remember that
the Rule of 72 formula is: 72/ROI = time to double your money):

72/1,000% ROI = .072 years

365 days x .072 = 26 days

My system for real estate investing can help you become a millionaire
within decades (thanks to its double-digit returns). Investing in businesses
through share ownership and owning your own business are keys to
becoming wealthy in years (thanks to its triple-digit returns).
But now, thanks to quadruple-digit ROI through active business
income, we just went from decades to years to mere days required to
double your money.
With the proper business standards and processes in place, you can amass
wealth through quadruple-digit ROIs without giving up too much of your
time. But even more than simply discussing ROI, this chapter will allow
you to understand that it is possible to tap out of the rat race with the right
vehicle (your Formula One race car).

The Real Goal of Business

Whenever we think of people who have crafted their own destiny, the
obvious names that come to mind are the rich and famous. Like so many
others, I am also inspired by the likes of Oprah Winfrey, Jeff Bezos, J.K.
Rowling, and Elon Musk. But you know who really inspires me? People
like Heather Wright, Nik Krohn (my brother), and Steven Leavitt. Of
course, you don’t know who those people are, and Entertainment Tonight
will never air a special on them. But they are inspiring nonetheless because
they did what so few ever do.
They and countless others created financial and time freedom through
business ownership.
You may be one of the lucky ones and already have a career you love.
Sadly, according to a Gallup poll, 85 percent of people absolutely hate what
they do for a living. If you feel trapped in a job that brings little fulfillment,
then allow me to introduce the fourth vehicle in your financial fleet. This is
a vehicle for producing active income through quadruple-digit ROI business
investing.
It’s your Formula One race car—a vehicle that embodies speed and
power.
Below is our financial freedom map once again. We’re cruising along now
at more incredible speeds as we fuel up this fourth vehicle, a powerful
machine designed to generate a sizable income to fuel your lifestyle and
future investments.
The goal of passive investing (real estate and asymmetric risk investments)
is to ensure financial freedom sometime in the future. In contrast, the
purpose of active business income (your Formula 1 race car) is to produce a
much higher and more immediate ROI that accelerates the financial
freedom timeline. But perhaps more importantly, it can unlock the cage that
is your full-time schedule and help you reclaim more of your most precious
asset.
What exactly am I talking about here?
Well, the word business is pretty nebulous, so let’s dissect that first.
Suppose you ask most people what the goal of any business is. Most of their
responses will sound something like, “The goal of any business is to
produce a profit by solving problems that create value for other people.”
While this is certainly not wrong, there is a superior definition, one that
factors in the one commodity that is more precious than profits or value
creation:

THRIVING BUSINESS (NOUN):

An endeavor that creates both profit and value without sacrificing too
much of the greatest asset—time.

Unfortunately, most business owners end up trading the lion’s share of their
time for income. This crisis generally arises because entrepreneurs are
notorious for wearing two hats at once: owner and operator. My goal early
on was to be a one-hat entrepreneur. That is, I wanted to become an owner
but not an operator (sometimes called an “absentee owner”). Yet, this
distinction is missing in the accepted definition of entrepreneurship today.
One of my business mentors, Keith Cunningham, has launched multiple
companies, negotiated numerous million-dollar deals, and structured
hundreds of millions of dollars for his business ventures. Possibly my
favorite thing that Keith ever said is this:
“Great operators get tired. Great business owners get rich.”
You need a business that works for you instead of you working for it. The
idea of quitting your day job to “be your own boss” may sound appealing,
but if you give up a 40-hour workweek only to work 80 or more hours, is it
really worth it?
How much is your time worth to you?
Over the years, I’ve observed that most people value their time so much
that they won’t even consider starting a business. They hear horror stories
of side hustles becoming massive time vacuums, and they are not interested
in adding that kind of madness to their lives.
People don’t want to miss their Netflix binges and their kids’ ball games for
a lackluster side gig, and I don’t blame them. It can be so emotionally
draining and not worth the time trade-off, which is why I need you to
understand there is a better way. It requires the following plan of action,
which I am going to help you start right here, right now, in this chapter:

Learn the higher standards of a thriving business. Systematically

evaluate every business idea according to the same standards. Work
the numbers and don’t be afraid of a calculator. Be a stickler for the
right profit margin. And don’t even think about starting a new
venture unless you can automate it.

Becoming Financially Empowered

One of the biggest gambles people make in their wealth plan is banking
their entire financial future on a single income source (their 40-hour-
workweek job). It’s great if your spouse or partner also has a job. But what
you really need is to increase the number of ways you make money without
significantly increasing the amount of time you spend generating that
income.
Having time without money can be just as suffocating as having money
without time. True freedom is having both.
If you feel intimidated at the thought of starting a business, let me assure
you that you are not alone. Entrepreneurship is scary. It can also be
demanding, challenging, and draining (when done improperly). And, in
reality, most people fail. This is because they do not have standards for
selecting the correct opportunities that lead to maximum ROIs with
minimal time commitments.
When it comes to starting a business, people also have many fears that
include:

1. Fear of failure.
 2. Fear of the unknown.
3. Fear of running out of money.
4. Fear of working too hard or too little.

These fears are not unfounded. According to Investopedia, 20 percent of

businesses fail within the first year, 50 percent fail by year five, and 70
percent don’t make it to their tenth year in business. To make matters less
appealing, the average small business owner makes just $46,000 a year.
Another 86 percent of business owners make less than $100,000 a year, and
only 2 percent make over $1 million.
There is no denying these are troubling statistics. However, you can avoid
most of the mistakes made by new business owners (the ones that lead to
the toxic combination of exhaustion and lackluster results) by following the
procedures in this chapter before starting a business.

DEVIL’S ADVOCATE
“But Kris, owning a business is way harder than having a job! My entrepreneur friend works
long hours and is way more stressed than I am.”

My experience is that even super successful entrepreneurs waste the first decade of their run
on bad decisions because they lacked standards. The learning curve of entrepreneurship is
steep, and many people do fail before they figure it out. Learning through trial and error is
painful and messy.
MY PROMISE: I will teach you the standards necessary to avoid the years of stress and
failure that seem so common in entrepreneurship. When you select a business and operate it
according to my business standards, it will shorten your learning curve and reduce the number
of mistakes you make.

If you are one of the many people who believe that working for someone
else is somehow better or more lucrative in the long run, let me ask you a
question: Do you have any idea how much your boss makes on you? You
read that right—because you are, in fact, counted as an asset on your
employer’s balance sheet. The company invests in you through a wage, and
they expect a return.
How much? In general, a company wants to see a 400 percent annual ROI
on their investment. The average American makes around $50,000 a year,
which means the average employee is expected to help produce $200,000
(or four times their salary).
Well, consider that if a company can own your time and a expect a 400
percent ROI on your skills, then maybe you can, too. Technically, if they
earn a 400 percent gain on your skills, then inversely, you should be able to
work a quarter (or one-fourth) of the time (translation: work two hours a
day) to make the same amount on your own.
I challenge every person I meet who doesn’t like their job to seek the
answer this riddle,
“How can I make the same amount of money by working two hours
a day on my own?”
The answer may not be clear yet, but I’m planting the seed now because
this chapter is all about how to replace or supplement your income while
reclaiming 75 percent of your time, all in the pursuit of financial freedom
measured by money and time.

I have devoted the remainder of this chapter to teaching you some

absolutely critical knowledge about the world of business ownership so
that you can avoid some common and often devastating mistakes. To
accomplish this ambitious goal, we will cover three key areas:
1. How business works. In this section, we’ll discuss the three immutable
fundamentals of business success.
2. How to choose a thriving business. Once you are acquainted with the
success fundamentals, we’ll move on to the five standards for
selecting a winning business.
3. How to start a thriving business. Finally, we’ll detail the four essential
launch phases of successful business ownership.
Don’t make the mistake of starting a side hustle and getting lost in the
business, or, even worse, skipping the proper foundations for building a
thriving business. Creating an active income stream is supposed to make
life better—not make life feel like torture.
By following a distinct set of rules, you can begin to break free from time
prison and cultivate a sense of peace and abundance as you become more
financially self-reliant.

DEVIL’S ADVOCATE
“Really Kris, you are going to teach me EVERYTHING I need to know about starting a
successful business in a single chapter?!”

There’s no way I can teach you how to build a successful business in a single chapter, and that
isn’t my intention. The real success of business actually comes down to a handful of
standards most people will never be taught, which accounts for their failure. BUT if you learn
the things I share in this chapter, you will be equipped with the rules that the most successful
business owners use that result in their success.

How Business Works:

The Three Fundamentals
Most people didn’t take business classes in college. For those of
us who did, we know that those business courses did a lousy job of teaching
us how businesses thrive. So, it should come as no surprise to learn that
most people don’t really understand how business works.
My dad’s life as an entrepreneur made business ownership look like the
worst thing ever. He worked twice as hard as my friends’ dads for the same
or fewer dollars. There may be entrepreneurs from your childhood or today
who paint “being your own boss” in the same negative light. It’s not their
fault, either. No one teaches us this stuff (crazy but true).
So, let’s get back to basics. To develop one or more income streams that
have the potential to replace your job, you must understand the three
fundamentals of business success:
1. Marketing—your ability to generate prospects to buy products or
services.
2. Selling—your ability to convert those leads into sales.
3. Fulfillment—your ability to deliver your product or service.
Businesses must have marketing strategies that generate leads (potential
customers). Those leads then become paying customers through the selling
process. After the transaction (exchanging money for a good or service), the
business has obligated itself by accepting money to fulfill its promise and
deliver the product or service.
The cold, hard truth is that as simple as this process sounds, most
businesses fail to execute one, two, or all three of these fundamentals
correctly. This is why we watch them struggle to survive.
What we’d all prefer to do in life is to thrive.
The word thrive is full of so much life and energy. Well, the same is true for
businesses. There are “thriving” businesses, and there are the typical
“surviving” businesses. I consider most businesses to be in survival mode,
and that’s both sad and unnecessary.
This failure to thrive is most commonly the result of a failure to understand
the core principles of business and a lack of knowledge concerning the
proper standards that predictably lead to success. We have widely accepted
standards when it comes to morals. We have commonly accepted standards
when it comes to relationships.
Yet, we don’t have commonly accepted standards when it comes to
business. So, we invent our own, but we don’t know which standards work
or which procedures cause problems. As a result, business owners attempt
to reinvent the wheel and learn by constantly failing. How exhausting!
To help illustrate the differences in traditional, failing standards and those
used by thriving businesses, we will use two symbols to represent each, as
you can see in the exhibit below.
A surviving business rubs two sticks together in the freezing cold at the
bottom of the mountain. In contrast, a thriving business has already climbed
to the high summit, conquered the mountain, and celebrates its victory next
to a roaring campfire.

SURVIVING VS. THRIVING IN BUSINESS

 Surviving Business
Uses no standards, exists in survival mode, and
eventually burns out
Survival-mode businesses are notorious time stealers.
They also tend to steal joy, destroy relationships, and
lead to a life of indentured servanthood to the business.

Thriving Business
Uses proven standards to generate profit, value, and
time freedom
Thriving businesses give you back more of your most
precious commodity. They also tend to create joy, foster
relationships, and lead to a life of financial and time freedom.

Business Fundamental #1: Marketing

The ability to generate leads for your offering.
Almost without exception, you can link a business’s success or failure to its
ability to generate leads. A lead is someone who may or may not be
qualified to buy your offering. Gathering leads is the first critical step
toward finding qualified prospects (those who have the means, ability, and
desire to buy what you are selling). Qualified prospects who decide to say
yes to your ask become customers. The process can be a lot more intricate
than that—mainly depending on what you are selling—but that is the basic
concept.
You don’t open a new business and sit on your hands waiting for customers
to walk through the door or stumble onto your website. You have to let
people know who you are, where you are, what you do, and how you do it.
Your marketing plan is how this message reaches the world, and it’s
also how you generate a flowing pipeline of leads.
Here are the glaring differences between the marketing strategies of a
surviving business versus a thriving business.
 Survival Marketing:
Barely surviving businesses don’t know how many
leads they have or need to succeed. They approach
every day without having the slightest idea where their
next customer will come from. Their marketing strategy
is less “strategy” and more “luck.” A business with too
few leads struggles for survival and eventually dies a painful and
stressful death.

Thriving Marketing:
A flourishing business has an endless supply of leads,
even more than it can sell to. They have figured out a
way to create an infinite source of leads and referrals in
most market conditions and do so in a sustainable way.

Business Fundamental #2: Selling

The ability to convert leads into sales.
Every revenue-producing transaction in a business requires some type of
sale. You don’t even have a business until you start selling something.
However, selling can be challenging and immensely intimidating depending
on the product or service, and because of the stigmas attached to the word
itself. Here are the most striking differences between the selling mentality
in a surviving business and a thriving business.

Survival Selling:
Business owners mistakenly believe that the mere act of
offering products or services is the same as selling.
People only buy from other people and businesses they
like, know, and trust—and those factors require
intentional effort to manifest. Pushy sales tactics and
hard closes are a thing of the past, but some businesses didn’t get the
memo. You have to work on communicating the value of what you offer
 to your prospects. Businesses in survival mode also make the mistake of
hinging their success on the person’s talents doing the selling.

Thriving Selling:
On the other hand, a profitable business has a product in
high enough demand that, in many ways, it sells itself
(thanks in large part to effective marketing that
generates only the best, qualified leads). These are
products or services that don’t require pushy or high-pressure sales
tactics to move. Selling in today’s flooded marketplace has to feel
natural, comfortable, and rewarding for all parties involved.

Let’s talk about a phrase I’m sure you’ve heard, which is sales funnel. The
simplest definition of a sales funnel is this:

SALES FUNNEL (NOUN):

The ideal path potential buyers take to become customers. A way to track
leads through the four primary sales stages (from awareness to interest to
desire to action) and align your marketing and sales processes
accordingly. Also called a purchase or conversion funnel.
Companies spend countless dollars on building an effective funnel that
takes all of the leads from their robust lead pipeline generated by their
marketing arm, dumps them into the top of the funnel (the wide part), and
generates the end result or purchase at the bottom (the narrow spigot).
It sounds so easy, right? Well, it’s not quite that simple, partly because there
is a lot of misinformation about what works and what doesn’t. It doesn’t
help that everyone and their brother on social media say they have a
“proven” system for generating sales, but then you hire them to help you,
and they fail to deliver results. It kinda starts to make you think that no one
knows what they’re talking about.
It’s also not that simple due to the fact that although consumer behavior
itself is highly predictable (and is even considered a soft science), that
behavior is almost never linear. In other words, not every customer will
travel through the four stages in the same order or at the same pace.
Just because it may not be an exact science doesn’t mean you don’t need to
develop a funnel system that you never stop testing. You need a well-
defined sales funnel in order to:
Understand prospects’ level of knowledge and interest in what you sell
(and therefore how to approach them and with that message).
 Keep from losing prospects by bombarding them with too much
information too early or attempting to hard sell them (this is why
experts often refer to moving leads through the funnel as the
“nurturing” process).
Determine what type and frequency of campaign may be needed to
spark interest depending on a prospect’s position in the funnel.
Ensure a common language is fostered and reinforced throughout the
funnel to reinforce branding.
I’d love to tell you that sales funnels have become more simplified over the
years, but in reality, they have only grown more complex, mainly due to the
increase in digital channels and the way consumer behavior is constantly
evolving. When it comes to getting the most out of your sales funnel, one
thing is certain: “Set it and forget it” isn’t going to get the results you want.
That is why the best sales funnels are built through analytics:

ANALYTICS (NOUN):
A way to compute data that highlights meaningful patterns, answers key
business questions, uncovers relationships, and predicts outcomes that
help automate future decisions.

