What if there was a cheat code to double your income without getting a raise, starting a company or generating income from anywhere else?

Turns out there is, you just have to have the audacity and the balls to pull it off.

This month while my income hits my account, I’m putting 100% of it into the S&P 500. Then I pull what I need as I need it from the balance to pay for my living expenses.

Hypothetically let’s say you earn $10,000 each month. Once it hits you deposit to Robinhood, buy $10,000 worth of VOO (an etf), and then immediately transfer up to $7500 over to your Robinhood checking account as a margin loan. (Less is better), pay your mortgage, last month’s credit card statement, electricity bill etc.

Seems simple, but you secured $10,000 into an asset that you still own and continued servicing your life, and yes you grew your debt balances but you did so at a rate of 5%, while the S&P has averaged a return of 18% per year over the last 15 years. This is called credit arbitrage.

Once you understand the way margin debt works and how assets compound, this maneuver isn’t frightening. This debt is 100% secured by your portfolio, so while liquidation is possible, you will not end up owning more than you’ve borrowed should the market retract.

I can’t recommend this to folks who don’t understand it, but if you do, then this is the move I’m doing.