36-year-old mom earning $10,000 monthly in passive income: The 3 books that helped me achieve financial freedom and live life on my own terms

As a child, my parents would discuss their lottery dreams and the fun conversations we'd have around the dinner table. However, it always felt like an unattainable goal. I often wondered if there was a way to increase my chances of becoming wealthy.

As a parent of two young kids and a business owner, I feel like I've hit the jackpot, but not by leaving anything to chance.

I quit my job in higher education administration four years ago and now earn $10,000 or more per month in passive income from four different streams of digital products sold on Etsy.

The three books that changed my perspective on money, aided me in accumulating wealth, and allowed me to live life on my own terms are:

1. 'Change Your Questions, Change Your Life' by Marilee Adams

In "Change Your Questions, Change Your Life," Marilee Adams, PhD, a leadership expert, professor, and entrepreneur, discusses the two types of questions we can ask ourselves: "Judger" questions, which are blame-oriented, and "learner" questions, which are solution-oriented.

Reading this book made me realize the impact of my internal dialogue on my mindset and outcomes. When confronted with difficulties, I shifted my self-talk from self-criticism to inquiry, asking, "What can I learn?"

A Choice Map, which is a flow chart, is a valuable resource that Adams possesses and can help individuals avoid using judgmental language and overcome obstacles.

As I embarked on the course that eventually led to the establishment of my passive income business, I harbored doubts about my ability to succeed. Nevertheless, rather than surrendering, I employed the choice map and transformed my mindset by posing the question, "What action should I take next?"

The question assisted me in remaining focused, dividing tasks into manageable segments, and persevering until I established the foundation for my passive income business and experienced tangible financial outcomes.

Our self-talk can influence our perception of reality.

2. 'The Simple Path to Wealth' by JL Collins

JL Collins, a blogger and expert in personal finance and investing, wrote a series of letters about money and investing that eventually became "The Simple Path to Wealth," a book he gave to his teenage daughter.

In the introduction of his book, he provides "a few key guidelines" on managing money. Some of my favorite pieces of advice from Collins include:

• "Invest any surplus earned, while keeping debt at bay."
• "Stay away from financially irresponsible individuals. Refrain from marrying them or granting them access to your funds."
• "Saving and investing 50% of your income is achievable without debt."
• "Achieving financial independence requires living on only 4% of your investment portfolio annually."

In order to follow his advice, I sat down and created a budget that enabled me to spend less than I earned and invest the remaining funds. Later, my husband and I made the decision to save and invest 50% of our income in low-cost index funds in 2015.

We didn't pursue intricate tactics or attempt to predict the market. Instead, we concentrated on making routine, mechanical investments into index funds.

We can now work more fulfilling jobs, even if they pay less, because we have a nest egg working in the market for us. This is known as "F.U. Money" by Collins, which means having enough money not to have to answer to a boss if we don't want to, because we are no longer living paycheck to paycheck.

The first most important rule is to steer clear of debt. Instead of spending money recklessly, save and invest it in a low-cost index fund. Utilize your investments to purchase financial freedom.

The book 'Designing Your Life: How to Build a Well-Lived, Joyful Life' by Bill Burnett and Dave Evans provides guidance on creating a fulfilling and happy life.

The book "Design Your Life" was based on the popular elective course taught by Bill Burnett and Dave Evans, both professors and innovators in design thinking, at Stanford University.

In "Designing Your Life," Burnett and Evans advocate for iterative experimentation instead of waiting for the ideal path to materialize.

While studying positive psychology in grad school, I first read this book in 2020. At the time, I had just welcomed my second child and was anxious about returning to a full-time office job.

I utilized design thinking to investigate career paths that aligned with my strengths by incorporating the exercises from this book. I discovered that although lengthy meetings left me feeling depleted, project-oriented work rejuvenated me and facilitated my entry into a state of creative flow.

A well-designed life is a life that is generative, as Burnett and Evans suggest. Despite our efforts to plan for the future, our goals and dreams are constantly subject to change, and life is full of unexpected events.

Although I believed that earning passive income would bring me happiness, I discovered that I missed the human interaction I experienced at work. Through continuous exploration, I discovered teaching and writing as roles that enable me to work on projects and interact with individuals without adhering to a traditional 9-to-5 schedule.

The key to happiness lies in creating a lifestyle that suits your needs.

Rachel Jimenez is a multifaceted individual who is both an entrepreneur, professor, and mother of two. Her main goal is to help others achieve their personal, professional, and passive income objectives. She runs an Etsy store and a blog, Money Hacking Mama, where she imparts financial knowledge and practical advice to women as they navigate their careers, businesses, and life.

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