According to a Salesforce.com report, nearly 70 percent of sales teams say

they now regularly use data insights on sales, customers, and prospects to
constantly adjust their funnels and keep the nurturing process healthy and
flowing.
Later on in the chapter, you’ll learn about key performance indicators
(KPIs) based on numbers called critical drivers that can help show you why
a business may be thriving or simply surviving. These numbers will become
instrumental in the analytics process as you develop and refine your sales
funnel.
If you want to run a thriving business with minimal time commitment,
get used to crunching numbers, because a healthy sales funnel lives and
dies by the numbers.
Business Fundamental #3: Fulfillment
The ability to deliver your product or service.
With today’s cutthroat competition, the product or service you supply must
be superior, and the way you deliver must be exceptional. Amazon Prime’s
unprecedented order fulfillment speed and accuracy changed the standards
for fulfillment across the board, particularly for tangible products. Also
consider online reviews and word of mouth.
People can almost instantly evaluate whether a product or service is
valuable or worth the investment in our digital world.
You should be striving to be the best at what you do. In other words, your
goal is to create the most value for people when they receive your product
or service. Here are the differences in fulfillment processes between a
survival-minded business and a thriv-ing business.

Survival Fulfillment:
A surviving business uses a fulfillment process that is
too expensive for both the owner and customers. If the
fulfillment is “cheap,” that cheapness comes at a cost (in
the form of subpar, slow, or unreliable deliveries and
more). Survival fulfillment represents a whole slew of
frustrations, causes repeat sales to be lost, and lowers customer retention.
The bottom line is most solo-preneurs (whose business owns them) spend
90 percent of their time dealing with fulfillment instead of marketing and
selling.

Thriving Fulfillment:
A prosperous fulfillment process has a premium product
or service delivered at a price that gives you a healthy
margin. This results in both excess cash and time. The
fulfillment of a service or electronic product is seamless
and polished. Physical products are delivered with care and in a way that
shows how valuable you view both the product and customer.
Communication is constant throughout the entire fulfillment process.
The Three Fundamentals in Action
Physical Product: Bicycle Shop
A new bicycle shop chooses to market to its potential customers through
newspaper ads, online ads, social media marketing, and Groupon. The
marketing theme is to educate customers on the difference between buying
a bike at a big box store versus their shop (the experience, the service, and
more). This approach allows them to target their demographic quickly and
weed out those who would not be a good fit.
Coupons and specials bring people in the door and to their online shop. The
quality, selection, craftsmanship, and service offered are what make the
sale. Also, the shop only hires employees who are passionate about outdoor
exercise and cycling. Fulfillment occurs immediately upon purchase. If
there is a custom order, the shop stays in regular contact with the customer.
It informs them systematically exactly when their custom order will arrive.
They schedule a particular date and time for the customer to come to pick
up their new purchase.
Service as the Product: Law Firm
A law firm chooses to actively market their services via television, radio,
billboards, online, and social media marketing. They also employ a referral
program where existing clients are compensated with complimentary hours
or other services for providing the firm with qualified referrals. Their
marketing goal is to inform the surrounding area that the firm specializes in
injury law. They also focus on customers who may not have sufficient funds
to pay hefty retainer fees.
When a lawyer meets with a potential client, that lawyer listens intently and
shares success stories related to that potential client’s own issues. Once the
client agrees to be represented by the firm, the sale has been made. But the
transaction is far from complete. Fulfillment occurs when the lawyer spends
his or her time and expertise providing the agreed-upon legal service and
delivers exceptional results to the client.
As you can see, successfully executing the three fundamentals means that
both a business and their customer walk away from a transaction feeling
like they won. It should be a mutually beneficial experience that all parties
involved would be more than willing to have again.
Once you begin evaluating a potentially thriving business and developing
marketing, sales, and fulfillment processes, that is excellent progress. Next,
your potential business must pass the “thriving business” test by meeting
five standards for selection.

How to Choose:
The Five Standards for Selecting a Winning Business
There are five standards that every winning business possesses.
If you adhere to these five standards, you’ll find that successful
entrepreneurship is much easier than you think. You’ll also have a higher
likelihood of success. Here is a brief summary before we dive into each
one:
1. Profits. Look for profit margins of 25 percent or greater.
2. Leads. Ensure that you can procure abundant lead sources.
3. Simplicity. The business model must be stunningly simple.
4. Delegation. Operations must be easily delegated to others.
5. Customer Focus. Your passion should be for the customer, not the
product.
Standard #1: Large Profit Margins
Select a business with a minimum of a 25 percent profit
margin.
Most small businesses today simply aren’t profitable enough. In fact, as
many as 86 percent of all business owners net less than $100,000 per year.
The problem could be what they sell, or the problem could be the inherent
expenses in selling the product or service. My rule of thumb to avoid a
disappointing business venture is to strive for a 25 percent profit margin or
more.
At the end of the week, month, and year, the profit margin is the amount of
dollars that will find its way into your pocket. That is why you need to
know this number and protect it fiercely. And stay away from any and all
businesses that don’t deliver my bare minimum standard of 25 percent net
margin.
While it may be true that giant companies like Walmart, Target, and Ford
bring in a scant 3.9 to 5.2 percent net profit margin, you can’t afford such
small numbers as a sole proprietor. It would require such enormous gross
revenue that it won’t be worth your time or energy.

Survival Profit Margins:

Most businesses run on a 10 percent margin (some
experts claim it’s even smaller than that, possibly closer
to 7 percent). That means they keep a dime or less for
every dollar they collect. That also means they have to
do a million dollars’ worth of business just to net
$100,000. This profit margin is too low because the numbers are stacked
against them.

Thriving Profit Margins:

A winning business has a minimum of a 25 percent
profit margin. Make this your minimum standard before
even considering a business venture. You will
automatically make two to three times more profit than
a typical company.
 GOOD TO KNOW
PROFIT MARGIN FORMULA

Profit Margin in Action: Product

Product Revenue: The payment received for selling the product
Retail sales price: $200 revenue
Product Expenses: The cost of selling your product
(portioned out per product sold)
Product cost: $80
(cost to acquire the product wholesale)
Ad costs and sales commissions: $40
(paid to generate leads and move lead through the sales funnel)
Shipping and handling: $20
(fulfillment cost to send the product to customer)
Total expenses: $80 + $40 + 20 = $140 expenses
Product Profit Margin: Percentage that represents your net profit after
expenses
Profit: $200 revenue – $140 expenses =
$60 profit netted from the sale
Profit margin: $60 profit / $200 revenue x 100 =
30% profit margin (percent of revenue you get to keep)

Profit Margin in Action: Service

Service Revenue: The payment received for selling the service
Service sales price: $1,000 revenue
Service Expenses: The cost of selling your service
(portioned out per service sold)
 Labor cost (10 hours at $30/hour): $300
(money paid to service provider)
Hard costs: $150
(cost of supplies needed to provide the service)
Ad costs and sales commissions: $200
(paid to generate leads and move lead through the sales funnel)
Total expenses: $300 + $150 + $200 = $650 expenses
Service Profit Margin: Percentage that represents your net profit after
expenses
Profit: $1,000 revenue – $650 expenses =
$350 profit netted from the sale
Profit margin: $350 profit / $1000 revenue x 100 =
35% profit margin (percent of revenue you get to keep)
The most obvious way to tank profit margin is to operate with far too high
expenses to generate good percentages. Alternatively, you may be offering
your goods or services for too little. Since both of the profit margins in the
examples above are well above 25 percent, they pass the profit margin test.
So, we can continue to the second standard in our list.
Standard #2: Abundant Lead Sources
Select a business with an abundance of leads.
A business becomes a business by offering something that people want to
buy. Without the people in that scenario, you certainly do not have a
business. At best, you have a costly hobby. The hallmark of a good business
venture is leads are easy to acquire at a reasonable cost.

Survival Lead Sources:

Most businesses not only operate on a small margin, but
they also lack an adequate supply of leads. This leaves
them struggling to stoke that “profit fire” in wet
conditions and with the wrong supplies. A business
without leads simply won’t be in business for long.
 Never, and I mean never, consider a business that struggles for adequate
lead sources.

Thriving Lead Sources:

A winning business has an abundance of qualified free
or inexpensive leads. You should be swimming in leads
at all times, or at least have a plan for gaining more.

DEVIL’S ADVOCATE
“But Kris, how do I find leads for my business?”

Let me just go ahead and save you a ton of time and money. If you do not know the answer to
this question, do not consider it as a serious business option. You should never be enticed by a
brilliant product or service if you will not be able to find or purchase an abundant source of
leads.

Many people mistakenly think that the key to business is selling a product
or service they personally love or use. I don’t entirely disagree with that,
but I think it’s actually an inferior way to pick a business. What if your
biggest passion in life is making SpongeBob-themed quilts for horses? Is
there an abundant and never-ending supply of free leads out there for this
product? Maybe, maybe not. But you better find out before you set up shop
and start buying reams of yellow yarn.
Standard #3: Simple Business Model
Select a business that is simple enough for others to run.
A principle in philosophy and science known as Occam’s Razor states that
the most uncomplicated way to do something is usually the right way. I live
my life according to this principle. If a business model (including how you
sell a product, how you make money, and how you interact with your
customers) is too convoluted, it doesn’t 100 percent guarantee failure. But it
certainly guarantees a lifetime of frustration.
 Survival Business Model:
Most businesses have a complicated business model,
and what’s the saying? If something can go wrong, it
will. One of my business mentors, Tony Robbins, taught
me that complexity is the enemy of execution and
ultimate success. While there are plenty of examples of
complex businesses renowned for their success, I’m not here to show you
how to build a billion-dollar tech company with a massive infrastructure.
I’m here to show you ways to identify multiple simple-but-profitable
businesses that don’t require sleepless nights or overtime. Suppose the
business involves complex technology or pioneering (as in creating
something that’s never been done before). In that case, this is a huge red
flag.
Pioneers and trailblazers learn the hard way.

Thriving Business Model:

Thriving businesses look at innovating or improving
upon existing ideas and making them better rather than
creating something brand new. If the goal is to
ultimately have a business run itself, then you also need
something duplicatable. Businesses that are the most duplicatable are so
simple that you could bring virtually anyone in to help you run it. The
business model would make sense to them after only a brief explanation.
Striving for simplicity is the fastest path to preserving your time while
making excellent money on hefty profit margins.

“Complexity is the enemy of execution.”

—Tony Robbins

Standard #4: Operations Easily Delegated

Select a business where you can delegate most tasks.
Most business owners will tell you (along with some eye rolls and a few
deep sighs) that fulfillment requires a majority of their time. In other words,
the amount of time that it takes to market and sell a product is usually much
less than the time that it takes to fulfill. So, how do you keep from doing it
all yourself? You delegate!

Survival Delegation:
Because most businesses operate with insufficient profit
margins (and therefore can’t afford any hires), owners
often become the lead or possibly the lone workhorses
in their companies. This means they end up working
harder than everyone else for the least amount of pay—
and, more critically, for a nearly complete loss of their time. The end
result is the business ends up owning them.

Thriving Delegation:
If you want something done right, don’t do it yourself.
Hire other people. Just because you can do it doesn’t
mean you should. Doing it all yourself puts you at risk
of building your life around your business instead of
building your business around your life. A winning business allows you
to pass along fulfillment to others and preserve your time. Once you have
procedures for delegating fulfillment, your next goal is to delegate
marketing and selling duties.

The happiest businesspeople I know live to delegate, but it’s not a skill that
everyone naturally possesses. The goal is to own successful companies,
not operate successful companies—that is, unless you are prepared to
limit your potential.
If you struggle to trust others and distribute responsibilities, start the soul-
searching process now and figure out how to let your guard down enough to
let others help you. It’s the only way to reclaim more of your time and still
run a successful business or side hustle.
You own the business, not the other way around.
Standard #5: Customer Focus
Select a business where the passion is for the customer, not the
product itself.
Beware of the draw of doing your “passion” for a living. The most
successful business owners fall in love with providing an outstanding
customer experience rather than being enamored with their own products or
services. It can be a hard distinction to make, I’ll admit. This is because
there are three primary roles within most businesses: 1) the owner, 2) the
manager, and 3) the artist/specialist who creates or curates the product or
service.
The key is to ensure that you are not playing all three roles.

Survival Passion:
Most businesses are conceived by people who have such
a passion for a particular product or service that they
turn it into a living. While passion can be a massive
benefit to a business, it can also be a curse. A misplaced
passion for products and services over the customer will
ultimately trap you in a never-ending rat race you cannot escape
(actually, it isn’t never-ending—it usually ends with your demise and the
death of your business ownership dreams). You could be bleeding money
but find it impossible to give up on your dream because your passion for
the product has clouded your judgment.

Thriving Passion:
A winning business creates value for the client and
allows you, the business owner, to fall in love with the
customer and not the product itself. Feel free to let your
passion be part of your business, as long as you don’t
spend more than the first few months playing the artist or manager role.
Otherwise, you’re at risk of getting “stuck” in the business’s emotion and
lose sight of the bottom line and what it takes to increase it—happy
customers.
Adhering to my five standards of a thriving business will protect you from
making the most common mistakes that destroy many other ventures. These
standards allow you to remain laser-focused on being a business owner (low
time commitment) instead of a business operator (full-time commitment).
When I identify a business that meets all five standards, I move into the
rapid launch phase to ultimately determine whether it will be a winner in
the long run.
 How To Start:
The Four Launch Phases of a Successful Business
Once you have a potential business, the next step is to put that
business through four launch phases: 1) Evaluate, 2) Experiment, 3)
Optimize, and 4) Hand-off. Nine out of every 10 concepts will never meet
my high standards. I actually enjoy shooting down ideas when they are
missing even one of these criteria. Doing so will save you an untold amount
of time, frustration, and money investing in the wrong business.
Phase 1: Evaluate
Phase 1 involves ensuring that the business can meet the three fundamental
criteria and the five standards for selection. You must be able to answer yes
to the following questions:

Three Fundamentals of Business

1. Marketing: Does the business have a way to acquire an endless
supply of leads?
2. Selling: Does the business have a product or service in high
demand?
3. Fulfillment: Does the business have a premium offering that can be
delivered at a price that maintains a healthy margin?

