The Passive Income Scam
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- Опубликовано: 3 ноя 2022
- Passive income is something you hear a lot about online, but is it really as promising as people make it out to be? We discuss in today's video.
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DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).
The best way to earn a passive income is to choose your parents wisely.
Coach greg says the samr about genetics 😂
Lol
I know right it's so simple I chose correctly, all the poor people should have chosen better
"He made his money the old fashioned way. He inherited it."
Lol
Another simple rule: if something really makes a lot of money, people won't share it so openly.
Wow... Never thought of that.
At least not right away... like dropshipping was a dope thing at one point when it stopped, it was a great time for courses on how to drop ship
the way profits are made, which are the unpaid labor of the working class, is completely unknown to the majority of the population.
Being that the majority of the population spends half of their waking hours generating profits for their employer, it seems a bit strange right?
It’s a secret that exists right at the center of everybody’s life.
They don’t talk about it because it’s clearly unethical
@@TyjgfF The is the basis of every government type including "democracy" - the majority gets used. All those "freedom" and "equality" government types were always same old Oligarchy under the hood. Problem is that how humans meant to be by nature, as we share a lot of our DNA with apes, and they "follow the alpha". one day this might be resolved once machines will take over and this corrupt life form will be extinct. I don't see any other solution.
Haha this is so accurate tho. I make $200k/annually at the age of 26. I’m self employed with a strategy that any average person could get into if they wanted. I started my venture from literally nothing and built it to that $200k mark over the course of 4 years.
However, my industry could also very easily become over saturated if more people jumped into it. So, when people ask me how much I make I always heavily downplay how lucrative it is. Unless it’s an attractive woman of course😂
Point is, I have a high income source worked out. I’m in no hurry to swamp my ship.
I’ve asked around my field and we all agree to this. Keep the financials quiet
There's a saying that "If you see a gold rush, don't start digging. Instead start selling the shovels, you'll gain way more profit this way"
Exactly. Friederich Trump built a multi generation business from exploiting a gold rush... Not by mining, but by offering a hotel and brothel for the miners.
The mine isn't always going to be usable but the hotels and brothels certainly were.
Well said.
There is nothing wrong with that. The trouble starts when you claim you are selling people a map with all the gold located on it.
Hell yeah !
@@hyperion3145 yes and no... since usually mining towns died after they ran out of gold.
I ran a drop shipping store for about 2 years. There is absolutely nothing passive about it. You either end up doing 10 different jobs yourself (graphic design, advertising, programming, customer support, procurement, product upload, copy writing, etc), or you have to hire others to do the work for you. Even though your suppliers ship the items, you still have to place the correct PO with them, track it, and deal with any delivery issues. The margins are tiny, so if you run any aggressive promos you end up selling at a loss. You also have real monthly overhead to worry about. By the time I'd pay all my bills (hosting, advertising, CMS, payment processor, etc) I'd be left with $200 on a good month. The payoff was not at all worth the effort. Apparently my store was one of the 'successful' ones since it at least covered operating costs with occasional profits. I ended up selling the business for basically the cost of the course, and walked away breaking even. I now make 40x more working 9-5 and only doing 1 of the 10+ jobs I used to do. Good employment is underrated.
For sure. I went back to a decent 9-5, I was good at my job, already have had 2 promotions, have great health insurance and 401k. And I make enough to live on and travel.
Excellent comment
yes
Thanks for sharing your experience with drop shipping. I've always thought about it but it sounded like a tonne of effort and anything but "passive".
Excellent comment. What you described is true, I had similar experience while running Music institute. Eventually I had to shut it off and now I am at peace in good employement. Entreprenuership is over rated. Theres nothing like good employement with decent pay
Back in the 1980s there was a guy who advertised in the back magazines about how to get rich quick by buying his book. His book described how you should write a book and put ads in magazines telling other people how to get rich quick. Nothing ever changes.
At least they were honest. 😂
😂 I bet he also learnt it from someone else.
That guy was Grant Shapps, and he is now Secretary of State for Business in the UK.
The person buying the book:🍭
Inifinite money loop glitch
Fake financial guru: Working 9-5 is such a horrible way to live.
Also financial guru: You gotta grind and work 24/7.
^^^this above is also a form of -scam- "passive income"
Capitalism is a bulls#!t Economic system that instead of prosperity, its about trying to get rich or stay afloat and many have to hustle to get really anywhere.
the quality of your work doesn't change how much you get paid, at best hope for a promotion
Grinding for yourself, you get paid the effort you put in
If you want stability, work 9-5, if you want to be rich, you need to grind on your own thing
@@user-xl5kd6il6c except you can work a 9-5 in a high paid industry and become rich, and you can "grind" 24/7 and end up with net profits that put you under minimum wage while incurring far more risk.
@@Valyssialso many people start their businesses with investments they made with their 9-5 job income. Many even start their businesa on the side of their safe 9-5 and then gradualy work less at the 9-5 until they feel safe to leave it all together.
@@Valyssi Everyone is pretending there is only on right answer to this problem. There isn't a universal right universal, it depends on the person. Some people _should_ be entrepreneurs. If there were no entrepreneurs, then there would be no one to create those 9-5 jobs. I think the takeaway is that you can start a business if you want, but you should have an original idea or a specific skill to base the business on, rather than just a desire to earn "passive income".
Getting all the gurus during the ads for this video is really the cherry on top
I got them too 😂
Have you been making money from ai? Then do this thing! Haha do stupid
When I got into adult life, I realized, maybe too late, that what brings money in a more reliable way is having real life skills, like welding, machining, electrical repairs, etc, stuff that the industry needs. It's much better investing in that sort of stuff instead of getting money by just sitting doing nothing.
Yes or going to ''uni'' to study Philosophy, or something similar.
You forget the psychology behind it, the idea is rich ppl are lazy and don't deserve their wealth, therefore I should be able to do nothing and become wealthy.
Problem is their initial belief it wrong and just another victim card.
As a blue collar man yes, but what happens when your body dont move the same as before and you cant do the work? Labor has always been a means to an end for me
Yeah, until the day a guy half your age is willing to work for a third of your price. Then you in a world of.pain fast
And if you're smart you meet the people that can do this, find them work to do, take a little off the top and pay them well, and there's your business. I'm earning 150k a year passive. I send invoices, and I pay them. It takes me 1 hour a week.
I designed a 3D printing stl file that's sold online. After taxes and fees I get about $10 a year, and all it took was 20-30 hours designing the file. Passive income achieved!
I got you beat. I made an STL file that I posted online for free. Someone took that file and started selling printed objects on ETSY with it. They reached out to me and said they felt bad and tipped me $20. Bam. $20 tax free. Passive Income achieved.
@@derel1cte nice!
@@derel1cte guiltily someone into giving you money. The peak of economics
How is a stl file made 🤑
lol!
That's why I actively manage my passive income and passively manage my active income.
That actually sounds like a very healthy way to do it 😄
Big brain comment
"That's why I installed this chip, it makes sure I'm in control, instead of them controlling me"
So you are lazy when you should work, and you work when you should rest?
