Is “Passive Income” Just Another Lie Sold to the Desperate?

Passive income has become a buzzword for growing your wealth. But is any income truly passive? While you may think the idea of passive income is a lie, it’s often misunderstood. Passive income doesn’t mean that you can make money with no effort. Usually, with passive income, there is an initial start-up period where you have to be hands-on. Then, in most cases, you’ll be able to generate money over time with less management.

Realistic Passive Income

So while passive income isn’t a lie, you may have to alter your expectations of its meaning. While the term may be overhyped, there are still some forms of passive income that are worth exploring. Here are some examples of passive income and just how much effort they will entail.

Real Estate Rentals

Real estate rentals, when managed the right way, take the most effort upfront. You’ll have to choose the best property and select a management company to manage your interests. Then, you’ll be able to be a bit more hands-off. But of course, if problems arise with the property or tenants, you’ll likely be putting in more work.

Online Courses and eBooks

Almost everyone has a marketable skill that they can turn into a course or eBook. The process of creating the material takes a lot of work upfront. However, once the course is created and marketed, you’ll be able to be more hands-off. Of course, you’ll still have to update the material, handle customer service, and any ongoing marketing efforts.

Peer-to-Peer Lending or Crowdfunding Investments

While peer-to-peer lending and crowdfunding investments may feel passive, you’ll want to heavily research them before handing over your money. After your initial investment, you’ll be able to passively collect any dividends.

Affiliate Marketing

The idea that affiliate marketing is passive income is far from the truth. Anyone who tells you differently is trying to prey on your desperation for quick money. First, you’ll have to work hard to build a following on social media platforms. This means creating constant content. Then, you’ll have to maintain your viewership and get monetized or secure brand deals. It’s not an easy job and is far from passive. Plus, only the top influencers are making good money on affiliate marketing. Most people struggle to make affiliate marketing lucrative for them.

The Bottom Line

Passive income is still earned. You use your time and skills to create income opportunities. If it were money for nothing, everyone would be doing it. Some passive income streams take more effort than others but no form of income is ever easy to acquire. If an opportunity seems too good to be true it usually is. Don’t fall for schemes that sell you easy passive income, they often target the desperate and only take advantage of you in the long run. Instead, use your talents to create a passive income stream that makes sense for you and helps you achieve your financial goals.

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