Five Standards for Selection

1. Profit Margin: Does the business have a profit margin of at least 25
percent?
2. Abundant Leads: Does the business have an abundance of free or
inexpensive leads?
3. Simplistic: Can the business run itself, and is it duplicatable?
4. Delegable: Does the business allow me to hire others to do
fulfillment?
5. Proper Passion: Does the business create value for the client and
place their needs above the product?
 How does your potential business idea stack up?
If you can respond yes to all EIGHT of the above questions, then
proceed to the second phase.

Phase 2: Experiment
Never obligate yourself long-term to a business unless you can test it before
formally committing. Most simple business ideas can be tested and proven
or disproven within 30 days. Maybe you think 30 days isn’t long enough to
determine whether a business will be a success. In my experience, 30 days
is long enough to spot red flags. During that time, you can get a glimpse of
what the process will entail from a profit margin and time commitment
standpoint.
So, how does this experiment work?

1. First, select a revenue goal and corresponding net profit margin that
you determine is achievable in the next 30 days.
2. Then, work as diligently as you can for a month to hit that goal.
3. Finally, if you have not reached 50 percent of that goal at the end of
the 30 days, scrap the business idea.

It’s as simple as that. If the business is a good idea, you should see swift
results. Don’t delude yourself into believing that something excessively
difficult will become easy with time. This is a recipe for massive
disappointment.
Don’t waste years of your life and untold dollars on a business that can’t
generate enough profits to free up your time. Wait as long as it takes to find
a concept that confidently meets these standards. I don’t care how long it
takes to find one. Find the next opportunity and start the evaluation process
all over again.
If your business idea passes the experiment phase, proceed to the third
phase.
 “Measurement is the first step that leads to control and eventually to
improvement. If you can’t measure something, you can’t understand
it. If you can’t understand it, you can’t control it. If you can’t control
it, you can’t improve it.” —H. James Harrington

Phase 3: Optimize
By now, you have thoroughly vetted your idea according to established
business standards and conducted a successful 30-day experiment. Now it’s
time to evaluate the business by documenting what works. Phase 3 is a 90-
day optimization process that starts with measuring and reporting to
determine whether this business is designed to win or sputter out
somewhere down the line. The purpose of the optimization phase is to
identify three fundamental elements you need to know before you can
successfully delegate any part of your business to someone else: 1) key
performance indicators, or KPIs, 2) critical drivers, and 3) standard
operating procedures, or SOPs.

Element 1:
Key Performance Indicators (KPIs)
KPIs are measurable values that demonstrate how effectively a company is
achieving key business objectives. These are the weekly numbers that
matter in any business. There are literally hundreds of potential KPIs that
you may eventually want to consider. Still, there are only three KPI
categories that really matter (and they just so happen to be the same as our
three business fundamentals): marketing, sales, and fulfillment.
Your KPIs are the best tools to determine whether you are on track to hit
your target revenue and net profit margin. In the beginning, you will use
KPIs to prove or disprove that the business will allow you to hit revenue
and margin goals.
In other words, KPIs will reveal if your business can pay all of its
expenses and still net at least 25 percent without you working full time.
Yes, it may feel like there are a million things to track. Regardless,
ultimately just a handful of key performance indicators are all you really
need to reveal a business’ potential. The KPIs you follow during the 90-day
optimization period should be able to answer the following three questions:

1. How many leads am I generating?

2. What percentage of those leads are converting into sales?
3. How satisfied are my customers after both the sale and fulfillment
processes are complete?

These three questions are just the beginning—but they will help get you
started tracking the correct information. In addition to answering these three
questions, always calculate revenue and net profit margin to determine
whether or not your business is on target at the end of each week.

Element 2:
Critical Drivers
Critical drivers measure the activities your team does daily to produce your
weekly KPIs. In other words:
A critical driver is a cause, and the KPI is the effect.
Obviously, a wide range of factors impacts the performance of your
business. The secret is to focus on a handful of critical drivers that: 1) are
specific and measurable, 2) will accurately reflect business progress and
performance, and 3) can be compared to those from previous periods.

To establish which critical drivers to track, ask yourself:

What drives my sales figures?
How many leads do I get daily?
What is my daily conversion rate?
What is my daily number of transactions?
What factors drive costs (ex: labor, wholesale pricing)?
If you’re not getting the results you want according to your KPIs, look at
your business activities or critical drivers. This will help you understand
whether you’re tracking the most revealing activities.
You should track between three and five critical drivers (daily activities) for
every employee working in the business. This is how you gather the
measurements needed to calculate weekly KPIs. Here are a few examples of
critical drivers:
The number of leads.
The number of sales calls.
The number of customers.
After you record these daily drivers, you then have the raw materials (the
numbers) you need to calculate key performance indicators (KPIs) such as:
How much revenue did I generate this week (gross revenue)?
What is our profit margin after expenses (net profit margin)?
The process of tracking critical drivers and using them to calculate KPIs
may seem intimidating. Baby steps are key here. Just look at one number at
a time. Go back to my five criteria and start from there.
What are the basic costs of running the business, and what daily numbers
does your business generate? And how does that all affect how much
money you can successfully reinvest into the vehicles that power your
financial freedom blueprint?

Element 3:
Standard Operating Procedures (SOPs)
Standard Operating Procedures or SOPs are a set of step-by-step
instructions compiled by an organization to help workers carry out routine
operations. You could probably write an entire book about SOPs, but I’ll
just say this:
If you or anyone else who works for you regularly performs a step in
your business, write down the step’s proper execution process and
standardize it. This is a critical and necessary step in the delegating
process that will enable you to free your time.
Think of an SOP as a manual for how people perform work within your
business. The most efficient way to create your SOPs is to make employees
responsible for creating the SOPs that produce the recorded results in their
particular role.
SOPs make it so much easier to onboard new employees. Instead of holding
their hand throughout the training process, you can provide them with a
step-by-step manual that explains the most efficient way to perform duties.
As long as you hire right by bringing in people who are fast learners and
teachable, SOPs make hiring and training a more hands-off endeavor than
most business owners believe it can be.

Create an SOP for the three fundamental areas (marketing, selling, and
fulfillment) and document each process. For example:
Marketing—What is the precise process for generating leads?
What do you do with a lead once it enters the pipeline?
Selling—How do you approach sales? Is it a hands-off or involved
process?
Fulfillment—How do you track orders to make sure you are over-
delivering on promised value?

Once you document SOPs and track KPIs from the critical driver data
you regularly collect, you empower the business to become a well-oiled
machine that requires only the most minor of weekly adjustments.
If it’s not already glaringly obvious, the key to running a hands-off business
that generates massive income is the proper groundwork. This plan is not
for the lazy. You need to be diligent and detailed for several months. But
think of the long-term payoff! How much are you willing to invest for a few
months to enjoy a lifetime of wealth and time freedom?

THE MATH MAKES IT ALL WORTHWHILE

Let’s say you invest $100 in total expenses per sale for a service that sells
for $200. By netting $100 for every sale you make, that creates a 50
percent profit margin.
 Now, let’s say you acquire 100 new customers in 30 days (that’s just over
three customers a day, which, at that price point, should frankly be like
shooting fish in a barrel with the right lead generation system and sales
funnel).
You spend $100 fixed cost per sale x 100 customers = $10,000
investment.
You collected $200 gross revenue x 100 customers = $20,000 monthly
gross revenue.
So, let’s do the ROI on that:

This is triple-digit ROI in a single month. In one month! Imagine the

compounding effects of this kind of return! This is why your net profit
margin matters so much. So, find the numbers that make it worth all the
research and initial investment or don’t bother.

Phase 4: The Hand-off

You found an exciting business idea and vetted it. You ran an experiment
and determined the business can produce at least 50 percent of expected
results. For 90 days, you optimized the business idea and determined KPIs,
critical drivers, and SOPs.
It has been an intense four or so months, I realize. But the hard work is truly
almost over—and that’s the beauty of this process! The time has now come
for you to hand it off to someone else after you have ensured that the
business has the processes and procedures in place that will produce the
same or better revenue and net profit margins.
You put in some work (mostly in the form of research and testing) on the
front end for a few short months. After that, the amount of time you spend
will be up to you. I am willing to part with up to 20 percent of a business’
profits for someone else to take on 95 percent of the workload and therefore
free up my time.
The goal with such an involved evaluation process is to ensure that you
can hand off the business for other people to run so you can enjoy life
and all of its blessings!
After you’ve successfully been through the 120-day process and completed
the hand-off, you will simply have weekly meetings with the
operator/manager to review and ensure the KPIs are improving as the
business is growing.

WARNING!
The biggest mistake a business owner makes is claiming that working in
their own company will allow them to create higher profit margins. Don’t
do it. Your time is too valuable to be tied to a new job when the original
goal was to create freedom.
Remember, you are looking for a minimum 25 percent margin after
paying all positions, including the job you may be doing within the
business. This makes it easier to still enjoy a healthy profit margin while
freeing your time for your next project.
Now that’s freedom.

Time to Rinse and Repeat

Every business has its own natural “market cap.” So, when you feel your
time is no longer being financially rewarded by spending more time in the
business, it may be time to do it all over again with a new thriving business
idea.
Yes, you can repeat this process and start another business (and yet another
income stream). That is how you generate seismic returns that enable you to
achieve complete financial freedom in a few years instead of a few decades.

MARKET CAPITALIZATION (NOUN):

Market capitalization, or market cap, refers to the total market value of a
business. The term is usually reserved for companies that are actively
traded in the stock market. But in reality, every company has a natural
 cap or ceiling they reach, beyond which it would take too much time,
money, or effort to increase. When you consistently track KPIs, the
market cap of your business cap should naturally reveal itself.
It’s just the ebbs and flows of trade and supply and demand.

As you repeat this process, you’ll develop more income streams. More
importantly, every time you successfully complete this process, you will
generate more income to place into your reserve vehicle to fuel your other
investments.
This is how you take maximum advantage of compounding interest.
Generating an active income through a minimal-time-commitment business
allows you to exponentially increase your investment potential. With each
active income stream created:
You are placing more money into your S.W.A.N. (Sleep Well At
Night) account for greater peace of mind.
You are putting more money into your passive real estate and stock
market investments, producing double-digit and triple-digit ROIs.
You are also enabling your reserve vehicle to fuel even more active
streams of income with impressive net profit margins.
Fast forward a few months or years down the road, and your whole outlook
on savings, investments, retirement, and the future itself will have
completely transformed. You’ll think back on the early days when you
thought it was “impossible” to stash 20 percent of your income away, and
you’ll want to write a letter to that older version of you:

Dear Past Me,

Hang in there! You are doing an incredible job. I know the 20 percent
feels so hard, but it doesn’t stay hard. You are about to step into complete
financial freedom! I’m proud of you and can’t wait for you to see just how
good it’s going to get.
 Sincerely,
Future me

Take It From Trent

Have you been wondering how things turned out for my forensically-
minded friend, Trent?
Well, I’m happy to report that he followed my advice and kept his promise
by following my three simple rules. Because of that, he was able to take
control of his own destiny. Here is what happened to Trent, in his own
words:
“Whether you’re one of Kris’s best friends or someone he just met,
you will discover that his willingness to help people is sincere. Kris
asked me if I was willing to try something different, something you
don’t hear from most people. He believed I had what it took, and I
trusted that he knew what he was talking about.
Kris explained a commonly overlooked way to generate leads
online. I was fortunate that I had not lost my job yet, but I knew I
couldn’t keep doing it for much longer. And if I didn’t get fired, I’d
quit.
So, in the beginning, I committed to spending up to two-and-a-half
hours a day before and after work following up on the leads
(primarily from Facebook). I started booking jobs, and within the
first 30 days, I booked enough work to earn $9,100 in commission.
The first and second weeks were slow, and I started to get frustrated,
but I trusted the process, and weeks three and four picked up
momentum.”
Trent has since taken this opportunity a step further than most people do.
He hired someone to help him generate and track leads. Trent also hired a
social media marketing firm to optimize and run variations of his Facebook
ads. Then he expanded his market reach across the United States. After
testing his new ads for six weeks, he kept the high-performing ones and
scrapped the duds.
My friend has taken a very systematic approach to making this side hustle a
long-term, lucrative active income stream, and I couldn’t be prouder. Trent
now expects his “side hustle” (that enabled him to quit his old job) to
consistently bring in from $8,000 to $12,000 a month, with a time
investment of just 30 minutes to an hour a day.
The fascinating part is he started as a business operator and became a
business owner within a few months. Now, he delegates others to do tasks
that he doesn’t want to do or doesn’t have time to do. Trent’s advice:
“If you’re not willing to take a risk and potentially lose for the first
couple of months, then don’t do it. But if you’re willing to put
yourself out there and are able to bounce back from rejection
(because rejection is inevitable when you own a business), then you
can do this. In fact, anyone can! You just have to decide to be bold
and have confidence.”
Trent went far beyond replacing his income and made enough money to
leave his job and step into financial freedom. Four-digit ROI through an
active income that generates at least a 25 percent margin can be the game-
changer. Trent now has multiple income streams, and it has changed his
lifestyle, goals, and overall financial direction.
Looking for a thriving business or side hustle that meets my five high
standards?
I have several I’d like to tell you more about.
I’m talking about ventures requiring minimal time after the evaluation
period. These businesses grant you the freedom to continue working your
day job if you want and saying goodbye to it forever if you don’t.
If you want to learn about my favorite business opportunity, which meets
my thriving business standards (and can generate up to seven figures of
active income in today’s market), check out my Master Class at
KrisKrohn.com/Business.
Now that you’re saving and investing like never before, you also have more
options than ever before. So, let’s shift gears and accelerate into our
financial freedom blueprint’s fifth and final stage: infinite ROI through
strategic partnerships.
 CHAPTER EIGHT CHECKPOINT
1. Traditional business goals leave out a critical ingredient—to
create both profit and value without sacrificing too much of
your valuable time.
2. There are three fundamentals of business required to take your
venture from surviving to thriving. You must have a plan for: 1)
marketing, 2) selling, and 3) fulfillment.
3. Every thriving business must meet five criteria for selection: 1)
high-profit margins, 2) an abundance of leads, 3) a simple
business model, 4) delegable processes, and 5) a customer-
focused passion.
4. To rapidly launch a thriving business, utilize the four launch
phases: 1) evaluate, 2) experiment, 3) optimize, and 4)
outsource.
5. Key performance indicators (KPIs) are how you, the business
owner, meaningfully interpret the numbers that matter in any
business.
6. Creating standard operating procedures (SOPs) in all three of
the fundamental areas of business will prepare you to
successfully hand operations over to someone else after the
evaluation period. This ensures you remain the owner and not
the operator.
 NINE