Stealing this😊 thanks
Renting out houses is a good way to earn passive income. Just as long as none of your tenants, never trash your house, have to be evicted, house never needs repairs, or there's severe weather.
My husband sells prints and designs on Etsy, he makes an additional 1k-ish BUT it is NOT passive. It takes work, consistency and creativity and honestly, it’s not that easy to keep up with. You can’t just sit there and allow money to roll in passively. No such thing as passive, its work.
Exactly, I have a successful digital product, that brings in $500/mo on average, but it took a couple hundred hours upfront of design time! Took 1.5 years of sales to make back a $15/hr wage on the initial time investment. It's worth it to me, but it takes a lot more work and skill than most of the snake oil RUclipsrs make you believe.
Years ago I worked a sculptor, who also made home decorations for a more steady cash-flow. The big lesson was you've got to put in the hours. It may give you the option to be more flexible with your time as artisan, but you still have to put the work in.
"Passive income is frontloading your work, not eliminating it." Well said
YES
100%
1000% wrong
Yes, and no. You work a LOT less in the long run, if you save up to buy a few rental properties. The cashflow is great. But obviously, it requires to save up money. I think everybody knows that
I'll never forget my coworker telling me his plan to live off passive income once he can life off dividends. In our area you'd need approximately a $2,000,000 portfolio to be comfortable. At the time of him saying this we were getting paid $16/hr. He acted like it was such a simple thing to do.
Yeah at that point you have to be earning more money
Its not like it is impossible. $16/hr, even in California, would net $27,000 a year after taxes. Not great, sure. But if your income is that low, then your means should be relatively low too. That checks out to about $2,328 a month.
If your expenses were $2,000 a month, which on a low income/low cost of living is possible, thats $328 left over. If you invested that remaining money into an index fund, thats $328 a month. Assuming an average rate of return of 10% (average S&P rate for the last 40 years), it will take about 39 years to hit $2M.
Now, that is assuming your income NEVER increases, which is unrealistic. You also never get a partner who has another stream of income, statistically unrealistic.
The thing is though, using the 4% rule, $2M will net you $80,000 a year. If you were only making $27,000, then you should be able to live off WAYY less than $2M. Even so, once you get that $2M, you can go somewhere with a lower cost of living.
Assuming you wanted to simply maintain your $16/hr standard of living without working, you would only need $698,400 but I get why you want a higher one of course. Saving $328 a month, that would take about 29 years. If you didnt want to or couldnt save $328, you would only need to save $110 a month to hit it in 39 years (of course assuming you work this borderline minimum wage job for the rest of your life)
Either way, even if you were stuck at $16/hr for the rest of your life, you can still dig out a legitimate retirement portfolio.
But your friend also is forgetting that market fluctuations could cause that 2 million to go down to 1.5 million or less and dividends can be cut or eliminated altogether. You still should buy low and sell higher and minimize/manage risk,even if that means forfeiting dividends from time to time
You are not considering inflation. $80,000 in 25 years ( +/-) will be the equivalent of $45,000 (+/-).
There are overnight millionares with crypto stop believing these bullshit RUclips videos
My wife is a notary through her job, but does not do it as a job. Everyone who learns about notaries finds out how easy it is to become one and how much you can charge people and thinks it's an amazing idea. What people don't get is that the "business" part of running a business is the hard part, not the specifics of the product or service. Sure, become a notary, it is actually easy. Now, how do you get people to hear about you, let alone choose you? Can you afford a billboard? Office space? Can you build and run your website? Are you ever going to outcompete professionals with established practices? The expertise needed is not notary skills; it's business skills and connections most of us lack.
Wow, I've never lived where a getting anything notarized costs money. Who would pay for that?
@kyleclearwater7380 you can be a mobile notary that drives to people, which means you charge a travel fee on top of.the service. For some things, the bank or attorney you're working with has their own notary on staff, but if not, you gotta pay someone.
As a notary myself, another hard part is working with signing companies. Especially when doing loans. The majority of them are scams or are extremely archaic. It's bad enough when there's such a steep entry cost with hoops and hurdles but when you're ready to work? The people around you are also going to charge you or give you literal pennies if anything. A lot of it relies on your own innovation rather than how hard you're willing to work.
You'd think it'd be easy giving people a paycheck for what's effectively a commission but it seems there's always a new hoop in this industry.
@@kyleclearwater7380 Could be a translation issue. In France at least and probably other countries, notaries are a separate profession from lawyers who handle the contractual aspects of legal work such as wills, donations, real estate deals, ... Their income does not come from certifying documents.
Was in MLM for years because someone I was seeing thought it was a great strategy to retire early, and "earn passive income". After buying products, paying for meetings, conventions, air fair, hotels hotels, losing income from my main job to facilitate the entrepreneurship and seeing people as objects and opportunity, I realized, I was part of someone else's "passive income"...
After I cut ties, I traded all of that for something you can't buy, peace.
Same experience as me and I agree on everything you said.
was hoping the story would end with "so I started my own." Sounds like the lesson is only half learned
Yeah it really soured the way I looked at people and really fucked a lot of my friendships. Broke up with a girl and what my MLM “friends” said was that it was for the best because she wouldn’t also go into the business. Eyes were immediately opened after that.
NEVERMIND the fact they wanted me to shave my beard and confirm me to this archetype. Dress like they dress etc etc.
Employment is underrated. Grow your career and save your money. Stop trying to take shortcuts.
@@mummyjohnthat’s a horrific moral set to have
Here are my multiple sources of income:
9 to 5 job
Commission from job above
Stock appreciation
Stock dividends
Credit card cashback
Couponing
Paying off bills so avoid crazy interest rates
Asking family for money
Picking up change from the street
Finding $10 in my jacket pocket
I use credit card cashback to buy index funds
Sell to the sperm bank
Hooking up with strangers for money
Inheriting from dead relatives.
You forgot praying to Jebus.
Sounds right! haha
The change in your couch could be an endless source of income as well.
I never comment on RUclips, but I have to tell you what a relief it is to see someone setting realistic expectations and expressing reasonable, balanced skepticism. Thank you!
this is nothing but the truth. In india, a lot of these scams from youtube are rising. passive income passive income my arse. its passive income for them to sell their course not for us. Like a pyramid scheme.
You mean you weren't aware it's fake?
Agreed
Yes!
He's completely wrong when it comes to talking about real estate its not his thing so if he's wrong there everything else that hes talking about it's probably wrong too
I like how whenever I click on videos exposing scams, I get an ad for those exact scams. In this case I got one for a side-hustle where you "spend 10 minutes a day working online and get a 6-figure salary from it"
Love how honest this all was. I've found that most of, if not all of, the financial advice RUclips videos I've personally seen have had something to sell me. This was a nice change of pace.
Financial influencers telling people "just generate some passive income sources" is like a fitness influencer telling people "just stop being fat." Yet somehow it crops up everywhere.
