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7 MISTAKES That Will Ruin Your Passive Income (#014) DON’T LOSE As Much Money As I Did! My Mistakes!

February 9, 2020

I’m starting right now you were starting
hello out there property addicts and welcome to another episode of the other
marketing guys I’m speaking a little faster because we are running out of
space on my SD cards and batteries and batteries as well so this one is going
to be seven seven mistakes that will ruin your passive income and the first
thing we need to say that we already did this recording once so we’re going to
take it again like passive income we need to do a disclaimer about passive
income and a thumbnail and I don’t like to call it passive I like there were a
synchronous income instead because passive in the word it says that you
don’t have to work and that’s not true you actually have to put in a lot of
work the a synchronous way is of thinking is
that you have to put in a lot of work up front and get paid or you have to put in
love work at doing the day and you can even get paid by nights or it’s like the
the the time you get paid and the time you work is not a a synchronous correct
that’s why I think Esther incurrence is better but think of this as investing
like investing a lot of time or I’m listening a lot of money then you can
get paid dividends correct on that time or on that money so my first mistake
into this passive income is my stock investment adventure and we actually
started along this road it’s talking about it
and I’ve at some point the first mistake is buying and not holding stocks or and
biggest mistake is buying and not holding diversified stocks
I bought one stock for all of my cash fired and buyer and sold in bond sold it
and actually earned the decent amount money until the day and I followed this
truck to teeth and I really really knew it all it was a mining company in Sweden
about to get approved for manning’s of minerals that’s used primarily in
batteries and so on and the day with the rumor that they were going to get
approval the next day okay at night before closing I was a
millionaire in Danish kroner so I uh I I was like sweating and that’s I was like
salsals no no sells out no no no and there are so much many people buying in
because the next day it could be explode yeah and the next day then the news
always comes before my head the market opens that’s the way it works and they
didn’t get approval that again got an extension for two years and so it’s just
like damn I lost what equals to if I sold that that night I could have made
an extra one hundred and thirty thousand dollars name on how much investment a
fifty yeah 3x yeah I am I ended up losing to three thousand dollars at all
okay so you actually lost from the initial investment that is well okay
yeah it made a lot of money and and start and then I yeah it’s a greedy but
see you said in the beginning that you didn’t hold them for long enough he’s
they’re not like everything I know now from in stocks that by diversified and
bind to the market and never sell never sell I guess and do not buy a small
mining company in Sweden that’s not even on there on the right indexes and so and
it’s like it’s like penny stocks it was actually what’s equals to a penny stock
in terms of diversification Simon what would you say what is the best way like
do you pick your own companies or hydras are no okay are you just put in a mutual
fund or well you don’t do it I would say follow and and Andrew Andrey Andrey sick
it’s a great channel I don’t know okay so yeah but but alright it’s a mistake
to think you’re better and understand the market especially when you’re a new
guy guy was yeah number two number two I have I think
this is very important for a lot of people it actually touches upon some of
the previous videos we made like for example about ways you can earn money
online because we mentioned stuff like freelancing and stuff but I think it’s
very important for you to put a dollar value or like a monetary amount on your
own time because if you think about it let’s say we talk about passive income
right like let’s say in this one year you make a thousand dollars from your
website passively quote-unquote like in your sleep quote unquote alright but how
many hours did it take you to build that website if you value your own time at
let’s say five dollars because you know right now you can go and get a job for
five dollars then you you know how do you justify it what if your what if
you’re a developer and it took you 20 or 30 or 50 hours to do that and you
haven’t learned anything for the last two years
alright so you’re actually losing quote-unquote money instead of
generating money and even if you think about it like it makes life just so much
easier like okay do I really want to spend time with person X who I don’t
care about or is actually negative on my life because that would technically mean
negative productivity would technically mean I lose money can either wise spent
or earn that money from some other place and I think it’s a it’s a it’s more of a
mental you know like the way you mentally process these kind of things
but it’s also a good happy to have for future ventures yeah it’s actually also
the thing that I’ve been in my younger days spending maybe thousands of hours
developing and doing some stuff and never actually make a dollar and I could
have been rich by selling that amount of time and I’m I’m actually making money
now selling my time so it’s yeah so that’s I’m actually making all of my
money selling my time right now yeah concern reinvesting yeah and reinvesting
it so I found out for me was the fastest way to make money so I’m no better than
any freelancer out there I just run a company with like few of the employees
that does the same and we saw all the time so yeah but I think that’s the most
common like most but still there is like some thing of
some someone would wouldn’t even call me an entreprenuer because it’s like you’re
not billing companies just selling your own time and they make more money than