YOUR STRATEGIC PARTNERSHIP VEHICLE

Infinite ROI

MY PHONE RANG on a Monday morning, and I heard my father-in-law

Matt’s voice. We exchanged pleasantries, and I asked him how his trip had
been since I knew he and my mother-in-law had just returned from
celebrating their anniversary.
But I could tell he didn’t want to talk about his vacation. He cut right to the
chase. “Can you tell me about the real estate you’ve been buying?”
The question immediately put me on edge. Not because I didn’t enjoy
discussing real estate. It was because I believed Matt thought I was nuts for
buying houses. A few years before, I had to look him in the eyes and tell
him I dropped out of pre-med. Then, I went and bought a house in a college
town with no degree and no declared major.
Why would his son-in-law do that?
To Matt and to the rest of the known universe, you buy a house only once
you’re “sure.” You’re sure of where you want to live and raise your family.
You’re sure you’ve got the right career that can cover the mortgage.
But the thing is, I wasn’t sure about anything.
A little while later, when I bought my second house, he was even more
confused. What young married couple needs two properties unless they’re
headed for a divorce?
When I bought my third house, no doubt he concluded that I’d completely
lost my mind. I wasn’t following the plan he thought would make his
daughter safe and secure. As a young man, Matt had gotten his undergrad in
business and went back for his MBA, and now he worked for a successful
company.
That is the model you use to provide for a family—right?
I seemed to be following a starkly different model. If you’d asked me what
that model was at the time, I’m sure I appeared as directionless as a bag in
the wind. I was still figuring it all out myself, but I knew I was onto
something.
Given all of this, my nervousness about Matt asking real estate questions is
probably more understandable. But I kept my cool, responded with a
matter-of-factness, and listened to what he had to say, trying to read
between the lines.
It didn’t take long to figure out what was going on.
First, he wanted to know the difference between the sale price and the value
of the homes I bought. He also wanted to know how much I was netting on
rent. As he continued, I could have sworn I heard the faint scribbling of a
pen and some tip-tapping on a calculator.
At one point, he even asked me my thoughts on traditional investment
vehicles like his 401(k). I didn’t hold back.
He let it all sink in, and then there was a silence for a moment before he
continued. “So, what’s your next move, Kris?”
I proceeded to tell him about a fourth property I had my eye on and how
much cash flow it would generate (if I could just figure out how to fund it).
“How much do you need?” he asked.
I told Matt I needed $20,000, and his next question caught me entirely off
guard. “How about I put up the money? You do all the work, and then when
it’s done, we split the profits 50/50.”
In that instant, I felt an insane rush of adrenaline. Something had just
clicked.
My father-in-law had suddenly unlocked the opportunity that would
ultimately create millions of dollars for me and scores of future business
partners. The realization hit me like a ton of bricks that I no longer needed
my own money to make money in real estate.
Why use my own money when I could use someone else’s?

Infinite Business Partners

Before I even graduated from BYU, Matt and I had already purchased nine
homes together. I remember one day during my last semester of college, the
professor had gone off on a tangent about something, and it gave my mind a
little time to wander.
How had I gotten so lucky to have a father-in-law who had money
saved in traditional retirement vehicles? Then this same father-in-
law also trusted me enough to help him use his savings to create
better returns?
My next thought after that was: Where can I sign up to get more fathers-in-
law? But I didn’t need more in-laws. What I really needed was a way to
consistently duplicate this type of partnership.
One day shortly after, it dawned on me that several people in my circle had
kept regular tabs on my real estate success. So, I made a shortlist of those
who I thought might be more naturally interested in partnering with me.
This sounds like the start of a corny joke, but my list included:

1. A dentist.
2. A corporate executive.
3. An optometrist.
4. A small business owner.

I decided to call all four and offer to take each one to lunch. During each
lunch meeting, I proposed a partnership like the one I had with my father-
in-law. I didn’t show up empty-handed—I had taken the time to create a
professional-looking portfolio that included all of my properties, and I
proceeded to share:
The results of my last 10 real estate purchases.
 The cash flow received from each property.
The discount I was receiving when I bought the properties.
The ROI earned on each, as well as the compounding ROI on all
properties and my re-investments.
Every one of them had the same reaction as my father-in-law. It was
something like, “Where has this been my whole life?” and “Whoa, this kid
is kicking the trash out of my retirement plans!”

Each lunch appointment ended the same way. We excitedly shook hands
as I welcomed them as my newest business partner. Our agreements had
a simple structure (remember Occam’s Razor):

1. They would put up the money as the passive partner.

2. I would do all the work as the active partner.
3. After they recouped the initial investment, we split the profits.

It didn’t take me long to realize that as long as my real estate investments

performed well, I could take on as many partners as needed. The end
result would be to create a massive hoard of properties, all made possible
through the power of other people’s resources.

Infinite ROI Unlocked

I may have been terrible at chemistry (which was why I dropped pre-med),
but I was great at statistics, as it turns out. This worked out well since
Statistics 101 at BYU was designed as a “weed-out” course. Let me tell you
what a weed-out course is. It’s basically a class designed to fail those who
have no business pursuing that subject any further. And it simultaneously
puts a spotlight on the rock stars.
The statistics professor told us on the first day of class: “My job is to fail 90
percent of you.” But I wasn’t scared for a minute. I didn’t even have to
study. It all came naturally to me like I’d been born spewing statistics.
When it came time for the final exam, I absolutely destroyed the curve,
much to the dismay of the rest of my class. My final grade for the course
was an A+ (I actually got a 113), while my classmates mainly got Ds.
I had finally discovered my passion for numbers. But you don’t have to be a
statistician to appreciate what I’m about to share with you.
Through a few simple calculations, I will explain the power of your money
invested into real estate compared to the power of other people’s money
invested into real estate. We’ll use nice, round numbers to keep things
simple, but this concept works no matter how simple or complex the deal:

Example A. Your Money at Work

Traditional ROI
Let’s say you saved $40,000 and invested it as a 20 percent down payment
for a property. Then, you sold the house four years later and made your
initial $40,000 back along with an additional $40,000 profit.
You doubled your money over four years! But don’t take my word for it.
Let’s do the math.
First, calculate total ROI and then annual ROI:

TOTAL ROI ON YOUR MONEY

ANNUAL ROI ON YOUR MONEY

Making 25 percent on your investment every year for a total of 100 percent
return on investment is already impressive. But I’ve done that deal
thousands of times. So, let’s get to the exciting part.
Example B. Your Partner’s Money at Work
Infinite ROI
Assume you do the exact same real estate deal, but, this time, your partner
provides the $40,000 for the initial investment. You and your team do all of
the work. Four years later, your partner gets his $40,000 initial investment
back upon the sale of the property.
But there’s also the matter of that $40,000 profit. Your partner gets $20,000,
and you get $20,000.
Let’s check out your partner’s ROI first:
Your partner invests $40,000 and receives a total of $60,000 back (original
investment of $40,000 + $20,000 in profits).

TOTAL ROI FOR YOUR PARTNER

ANNUAL ROI FOR YOUR PARTNER

A 12.5 percent ROI would make almost any investor (especially one who
has been using society’s retirement vehicles) thrilled!
But what about your results? You made $20,000 but invested $0.
What is your ROI?

I know you desperately wanted to do more math, but there is no math to be

done here. I call it an “infinite ROI” because the results you can expect
when leveraging strategic partnerships really are limitless. But in reality,
you cannot calculate an answer at all.
A fundamental rule of fractions is that you can’t have a zero in the
denominator. When you do, the result is undefined. It’s an impossible result.
In other words:
You have defied the laws of mathematics with your investing brilliance!
You put in no money, but you received $20,000 in profit. That’s not even
supposed to be possible. And yet it happened. This is profit that my partners
and other smart investors turn around and invest right into more real estate.
With a minimum 25 percent ROI over 20 years, that insignificant $50,000
has the potential to become $4.3M compared to what it would likely
produce in traditional stock market investments—which is a measly
$160,000.
We’re talking about 27 times more money.
That is why I call this vehicle your infinite ROI private jet, and it earns its
rightful and critical place on the Financial Freedom Roadmap on the
following page.
I love the term “infinite ROI” because it does an excellent job of conveying
the closest thing you can get to “pulling money out of thin air.” Now, I said
earlier in the book that matter cannot be created or destroyed, but only
change forms—and that’s still true (I may have defied the laws of
mathematics, but I’ll leave the laws of physics alone).
My intent with the idea of “infinite ROI through strategic partnerships’’ is
to help you let go of limiting beliefs. Just imagine the possibilities that
await when you have not only your own resources at your disposal, but also
the endless resources of others.
You’re not pulling money out of thin air. You’re just helping it change
forms.
So, we’ve established that you can’t determine ROI without an initial
investment. Therefore, the best possible way to calculate your return when
you utilize strategic partnerships is to look at the value or worth of your
time. For example:
I leverage a team to buy real estate. They do all of the legwork on every
part of the deals from start to finish, and I spend maybe 15 minutes of my
time on each deal. Five years later, let’s say I make $50,000 on the sale of a
property.
If I made $50,000 for 15 minutes (or one-quarter of an hour) of work,
that equates to making $200,000 an hour.
Guys, I’m really not that special. If my time can be worth $200,000 an hour
on a deal, then your time can be highly valuable as well. So, how can you
tap into something so powerful?
The magic comes in the “Power of Three.”

The Power of Three

Earning double-digit returns in real estate is excellent! Through the act of
buying, holding, and selling properties, you can leave the returns of those
old investment vehicles in the dust. But earning infinite ROIs through
leveraging other people’s money? Even better! All you need to get started is
to focus on the number three.

ZERO ...
Imagine you have a friend with some savings who might be willing to
become your real estate partner. The problem is you have no track record
and have completed no deals. How is this friend going to respond to your
proposal? If they’re smart, they’ll say no.
ONE ...
Let’s assume you’ve had one successful deal. You certainly can’t call that
a “track record of success,” but at least it’s not nothing. Still, it could
have been luck. But you made good money once, so if you ask this
individual whether they want to partner with you. The answer should be
no once again—if that friend isn’t foolish.
TWO ...
Now let’s say you’ve had two good deals back-to-back. You approach
this potential partner, and this time you feel more confident about your
odds. The thing is, two is still in the realm of “just got lucky.” It could
have been a fluke. Sorry, but no dice.
THREE!
Something changes when you have success three times in a row. It now
becomes a pattern! Patterns are magical. When you meet with this
potential partner and tell them about your three successful deals, your
friend will get a funny feeling inside. It’s something called the fear of
missing out (often abbreviated as FOMO).

Three is the minimum magic number that makes people want to partner
with you. You’ve found a pattern for manifesting real estate success, as well
as success in business, and they want in on it! Successful business owners
with a track record of growing companies get investors to back their ideas
so they can grow businesses with other people’s money.
In order to get the infinite ROI ball rolling, work on developing that track
record. What that means to you today is simply this:

Focus on building an initial portfolio of no fewer than three homes.

That is enough of a track record to approach potential partners.
Implement the business plan from the previous chapter and work on
building a few successful businesses with the kind of KPIs that
attract future partners.

Make a plan for saving that will enable you to purchase a minimum of three
properties. Do that, and you’ll have something impressive to show potential
partners. Once you have completed those three deals, you are ready. Review
your contact list and reach out to everyone who is:
35 years or older.
Financially conservative.
Makes an above-average income.
These people are individuals who have likely been:
Putting money into 401(k)s and IRAs.
Focusing on paying off their house.
Setting assets aside for their retirement.
By the time you approach them, there’s a solid chance they’ve grown at
least partially disenchanted with their traditional retirement plan. They may
have looked at their investment accounts (the ones that are supposed to
make them feel warm and snuggly and secure) and wondered why they
haven’t grown to be more substantial.
Share the three deals you’ve successfully completed, professionally present
the numbers, and walk them step-by-step through the ROIs. There’s a high
probability they will decide to put up the money for your fourth deal.
If you can find just one partner, then with each additional home you buy
together, it builds your success track record in real estate investing. The
more you add to your track record, the easier it is to get another partner.
Your first partner will be the hardest to acquire, but the second and third
will follow suit much more quickly and easily. Before long, you will find
yourself on a success path that is much like mine. You’ll have the ability to
invest in real estate without using any of your own money whatsoever—and
it’s glorious to step into the power of infinite results.

Action Steps for Creating Infinite Results

I have great news: This same principle of infinite ROI works in business.
You never have to be restricted by your own wallet again as long as you
have some initial track record on an idea with positive duplicatable results.
If you think the numbers with infinite business partners look good on 25
percent ROI real estate deals, then imagine how good they look on
businesses with triple- and quadruple-digit ROI potential.

The better you become at doing business, the better your established
track record will be. This creates a desire for people to partner with you
on your next business venture. Start a new business and generate high net
profit margins that enable you to start another business (and then
another). After this, I predict many investors will get that FOMO feeling
and want a piece of the action.

They say it takes money to make money, and they’re right (whoever
“they” are). But they never said whose money it has to be.
As you build a track record for succeeding in business, you will likewise
earn the trust of individuals who will want to partner with you. But none of
this can happen without step one! Step one is to save money in your
financial reserve vehicle. Step two is to parcel those funds out to your
different investments.
As we continue, I am going to ask you to start seeing your track record
of success in business and real estate as an asset. We think of time and
money as assets, but track record is my most valuable asset that I trade
for money and more time.
As each investment vehicle performs, it will generate cash flow to re-
deposit back into your interest-earning life insurance savings account. And
then things really start to pick up the pace.
The more you invest, the more experience you get.
The more experience you get, the better your track record becomes.
The better your track record, the more credibility you build.
The more credibility you build, the more partners you attract.
The more partners you attract, the deeper into the land of infinite
returns you travel.
Before long, the time will come when people with money will seek you out
for partnership. It’s a beautiful thing to defy the rules of mathematics and
break the calculator on your way to financial freedom.
And that, my friend, is how you utilize the most potent accelerant to
achieving financial freedom sooner rather than later.
“But Kris, I don’t want to wait that long before I unlock infinite ROI!”
I don’t blame you! Fortunately, it is possible to achieve an infinite ROI
without a track record through one shortcut: Leveraging someone else’s
track record.
I recently discovered that many of my clients and social media followers
had introduced their friends and family to my real estate investing system.
Without even realizing it, they leveraged my personal track record. Many
people chose to partner with me simply because of their friends’
recommendations.
Given how often this was happening, I launched a program that allows my
followers and clients to refer potential partners. If their referral prospect is
the right candidate for partnering, I share 50 percent of my ownership.
Why am I doing this? I’ve already built my wealth. I’ve also reached a
point in my life where I’ll never spend another moment worrying about
how to provide for my family. So, I choose to give back.
Remember, it doesn’t have to be your money, and it also doesn’t have to be
your track record. Ultimately, you are simply combining resources to make
deals happen. My mentor, Tony Robbins, says it best:
“It’s not about your resources; it’s about your resourcefulness.”
I will admit that my style is unconventional. I also know that my approach
to earning infinite ROIs is very maverick in nature.