Just stop being poor
@@LuisSierra42 Just stop needing food
Yep like the classic "just stop being poor'. Solid advice at a wholistic level, but ultimately provides zero actionable advice.
Makes me smile every time I hear it.
@@LiveType It's human nature to want to blame people so that you can justify yourself having luxuries others could never afford
Buy it low and sell it high, or
Pile it high and sell it cheap
I hate dropshipping businesses. They fail for several reasons - slow shipping times, high shipping costs, poor quality items, thrown together websites, and bad customer service. This is not the way you run a business. So many of these people have never sold anything online a day in their life, but since some guru told them it would be easy - they opened up an online store. They think the money will just roll in without doing any work. It is unreal. eCommerce businesses are work! As an eCommerce Consultant, it drives me up a wall!
"eCommerce Consultant" is a bullshit job.
and as he mentioned in the video you are competing against thousands of other people all selling similar, if not identical items to you
I gotta push back against this as someone who works for a very successful drop shipper. First off everyone draw this box that you and simple bagel do and call it drop shipping. That's bullshit if you rent or purchase a warehouse or hell even you use your garage. You have the items you sell on hand (in whatever form of storage you have shipping container, garage, warehouse) and ship them same day as they sell off your website. It's not hard to set up a fedex or UPS account and get put on one of their routes pick up routes. And yeah you'll probably have to higher someone who knows how to make a website (you shouldn't stay on amazon etsy work your way to your own website). But that's called being a business owner. And so long as you get into a product that you understand (by understand i don't just mean the product but the market(s) your product exists in) and you have good customer service (you have someone to answer the phone and take orders and answer questions). Your business will generate income (assuming theres demand for your product etc). Just kind of annoying how people only critique these unrealistic ideas. Like yeah obviously if you are running a business you're going to have to put in work to generate money but if your money generated is not directly proportional to time you work (like in a 9 to 5 job) you can make A LOT more money.
@@fearsomefoursome4 it isn't dropshipping if you are doing all the work yourself
dropshipping is letting another company like Shopify handle everything for you
@@peterweaver7596 no dropshipment is all about warehouse but not websites etc
Freaking love that RUclips served up an ad for one of these scams in the middle or this debunking video.
I'm not even kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term.
I cannot focus on the long run when I should be retiring in a few years, you see l've got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/ unstable market doesn't provide any calculated risk opportunities to make profit?
There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts
I completely agree, I have been consistent with my profit regardless of the market conditions, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a popular forum, long story short, its been years now and I've gained over $850k following guidance from my investment adviser.
I've been down a ton, I only hold so that I can recoup, I really need help, who is this investment-adviser that guides you
If that is the case, it would be an innovative suggestion to look out for Financial Advisors like Olivia Maria Lucas who can help shape up your portfolio. Trying times are ahead, and good personal financial management will be very important to weather the storm.
This video is so true. And what I've learned is the easiest way to make lots of money on social media, is by bragging about how much money you make on social media. People will keep watching to try and figure out the secrets, but the only secret is all the ad revenue generated by everyone watching trying to figure it out.
Reminds me of some gym-owning, Arab-looking guy on RUclips.
Excellently put
or videos like these..
@@typingcat Alex Hormozi?
Indeed 👍🏾 @@tanko.reactions176
There is a real passive income strategy: rich parents
As always, thanks for the great video!
Yeah, the first thing you learn in a Business class is capital. If you have a lot of capital its easy to set up a business.
@@kappadarwin9476 Takes money to make money.
not at all: my girlfriend and I are relatively succesful professionals and have been living like rats for the last 7 years. We're now building a house in the Caribbean (where we live) that is going to give us an important stream of money each month. And growing from there is way easier.
@@Bill-Hicks literally counting your chickens before they hatch
@@pro-00001 for those who weren't born up there, starting from da bottom is da only waaaaee
Many years ago, long before the internet, I heard of an ad in a magazine that said that for just one dollar, the advertiser would send you instructions on how to make a lot of money with little to no effort. If one was to sent their dollar, they would receive instructions on how to write and post an ad in magazines charging one dollar for a copy of the instructions that they had just received. Fkng GENIUS!
Got this vid as an ad. Subbed! Well done, you know your market
I used to rent out my old apartment, and while it did make me some money, I wouldn't describe it as "passive" income. It depended a lot on the tenants, but at times it felt like having adult children in addition to my young ones.
I'm renting farmland. The company that works that land takes better care of it than I ever could. And the land appreciates with every passing year.
Tell me about it. I have had only 2 tenants and they both have been absolutely wonderful, but I would NEVER call it passive income. There is always something. Appliances needs replacing, kitchen/bathroom needs a remodel, etc.
Cant sublet in my state
My older brother had exactly this problem. He preferred to just rent it to a family member at a reduced price and much less stress.
@@scratchy996 Sounds great. So where is this farmland, and how did you acquire it to rent out? Also, how did you find such a consistent, reliable, low maintenance renter? 😊
I feel like most plain bagel viewers aren't the type of people to fall for these scams but it's still a very entertaining and informative video.
True - but I did send this to a few young people in my life who needed someone other than Auntie Me telling them passive income isn't a thing for a broke 21 year old.
@@nattanflaggs true, I'm not much older but if you're not really into finance or or other stuff that makes you realize how much scams there are, it really seems tempting. Talked to a friend of mine who is a good chunk younger than me and she heard about passive income and really wanted to have a few ways too when she's old enough.
Had to tell her that it's not that easy, especially when one doesn't know what they're doing, and not that passive at all!
Gotta be careful, often those who think they are most resistant to being scammed will get scammed 😅.
I’m wondering why I was served this video. I’ve never heard of “plain bagel” and don’t watch / not looking for passive income videos. Strange.
@@dogetaxes8893 Actually it is easy to recognizing money making scam, if something require money to pay then it is scam. Just dont pay any money to those scumbag then you will win almost any time 😎
A good CFP brought me over here and seeing you as a CFA and CFP you have a new sub. Great content.
In addition to sunk money and time, there is the risk of lost opportunity while flitting from one idea to another. There’s always energy output, and it will get much better results over time if it is put consistently in one good direction over time so success can build (which could be real estate or an online biz if you have the passion and genuine valuable offering). For anyone out there with ADHD, these things are especially risky - constant changing direction is a real drag on results over time. Great video!
It's embarrassing how many years it took me to realize that the best way to have a lot of money while maintaining the kind of lifestyle I want (no more than 40 hours a week working) was simply to upskill and get a higher paying job.
Agree. Some Excel and BI courses for a couple of bucks, refresh CV and then change jobs. Bam, payrise of 20-30 percent each time. Rinse and reapeat and success again.
@@Mishkafofer What are BI courses?
@@pendlera2959 Business Intelligence basically analytics
Absolutely correct conclusion, has worked for me like a rocket booster
@@Mishkafofer Where's the link to your online courses, and payment portal?
This is what I tired to get through to my mom. She constantly buys books on how to manage your money and become a millionaire. I've been saying that the key to becoming a millionaire is to write a book about how to become a millionaire.