you okay so um the third one yeah it’s actually also one of my mistakes but
it’s buying into something you do not know anything about or actually do not
want to know anything about like me and properties that’s actually a very good
tip I think I bought two properties sold one of them with that massive loss and
certain totaled that that property running for it for a year and a half
lost me like maybe two three thousand dollars again in that one alone and I’m
looking to sell the other one and I’m looking at a total loss
between ten twenty thousand dollars name yeah yeah and I bought in a website for
sometime ago and sold that and like a sheriff website and I built it up sold
it again and in that time I made two or three times my money because I know
about websites yeah I know what I’m doing yeah because I do not know
anything about Browdy and and I’m not even remotely interested in learning and
and I can’t do any renovation or anything myself yeah but that’s good
because now you understand yourself now you know what your strengths are yeah so
I have once again spend and spend I love money and getting smarter but see that’s
the thing like for example a lot of people would think for example some of
my friends even would say okay why the fuck are you standing in front of a
camera and talking about money and mistakes you know like financial like
you’re not in that position right now to think about those mistakes why do you
bother with that but you have mistakes yeah but see that’s the thing exactly
like I was thinking about buying properties but now that I’m aware that
people actually lose money from it it makes
not all people know people but see that’s things like don’t just buy into a
fucking hype that’s the whole thing right there did you read you read about
like oh you can make 10 million dollars from buying real estate yeah but if
you’re not the type if you’re not if it’s not actually your thing it’s not
worth it for you it’s you’re more likely to actually lose money on that stuff
yeah so just understand yourself and also like if properties are illiquid
yeah very long term and that’s exactly exactly and I could have made my made
that amount of money many times lower just by investing in my current own
company mm-hmm Mike the company I run like my primary company I could have
made that money back much better yeah so yeah number four its you four yeah I
have automation or actually it’s a lack thereof very fancy but so for example I
hear a lot of people that especially now because I’m reading a very interesting
book I told you about it maybe you can find it in the resource section because
I really like it doesn’t matter but I think that not automating how your
finances work is a very bad thing because a lot of people just get stuck
in that loop of all now here I can squeeze these like ten percent or two
percent or five percent or 0.5 percent you know and just again if you have put
already a monetary monetary value on your time you see how much money
quote-unquote you’re either spending or not saving in that sense so let’s say
let’s say you have you’ve decided that you want to save $2,000 a month why not
just make an automatic transfer to your bank account from your checking’s to
your savings account why do you have to every month go and manually put it in
because that’s not only the time you you know it’s different times you know like
you have to withdraw the money you have to go to the bank especially if you have
different banks or leggings and it’s also like the the biggest thing that
people are saying in in stocks as I understand it now yeah automate yeah
their food automatic transfer four hundred two hundred five hundred
something dollars each month week or what your when you get paid you know pay
yourself first and put it in and make something on
automation and a lot of these like Rob and pick some I can’t candle names in
the American they can automate reinvest dividends also so instead of you going
into and then automate everything that’s mark that’s rich true yeah also in not
just in in investing but also like in in everything in your website if you do
passive income that way or if you passive income from YouTube or and so on
the new or email marketing it’s a great way to automate and SAP here mm-hmm
set a API er yeah it’s a great tool to save here yeah it’s great a tool to
automate between api’s from your spreadsheets tools through your email
campaigns your three blog posts automate post posting on in Pinterest and
automate posting on Facebook and Twitter and economy but yeah but I think we have
to be also a little bit critical because you see a lot of people get stuck in
this loop you know of like super advanced like sexy word so to speak like
instead of getting stuff done so if you have only two emails is it really worth
it automate see that’s the thing it’s like trade off again if you know your
time if you know what your time is worth you see if it’s time to make a
transition so it’s better to do then waste time automating yeah but once you
do once you’re doing already yeah all right
should we go on number five number five is giving up too soon on your web
property are you YouTube or you’re I was I was close to giving up on YouTube I
actually gave up no I get no I I read we were called but when you do the 180 M
okay okay I’d started off in Danish as none of you know but I start above in
Danish and did 52 videos in 52 days that was hard and they’d almost not killed me
but it I burned out really got burned out so I have to do pivot and I found
out that the YouTube algorithm does not work with
well with the language that it does not understand that’s a good point that’s
actually a good one yeah so now we do it in English instead it’s funnier to be
two people I’m doing some videos this is a channel it’s my channel but we I’m
doing some videos besides this I have one in the works and right now I’m
outsourcing editing because I don’t know what to get burn out editing yeah so I’m