MAVERICK (NOUN):
A person who marches to the beat of their own drum. Someone who
refuses to adhere to customary rules and standards “just because” it’s
what is expected.

Visit KrisKrohn.com/Mavericks if you’d like to learn more about

becoming a Maverick. There, you can download a free copy of the guide I
put together to walk you through the process of developing a team of
investor partners. This plan works even when you’re starting from scratch
with no money and no one in your network!

CHAPTER NINE CHECKPOINT

1. People with savings are often willing to supply the investment
and be passive investor partners in real estate. At the same time,
you invest nothing but your time and expertise. Then you split
the profits after they recover their investment.
2. After discovering how strategic partnerships exponentially
multiplied my earnings, I reached out to my qualified contacts
and presented the opportunity to them. Those with FOMO (fear
of missing out) always want in!
3. Your own money at work in real estate can quickly produce
double-digit annual returns. However, your ROI on other
people’s money is infinite (you literally cannot calculate it).
4. Before you can start putting other people’s money to work, you
need to respect the power of three. You need to have at least
three successful real estate deals before your partnership offer
becomes desirable to investors.
5. Don’t forget that step one is to put money into your reserve
vehicle before you can start investing and building a track
 record.
6. If you want to shortcut the “power of three” rule, you must find
a way to leverage other successful investors’ track records.

WHAT IS MY CUSTOM GAME PLAN

FORGETTING STARTED?
We have reached the end of Part Two! I’ve got to ask: How are you
feeling? Are you excited? Overwhelmed? I’ve thrown a lot of life-
changing information your way, so if you’re in a state of information
overload, it’s totally understandable. The best recommendation is to start
taking the action steps as quickly as possible. Here are the pieces you
need to formulate your custom game plan:
Destination #1: Set up your reserve. If you haven’t set aside any savings,
your top priority is to start filling up that armored truck (or add more to
it). Determine how much you will set aside and set up a free consultation
about your life insurance savings account at: KrisKrohn.com/CashFlow.
Destination #2: Get into the real estate game. Real estate is for
everyone, no matter where you are today with your savings. To learn
from my investment team about building a winning portfolio, visit:
KrisKrohn.com/Portfolio.
Destination #3: Learn to use asymmetric risk. To take advantage of my
research into emerging industries and exciting high-ROI companies and
see more of my passive trading strategies, visit: KrisKrohn.com/Stocks.
Destination #4: Discover a thriving business. For free access to a quick
guide of the top six business opportunities that meet my thriving business
standards, visit: KrisKrohn.com/Business.
Destination #5: Unlock infinite ROI. If you want to create ROIs that
shouldn’t even be mathematically possible, it’s time to tap into strategic
partnerships. To download your guide for the process of developing a
team of investor partners, visit: KrisKrohn.com/Mavericks.
I’ve painstakingly detailed the different vehicles designed, with great
speed and energy, to get you from a place of worry about the future to a
place where you can have it all in the not-so-distant future. In that place,
you can leave worry at the door and step fully into abundant living.
If you would like a complimentary game-
plan to examine your current situation and
what moves you may want to make next,
get in touch with one of my Wealth Coaches. Go here to request one:
KrisKrohn.com/Wealth.
Now, you could stop now and transform your life through what you’ve
learned in this book. But if you’re anything like me, you want more. So,
keep reading because we are about to discuss the final integral pieces of
the puzzle for creating your dream life and leaving a legacy that lasts
beyond your own limited time on this earth.
We have two final vehicles to reveal in the final chapters that deserve
their own place on the road map. I wouldn’t be here today without them,
and I hope you’ll digest the information and act, because it will forever
change the trajectory of your life.
Are you left wondering whether you can truly achieve financial freedom
in five years or less? Well, here’s part of that answer:

1. Stash cash into a single-digit ROI truck—you’re on the road to

freedom.
2. Unleash the power of double-digit ROI—retire within a decade or
more.
3. Master the triple-digit ROIs of risk—achieve your goals in years.
4. Unlock quadruple-digit ROIs—you go from years to months.
5. Step into infinite ROIs—it’s no longer a question of “if” but “how
fast.”

I’ll answer the question more fully in the last part of the book. So, if you
really want to see, finish last three chapters and find out yourself.
 TEN

YOUR PERSONAL GROWTH VEHICLE

Unlimited ROI

MY FACE WAS ON FIRE as a mixture of recklessness and fear washed over

me.
What have you done, you fool? Put your hand down!
The voice in my head was trying to talk some sense into me, and I don’t
remember a time when my arm felt that heavy. But I hushed the voice and
shot my arm up even harder into the air.
It was the first day of a Tony Robbins event I’d paid $100,000 to attend. I
had a question about an exercise we’d just completed. But it was really a
question that stemmed from my own present frustrations concerning my
company—and it showed.
I knew from the moment Tony’s gaze met mine and his giant frame barreled
toward me that I was going to get the metaphorical stuffing kicked out of
me.
My comment? Irrelevant.
My real problem? Apparently glaringly obvious.
I was about to be on the receiving end of one of Tony’s classic hardcore
interventions. I braced for impact.
Why am I so scared? Isn’t this what I wanted?
Massive growth is hard in any form. I have willingly learned that lesson
repeatedly in my life, and I voluntarily plan to keep learning it until the day
I am no longer on this earth. Sadly, the reality is that most will never
experience massive growth. I’m talking about the kind of growth that
comes only through the guidance of an objective and highly qualified third
party.
Over the next hour, my newest mentor, Tony Robbins, worked to get to the
heart of my problem. My company was consistently growing—but at an
agonizingly slow pace. I was discouraged but too deep to identify the issues
myself.
It’s pretty hard to see the label from inside your own box, right?
Then along came Tony. He peered deeply into my soul as only Tony can
and saw what I had been missing. After the intervention was over, I
experienced an incredible moment of victory. Thanks to Tony Robbins—the
twentieth mentor I had hired and far from the last—I figured out how I was
self-sabotaging my results.
I had to step out of my own way.
My first phone call after that much-needed verbal flogging changed my
trajectory forever. I dialed the number of the most talented, qualified person
in my organization, and I told him to print some new business cards. I was
ready to relinquish management in my own company and name him CEO
of my empire.

I credit that single decision with creating a 400 percent growth in revenue
over the next year, growth made possible by choosing to invest in myself.
I chose to spend six figures in the hopes that I’d experience an
 intervention just like the one I had. I needed someone to guide me past
my own limitations, beliefs, and knowledge.
The following year, I doubled down and spent a quarter of a million
dollars on mentorship with Tony. Not surprisingly, I once again saw
incredible growth as a direct result of the mentorship. My company
doubled again, and my profits quadrupled.

What had Tony told me that day that spurred such huge and profitable
changes? I would share it all if I felt it would create value for you, but that
lesson was for me and my specific challenges.
The point is that we all have blind spots. And all too often, we look to
money, investment vehicles, and “hacks” to improve our life, when the truth
is that our highest ROIs will always come from uncovering those blind
spots and overcoming limiting beliefs.
I learned a powerful lesson from one of my mentors to whom I paid over
$1M just to work with him. He taught me that the only dangerous
information is what we don’t know. Since then, I finally stopped arguing as
if I knew best—because, in actuality, I only knew what I knew.
In fact, what you know can only get you more of what you have gotten in
the past. You need proximity to people far more successful, genius, and
experienced in what you are trying to grow if you want the fastest shortcut
to the result.

The Power of Proximity

For over a decade, I have been paying the world’s most successful people to
provide me with the ultimate shortcuts to success. I’ve spent hundreds of
thousands of dollars on mentoring (one mentorship came with a $1 million
price tag that I’d gladly pay again). I’m talking about mentors who already
possess 10 times the results I dream of and then some.
They are people who already arrived at “have it all,” and now they’re
offering to share the map.
The people I choose to bring into my life reveal the potential I never even
knew existed. They are the kinds of individuals who fill me with more than
just “monetary fuel.” They fill me with enough “rocket fuel” to blast me to
the moon and back again!
We’re talking about space shuttle-level results with unlimited ROI!
I’ve hired mentors to refine and improve the real estate and business
philosophies I’ve painstakingly developed over the years.
I’ve hired mentors to teach me how to cut body fat while increasing
muscle mass.
I’ve hired mentors to heal from growing pains in my marriage and
scars from my childhood.
You name an area of personal or professional growth—I’ve hired someone
to maximize my understanding in that area and find victory. Milky Way-
sized growth doesn’t happen by chance. It happens by having a plan,
executing that plan, and bringing in reinforcements.
I’ve experienced as much as a 1,000-percent ROI on money poured into
personal and professional growth. And I can practically guarantee I’ll see a
10-times return just by working with a new mentor. In fact, that is my bare
minimum expectation. And over time, the ROI increases exponentially as
your operating system improves. Years later, I am still benefiting from this
mind shift as that same CEO I promoted is now working on extending our
impact to over a billion dollars in value.
Imagine making a $1,000 investment and earning $10,000 on that
investment. That is a 10-times return. Imagine investing $10,000 and
reaping a $100,000 benefit. I don’t think I need to spell this out for you, but
just in case:
What if you could invest $100,000 and make $1M? Would you do it?
You’d be crazy not to, right?
Every time I invest in myself by hiring a mentor and fully commit to the
process by remaining teachable, I grow. Now, it’s not always 10-times.
Sometimes, it’s less. But other times, it’s so much more.

ROI is a function of time. You may only get a 50 or 100 or 500 percent
ROI in the first year, but by the second, third, or fifth year, that ROI can
become a ludicrous number far beyond 1,000.
Investing in your mindset and perception is always worth it and every
upgrade will create a lifetime of benefit. Unfortunately, most people limit
how much growth they can take in. They’ll commit to growth by reading
a book a month—but books just aren’t enough. In my circles, people
passionately commit to growth hacking by any means necessary. We
move beyond books for good ideas and have graduated to having one or
more mentors at any given moment and attend several masterminds and
personal growth or mindset-related events a year.
 You need to get in front of people who think far beyond the box and
beyond conventional advice. You need a mentor who’s been where you
want to go and is still there! You need someone who can offer you the
kind of perspective you could never have on your own.

If you’ve ever heard of Moses, you may be familiar with the story of the
Israelites’ exodus from Egypt. Imagine how overjoyed they were when
Pharoah finally let them go after centuries of captivity. Suddenly, they went
from being enslaved to becoming a freed people!
But then Pharoah changed his mind, and he sent his entire army after the
Israelites in a blind rage. Unfortunately, the terrified Israelites soon reached
a dead end in the form of the Red Sea.
At that point, they saw only two options. They could stand and fight and
face certain death, or they could surrender and go back into captivity. But
God had a third solution for them—the Red Sea solution.
None of us can truly understand how that moment must have felt for the
Israelites. To suddenly see that water part and know that you are going to
make it.
Am I comparing mentors to God? Absolutely not! All I want you to take
from this amazing story is to try to imagine that feeling of breakthrough.
There will be times when it feels like your business or your personal life are
under attack from all sides, and there’s nothing you can do but fight or
surrender. But what if someone else from outside your perspective could
help you find another way?
Wouldn’t that person be worth their weight in gold?
No matter how stuck you feel or no matter how permanent a brick wall or
closed door (or body of water) in your life may seem, my experience is that
someone out there knows how to help you break out and through—and
continue doing so for the rest of your life.
Grow every year, and after a few years, you won’t even recognize yourself
or your business. Growth on top of growth—the ROI is essentially
incalculable on that type of progress. You are not only learning new skills
and abilities from your mentors, but you are also expanding the perception
of possibility and teaching your mind that you can truly have it all.
At the time of writing this book, I am working on three different businesses
with billion+ dollar potential in the next five years, and that is all the result
of constantly growing by working with mentors and implementing their
insight.
Books are good for the beach, and they’re a good way to have some quality
quiet time in the morning, but books won’t get you where you need to be if
your goals are audacious and outrageous and worthy like mine.

Your brain is like a computer. But a computer is only as good as its

programming. Are you running on a sleek MacBook Pro, or do you still
use a clunky IBM desktop? If you want better, faster results, you need a
software upgrade.
And when your computer requires an upgrade, what should you do?
Should you read a book on how to upgrade the software or take it in to
see a specialist who knows how to make it happen?
The path to lightning-fast results is not littered with books and online
courses. Books and online courses are important, and I’m an avid
consumer of both. But they are not sufficient substitutes for working one-
on-one with mentors, nor do they provide the same 10-times and beyond
growth.

The fastest way to achieve immense growth is to get into the airspace of
human beings who have already achieved tremendous growth. Tony
Robbins calls this principle “The Power of Proximity.”

THE POWER OF PROXIMITY (NOUN):

The force and influence of other people’s experiences and wisdom that
you can harness by putting yourself in the physical vicinity of people
who have already accomplished what you want to achieve.
It turns out I had been living this principle for 10 years before I knew it had
an actual name.
Want to double your income?
Want to start a business with minimal time commitment?
Want to invest in real estate with a high probability of double-digit
ROIs?
Want to learn how to pick moonshots?
Want to let go of the past traumas that you allow to hold you back?
Want to take your core relationships to new heights?
Everything you want—someone else already knows how to get it.
Unfortunately, the Power of Proximity also works the other way. We
become the average of the five people with whom we spend the most time.
That realization often makes people do a hard swallow as they think about
their inner circle’s limited mindsets. Here is a quick comparison:

Add together the approximate annual incomes of the five people with
whom you spend the most time. Divide the total by five. That number
will more than likely predict your income, plus or minus 10 percent.
Here’s an example:

David $37,000
Martha $51,000
Jesse $44,000
Wyatt $62,000
Porter $40,000
Your income: $46,800

Now imagine spending time with five people who make high six figures
or more a year. Do the same math to determine what your income would
be in that scenario. Here’s an example:

Mickey $1,200,000
Teresa $600,000
 Jimmy $1,500,000
Jennifer $450,000
Will $800,000
Your income: $910,000

Which income is more appealing?

The beliefs about money of those around you will rub off, one way or
another. They will hold you back or rocket you toward financial freedom.
My net worth grows every year thanks to the Power of Proximity. I only
spend time with growth-minded, highly driven mentors with big goals and
even bigger plans for execution. I credit mentorship as the single most
crucial investment decision I make.
It’s truly the ultimate growth hack.

Coaches vs. Mentors

There is one word that has taken over social media and just won’t stop. That
word? Coaching. Everyone and their great aunt have become a coach. It’s
crazy! I’ve never seen anything like it.
As you may notice, I intentionally avoid the use of that word in this chapter.
The reason is that you don’t need a coach. You need a mentor. Many people
think the two terms are synonyms, but I respectfully disagree.
The reason goes back once again to the Power of Proximity.

Coaches are great a being cheerleaders and encouragers! They may also
be qualified to explain techniques, answer questions, and help get some
results. However, at some point, it’s likely that coaches have stepped
outside the actual game. So, they can drill the perspective, but they are
doing it from the outside looking in.

