The Passive Income Scam

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.

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).

[bogdanovist]

The best way to earn a passive income is to choose your parents wisely.

[marklewus]

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.

[masteroogway]

The only real passive income is the income I earned while watching these videos at work instead of doing my job

[YankeeStacking]

Passive income is REAL…but only AFTER you’ve built quite a bit of wealth.

[luizfernandodonascimento]

Another simple rule: if something really makes a lot of money, people won't share it so openly.

[TheSilentWalkerz]

Fake financial guru: Working 9-5 is such a horrible way to live.

Also financial guru: You gotta grind and work 24/7.

[endlesswaffles]

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!

[davebrumbaugh]

Getting all the gurus during the ads for this video is really the cherry on top

[neal]

That's why I actively manage my passive income and passively manage my active income.

[gylsky]

There is a real passive income strategy: rich parents

As always, thanks for the great video!

[FinancialShinanigan]

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

[willthebeast]

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.

[MN-lxry]

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.

[lucascamarasa]

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"

[guncolony]

"Passive income is frontloading your work, not eliminating it." Well said

[mervekirmizi]

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.

[TigerofSanPedro]

I never comment on YouTube, but I have to tell you what a relief it is to see someone setting realistic expectations and expressing reasonable, balanced skepticism. Thank you!

[perochialjoe]

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.

[ah]

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.

[macy]

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.