looking for a great editor should they hit us up in the comments if they’re
great yeah I do though as well I don’t think that makes him will be very no
yeah maybe he’ll cut this out okay I’m leaving the the other marketing guys I
think yeah but um yeah I’m giving up too soon on web especially is what I know
about it’s like you have to tear through the time when it’s hard when the time
when you get no traffic when you get no I have some sides right now that I built
when in the last half a year take it traffic but they made no make no money
mmm and I know right now after like six to seven months into like a year it’s
the hardest time you feel like you put in so much time effort money but it’s
just like oh I’m not going to pay off whatever and even I I have so many
doubts even though I’ve been doing this for more than a decade yeah so so this
is the thing that will ruin your passive income if you do it via websites or
YouTube it’s quitting just before your heyday but and you do not know where it
is in YouTube it could be that you do I just heard that the YouTube channel pick
in Chris they did it for like three or four years and at the two and a half
years Mike or something I can’t remember the numbers maybe a 1/2 years they were
so close to quitting and then it took off there it’s just like you have to
when the the day where you think okay I cannot do this
more it’s it’s it it’s at that point you have you have to get through because
when it when it’s when it’s one is tough when it’s hard when it’s getting hard as
long as it’s fun that’s easy but when it’s getting hard you have to go through
it we have to go through that ring a fire of no money no audience no views
and never at all yeah nothing no social confirmation at the very least I think
there’s a hidden dichotomy like with everything in life there’s a dichotomy
here as well because I read about this and I strongly believe actually it’s
true that successful people at least reach before at least known people also
know exactly when to say no and stop something yeah so it’s I guess maybe not
so fine but it’s still a line between knowing is this something that I can
actually continue with and I think you realize pretty early on like let’s say
for example with this YouTube channel I didn’t think about it but now I know
like I can stick with this even if we don’t get anything for next one year I
see myself sticking with it just because I’m passionate about it right now but if
it’s something from the get-go that you see okay we were about to quit podcaster
you more or less yeah I was just getting slower and slower and and so on but if
you think about it there’s people that forcefully go through something because
let’s say their parents told them or does they have a different or standing
of something and they think if I just push like two years more or five years
more on this it’s eventually gonna pay off and think about it like maybe it’s
not gonna pay off maybe eventually it’s not gonna pay off just because you
yourself are not passionate about it you don’t get out of your own way to get to
get let success come to you sound like that yeah it’s all about managing
expectations again certain celebrate the small victories we really like talking
about expectations actually in these videos yeah so the next one is yours
it’s actually number six you know the last one is number seven so you have the
sixth one but you put it down as five yeah indeed it’s number six yes just
because I prepared more doesn’t matter this is a little bit too specific for
the examples that we’re giving right now but I would say this is actually a
mistake that I did as well with my website
I would say that most people actually listening or applying tips for the
English market they’ll immediately think okay I’m gonna use affiliate partners if
I have a website or a blog which is primarily going to be Amazon right
there’s no problem with Amazon and that is you have about three months to
generate a sell before your partner yeah before you’re kicked out of the other
partner program and it’s also funny because my tip number seven is also
admin and an Amazon affiliate tip price so let’s dive right in yeah let’s just
combine them the one thing I did very wrong is you cannot link to a search
page on Amazon yeah that’s so specific also specific with yours like you have
to wait until you are you are certain that you can generate sales but my I did
not know now I was like thinking okay I’m going to link for the best products
in this I’m just going to link for the search because then Amazon will
recommend the best product and I do not want to link to a product because the
product can be outdated and so on but Amazon actually tells that you have to
recommend products yeah otherwise it’s not in recommendation hmm
and it they’re also very strict on the things you can use from those products
like images and stuff like yeah it’s very bad actually I would really
recommend that because that’s what I tried as well I do get some clicks I
don’t really get a lot of sales yet but try to find alternative platforms that
maybe or even your new specific because often they offer because think about it
like you can recommend categories this way yeah with custom search filter but
in Amazon you can you add a medicine you could do your own store yeah that’s
gonna make your own affiliate store with maybe where people actually do this so
if you do a podcast about podcasting then you could do a store and they would
that gear you recommend and always Ling Qiao store that makes that’s a lot of
youtubers do that they have this tin prize they always mints and then the do
the store but if it’s something more general than what you’re gonna have like
ten stores I don’t know but we we are just the last week I have had one guy
change all of links to products yeah and the links tracked now in Amazon is like
multiplied by 10 okay so I think that’s all for now if you also like profits
then join us on profit addicts on Facebook it’s a group small group a new
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