Mentors have mastered the results you seek and have created 10-times or
better results—and they are also still actively in the game. Mentors are
the best of the best. They give you something to aspire to, not stories of
the good ol’ days when they were once the high school quarterback. They
 have more experience than their students and are therefore worthy of
being admired and emulated.

The wealth mentors you want are already massively wealthy. The
health mentors you want are presently strong and well. The connection
mentors you want have thriving current relationships.
Mentors are experiencing the things you want now, not way back then. This
is because they have not allowed rejection to stop them from reaching their
goals. They also know to help others shake the shackles of rejection. Let’s
further examine why mentors are the superior choice with a side-by-side
comparison.
The distinction between the two is vital, and you have to ask yourself
whether you want to learn from a coach or a mentor. In reality, there is
rarely an appropriate scenario where I would ever choose to work with
someone who considers themselves to be a coach.
For faster results, look for mentors, not coaches. They’re qualified by
their tangible results, not their mere access to information.
Find a mentor who has 10 times the results you’re looking for—and if
they’re willing to work with you and it’s a logical fit for you both, make the
investment. They could be the key to your personal growth.

The Clichés Aren’t Wrong

If you are ready to apply some 10-times power to your life, relationships,
and business, your SWAN account holds the answers. That means it’s time
for another investment—not in property, not in a business, but in yourself.
Or like one of my mentors Dolf De Roos says, it’s time to invest in “the real
estate between your ears.”
When people begin this journey, the impulse seems to be to purchase
investments first with their reserve vehicle. I’m not saying that is a bad
strategy, but if you have to choose between a market or real estate
investment and a mentor who can help you access superior opportunities
with a superior mindset, I encourage my students to invest in mindset first.
But how much to invest? I can’t make that decision for you. Only you can
determine the actual percentage based on how many areas of your life
require some objective feedback and insight as well as how big and
aggressive your goals are.
The more “behind” you feel in the game and the faster you want to go, the
more you should invest in mentors—because they accelerate results way
beyond the limits of pure capital investments.
Mentorship undoubtedly leads to monetary growth. Since this has been a
book about money (as I told you it would be from the beginning), I feel
compelled to say that. However, the ultimate purpose of life is not to
accumulate money. Societal constructs—what we are told to envy, who we
idolize—make it seem like that, but it’s not true.
All the money in the world can’t fill the void of an otherwise empty life.
I’ve met plenty of miserable rich people.
What you prioritize eventually rules your life. If you live for being a gym
rat and disciplining your body, that’s commendable. It’s also easy to fall
into the trap of valuing physical looks above all else. If you live to grow
your bank account, you can set yourself up for a lavish retirement. But what
if you get to retirement and your pursuit of money has left you with no
sincere relationships? Who wants to retire completely alone? That sounds
bittersweet to me (and far more bitter than sweet).
Self-worth should not be connected to net worth, body fat percentage,
belongings, or friendships. Self-worth also requires its own kind of fuel—
one that can’t come from a SWAN account, a firm body, or a luxury car.
You need “rocket fuel” for your mind in the form of powerful
mentorships.
There is a bigger picture to consider that goes beyond financials. I’m
talking about getting an ROI on prioritizing your growth as a human being
—and a parent, professional, son or daughter, spouse or partner, and friend.
We are multidimensional human beings. Everything we do in life falls into
the category of money, health, relationships, or personal empowerment.
Actively pursue growth in each of these areas for maximum fulfillment.

You’re here to grow. And the fastest way to grow is to work with
someone who pushes you far outside of your comfort zones. This is a
significant part of the journey toward having it all. We all grow at
different paces for so many different reasons, but a general guideline that
anyone can follow to maximize fulfillment is this:
1. Set intention and pick your path. Pick your most aggressive form of
growth that will help you reach a desired level or goal (such as books,
courses, coaching, and mentors).
2. Step outside of your comfort zone. A good mentor stretches you far
beyond what’s comfortable. Everything you want, but don’t yet have,
is found outside of your comfort zone. You must get there, and it’s
hard on your own—but not for a mentor).
 3. Execute with accountability. Once you have the plan in place and see
the path before you, it’s time for action. Remain teachable in order to
maximize the results of whatever growth path you have chosen.
4. Expect and track results. Track your progress in every area of growth
and never forget that ROI is the ultimate tool to gauge how effective
any investment is—whether it be a personal growth or financial
investment.

People without money always think the grass is greener on the other side. In
some ways, it is. But is finding the greenest pasture or having the most
zeros possible on your bank account statement really the purpose of life?
Not to me.
Material possessions are terrible substitutes for actual substance.
True fulfillment cannot come from monetary gain. Making money is
necessary to reach your goals but should not be the goal itself. Here is an
example:
If you had the means to spend $50,000 on a once-in-a-lifetime
vacation, would that trip itself be the end goal? I hope not. Think
about what it took for you to earn the means to take such an
extravagant trip. You earned that trip because the good choices you
made enabled you to afford the luxury. That is the real victory here.
Your wise decisions and intelligent execution led to the fulfillment of
your dreams.
We’ve all heard clichés about stopping to smell the roses and there being no
dress rehearsals in life. But as annoying as clichés can be—they’re always
accurate, aren’t they?
So, as we continue, commit to discovering how many more clichés you can
bring to life. Because why not? You should dance like nobody’s watching,
laugh more (since it’s the best medicine), run through that open door after
another one closes, and be the change you wish to see in the world. After
all, you only live once.
Clichés like these get a bad rap, but I make it a point not to ignore the
wisdom passed down through the ages. When you ask people on their
deathbed what they cherished the most in their lives, not one of them will
say their bank account. Never forget that.
There really are no dress rehearsals. This is your one shot at doing it right,
so why not make it count?

A Grand Design for You to Have It All

So, what is this book really all about then?
On the outside, it is the perfect tried-and-true formula for how to become a
self-made millionaire (many times over). But as you now look more deeply,
you begin to understand that more money equates to more options—options
to make more time for better health; for deeper, more meaningful
relationships; and for producing the means to create value and solve
problems for people. In other words, beyond achievement, this book is
really about fulfillment.
Fulfillment can’t be bought. It can only come through the choices you
make.
This leads us to the Grand Design of how to balance fulfillment in all three
areas of life. The deepest fulfillment in life comes through personal growth,
which is why it’s the final piece in the Have It All blueprint. To further
explain life’s interconnectivity, I created a diagram to explain how these
three life areas work together like a symphony:

1. Wealth. Financial freedom gives you the capacity to create value for
yourself, your loved ones, and the world. Your wealth can generate
fulfillment for others when you apply it correctly.
2. Health. Health is your strength, energy, and ability. It’s total wellness,
inside and out. Wealth without health is empty.
3. Connection. We are connected not only to those around us but also to
ourselves. There is a link with our fellow humans that transcends what
we think we know about the human body, mind, and soul.

Take a look at the diagram to further explore how the three areas intersect in
The Grand Design to Have It All.
Where each of the spheres intersects, a new benefit develops. You could
call these the “compounding ROIs” of having more than one area of life in
balance:
Freedom (the intersection of health and wealth). When you combine
these two forces, you create extraordinary freedom. You have the
energy and vitality to enjoy life to its fullest, and you have the
financial resources to support anything you want to do.
Vitality (the intersection of connection and health). The combination
of these two forces is powerful! When you have your health, you feel
energized to forge even more relationships. This produces a kind of
vitality that allows you to experience life in all its vibrancy arm-in-arm
with others.
 Contribution (the intersection of wealth and connection). When you
combine money and connection, it leads to contribution. Being
connected to the world enables you to see where your money would
create the most impact. As you grow more financially stable, always
look for how you can give back to the world.
And, of course, when all spheres are aligned, you have it all! Just
remember that this is not a set “destination” you reach. Nourishing all three
spheres requires conscious effort and a tireless commitment to foster each
one, as well as ongoing mentoring.

Sphere 1: Wealth
The national average salary is $44,000 a year. I’m not sure what your life
goals are, but I can almost guarantee $44,000 a year won’t get you there.
Set a reasonable income goal for the next year and then take the most
critical step to find a mentor who makes far more than that and start
working with them.
If a mentor doesn’t tell you how much they make, find someone else. (I
know, it’s so taboo to talk about how much money we make, but, frankly, I
think that’s just another social construct we’ve created that needs to be
eliminated.) Find someone you respect who can clearly explain how they
achieved their financial freedom and then mirror their actions.
Wealth Mentorship
When I became interested in the real estate game, I aligned myself with
immensely successful mentors who made tens of millions in the real estate
game. I followed them, learned from them, and remained in their airspace
as much as they would allow me to.
My first mentor eventually kicked me to the curb (a kick that I definitely
deserved). I was a 22-year-old kid, desperate for help. I showed up at his
house one night at 10 p.m. in a moment of excessive eagerness. Please
don’t do this. My second mentor expertly guided me through my first
property investment. The equity from that deal led to 25 more homes over
the next four years. My third mentor showed me the ropes of seller
financing. He and I eventually partnered together on many real estate deals.
 I’ve had numerous mentors in the real estate and financial arenas. To find
the right wealth mentors, start defining what “next-level” wealth means
to you. Dig deeply by asking yourself questions like:
What would have to happen to achieve this level of wealth?
Can my current job get me to this income goal? Why or why not?
Does my mindset about money help or hurt this goal?
What daily schedule changes would I have to make?
Can I commit to saving at least 20 cents of every dollar I make?

Every time I wanted to learn something new that would accelerate my

wealth accumulation, I skipped “Google University” and went straight to
the experts. I’d determine who I could pay to get into their airspace and
provide me with shortcuts to where I wanted to go.

Sphere 2: Health
Our health is our most incredible wealth. If life is a physical struggle, it’s
nearly impossible to find joy in the day. A healthy, strong body—one whose
health is built from the inside out—is essential. Studies show there is a
direct correlation between health and a person’s income. That says a lot.
Health Mentorship
Almost a decade ago, I decided to enter a bodybuilding competition. I knew
this meant I needed to figure out the best ways to trim the fat and get ultra-
sculpted. The pressure was on—in a few short months, I’d be on a stage,
half-naked, flexing in front of 1,000 people. My confidence was instantly
boosted, knowing that my mentor had won multiple all-natural
bodybuilding competitions. He assured me I could do it, and it was his
confidence and success that got me there.

There are many areas of health for which you may consider hiring a
mentor. You could hire a mentor who can help you cut fat and build
muscle. You could hire a breakthrough coach to help you figure out the
real emotions and meaning behind your health challenges. You could
 work with a mentor who can teach you how to eat well. You could hire a
functional medicine professional who understands the most direct path to
inside-out healing. Start defining what “next-level” health means to you
by asking questions like:
What would have to happen to achieve this level of health?
Does my current lifestyle encourage or discourage physical
wellness?
Does my current mindset about my body help or hurt my goals?
What daily schedule changes would I have to make to prioritize my
health?
Can I commit to making my health a priority every day by
exercising, eating well, and getting enough sleep?

Whatever results you are looking for, find someone with a proven track
record of transformative results and ask plenty of questions to ensure they
are the right fit for you. Remember, they may have gotten to where you
want to be and beyond, but they still need to prove it to win your trust and a
share of your wealth reserves.

Sphere 3: Connection
We often stifle even the best relationships through our own self-imposed
limitations ingrained in us from a young age. Childhood is riddled with
limiting beliefs and traumatic experiences that we never outgrow. To make
matters worse, unresolved issues from past relationships can manifest in
other relationships. And unless you can move beyond the pain, your
relationships run the risk of remaining unfulfilling and potentially toxic. It’s
certainly no way to live.
Connection Mentorship
Kalenn and I met when we were such young pups. As we worked to
become better humans together, we discovered that what we thought was
“good communication” wasn’t always good. And it definitely didn’t feel
like communication. Finding the right relationship mentors was a game-
changer for us! We learned communication techniques and were finally able
to see each other through a more objective lens. We even learned how to
gamify our relationship’s growth (I highly recommend this)!

Because of the improvements we experienced as a team, we are now

relationship mentors for other couples. So, it’s time to start defining what
“next-level” connection means to you. Dig deeply by asking yourself
questions like:
What would have to happen to achieve an enhanced level of
connection to others?
Does my current lifestyle encourage or discourage genuine
connection?
Does my current mindset about relationships help or hurt my
connection goals?
What changes would I have to make to prioritize connecting with
others?
Can I commit to make my own needs (and the needs of others) a
priority by actively working past the pain of former traumas?

Our relationships with friends, family, co-workers, and even the most casual
acquaintances have a profound impact on heart, soul, and body. Learn how
to foster and grow an unselfish devotion for others, and don’t forget to
cultivate some self-love while you’re at it. You can’t love others well until
you first love yourself well (another cliché that is so true).

The Grand Design is awe-inspiring. What’s even more impressive is that all
facets of life fit into one of these three spheres. The goal, then, is to
understand how to foster all three without neglecting any one area. A stool
won’t stand without all three of its legs. Likewise, your life will not
function well when you neglect one or more of these spheres.
When you break down this book to one of its most fundamental truths, it is
this: your reserve vehicle needs to be a top priority. Otherwise, how can
you fund all of the massive growth you wish to experience in your wealth,
health, and connections? The more money you have in your life insurance
savings account, the more you have to pour into your investment vehicles
and personal growth.
There will always be haters out there. People will tell you your dreams are
crazy and foolish, or at the very least unattainable.
The thing is, they’re not always wrong.

Big goals are crazy if you have absolutely no clue how to accomplish
them and no plan for figuring that out. We overestimate what we can do
in a year and grossly underestimate what can be achieved in a decade.
Add a massive personal growth component to your investment strategy
and, within a decade, you will be blown away by what is possible.

This means the key is to not just stop at setting a goal. You need a plan!
Your goals are commendable (not crazy) as long as you’re willing to invest
in a mentor who has 10 times the results that your growth demands.
As you seek to set your income and savings goals throughout this process,
ask yourself questions like these:

1. How much did I make last year?

2. How much would I like to make next year?
3. What is the most I’ve ever made in a single year?
4. What’s the most I’ve ever had in savings?
5. How much would I like to have in savings?
6. How much would I like to invest within a year?