Yeah if it sounds to good to be true it often is.
Story of Rich Dad, Poor Dad's author
@@mattyoung9386 still a great book, relevant even today
@@mattyoung9386 not true at all, that book’s a gem
@@mattyoung9386 That book is also simply nonsense.
Truly helpful! It's so sick how these people out there come to sell the passive income ideas.
Thanks for the video and for bringing out the truth about this subject!
Valuable advice and information! Thank you! I hope your video is seen by more people.
You're practically serving naked financial truth to a world crowded with emotional hemophiliacs. I salute your courage. I can't imagine the amount of personal attacks you must be getting online. Same time I think this video must save lives and bank account of potential victims buys passive income courses from gurus to make them rich. Massive respect to you as a creator. It takes balls of steel to come out with a video like this! THANK YOU. You make watching RUclips worth watching.
I don't think he'll get that much attacks to others who make content on questioning such things because even on his criticism he's quite balanced, not painting doom and gloom
@@tomlxyz Ironically, looking more "balanced" rather than pointing out how maliciously awful the targets are, will actually dissuade more people from engaging with them. Because if you are very firm in your factually accurate statements, people perceive you as biased and pay less attention, even if they absolutely believe what you're saying. Because humans are broken.
emotional hemophiliacs......Made me laugh right out loud. (my wife probably wondered what I was doing downstairs.)
"emotional hemophiliacs" love this!
People who buy "get rich quick" BS deserve what they get.
I remember that Ali Abdaal video and basically six of the nine ideas were tied to having a successful RUclips channel. It's like including ideas like 'bring out your own perfume' or 'get royalties' by first including the idea of 'become a pop star.' The others were 'create an app or website' and 'automating a business,' which both gloss over the level of expertise you need to be able to do either well in the first place, and go straight to the bit where your already successful business is ticking along nicely with minimal input.
Even then it's hard. I am in IT and I wouldn't be able to put together a web service that generates passive income. In fact, a few days ago, I watched a video by a tech RUclipsr that tried to build a service to generate passive income. He made a video about how that failed. I think he generated around 100$ of real income or something like that, even with a healthy RUclips channel to promote his service. It's not easy and even if you have the technical knowledge you STILL need a good idea that finds a market, which is a completely different skillset altogether.
Ali Abdaal, it's like love and hate for me lol incredible guy he acomplished so much, very impressive but he is annoying sometimes like Im a perfect genius and Im rich blablabla
@@chromaticvisuellei liked him better back when he was still teaching college-related or just general life advice stuff, not the stuff about businesses and crypto that's borderline shady and deceiving
@@davidbreier84 I think you need to be very good at what you do and invest a lot of upfront time building a business or product where you can delegate most of the work to other people. I've meet a few restaurant owners like this, basically they worked in management for 10 years then started their own restaurant, for the first couple of years they managed it but after they got established they hired someone to replace them so they no longer had to be at the restaurant everyday. After that he spend his time building up a second and then a third restaurant etc etc. He makes around 40-60k per restaurant and all he does is some basic marketing/networking 5-10 hours per week. He also owns the real estate the if he sells he'll probably be making at least 800k+ per restaurant on the real estate alone.
I think Ali Abdaal basically makes most of his money by doing those kinds of videos. They’re not done the thing they’re suggesting themselves, besides becoming a RUclipsr
Thank you so much for the only realistic perspective on this topic, it really helped me process my obsession with trying to create passive income and being confused about not having the funds to create passive income 🤦♂️
I was among the first people to be a third party seller on Amazon, selling used books, and still sell things online part time decades later. All I can say is whenever I hear somebody talk about how easy and passive selling online is, all I can think is how looney they must be, because I think sometimes that doing that stuff is about as much work as my actual job
Facts
He's right about timing. I was selling books on Amazon FBA as a side hustle, generated good "passive income" which I considered pretty passive since I only spent about 3-4 hours total a week on it, but I made about $2k-$3k a month from it. Then several of the more old school Sellers learned about the whole "Millionaires have 7 streams of income," became influencers on social media, and told everyone in the world how to do it. It got saturated with new Sellers, my profits went down, it stopped becoming as lucrative so I quit.
So basically, RUclips is GREAT for people selling dreams for cash (RUclips money), and TERRIBLE at concealing secrets that COULD actually make you money if you weren't a RUclips Influencer (like Passive Income).
Hahaha! Selling books on Amazon? That was Jeff Bezos’s business plan.
@@tongsllc LOL, you're right. But Jeff was selling them directly to customers and was making a fortune. Individual Sellers like me weren't make a lot of money selling books online (like on websites like Ebay) until Amazon FBA (fulfilled by Amazon) came out. With Amazon FBA we just ship boxes of books to Amazon and let Amazon worry about the customers. We get to sell the books at a premium price and just have to pay for the initial shipping to Amazon's warehouse and we pay like 30% to Amazon per book, which is a bargain when we get to mark the books up to $25-$100 a piece and only pay $.50-$2.00 buying the books from thrift stores and library sales.
Amazon FBA didn't come out until 2006 and there was this sweet spot where Amazon FBA Booksellers were making a ton of money because it was kinda obscure and, just like you just mentioned, there weren't as many booksellers at this point because Amazon already did it. Then content creators started telling everyone about selling books on Amazon FBA. That with the combination of Amazon increasing storage costs, Amazon taking a bigger chunk of profits, and constantly changing policies not in the favor of Sellers, has made this business model harder to profit from.
I used Amazon to sell my old camera gear, when I got out of certain kinds of photography, until I got a copyright strike by someone obscure... over a camera! I had sold the camera by then, just had a zero-inventory listing still up... It was pretty bizarre.
@@stevenknight6756 Oh, it worked out pretty well (was a quick way to sell, and the fees were reasonable), and everything was fine for a couple of years afterwards, until that strange cease and desist email... from somebody who had nothing to do with Olympus Corp.
@@slavkovalsky1671 Yeah, I've heard of things like that happening. Usually you can open a case with Amazon, provide receipts, or write a letter explaining your side, etc. Because the person or organization launching the complaint does the same thing. They go through a process for reporting it.
Amazon has a lot of rules and policies when it comes to selling. I've heard of people completely losing their ability to sell for one violation, even when they're new and just starting out. The problem is Amazon is AMAZING at Customer Service, but TERRIBLE at Seller Service. It's like they just don't care about Sellers XD, which many people don't realize, but private Sellers are 2/3rds of Amazon's business. You'd also be surprised how many times Amazon will start selling your product and then gate it so you can't sell it. I remember back when I was doing retail arbitrage, I would buy a shit load of some retail item, start making great money, and then Amazon would start selling it instead and then I was stuck with all that product.
The passive income sell is the exact same as all the diet/fitness sells. Plays to people who want the reward without needing to put in the work.
How so?
Is it so called "Financial Freedom" also illusion as well?
@Leanja Great points. However, being a landlord can be passive if you hire the right property manager for your properties and make sure you have cash in reserves specifically for each property. None of the upkeep would stress you out if you have the reserves in place to handle it.
