Follow Us


Our guest today is Rachel Richards, a real estate investor and author with multiple streams of passive income. She has aggressively retired at the age of just 27 and she shares all about that today. If you want to understand how finance and passive income work, don’t miss out on this episode! To learn more about Rachel and her journey, visit!

“The way I see it is that passive income has enabled me to work when, where, or if I want, and now that I’m financially independent, I can choose whether I want to keep working or not”


Rachel defines passive income as money that’s earned with little to no ongoing effort.

It is built up of 2 stages:

  1. Investing the time and money to get the passive income stream created.
  2. After launching the stream it becomes hands-off and you only have to work with it a few hours a month or a week.

According to Rachel, you’re retired once your passive income exceeds your living expenses, as you’re basically financially independent. She has 4 passive income streams at the moment: rental properties, book royalties, an online course, and a print on demand business.

“I tend to say, make sure you’re monetizing your side hustle, make sure you have other income coming in before you quit your job.”


Rachel and her husband bought their first duplex in 2017 in Kentucky. They saved up for it during and after college, as they didn’t have student loans and worked several jobs. After getting into real estate investing, she worked 80 hours a week in her day job, managing properties, and writing books. Although it was a tough time, Rachel says it was all worth it at the end. They currently have 40 units.

Initially, she wanted to retire just from real estate investing. She mapped out her expenses and continuously saved at least 20% of her income.

“There’s only so much you can do to cut your costs. So I always tell people, if you want to increase your savings, there are exactly two ways to do that.”


If you want to increase your savings, Rachel recommends decreasing your expenses as well as increasing your income.

Rachel’s REI advice for financial literacy:

  • Twice a year look at your revenue and your expenses from your rental properties and see if they align.
  • Brainstorm 10 ways to increase your revenue and 10 ways to decrease your expenses. These can be small ideas like installing a coin-operated laundry machine in common areas or switching internet providers.

Rachel shared with us her popular “Savings Bucket Concept”, which divides savings goals in terms of different timelines.

The 4 savings buckets are:

  1. Emergency savings: always have at least $1k here.
  2. Medium-term savings: have 3-6 months of living expenses and anything you’re saving up for in the next 12 months in this bucket.
  3. Long-term savings: this bucket contains any big-ticket items that are in the long-term, like down-payment for a house or a fund for a wedding. This is the bucket you want to invest in the stock market.
  4. Retirement savings: invest this bucket completely in the stock market.

Mentioned in the show:

  1. Money Honey
  2. Passive Income Aggressive Retirement
  3. Steve Chader, Jim McKissack – HOLD
  4. M. J. DeMarco –  The Millionaire Fastlane
  5. Afford Anything Podcast by Paula Pant
  6. Mint App

Learn how to grow your REI portfolio and reach incredible lasting success the right way! Visit us here for everything you need to know:

Special thanks to Rachel Richards for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the REI Insurance Guy?

contact shine insurance

More great stories & information at:

Youtube – Blog – Podcast
Facebook – Twitter

Leave a Reply

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Need an instant insurance ballpark for your next Multifamily deal?