I’ve been hearing a lot about “passive income” lately – the dream of earning money without lifting a finger. While the idea sounds enticing, I think it’s important to demystify this concept.
In reality, what many label as “passive” income usually requires significant upfront effort, continuous oversight, and regular adjustments. Whether it’s writing a book, setting up an online course, or investing in stocks, none of these avenues guarantee income without some level of involvement.
It’s easy to get enticed by online gurus painting a picture of lounging on beaches while checks roll in. But behind every “passive” success story, there’s a tale of hard work, persistence, and constant learning.
Does this mean passive income ventures are not worth pursuing? Absolutely not. But let’s approach them with realistic expectations and the understanding that no reward comes without effort.
What are your thoughts and experiences on this? Would love to hear from the community!
True “passive income” would be just buying dividend stocks. People dont like this answer because they scoff at getting a few % return a year. Then they go “well how can I make more return than that” well you can make more by putting in more effort (starting a business, etc), which by definition means its less passive 😅.
Return percentage is directly proportional to the effort you put in. Another example would be buying real estate and then hiring a management company to do all the work renting it out and maintaining it. Of course management companies are expensive and it cuts into your return so many choose again, to trade effort for return and manage it themselves. Its always a tradeoff of effort vs return.
Even if you grow a successful company and then sell it and live off the profits, you probably spent 80 hours a week for years earning those future profits - might feel passive after youve sold but definitely took effort to create that wealth.