@@kyjahnsmith3685 you'd have to have the money to hire a property manager in the first place and as you said, cash reserves as well, so this doesn't work for the majority of people who don't have that kind of cash
@@LuisSierra42 Let’s say you’re renting it out for 2k a month. Most property managers collect a fee of 10% of the monthly rent. That’d be an extra 200 dollars a month to avoid headaches and phone calls in the middle of the night. Is it that expensive to avoid all those headaches ?
@@raymondyu7933 most of the financial freedom people are working in high paying tech jobs that easily earn them 200k+ a year at 26 27 so they start buying properties by that time and by their mid 30s are stable enough to gain that passive income (although they are definitely working on their property management related tasks and working for themselves)
investment requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myselfMay I ask which investments are good? I've been looking at a few different ones but want others' opinions as well.
Thanks for the efforts you put in these. I found her and i leave her a message i await a response.
first time viewer and subscribed bxc of your honesty. I am retire at the age of 50 yrs. Greetings from Scandinavia
'Hey, I've got a great way to show you how to make passive income for little to no effort whatsoever! It'll just cost you 20 dollars.'
'Oh, ok, here's 20 dollars. Show me.'
(pockets money) 'I just did.'
Worth it just to learn some slight of hand 😅
@@stevecooper7883 sleight of hand. Don’t ask. But that’s how you spell it.
@@thekingwhostitches Good catch. I tried to sleight that by you.
Passive income is one of those things that sounds really hyped on paper, but once you actually learn about it, you realize that everything about it is rather mundane. There's nothing really magical about it. And that generally extends to any concept in finance, in my opinion.
Thanks for keeping finance boring, Richard! And by boring, I mean it in a good way. Nothing flashy, just the simple, unimpressive yet pleasant reality.
You could say... he keeps finance plain.
This.
I frankly got excited like moron after I got my first dividend cents. Finance isn't boring for me. His video could be renamed to "misleading expectations of passive income from gurus/criminals".
@@MJ-uk6lu oh, I absolutely agree! Don't get me wrong, dividends feel good, and the concepts in finance are still quite interesting. Hell, it's why I minored in business. But I'm trying to say that the nature of finance isn't nearly as flashy has the "influencer" types make it out to be. And that's perfectly fine in my eyes.
@@me0101001000 I don't find influencers all that flashy, more like obvious attention whores and morally/mentally empty.
Thanks for making this video! There’s literally been SO much misinformation being spread about passive income
The closest thing I've ever had to passive income is bank interest
And corporate shares.
Then again many of these passive incomes really only work for the small handful of the already rich.
They have means to cut costs as well.
Buy off politicians to give their class tax breaks, deregulate industries so as to cut all costs and maximise profits...when it comes crashing down have ones politicians buddies bail out your company with rescue packages and golden parachutes for compensation.
Have a few off shirr accounts that accumulate massive interest mike you mentioned before but also have the added benefit of no capital gains tax...heck if one is rich enough get actual rebates where the government owes you money plus interest because it has to borrow from you to fix a deficit when it ought to have taxed you the rich.
With inflation it just evens out 🤣
@@othmaneg99where i'm from inflation is even higher than interest rates 😢
Maybe an annuity?
This is just too much in the other extreme. The pipe-dream of easy passive income is fake, but that doesn't mean that the interest in a bank savings account is the best you can do.
Just doing S&P500 will get you very significantly better than bank interest rates. Hope you discover this before you waste decades of your life not knowing this.
It reminds me of that scene in The Founder where Novak's character says "you're not in the burger business you're in the real estate business." Most of these videos are created by creators in the entertainment business, not the investment business.
You explain things in such a common sense way, I love that style.
Thank you for telling the truth. I'm sick of the internet selling false hope.
"Passive income is just front loading your work" -- thank you for saying this! Ultimately , it's working without pay in hopes of making higher gains over the long term. Going into these ventures is a gamble, not easy money, that you're willing to bet potential lost earnings on.
Yes! This is how pensions work also; you work up front and then earn income spread over time.
@@MikeS29 then how is that a "gamble" ? are actual gambling addicts more prone to dismiss honest earnings away as a "gamble"?
Why do "drop shippers" offering courses never advertise their drop-shipping businesses? It's a mystery! I'd love to visit those websites.
I'm pretty sure what they do is illegal and could land them in jail if someone bothered suing them.
@@MJ-uk6lu Because of competition and copycats ...
Because if their dropshipping business was actually successful, they would never promote that to share the idea and introduce more competition. Same for any other gig.
The old saying, that those who know do and those who don;t teach is 100% correct.
I still don't think I've ever actually seen a real dropshipper. Except maybe Wish
@@OscarHanzely Yes almost anybody who teach is scam. So the only way to acquire real knowledge to make money is just learn by doing and by yourself.
I can’t tell you how many people I tell to watch your channel. You being real about this is something lots of people need to hear.
In the 60s throughout the 70s, way before the internet era, Mail Order selling was king of income opportunities. And the number one mail order product during that era was Books on how to make money in mail order.
Ah, starting a business, the old standby passive activity. Always love how they just pop up spontaneously to enrich my life.
As someone who has been trying to be a content creator on RUclips, yeah there isn't anything passive about it. It's so easy to look from the outside and just see a bunch of people talking into a camera.
You have to constantly be thinking of new material, writing scripts, and editing. It certainly changed my perspective on the matter.
...basically pretty obvious.
Former wannabe content creator here and I wholeheartedly agree
You have no videos and one subscriber. I’d consider a new side hustle, content creator is not for you
@@lengerer Ummm this isn't the account I post videos on. No need to be rude.
Calling yt income passive is laughable. I work in software and for me to make the sort of money I make, I would probably have to work 10 times and endure 10 times the stress . I always laugh when u see a youtuber claims it is passive, yet he is pumping videos daily, begging people to like, share, subscribe, support on patreon or PayPal and dealing with all sorts of negative comments. Dude... I would call mine 10 times more passive. Just sit on my laptop, have one boss who treats me right cause he knows there are jobs out there, and work only 40 hours, in theory. Passive. Passive.... my @$$.
Richard thanks for the video!! When I bought my house, I was not sure if I want to buy house do something else with the money. I felt I am missing something when so many are saying something else
Thank you 😂. Finally a video that tells the truth about other scammers on youtube. Other youtubers are just making click baits or view baits videos. Been telling ppl for years. Thanks for your honesty.
This is a realization I came to recently about passive income. Even if you create something you still have to actively promote it or eventually people won’t be buying it. In my field, physical therapists who turned business coaches or who offer an online service to people dealing with “x” type of pain have to constantly be out there on social media promoting their stuff. If you go 2 days not promoting, you’ll be forgotten. And it takes months and years to build a following online to get to the point where you could make a decent living doing online stuff.
Once this physical therapist approached me online to promote her business and claimed therapy could fix my back problem but I have been told by doctors only back surgery can help my situation. Most people are liars. You can't trust anybody. 😢
Good point.