It’s essential to know the difference between how much you’ve made and
how much you want to make. Working the numbers is the only way you’ll
ever be able to manifest the steps required to meet those goals. But you
don’t have to do it alone. The right mentor can help you come up with those
steps.
Beyond the financial returns, the most significant ROI that you’ll always
get will be from an investment in yourself.
The day you start investing in yourself is the day you start opening up
the real returns on your potential and discover what’s possible in this
life.
If you have made it this far in the book, it tells me you appreciate my ideas.
That is a promising sign that you’re a great candidate for achieving a life-
changing experience at one of my live events, where you’ll receive actual
mentorship (and believe me—it’s 10 times more impactful).
When you put yourself into my airspace for a few days, it will accelerate
your growth timeline. You will experience the “next level” results you
desire in wealth, health, and connections.
Many of my students regularly double their income within months or a
year of leaving my events.
They feel empowered to start investing in real estate and moonshots
(even those with no investment experience whatsoever).
To learn more about my life-changing live events, check out
KrisKrohn.com/Experience.
Just two chapters left!
Are you going to stick with me to the end?
If so, I gotta say I like your style.
There has to be a reason I’d include the last two chapters in this book
(because I’m not a “filler” kind of guy). So, I encourage you to read them.
I’d be honored to speak with you at one of my events, and you can tell me
about your experiences with this material and any feedback you may have.
My goal is to empower you to have it all. I hope I’ve achieved that.

CHAPTER TEN CHECKPOINT

1. Employ the Power of Proximity by getting into the airspace of
mentors who have at least 10 times the level of success you
aspire to achieve.
2. You need the “rocket fuel” that mentors can provide to create
the kind of results you can’t get from averaging the results of
those in your inner circle.
3. If you have the choice between hiring a coach and a mentor,
pick a mentor every time. They are walking, breathing success
stories that you want to emulate.
4. Prioritize self-improvement through mentorship because all the
money in the world can’t fill the void of an empty life.
5. The diagram of The Grand Design to Have It All strives to bring
the three spheres—wealth, health, and connection—into balance
by actively nurturing all three.
6. The two paths to having it all have the same goal. Whether you
are an employee with a thriving side business or a full-fledged
entrepreneur, you must start stashing cash now!
 ELEVEN

YOUR BEST INVESTMENT

Giving Back

WHEN THE PANDEMIC HIT our world, every country around the globe
reacted differently. Pakistan’s approach was to enact a country-wide
shutdown, which meant that all its workers were sent home. Essentially, no
one was allowed to earn a living.
Many of the already-impoverished people there rapidly ran out of food.
They no longer had the resources to take care of the basic necessities of life.
I’m not exaggerating when I say that people were literally starving and
dying in the streets.
One man whose family felt the total weight of the crisis was Murad, his
wife Resham, and their toddler daughter, Roya. While goodwill volunteers
were distributing food in the slums of Pakistan, Murad approached them
and asked, “Do you want to buy my daughter for $710? She is two-and-a-
half years old.”
Surprised and, frankly, a bit shocked, they told him no. Murad then turned
to his little girl and shouted, “You are a curse on us! From the time you
were born, we are suffering. I wish you would have died the day your
mother gave birth to you.”
Precious little Roya started crying as her father screamed, unable to
understand why her daddy seemed so angry with her.
The volunteers asked Murad why he was saying these things and why he
wanted to sell his daughter (and for such a specific sum). He told them that
he needed the money to pay for the freedom of Roya’s mother, Resham. She
was taken by their landlord after the family fell behind in their rent during
2020 when Murad was unable to work. The amount, $710, was three
months’ worth of rent.
The landlord had given Murad just one week to obtain the funds.
Otherwise, he would sell Murad’s wife to a brothel to repay the debt.
During the wait, the landlord held Resham hostage in chains. It’s painful to
even imagine the horror Resham must have felt, and the corresponding
despair, grief, and anger felt by her husband.
Murad told them, “I wish I could sell myself, but no one wants me. To save
my wife, I have to sacrifice our only daughter.”
Murad’s plan was to sell his little girl into the sex trade for enough to cover
his debts. Lose his wife or lose his daughter. It was a no-win situation for
this man and his family.
When Kalenn and I found out about their desperate circumstances, we
didn’t hesitate. For us and so many other Americans and others worldwide,
$710 is not a sum that we would miss.
On the final day of her captivity before Resham was to be sold, the
missionaries we were working with showed up at the front door of the
landlord’s home to pay for her release. The young mother was in shock—
she had no idea that she was about to be set free and would be able to hug
her husband again and hold her little girl in her arms. She had braced for the
worst but soon realized that she would soon be reunited with her loved
ones. My wife and I weren’t there to witness that moment, but we have no
doubt it was something to behold.
For less than $2,000, we changed the course of a family’s life forever (we
also decided to pay for an additional three months of rent pre-payment to
give Murad time to start working again). That is a lot of good for very little
money in the scheme of things. That little family will never know who we
are or even where the funds came from—and that doesn’t matter to me in
the slightest. I don’t give for the sake of recognition. I don’t give to “pay it
forward.”
I give because I literally feel called to give back. In fact, it’s my most
significant and most decisive calling in life and the real reason I created
the Financial Freedom Roadmap.
While I have continued to increase my income year after year, our lifestyle
has not changed one bit over the last decade. However, because of the
financial freedom roadmap laid out in this book, we’re making more money
than ever. Years ago, we reached a point where all of our needs were met,
and we lived a comfortable life. If my kids needed something, we could buy
it without hesitation.
So, the question for my wife and I became, “Why pursue more? Don’t we
have enough?”
And the answer was, “Yes, we do have enough.”
So, our mission then became to earn more to give more—and inspire others
to give as well!

It’s Time to Earn Your Wings

Our life’s drive has become making an impact that matters. One of the most
beautiful parts of becoming wealthy is that you have the opportunity to
transition from being more selfish to more selfless.
True fulfillment comes when you move from the selfish life to the
selfless life.
In a selfish life, you only make enough money for your own financial needs
and wants. A selfless life happens when you follow these financial freedom
rules long enough to produce more money than your own needs require.
You then have the means to impact other people. Instead of all your
financial goals and aims being self-centered, you reach a point where
there’s so much money that the purpose of playing the game is now about
other people.
That is when you shift into legacy thinking.
When you are dead and gone, and your name is forgotten, what footprint
will be left on this planet? Legacy thinking isn’t concerned with making
sure your family name lives on or ensuring that your name is on a plaque
somewhere. It’s about impacting people, not just while you are alive but
also long after you are gone.
Impacting others and changing lives is what the final step in the roadmap is
all about.
The angel wings on the roadmap represent the final and most critical
investment—giving to charity. Giving away 10 percent or more of your
income to others is an investment without a price tag or an ROI. It’s
genuinely priceless because it’s an investment into the world that can’t be
measured in a traditional sense.

How I Plan to Change the World

When you study the wealthy, you’ll notice they have discovered how to
make the most out of their wealth. And not just through investment vehicles
they use to create impressive ROIs for more investments. They have
mastered how to use their money for good.
When the wealthy set up charitable foundations, those organizations
represent a conduit for changing the world. The purpose of a foundation is
so that after you die, the executor of your trust can keep the foundation
alive and continue to grow it through healthy ROIs and additional
contributions. This means that from one generation to the next, the
foundation’s impact should only increase. So, let me ask you this:
When you become wealthy by following this roadmap, how are you going
to change the world?

I know how I’m doing it. My foundation, The Krohn Breakthrough

Foundation, invests liberally into creating and cultivating a whole person
—and this requires a particular emphasis on emotional freedom and self-
empowerment.
The foundation offers emotional intelligence training and certified
breakthrough work to those experiencing emotional distress. We teach
people how to break free from their past, create a better future, and
discover their purpose. Our mission:
 We heal the brokenhearted by bringing breakthrough and emotional
intelligence to the world.
I hold emotional intelligence at a higher status than academic knowledge.
Lack of emotional intelligence is the primary culprit that keeps people
from making good choices. In fact, behind every poor choice with a
negative consequence is simply a limiting belief or a misunderstanding
based on a lack of emotional intelligence.

When we created the Krohn Breakthrough Foundation, I knew we had

crafted something extraordinary. We’ve been blessed to work with
individuals from all walks of life, and we actively strive to partner with
teachers across the country. Our certification program trains educators to
help children overcome limiting beliefs that hurt them or lead to low self-
esteem.
This allows kids to just be kids—to better experience the joys of childhood
and build self-esteem. We endeavor to instill in the next generation the
confidence to tackle life’s peaks and valleys.
Our foundation also has a special heart for rehabilitating young women who
have experienced the horrifying evils of human trafficking. We work to help
them emotionally release their haunting memories and ultimately find
peace, happiness, and healing. You can find out more about what we do and
how we help by visiting our website:

KrohnBreakthrough.org
Our foundation also seeks to find the sick, the afflicted, and the hungry—
those with real, palpable, gut-wrenching problems like Murad and his wife
and daughter. We feed and clothe those who are in need.
That’s the mission that we feel called to follow, and the conduit that made
all this possible is also what fueled this book you now hold in your hands.
So, why am I telling you this? Why have I held nothing back in giving you
the most successful financial roadmap? Can you imagine the impact it
would have if those who read this book and implement the plan build the
kind of wealth that enables them to give abundantly to the people, causes,
and organizations who need it most?
Because this is the mission that empowers me to indeed have it all. Having
it all means you have become the most generous giver that you can possibly
be.
I also feel called to help others find a why for giving back that makes each
gift more meaningful and fulfilling. One of my mentors, Robert G. Allen,
taught me that the famous “pay it forward” idea is actually twisted. The
belief that we should give in the hopes that “karma” or “the universe” will
remember us on its way back around is really backward. Here is the truth
that fosters a genuine giving spirit:
We give because we have already been paid in full!
Don’t give to get. Don’t give to create karma. Those are lovely ideas on the
surface. However, what motivates someone who truly has it all is legacy
thinking—and no, it’s not about people remembering your name or even
what you did. It’s about people feeling the impact of your contributions for
generations, whether or not they ever know how you helped them.
Give with a servant’s attitude, and it keeps you humble. It also saves you
from giving for any self-serving reasons. Some studies have shown that
truly “altruistic giving” (wholly unselfish giving with no desire for
recognition or reward) doesn’t exist. I respectfully disagree. Give to give
and for no other reason than people need you. They need me.
We need each other.
Give because you’ve already been paid in full! This is how we express
gratitude for everything that we’ve received.

Ready for Breakthrough?

This is not a token chapter.
This is not fluff.
So, first and foremost, kudos to you for recognizing that a whole person is
more than his or her bank account. Passionate human beings who contribute
to their fellow man care about emotional intelligence as much as they care
about financial intelligence (both are important).
I have found many meaningful ways to give back through the years. I’ve
given back in the form of mission work and financial support for
organizations, nonprofits, and my own foundation. I have also poured an
untold amount of time and resources into my children’s lives and the lives
of other young people. I am also blessed to have the means to provide my
parents with the ability to retire in peace.
Many people believe that the time for being philanthropic only comes after
you’re rich. But that’s simply not true. The truth is:
The person you become in the process of building wealth is the person
you will be once you have it.
Don’t have money to give? Yes, you do! In today’s world, a small amount
of money has the power to have a meaningful impact. People are starving
on the other side of the world where $0.30 buys a meal. And don’t forget
that you have time and talents to offer that can actually be even more
meaningful.

Give before you are wealthy, and you will experience an enduring
kind of fulfillment.
Give before you are wealthy, because in so many ways, you are
already rich.

Your heart pumps, your lungs take in oxygen, and your eyes and ears
experience the things around you. In other words, you’ve already been
blessed—so give in gratitude. And as you become wealthier, you will have
more to give.
To date, the resources I have shared with others have created so many of my
life’s most precious memories. It all started with wanting to take care of my
parents in retirement. For over 10 years, I have paid their bills, sent them on
trips, and made sure they have the resources to live a beautiful life.
If you dream about being a generous giver, the time to make that happen is
now! I’ve practiced this from the beginning, and it’s one of the reasons I
feel immensely connected with the world. It also makes me a better
husband, father, entrepreneur, leader, and mentor.
In Chapter Ten, I said that the point of life isn’t to find the greenest pasture.
Instead, work to leverage the true power of money by using it to achieve
something greater than yourself outside your own pasture.
No one has ever found lasting fulfillment in having more stuff. At the final
curtain call, what will matter is not a return on a financial investment but
the return you receive on investing in others’ lives.
As Tony Robbins says, “The secret to living is giving.” Suppose you seek to
build wealth only for security, travel, and other indulgences. In that case, it
makes all of your aims and achievements about you. Those who live for
personal gain tend to be the most miserable human beings on the planet.
Wayne Dyer once said that that which means much to you in the spring of
your life will hold little meaning in the fall of your life. A time will come
when possessions hold less meaning, and relationships become paramount.
You may already be there, or it may not happen until you are much farther
along. But make no mistake—it will happen. You can avoid the sting of
regret by investing in others during all stages of life.
Maybe you haven’t created your wealth yet, and that’s why you’re reading
this book. The fact that you are reading this right now (and didn’t stop after
the “how to make more money” chapters) tells me everything I need to
know about you. You are destined to leave a lasting legacy in this world,
and it starts by using the vehicles in this book to amass enough wealth to
make a colossal, lasting impact. Just remember to give at every single step
along the way to financial freedom, not only at the final destination.
For less than $2,000, we kept a family together. That is money well spent!
We kept a family together for less than the cost of one family vacation. That
money may mean little to me, but that investment meant everything else in
the scheme of what really matters. Guys—that is something, and there are
countless other opportunities like that one to give a little to make a life-
changing impact.
If you’d like to Awaken Your Financial Genius so that you too can pour into
the lives of others, don’t wait. Start today. If you don’t have the financial
means, give your time, your skillsets, or even your sweat equity.
You will never, ever be sorry that you did.
Ever.
 CHAPTER ELEVEN CHECKPOINT
1. The call to give back is my most powerful calling in life, and it is
what compelled me to complete the roadmap to financial
freedom in this book.
2. Giving to others is what earns your angel wings on this side of
heaven. A life lived for others is a beautiful thing indeed.
3. Don’t give because you want the universe to return the favor.
Give because you have already been paid in full!
4. There is no reason to wait until you are wealthy to give. The
person you become in the process of building your wealth is the
person you will be after you have it.
5. The secret to having it all is not a secret. Live a selfless life, and
you will feel and experience what it’s like to live life to its fullest.
6. Donations of your money, time, and energy—no matter the size
—can have a massive, lifelong impact. When you give with the
right motivation, you will change the world!
 TWELVE

IT’S A WONDERFUL LIFE:

