To the average American an extra $200 a month doesn't seem like a lot of money, and is definitely not seen as key to building wealth. They prefer to redirect a portion of their monthly paycheck to a 401k, thinking they are creating a nice cushion for retirement. But if they lost their job tomorrow they would have little to no passive income to live off. For this reason it is necessary to create passive streams of income both for retirement and for financial freedom.
There are three forms of passive income- interest on savings accounts, dividends from stock investments, and cash flow from rental property. Without billions of dollars, it would be near impossible to live off the interest of a savings account. It is for reason that net worth and wealth are not the same thing. Stock investments are extremely risky and are often considered speculation, not investing. You buy a stock hoping it goes up in value, in most cases entrusting a broker to make decisions with your money that you are ill equipped to make. Even when you make money from the stock market, the rates of return can be considerably less than other types of passive income.
Real estate investors take a more "hands on approach." There is so much information on real estate investing out there and it is often viewed as the simpler form of investing. Buy purchasing property at a discount you can receive up to 18% rates of return, and make money six ways- capital gain, cash flow, leverage, equity, appreciation, and taxes. When you purchase a property and then rent it, your cash flow or passive income is equal to the rent your tenants pay you minus your expenses. In Texas, this amount is usually about $200. If the average American's monthly expenses are $3,000 a month, then 15 rent houses would be enough to make them financially free.
There are so many real estate mentors who are happy to share their experience and expertise with you. All you have to do when seeking a mentor is find a person who has reached the level of success you aspire to. It's possible to have multiple mentors, but the important thing is to humble yourself and be open to information that may be different from conventional ways of thinking.