I rolled my eyes at 1:33 because that is always a big red flag to me, when they emphasize the lifestyle and claim you don't have to do anything. They show the McMansion, the pool, someone at the beach, stuff like that, and it takes forever for them to get to the point about the business itself whle takes at least 30 minutes to even name the company's name.
There are some videos that say, "In the next five minutes I will tell you how." So once upon a time I decided, alright, I know it is a scam, but I will watch for five minutes and see what they say. At the seven minute mark they are still talking in circles, mostly focusing on your fears and how everyone else gets ahead except for you. And I think that is the point: If you can pay attention for more than five minutes they don't want you in their scam.
@@ShannonWare Reminds me of why so many spam emails have terrible grammar and are badly misspelled, because if someone replies to that the scammer knows they're a dumb mark who didn't notice any of that.
Yeah so many of these pitches are like "Do you like having lots of money?" and "Think what you could do with all that money!". And I like "Umm, yes, I know how money works. Okay so get to the point."
So glad to find this channel. I've found a lot of these "get rich fast and easy" schemes really scammy. You articulated my doubts very well with reasoning and proofs. Thanks and all the best for this wonderful and informative channel. ❤Love from India
Richard is beyond amazing. How to create income flow
Making money is action, keeping money is behavior and Growing money is knowIedge.
I am fortunate I made productive decisions that changed my life forever (accumuIated over a MiI) through my finance-mentor. I'm a single parent, bought my house in January and hoping to retire at 53 by next year.
get her
*Rebecca Martin Watson*
good to be here
I always think if their strategies were so profitable and quick, why are they making a course for me and not continuing with their strategy
Also, if you found ‘the secret’, would you be spreading it around and making it less effective/profitable for you?
Probably because creating the course is their 10th income stream?
@@archervine8064 for a lot of these people, especially those training courses, are a pyramid/ponsi scheme so they MUST call in new people to "grow or die"
@@kalui96 exactly, which is why they fail a basic smell test
@@user-kpkxgtj Rather their first or second...
I remember in one video by the guy featured at the end, he said that being a doctor was “just about following a flowchart and doesn’t require much thinking.” Those weren’t his exact words, but that was the essence. In that moment I thought, ok yeah definitely I do not want a doctor who is also a RUclipsr, a course builder, reads 10 books a week, etc. etc. etc. I want a doctor who wants to be a doctor, for the sake of helping people not for status, and focuses most of his/her effort on being a doctor. 🤷🏻♀️
Only a fraction of doctors actually want to help people. The rest of the lot become doctors:
- for status because of their tunnel vision during childhood and teenage and see it as the career that will set them up for life
- pressured by their family
Many pursuing the path of a doctor do not end up as doctors.
I would be more worried when a doctor says about not require much thinking and follow flowcharts. Like, would you trust a doctor like this? I certainly wouldnt.
@@blade8741 No, I would not trust a doctor like that. I also don't trust a doctor who has at least 2 other full-time jobs. I want my doctor to focus on medicine.
@@blade8741 He is only speaking the truth, most average doctors just follow the procedures set by the industry, they become very good at resolving a high percentage of problems people come to them with least amount of effort/resources. Then you probably got a minority who are really passionate about their field that keep researching and are keeping their mind open for new ideas, since they understand that medicine is not a cut and done deal. Again though, doctors are dealing with hundreds of clients every month, it's hard to keep yourself emotionally attached if not impossible.
@@blade8741 I'd certainly prefer my doctor to be working systematically (ie: to a flowchart) than just winging it, that's for sure.
Love your videos. Just saw the one on art investing. Really weii researched ! Now here's the thing. I don't like plain bagels ! I like mine with a shmere of cream cheese and definetly on a sesame bun. Thanks for your work.
Good on you for telling the truth and exposing the sales on passive income courses. If it was so easy, everyone would have done it by now.
The Passive Income scam is so tiring and all over the place; They then shun you for not doing what they are, but then make you sign up with their link and buy all their courses. Just abusing the desperate and lazy. Lol.
Great video as always.
I dont think it could ever be truly passive but there can come a time where you are using less effort to sustain your income, just might not be anytime in the first few years even
>Just abusing the desperate and lazy
*_*looks over own shoulder*_* ( o.o)
LOL "they shun you."
I shunned them all first.
It's hilarious when they say people are "plugged into the matrix"
Like bro, have you ever watched the matrix? Being plugged in is so much better than the alternative
I sorely needed this video some years ago when I was reading up on passive income. Never took any courses or anything so never lost any money, but man did I spend a lot of hours learning nothing substantial. This video is A+, a must watch for so, so many people out there.
I feel ya. I wasted so many hours when I was younger researching the topic, only to realize that what it actually takes to build a successful portfolio is nothing like what was initially promised to me.
Yes way I see it, if everyone could just become passive income earner…. Then who would do the work to generate that money? If there is no work to back up the money, we get what we have right now… inflation.
@@Karatana you can hardly call it a waste
If you walked away with knowledge you didn’t have before hand. Especially if it didn’t cost you actual money.
Don't worry about it, most of us are blowing time on some bullshit or another. It's not bad. For 99% of human history we spent most of our time sitting around telling stories to each other.
@@bitlong4669 Inflation now is mostly due to simple corporate price gouging. Oil didn't get expensive because it suddenly became harder to get it out of the ground. "Blah blah blah Russia" no, the USA doesn't import oil, we export it. We could have low prices, we just don't because the industry have Congress by the short and curlies. Russia exports a ton of natural gas and Europe has high natural gas prices, but our prices in the USA have actually dropped because...we don't import natural gas, and exporting across oceans is too difficult.
The song and dance about interest rates and wages is just an excuse to crack down on the cost of labor because people have been getting uppity about their wages and conditions.
Any time someone talks about commodities, or supply and demand, or blah blah blah law of economics, it's bullshti. We're just apes with lasers, we made all this shit up, we can change it all at will. Think about whose will it is that isn't changing.
I think there’s a pretty good rule of thumb to keep in mind about business models:
The moment someone makes a channel revolving around how said business model can make you money, it’s no longer a viable business model.
Clear and plain advice! You've earned one more subscription.
I hate the people representing home ownership/rental as easy money making. I got my home with my sister, when she was like gotta go do the family thing byyee, so I started renting her prior room/guest room, so becoming a (very small time) landlord . My home is biggest stress. Things that happened just during pandemic:
- multiple roommates not paying rent
- multiple roommates having severe substance use issues that contributed to very reckless behavior during social distancing
- damage by the roommates being stupid
- water heater breaking
- furnace breaking
- thermostat breaking (...due to roommate lolz)
- roommate ignoring some house rule and causing small fire on his bed on Christmas eve
... Probably forgetting a few things...
I'm not a good judge of character. I tend to believe in people goodness a bit too much (and their skill in DIYing things they wanted to do). I've taken a break from renting to anyone atm because the stress (I'm already naturally anxious).
