It's Beau Crabill here
leading expert for selling products on Amazon
And in this video, I wanna talk about, again, passive income
So I wanna start off explaining first off, what is passive income?
Got wisdom way beyond his years
The real deal
He's like a prodigy
You can look at the definition
My definition is that when I go to bed at night
when I sleep, or if I just do nothing
That I just go hang out for a full week, a full month
Or of I get hit by a bus today and can't do anything
the money that I'm making that is profit, that is coming in
from wherever, is my passive income
Now my passive income breaks down through my investments
some of it's business income, some of it's consulting
some if it's royalties, and I'll talk about that later
But some people believe that passive income is actually not a real thing
No idea why
If you believe that, you probably are really bad at working smart
So now, what I wanna talk about is
my passive income and how it's broken down
So around 40% of my income is actually through my investments
Over this past year, I've just tripled down
on educating myself as an investor
The reasons why is I'm young
and understanding how investments grow, grow, and grow
Now maybe someday, my business might not be my main source of income
If you would ask me 2 years ago, a year and a half ago
closer to 90% of my income was off of my business
Now, I mean, I'm actually making more in my business
and 40%'s off my investments
'cause I've gotten so much smarter as an investor
And then the other 60%'s off my business
Now, so let me talk about investing right now
There's some things I can't talk about for privacy issues
on where some of my investments are
But I believe that staying to your core and understanding what
like the knowledge that you do know, invest there
Only invest in things that you know
The great Warren Buffett says he's a better investor
because he's a businessman
And a better businessman because he's an investor
and I believe that to the core
So a lot of my investment, passive income comes from
is off of owning other companies, or owning equity into them
There's a couple of companies I can't talk about
but another like set of companies that I do own in my portfolio
is wholesale companies
Why do I decide to buy up wholesale companies?
Well, because my main business, selling on Amazon, is selling products
and I buy from wholesale companies
So if I'm gonna continue to be a, not necessarily consumer
but a user and investor already into these wholesale companies
it might make sense for me to go get some equity into them
Kinda double-dipped right there
There's that
I also have consulted for retail stores
and other e-commerce stores who want to
up their game in e-commerce or online
And I sold my time for money there
But then I also was smart enough, 'cause I wanted passive income going on
is I got some royalties out of them
So there's some companies that I have royalties from
And also, part of, on the investment side is the stock market
So, the stock market's a very broad thing
I was very lucky enough
Again, super lucky, this is not gonna help with most people
to live with a mentor of mine who
spoken over a million people and invest in the stock market
and all he does is trade the financial markets
So I learned a lot from there
I don't have any cryptocurrency, I have real estate
For me, I don't even think real estate's that smart
for me to get into just because it's
I can make a lot more money in my e-commerce businesses
and the stock market, and
spending more time on consulting for retail stores
and e-commerce, and just growing up my e-commerce businesses
But I do have some real estate, I've bought at a good price
I might sell soon 'cause it's okay
but none of that's really been income
I guess there's been capital gains that add into net worth
So when people like consider capital gains as their passive income, it's
I don't count income until it's cash in your account
Which then, you wanna get that cash out as soon as possible
and then put it in other assets
So now, let me talk about my business
So where people get confused at with passive income
is they think that running a business is passive income
I'm sorry, but
Yeah, that's probably, quite backwards you can think
Now there are certain aspects to my business
that is 100% passive because I've hired the right people
I have super trust with them that you know what
yeah, I could get hit by a bus today
and could not run my business, and be totally fine
There's been times I've said you know what
I'm gonna take a week off and just do nothing on this business
'cause I have other things going on
My products business is where I'm selling products online
on marketplaces like Amazon and eBay
We also sell on our own site
I also have a software business
where I'm selling the software that I use myself
I have an education business
where we're selling training programs and courses
And we work with people one-on-one on that end
Speaking in events, all that jazz
I love doing what I do
but some of that stuff is not purely passive
and some is just based off of where I've outsourced so much
And around 60% of my income does come from there
And that's really about it
So if you're wanting to get into passive income
And the reasons why is because you're like okay
I need to change my financial aspect
Don't think that you running a business is gonna be passive overnight
'Cause one thing to just be super cautious of
and I want you to never use this phrase ever again that people love to use
Advertisers use it to get you hooked is
never say I want to replace my income
As an investor, that's the most idiotic thing I can ever hear
If you're making an income, why would you wanna get that replaced?
Now I get it, if you get offered a better job, whatever, cool
But if you having a job
and thinking you running a business is going to replace your income
that is so, so not smart, uneducated
And as an investor, that's only gonna cause
disrupted and out of place investments
Because as an investor, you want to not be disrupted in your investments
You wanna just keep growing, growing, growing, and growing
That's why me being young, I've spent so much time in the past year
educating myself as an investor
Because if I look in 40, 50 years from now
if I get uninterrupted gains, it's massive, right?
So instead, think on how can I increase my income
put into investments that are giving me cash flow
that is greater than my expenses
so I can then go full-depth into my business
Don't say how can I sell products on Amazon and replace my income
That's idiotic
If you hear people saying that to you
they're just trying to steal like some money from you
Not steal, but like, whatever
So in reality, what you should be thinking is how can I grow my assets
my investment income, passive income
so where it now exceeds my income
So now, whatever income that you're working that you want to replace
is now a waste of your time
You wanna get your time to be worth more
I get this may be a complicated video
but to recap this, passive income
is income where if you are dead, sleeping
doing nothing, income's coming in
Don't get running a business confused with passive income
it's not the same
You can outsource and delegate to make it passive like what I'm doing
Educate yourself as an investor, go after it
Let me know what you think down in the comments below
If you have any questions at all, open any time for comments
Negative feedback, haters, I'm welcome to you as well
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