2020 should have been one of the worst years in history, frankly speaking it was for many people, not just in the United States but all across the world.

Well in some countries the government supported the people in other places people wouldn't just stuck a tom but barely could feed their families.

In the middle of this chaos 1.7 million americans became millionaires.

Millionaires are now make up 8.8% of the US population.

That is difficult to believe because how on earth do you become a millionaire in the middle of a crisis?

But that's how the world works.

It's a crisis for you but an opportunity for someone else and vice versa.

There are now 56.1 million people globally with assets of at least $1 million us.

The investment bank estimates and Americans represent almost 40% of the total number.

Almost one in 10 or 8.8% of US adults are now millionaires up from 7% in 2015 in 2000 it was just 3.8%.

Millionaires are becoming more and more common.

But here's one thing all millionaires have in common.

They all strive to create passive income because without it no matter how rich you are you will never find the charm to enjoy life, Take care of your family while not being worried about money.

However there's just too many misconceptions about passive income.

If you don't understand how passive income works, you might spend years of your time building one but it will never work.

So if you're serious about creating passive income here are five facts about passive income that you should know before creating one.

If you're ready, give this video a thumbs up that it deserves.

And here is a little disclaimer, this is not financial advice and everything that's said in this video is for educational and entertainment purposes and now let's dive in number one.

There is nothing cold as passive income.

This might sound a bit controversial because we're bombarded with the concept of passive income.

But if you give it a closer look, there's actually nothing cold is something entirely, is passive income.

It doesn't matter where that income is coming from.

It always requires some level of management.

You can't just build something and forget about it while it keeps generating income, even if it's real stage.

Have you ever owned the property?

Yes.

From outside, it looks like all you have to do is purchase a property and keep collecting your monthly paycheck.

However, that is not how it works.

When I was working as a real estate agent, I could see how time consuming it is to manage a property.

And now as an investor, I can confirm that sometimes it's easy to find a tenant, especially if it's located in a really good area.

However great areas are limited and secondly, there is super expensive.

So it's not like as long as your own property, you can easily rent it out.

And the thing is even if no one lives there it costs money to take care of that property, especially if you have a mortgage on it.

So you're going to spend a lot of time managing gauge.

Of course you can delegate that.

But it will minimize your income, the same goes for dividend stocks.

Yes it's a great source of passive income but the maximum that you can hope for is 2.5 to 3% Which barely cops with inflation.

It is not enough to consider it as your main source of income.

You want to get at least 56 or 7% to not only be able to spend what you earn but grow your income over time.

Especially if you're talking about online sources of passive income such as blokes Amazon or YouTube.

They require daily hours to function.

It's not like you set up an account or figure out how the algorithm works.

Your competition is going to corner you.

If you lose focus usually it requires much more time than your typical 9-5 job does.

So forget the idea where you could build something, forget about it and party afterwards.

Such passive incomes do not exist.

Number two, real passive income takes a lifetime to build.

If you think about it, there are essentially two sources of income that could be categorized as passive income to a certain extent.

Real estate and the stock market.

Everything else requires a lot of hard work.

That's why rich people mostly keep their fortunes in these two markets.

Owning one or two properties is time consuming and isn't as passive as you might imagine.

But owning 100 properties is easier because you can set up a small company that will take care of them and will vastly reduce the cost of managing per property.

Economies of scale are going to make it profitable.

The second real source of passive income is an index fund that has been growing stable for a long enough such as the S.

And P.

500.

Based on the historical data, you can throw your money and forget about it while we're throwing like 4% annually.

We've made an entire video about it which link I will live in the description but to create such a passive income source you need to invest at least a million dollars to be able to withdraw 40 or $50,000 annually.

That's what rich people usually do.

They stash their fortunes in such safe investments and just withdraw three or 4% which could amount to thousands of millions of dollars if not hundreds and stay rich forever.

But to build such a passive income you will need a lifetime Maybe 10 or 20 or even 30 years.

But by then you might not live long enough to enjoy the fruits of your labor.

That doesn't mean you should not try but you shouldn't make it as the only goal of your life number three.

Nevertheless passive income be your main source of income.

The problem with any source of passive income is that there is always a chance of losing it.

For one reason or another.

Your book might not be selling as good as it was in the past.

We might be in the middle of a pandemic and no one would want to rent your property or we might get into a recession and the markets might just keep declining for months.

But when no one can take away from you are your skills which are good at it could be writing medical skills or social skills because at the end of the day your money assets can be taken but not your skills, they will remain with you no matter what.

If your entire business is based on google's algorithm then you are at the mercy of google.

Like most Youtubers are one shift in Youtube's algorithm and you're in charge.

Business could collapse Once upon a time Pranksters used to make hundreds of thousands of dollars but today they barely make enough money to pay the bills because they did not diversify and relied on the algorithm Number four, the more difficult it is the better most people on the Internet are looking for.

An easy, simple way to create 12 sources of passive income by filling a survey.

But if you give it a closer look that is not what you want.

You want a source of income.

That is super difficult to build.

It sounds a bit confusing but if building that source of income is as easy as setting up websites then anyone can do that.

And the first rule of business is it's really difficult to make money in a saturated market.

If getting into that business is as easy as joining a program then good luck making any money before creating any source of income.

Ask yourself what barriers to entry does it has Take real estate.

For example, you need a lot of money to get in and even if you do you will barely make 5-6% annually.

Number five don't be scammed by passive income courses with plenty of videos on the channel where we talk about passive income where we share different passive income ideas.

These ideas are not random.

We have tried them and they work but they are not easy and have multiple barriers to entry.

However with the rise of internet, especially on Youtube and facebook we are bombarded by passive income courses.

They make this course.

It sounds so good that all you have to do is get involved in the program and you will be making passive income for the rest of your life.

But the truth is that there is only one person who makes passive income out of the system as the guy who was selling the course.

I don't have anything against courses.

In fact I love online courses but pretty often, especially here on Youtube.

They're misused.

But what if the course is for free, then you should definitely check it out because you're not losing anything, especially if it's filled with value like this course and skill share about the stock market.

It is not easy to get into the world of the stock market.

You have a million questions, but don't worry, I get it.

I was once in your position and to answer all of your questions, I have created a course that is simple, straightforward and fully animated.

I've literally answered all of the questions you have in your mind.

I strongly recommended if you're serious about investing, it will not just teach you how to invest in index funds, but it will also teach you how to analyze stocks and rate financial statements.

And at the end of the course, you will have to complete an assignment that I will personally check and the best part of it is that you can get two weeks of skills, your premium.

If you use the link in the description and get the course for free.

So don't miss it.

You can also start your investing journey by getting two free stocks from Weeble by using the link in the description.

You have everything you need to start, if you have enjoyed this video, you will most definitely enjoy this custom playlist that I have created specifically for you that has our most popular videos that could potentially change your life and now give this video a thumbs up that it deserves an actual to subscribe.

If you haven't done that yet, Thanks for watching until next time.