I've done similar and never again;
One room mate knocked a hole in the wall
One hated me (!) for unknown reasons
A religious fruitcake
Several stole items from me (£450 coat)
A drug dealer (He is an amazing roommate, I turned a blind eye)
Alcohol problems etc
And one that tried to control who came in and visited and wanted me to live by his rules !
This is very likely the scenario if you don't impose conditions on your contract - The "NOs", "DON'Ts" and "CAN"Ts" unless they want to pay fines for unreasonable damages other than normal wear & tear of stuff.
If your house projects "freedom", junkies are going to come in. Better be discriminate (reversed this time). That's what Australian landlords/ladies do with SHARE HOUSES for foreign students in Brisbane (at least). The ones who have newer houses with upgraded facilities advertise their "NOs" (smoking, drinking/partying if not consented with all roommates, loud music, not cleaning after one's self, overnight visitors, etc.). This way they ONLY ATTRACT legit renters who mostly do not smoke/party and who can pay on time, a.k.a. ASIAN INTERNATIONAL STUDENTS STUDYING AT UNIVERSITIES/ LEGIT COLLEGES WHO SEEK those share houses advertised as 'QUIET".
But these landlords/ladies does not necessarily provide immediate assistance when something breaks in the house, though...🙄
The rest who are on holiday visas and domestics -- they're mostly workers who need the space to PARTY AFTER MANUAL WORK, hence they share renting units with minimal restrictions from landlords.
Thats true, you mostly need to be a good judge of character!
@@jasoncreighton5140, I always love when the drug dealers are the best of the bunch. Sometimes some of the people society looks at as the worst have the best behavior.
The only time rental properties become more "passive" is when you have enough of them that it makes sense to hire a good management company. If you're managing them yourself, they're very "unpassive".
The idea that my stocks are "passive income" is nonsense. I spend hours reading company financial statements, reading articles about the companies I'm interested in, watching investment videos. I have spreadsheets (multiple). I check my portfolio daily. I carefully reinvest my dividends. The first thing I do when I get paid is buy more stocks. It is a calculated work product that hopefully will make me a lot of money over the next 40yrs. It's not passive, it's not without risk, and I need my full time job to continue to do it
Meanwhile some other guy just has an ETF savings plan where he automatically buys into the S&P 500 every month without lifting a finger and still beats your portfolio in the long run, lmao.
@@JimboRustles The problem with buying the S&P500 index is that you have to sell off shares to get a hold of those appreciated investment dollars. Seattle, on the other hand, will have dividend income coming in and does not have to sell shares. True, a dividend paid reduces the value of the share, no question, but the share count is intact. And when the market goes back up again, that dividend is paid for.
@@vitawater4259 The S&P 500 pays dividends, you can also add a high dividend ETF if that's your thing.
@@JimboRustles The sweet spot for me are those large cap stocks that have the highest dividend CAGRs. More often than not, those high yield stocks that you mention come under duress when economic conditions are bad. The high yields is what the market is demanding for those stocks. The risj is that those dividends might be cut. A stock that has a 2% yield but is able to grow their dividends on a yearly basis at 14-16% is what I am looking for.
@@JimboRustles That's for the defensive investor. The OP seems to be an aggressive/entrepreneurial investor.
Thank your for saving me lol. Great information, I was skeptical from the beginning about all these ads.
Thank you for being so cold and honest about the whole thing! A lot of times, people like myself (lol) get sooooo tempted to jump into things that are really too good to be true and lost a lot of money in the process!!! You just saved me from investing on a "passive income training"! Thank you for waking me up!
My best passive income I've ever come into was when my bank let me know that I could toss my money into a high interest checking account. 15k (they had tiers) would net me around $1.5 a day. I opened 3 of them because over 15k would net you less money progressively. Downside is that you had to make like 25 transactions a month to maintain these accounts. Long story short my best passive income success story (minus employer matched things) allowed me to buy 2-3 plain bagels a day and i didn't have to put any effort into it 😂😂😂
NOT 2-3 BAGELS 😭
man where I live all you'd get for 1.5$ is spit on
best passive income is just moving to a low cost country LMAO
I'm on the older side of the Millennial generation, and I remember back when savings accounts paid upward of 3-4%, but with the fed funds rate at near zero for a decade and a half, those days are long gone. Deposit rates won't go up until the money supply comes WAY down. Banks just don't have to compete for your money right now, and bringing the money supply down will cause a ton of pain, so you're basically screwed no matter what. I have a small emergency fund, and the rest gets plowed into broad index funds and retirement accounts.
@@jaybinning2890 savings rate is at 3.3% now
@@chowsquid oh, very cool, I stand corrected. I see a few banks offering 3.5-4% APY. Not bad!
I have people tell me all the time they have the goal of buying up property, renting out the units, and live off of passive income after quitting their day jobs.
Well, you switch from one job to being a landlord which is another job in of itself 🤷♂️
A terrible job too. Extremely stressful
Or you hand it over to a property manager who does the landlording
@@tjsokkerplayer And then you not only have to pay them, but also deal with their stupidity 😅 one set of real estate agents I knew let an unsealed bathroom floor rot the floorboard underneath until there was almost a metre-wide hole in the floor before they told the owners. Needless to say, the owners were pissed they weren't told sooner when it would be cheaper to replace and before getting to the point of being able to be sued by the tenants for unlivable conditions. Turned out badly for the agents, as they got the tenant's phone number out of this incident and then privately sold to the tenants a few years later and cut the agents out of any commission.
@@tjsokkerplayer Yeah. That's probably the better way to go. But then you have to fix their messes unless you get a really high end group that's knows what they are doing.
I mean, I had a client who was like 86ish, and rented 56 houses. Her children were the ones handling all the property and problems associated with it. So yeah, its anything but passive.
This is the realest video I’ve seen in ages. I’m glad someone has put a spotlight on this because people need a wake up call…you can’t make a passive income without putting in the hard graft from the beginning.
I'm not even surprised that the ad after your video finished was for a 'learn how to get rich quick easily online' class.
I think the term "passive income" derived from the IRS code. It's really just differentiating being paid by employer vs. generating revenue through an investment (e.g., dividends, rental income, a business that you own, etc). I 1000% agree that there is nothing passive about entrepreneurship of any kind. Keep up the great content!
The IRS definition does not include entrepreneur income as passive. The IRS definition is net rental income and income from business you have no material participation in (i.e. dividends from a business you invested money in)
@@exantiuse497 Fair enough. I guess with a business that you own, the business itself is taxed in some way (assuming it's not pass-through) and the individual is taxed on income from it? Nonetheless, there are very few schemes where making any substantial money requires little to no work.
As a tax attorney, I can confirm that you are correct. Passive income is a real categorization of income, but the term has been hijacked to mean something it does not. As TPB mentions, making significant passive income requires significant investment capital.
I do have a rental house. It was a fire damaged wreck that took a year for me and my 2 boys to rebuild. Most of the jobs on Dirty Jobs looked like a walk in the park compared to gearing up in full suits with masks to remove the insulation, burnt sheet rock and other trash but we got it fixed up without a mortgage. It took a lot of work. In the end it turned out very nice and the rental income helped pay for the 2 boys college. They were in junior and high school at the time. I also inherited some stocks but instead of selling and buying a desperately needed new car I held on, rebuilt the motor in the old beater and the dividends now pay nicely. Yes I have passive income from a rental and dividends but it sure didn't come easy.