Financial Freedom in Five Years

IF YOU’RE LIKE ME, Christmastime isn’t Christmastime until you’ve

watched It’s a Wonderful Life.
The 1946 classic is about George Bailey—a salt-of-the-earth kind of guy
with big dreams but an even greater sense of justice and devotion. It seemed
George’s purpose in life was to rescue his friends, family, and neighbors.
He saved his little brother from drowning, his dad’s business from
collapsing, his childhood boss from prison, and his entire town of Bedford
Falls from becoming victims of old man Potter’s greedy schemes.
He had plans to travel the world and make his mark. Yet, George found
himself stuck in Bedford Falls, running the family business after his father
passed. His brother? A decorated war hero. His best friend? An ultra-
wealthy jetsetter. Then, there was George—hometown dud (in his eyes
anyway) after all of his greatest dreams were thwarted by his own good
deeds. But he did manage to fall in love with Mary despite his cynicism.
Together, they built a life with their four children.
He had his entire path all mapped out, and he wanted to give Mary
anything she wished for, too. If she wanted the moon, he’d lasso it for
her.
I dreamed of finding a girl worth lassoing the moon for—and one day, I met
her. I knew almost from the beginning that Kalenn was the woman I wanted
to spend the rest of my life with. I also knew I would do everything in my
power to give her whatever she wanted.
One of my favorite parts of falling in love was the hours we spent dreaming
about the life we wished to create. One of our priorities from the start was
to provide our children with a world-class education—not through
textbooks but through seeing and experiencing the world firsthand.
My financial freedom blueprint paved the way for that and so much more.
To date, our family has visited 40 different countries. We hired a professor
from a prestigious university to be our children’s private educator. We also
have two additional private educators, as well as multiple subject matter
experts that help educate our children.
I have taken each of my four children on solo trips with me. We built
beautiful memories visiting incredible places and some of the most pristine
nature destinations. My oldest daughter and I even hiked the Inca trail and
saw the beauty of Machu Picchu together.
Kalenn and I took our children to Kenya on a service mission to help build
an orphanage, provide a way for the villagers to get electricity, and create
clean water solutions. I want my kids to live their lives fully aware of how
different their reality is from most other people. They live a privileged
existence that the majority of the world could never fathom. And no matter
your net worth, I can say the same thing about your kids if you live in the
United States of America.
To experience the beauty, emotion, and fragility of this life side-by-side
with my children—I can’t put a price tag on that. I’m thankful for the
memories my lifestyle has enabled me to create. I also remain in a profound
state of gratitude, knowing I don’t have to think about my bank account.
If my kids need something, and I believe it’s good for them, I buy it.
If someone needs my time, and I feel called to give it, I provide it.
If a solution necessitates money, and I feel inspired, I just need to
know where to send it.
I know I have it all, and I want to make sure I never lose sight of that as
George Bailey did. I don’t want an Angel second-class named Clarence
Odbody to have to come down from heaven to remind me how wonderful
life is.
I want to live in a way that proves I already understand.
 It took me years to design the roadmap in this book. I didn’t have any
shortcuts, and the path to having it all wasn’t laid out before me.
Fortunately, you now have that path. I had to make hard choices every
day, and those choices are what brought us here together.
You are reading this because:

1. I chose not to fit a square peg (society’s broken game plan) in a

round hole (my life). Instead, I determined to find a better way to
take control of my financial destiny.
2. I chose to pour savings not into my wife’s 401(k) but into a life
insurance savings account that we controlled.
3. I chose to invest money into property and build a real estate empire.
4. I chose to find a way to use the power of market risk to my
advantage.
5. I chose to start my own businesses—thriving businesses requiring
little time but retaining rewarding profit margins.
6. I chose to leverage my prior successes to access others’ resources
and form mutually beneficial strategic partnerships.
7. I chose to be a life-long student—to remain willing to invest in
myself, be teachable, and stay hungry for the next lesson from my
mentors.

I fueled my bigger dreams to produce even more incredible rewards by

unleashing the full power of my five steps to financial freedom. I have now
chosen to share that roadmap because everyone deserves the chance to have
it all.
So now, it’s the moment of truth …
Do you believe you are destined to follow the traditional wealth path? Go to
college, get a job, clock in and out, buy a house, pay it off, stash cash in a
401K, retire, and then greatly diminish your lifestyle, so you don’t run out
of money before you die?
That is the path most of your friends are on right now. But now you have
the roadmap to financial freedom! So, what are you going to do with it?

When you start utilizing single-digit ROIs with a life insurance

savings account, you will undoubtedly be better off than you would
have been.
When you unleash the power of double-digit ROIs in real estate,
you’ll be able to retire with enough wealth to feel unrestricted a
decade or more down the road.
When you master the triple-digit ROIs possible with asymmetric risk
investing, you will achieve your wealth accumulation goals in years
rather than decades.
When you unlock the master sequence and discover the power of
quadruple-digit ROIs, you truncate that timeline even more—from
years to possibly months.
When you step into infinite ROIs, there are truly no more limits. It’s
no longer a question of if or how but how fast.
When you add to all of this the unlimited ROIs you can experience
through the power of proximity and mentoring, there will be no
stopping you. And if you’ve focused on living a selfless life through it
all, you now have the means to change the lives of countless others
and make the kind of impact others only ever dream of making.

All of the resources the wealthy use to get wealthier—you’ve got them. So
now, I’m going to tell you something that I wanted to say to you from page
one, but I needed to earn your trust first.

If you follow the plan to initiate this formula, true financial

freedom can be completely available to you in less than five years.

It’s not luck. It’s math. ROI is the magical equation that allows you to
compare opportunities and make the absolute best financial choices.
It goes back to the flywheel principle. The
more strategies from this book you
consistently implement, the more rapidly you
will experience a financial breakthrough.
Before long, you’ll be shattering your
previous financial ceilings and racing toward
new heights you never thought possible.
Is it possible in five years or less?
Absolutely! You want the moon? It’s yours
to lasso. Just follow the roadmap:
1. Set up your reserve. Set up your financial reserve through a life
insurance savings account. It’s free, and, more importantly, it’s an
intelligent way to fuel up your investments. Visit
KrisKrohn.com/CashFlow for a free consultation.
2. Learn how to buy real estate. To get started in the real estate game, visit
KrisKrohn.com/Invest to request a private call with one of my
specialists. They will review your current financial situation and explore
the possibilities for creating a passive income through real estate
investing.
3. Explore the advantages of asymmetric risk. To take advantage of my
research on emerging industries and exciting high-ROI companies,
check out KrisKrohn.com/Stocks. Let me teach you how to leverage
risk in the stock market to experience triple-digit ROIs.
4. Discover a thriving business. If you’re interested in starting a thriving
business or side hustle, go to KrisKrohn.com/Thrive. One of my team
members will explore active income options to help you transition from
your current job. And if you love your career, you can discuss ways to
supplement your income.
5. Develop partnerships that unlock infinite ROI. Once you start following
the Financial Freedom Roadmap, believe me when I say that it won’t be
hard to find people who want to partner with you. Your momentum will
be contagious! Go to KrisKrohn.com/Mavericks to download your free
copy of the resource I created to guide you through the process of
developing a team of investor partners.
6. Gain proximity to experts. If you are interested in gaining proximity with
me, visit KrisKrohn.com/Experience to unlock a special Have It All
discount on my next live event.
7. Never stop learning. If you enjoyed this book, you may enjoy my other
books, including The Conscious Creator, Limitless, and The Strait Path
to Real Estate Wealth. Learn more by visiting:

Web: KrisKrohn.com
YouTube Channel: Kris Krohn
Podcast: “Have It All” with Kris Krohn

George Bailey felt as though life dealt him a lousy hand. He was stuck in a
drafty old house with a broken banister, trapped in the family business, and
saw no way to escape his sleepy little town.
And yet, even though none of those facts ever changed, George went from
wanting to end his own life to overflowing with gratitude by the film’s
conclusion. He accomplished this by undergoing one thing:
George Bailey went from miserable to grateful because of a simple
perspective shift.
Life depends entirely on perspective. If you try hard enough to be
miserable, you can always find more “broken banisters” and less joy.
George was wallowing in self-pity. He was about to be destroyed by one of
old man Potter’s schemes, and he was ready to end his life to escape the
torment of it all. That is until his quirky but caring angel Clarence showed
George how his friends and family would have been negatively affected
without him.
George Bailey had it all—but he didn’t know it until he almost gave it all
away.
At the end of It’s a Wonderful Life, Clarence (who finally got his wings)
told his new friend George Bailey that “no man is a failure who has
friends.” George was the “richest man in town,” not because of material
wealth. It was because of the wealth in his heart he had accumulated by
helping others.
I invite you to see how wonderful life is in the present moment. Before you
add one more dollar to your bottom line, you are already blessed beyond
measure. Take that attitude with you as you follow my blueprint, and I can
almost guarantee the fulfillment you seek.
God made you for a particular purpose that is unique to you alone. And
while I may not know you personally, I believe that your desire to live an
extraordinary life is just as important as my desire for the same. My prayer
is that this book gives you the insights you need to guide you on the path to
living a wonderful life and having it all.
Best wishes to you, my friend,
 ENDNOTES

1 Ben Steverman, “Half of Older Americans Have Nothing in Retirement Savings,” Bloomberg,
March 26, 2019, https://www.bloomberg.com/news/articles/2019-03-26/almost-half-of-older-
americans-have-zero-in-retirement-savings.
2 Emmie Martin, “Here’s How Much Americans Have Saved for Retirement,” CNBC, June 26,
2019, https://www.cnbc.com/2019/06/26/how-much-americans-have-saved-for-retirement.html.

3 Teresa Ghilarducci, “Americans Do Not Have Enough Retirement Savings, Really,” Forbes,
March 28, 2019, https://www.forbes.com/sites/teresaghilarducci/2019/03/28/no-americans-really-
do-not-have-enough-retirement-savings/?sh=1692504b2b21.
4 Margi Murphy, “Scientists Claim Many People Could Soon Live beyond 120 Years Old,” New
York Post, June 29, 2017, https://nypost.com/2017/06/29/scientists-claim-many-people-could-
soon-live-beyond-120-years-old/.

5 Emmie Martin, “Here’s How Much Americans Have Saved for Retirement,” CNBC, June 26,
2019, https://www.cnbc.com/2019/06/26/how-much-americans-have-saved-for-retirement.html.
6 “Fast Facts,” Employee Benefit Research Institute, 2020,
https://www.ebri.org/retirement/publications.

7 Adela Suliman, “82 Percent of the Wealth Generated Last Year ‘Went to the Richest 1 Percent of
the Global Population’,” Time, January 21, 2018, https://time.com/5111971/billionaires-global-
inequality-income-oxfam-wealth/.
8 Burton Gordon Malkiel, A Random Walk down Wall Street: the Time-Tested Strategy for Successful
Investing, (New York: W.W. Norton & Company, 2020).

9 John Schmoll, “What Is The Average Rate Of Return On A 401(k)?” Investment Zen, June 3, 2020,
https://www.investmentzen.com/blog/average-401k-return/.
10 Associated Press, “Fidelity: Put Aside 8 Times Your Salary Before You Retire,” CNBC,
December 2, 2012, https://www.cnbc.com/id/49031856.

11 Annie Nova, “Why the 401(k) Won’t Fix the U.S. Retirement Crisis,” CNBC, February 14, 2021,
https://www.cnbc.com/2021/02/14/why-401k-wont-fix-us-retirement-crisis.html.
12 “New Report: 40% of Older Americans Rely Solely on Social Security for Retirement Income,”
NIRS Online, January 13, 2020, https://www.nirsonline.org/2020/01/new-report-40-of-older-
americans-rely-solely-on-social-security-for-retirement-
income/#:~:text=A%20plurality%20of%20older%20Americans,as%20from%20defined%20contr
ibution%20plans.

13 “How many American workers participate in workplace retirement plans?” Pension Rights
Center, July 15, 2019, http://www.pensionrights.org/publications/statistic/how-many-american-
workers-participate-workplace-retirement-plans.
14 Taylor Tepper, “Studies Confirm That Half Of Americans Struggle With Retirement,” Forbes,
October 6, 2020, https://www.forbes.com/sites/advisor/2020/10/06/studies-confirm-that-half-of-
americans-struggle-with-retirement/?sh=5e8aa5c26f9f.

15 Kathleen Elkins, “Here’s the Age at Which You’ll Earn the Most in Your Career,” CNBC,
November 2, 2018, https://www.cnbc.com/2018/11/02/the-age-at-which-youll-earn-the-most-
money-in-your-career.html.
16 “Retirement Security: A Compendium of Findings About U.S. Workers | October 2020
Supplemental Survey,” TransAmerica Center for Retirement Studies, December 18, 2020,
https://transamericacenter.org/retirement-research/20th-annual-retirement-survey.

17 Sabrina Speianu, “March 2020 Monthly Housing Market Trends Report: A First Glimpse of
COVID-19 Impact on the U.S. Housing Market,” realtor.com, April 2, 2020,
https://www.realtor.com/research/march-2020-data/.
18 Jessica Dickler, “Most Americans Live Paycheck to Paycheck,” CNBC, August 24, 2017,
https://www.cnbc.com/2017/08/24/most-americans-live-paycheck-to-paycheck.html.

19 Kathleen Elkins, “Here’s How Much Americans Have Saved for Retirement at Different Ages,”
CNBC, January 23, 2020, https://www.cnbc.com/2020/01/23/heres-how-much-americans-have-
saved-for-retirement-at-different-ages.html.
20 Cameron Huddleston, “More Than 47% of Americans Aren’t Investing Their Money,” Yahoo!
Finance, July 22, 2019, https://finance.yahoo.com/news/more-40-americans-aren-t-
090000530.html.
 MEET KRIS KROHN

Kris Krohn is a bestselling author, speaker, breakthrough mentor, real estate

guru, and expert wealth coach. For well over a decade, Kris has mentored
thousands of people in creating, managing, protecting, and growing wealth
through innovative real estate investing and other key strategies. Kris also
empowers people to grow their wealth, health, and personal power through
high-ROI investments and his powerful Limitless Belief Breakthrough. He
helps people bridge the gap between where they are and the results they
want in every aspect of their lives. Sharing his knowledge has become
Kris’s life passion and purpose.
Kris’s other books include The Strait Path to Real Estate Wealth, The
Conscious Creator, and Limitless: Reclaim Your Power, Unleash Your
Potential, Transform Your Life. With his books, platform, video trainings,
live events, and nonprofit (Krohn Breakthrough Foundation), Kris lives to
teach people the mindset behind creating the life they want. Kris regularly
puts on live experiences to spread his message of transformation and
financial liberation to the world. Learn more at www.KrisKrohn.com. Kris
holds a bachelor’s degree in marriage, family, and human development
from Brigham Young University and an honorary MBA from Stevens-
Henagar. He and his wife, Kalenn, are the proud parents of four beautiful
children.
 NEXT STEPS
Where Do You Go From Here?

You’ve now been inundated with a lifetime’s worth of information, tips,

tricks, and eye-opening financial and wealth accumulation truths that may
leave you wondering where to go from here.
I’d like to make things a little simpler and remove some of the guesswork.
Simply visit the link below for access to ALL of the free resources, tools,
and next-steps guides discussed throughout this book:

KRISKROHN.COM/HAVEITALL

If you are looking for breakthrough, I also recommend finding out more
about my multi-day live events. I’d also love to connect with you on social
media, so reach out to me on any or all of the platforms!

KRISKROHN.COM Facebook:
@MentorwithKris
Instagram: @kriskrohn YouTube Channel: Kris
Krohn
TikTok: @kriskrohn Podcast: Have It All
Twitter: @kriskrohnREI LinkedIn:
@MentorwithKris