How I Turn Borrowed Money Into Passive Income (Step-By-Step)
Most people borrow money and fall behind.
I borrow money — and build monthly income.
In this video, I walk you step-by-step through the exact Paycheck to Portfolio system I use to turn borrowed money into passive income, stay fully invested year-round, and accelerate my path to financial independence.
No theory.
No hype.
Just real data from my actual E*TRADE portfolio.
You’ll see exactly how I use margin as a bridge, not a lifestyle…
why 100% of my paycheck goes straight into my brokerage…
and how I target 20–30% blended yields while borrowing at 8–9% (my personal negotiated rate is 5.49%).
This is the Paycheck to Portfolio method—
a structure that turns your earned income into compounding, cash-producing assets on day one.
⏱️ CHAPTERS
00:00 – Intro: Borrowing That Pays You
00:24 – Portfolio Update (Net, Gross, Margin Equity)
02:05 – The Ray Dalio Principle: Good Debt vs Bad Debt
03:18 – Margin Arbitrage Explained (Simple Math)
04:52 – Step 1: Directing All Income Into the Brokerage
05:40 – Step 2: The 3-Bucket Structure
06:15 – Growth Bucket (SPYG, MCD, COST)
07:28 – Closed-End Bucket (CLM, CRF DRIP at NAV)
08:14 – High-Yield Bucket (Cash-Flow ETFs)
09:32 – Step 3: Monthly Cash-Flow Cycle
11:00 – Return of Capital Explained (Not Destructive)
12:41 – Step 4: Tracking Business Income (Dividends, Interest, Net)
14:25 – Step 5: Risk Management – 50% Equity + Hedges
16:40 – Step 6: FIRE Model Pro – $1M Projection
19:10 – How This Accelerates Your FIRE Timeline
20:15 – Real Example: Borrow at 8.5%, Earn 24%
22:05 – Why This System Works Long-Term
23:28 – Final Thoughts: Your Money Should Work as Hard as You Do
🔥 RESOURCES
🔥 Free Starter Kit + Simple FIRE Calculator
👉 https://paycheckportfolio.gumroad.com/l/xgmuor
📞 Book a 1-on-1 Strategy Call
👉 https://paycheckportfolio.gumroad.com/l/lqrcr
💬 Join the Private Discord + Membership
👉 https://paycheckportfolio.gumroad.com/l/iescv
🧤 White Glove Setup + Personal Coaching
👉 https://paycheckportfolio.gumroad.com/l/stfkj
🧠 Key Takeaways
• Margin isn’t “debt” — it’s a business tool when managed like a CEO.
• Cash flow replaces the paycheck and accelerates compounding.
• Closed-End Funds DRIP at NAV grow share count aggressively.
• High-Yield ETFs provide the monthly cash you need to stay fully invested.
• Growth funds build long-term equity strength.
• The structure wins… not emotion.
Disclaimer:
This is not financial advice. I’m sharing my personal experience for educational and inspirational purposes only. Always do your own research.
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