But that's the fallacy. That is not passive income. You invested time, expertise and hard work and now your investment pays off. But there is nothing passive about that.
Actually, that sounds pretty easy, to be honest...
is there even any passive income then? like atleast how you explained it, there cant be any money making thing without putting money and/or time, hard work, expertise etc, you cant create something out of nothing its simply not possible, even if you only made in 2 hours a programm and then it sells daily 10 times for each 15$ you still invested 2 hours into it, i would call that passive income, because with if I apply your description to it, than there can be simply no passive income, ever@@davidbreier84
@@davidbreier84 passive does not mean free lol
@@davidbreier84 in that case there's no such thing as passive income unless you're parents made a shit ton of money and left it for you
dude how are you so good , so calmful , humble just the best really . Sir you're the best.
Thank you for this excellent video exposing the scammers!
I tried to build a couple drop shipping stores a few years ago when the idea was still relatively new. Spent $200 in Facebook ads, hours watching videos, and another $75-100 on website domains, testing products (they were alibaba products, so really bad.) And website fees because I was using wix. I made zero money. Not a single order. Luckily I stopped before I sank too much money into it. Now I'm investing and working 40+ hours per week, paying off debt to avoid interest, and then investing some more. I'll be there eventually.
what products were you trying to sell?
@@Mh02. some Rick and Morty themed things, other random things I saw were selling well. I was going to buy them as a product test but I lost all the money I had saved up before that happened. This was when Rick and morty was really big, btw.
@@learninglarry400 thanks for replying 🙏 good luck to you in your future endeavors
@@Mh02. thank you Mason! Good luck on your future endeavors as well. I recommend investing if you haven't started already.
@@Mh02. I've got some coca cola, realty income, triple point venture group, horizon technology finance Corp, and a few others. I don't have a lot of shares of any of them. Some of them I have because they're relatively stable and provide monthly dividends, some of them grow at a steady rate and provide dividends. I invest about $250 per week with plans to bring it up to about $500-$750 per week when I get some debt paid down. I work at least 6 days out of every week and I'm starting a new job that will pay me more for my time on Monday. I basically don't spend money unless it's something that I need and I try to do things myself to keep it cheaper on my budget. Plus I get to learn new things by doing everything myself. My plan is to be debt free, except for my mortgage, within 2 years and then I'll move up to $500-$750 per week for my portfolio. My hope is that compound interest does its thing too since I want to retire by 45. I kind of over explained, my bad, I get excited about my plans.
11:35 I remember some using this as an analogy for crypto that will relate to this too. "The people who really made the money during the gold rush wasn't the miners, it was the people selling the tools to the miners."
My wife and I own rental properties. I had to scrounge, save, and live pretty modestly to make the down payments possible, but got there eventually. When other people were buying houses, we were living in one of our units and renting out the others (ie. "house hacking"). When other people were trading up for nicer houses, we were buying our starter home (that also came with a small rental house in the back). Pretty much all of our profits have been reinvested into improvements for the properties.
It's not truly "passive income". But it has grown our wealth more efficiently in terms of dollars and time than anything else we could feasibly do. It has also helped provide us affordable housing.
So the guy is right. There is no get-rich-quick magic bullet. But there are pathways to financial peace if you do some research and make some sacrifices. Don't lose hope!
I have done the same exact thing and I'm single. It's definitely the best thing I've ever done for myself. I think I could even very modestly retire at this point (since I am earning about 35k a year, plus free living expenses) at 30. I have tried to convince friends to try househacking too but a lot of people really don't want the hassle of being landlords, and I don't blame them.
10 minutes in I get an ad telling me to just buy an apartment building in a city with crazy high cost of living. Brilliant investing advice. I only need millions of dollars to cover initial costs, millions more to handle fees repairs and taxes, and hundreds of thousands left over to cover unexpected costs and missed rent payments.
I have done this. It is really easy. All I had to do was work for forty years,retire on a disability pension. Add in the dividends on my investments $380000 a year. Tax free.
The forty years of construction work may frighten a few people off. 😊
That was one zero too many. Oops.
@@NewFrontier63 I was suitably impressed. I was a roofer for 20 years. It's hard on a man.
@@Bob-ij3lq I made a mistake on my post. I make 38k a year tax free. Not 380k. In Australia I live on that.
I mean I can live on the income without selling any of my assets or investments.
@@NewFrontier63 Before you mentioned the extra zero, I started wondering why the hell I learned to code...
It's important to think about the scale of things in reality. Yes you'll see some people making huge bank on passive income streams like merch, stock photography, drop shipping, even IP hording. But you need to remember the thousands of people who try the same thing and don't earn more than $5.
Well said, you articulated it very well.
Excellent video ! So uncommon to see someone doing rational and structured thinking. All those You tube dudes telling them they make millions but still need to sell you something are basically exploiting people ignorance, so thanks a lot for « fighting » that with facts and reasoning, you surely won a viewer. ;)
That last sentence is so true and can help you weed out grifters in all sorts of fields. No one would be selling you on how to succeed if they actually knew how to be successful in that field.
This video should be required viewing every time someone goes down the "financial advice"/ passive income RUclips rabbit hole.
I loved your video and appreciate your brutal honesty. Subscribed!
I remember when I started learning about finances in high school, I was infatuated with idea of passive income. When I started investing at 18 I realized that I would need a lot of money to make passive income. At the moment I probably make around $15 a month of passive income from stocks (excluding the money in my Roth) and a little bit from some money I put in Fundrise a while back. I agree that the successful drop shippers are treating their stores as an active business instead of passive.
Thank you for this great and very informative video. You are not negative imo just being honest, a rare thing in nowadays world. Subbed.
Thank you for addressing this. I sometimes felt like a dummy for not being able to create any extra income streams. Also, thank you for being completely honest about the whole thing instead of glamorising it.
Try crime
Same
so glad you made this. I can't tell you how many cnbc articles I've read about passive income. the two I hear that that drive me crazy are mortgaging your first house to buy a second house which seems super high risk and I don't see how one rent payment is supposed to pay for two mortgages and two costs of the houses. and the whole start a blog and start selling a course thing which completely ignores how difficult and time consuming that is and that I'm pretty sure if you tried to figure out how much you'd be earning hourly it would be way less than minimum wage. I watched a Dr. Phil episode out of morbid curiosity on how to deal with inflation and it was just a bunch of tik tok influencers pushing this stuff. So much of this advice at best doesn't apply to the average person and only the people who want to maximize amount of income they have coming in. I always say if your doing alternative income strategies solely to make money and not because you believe in it or are interested/excited about it don't do it.
So true. RUclips should suggest this video to all the audiences watching RUclips videos about how to generate passive income.
Your video completely answered all my questions about trading. Thank you for sharing information for new traders.