Debunking Passive Income Myths
Have you ever wondered how real passive income ideas are? In today’s article, we will talk about passive income myths
How many times have you heard the phrase, “you can make money in your sleep.” I guess it’s the only thing on the internet these days. However, is there any such thing as making money in your sleep? Is the passive income myth even real?
Sure passive income makes a lot of sense, but the phrase above has been thrown into thousands of discussions that it no longer makes any sense.
There are thousands of passive income ideas, but before you can create a passive income wealth machine, you need to separate fact from fiction.
Today’s dynamic growth in society has opened ways to double your income and build that passive wealth.
However, it ain’t all that passive.
Passive income definition
Let’s start with the meaning of passive income. Passive income, in reality, means earnings from an enterprise, limited partnership, or rental property, you won’t be actively involved in. In lose terms, it refers to money earned with little or no efforts from you. However, it’s used too loosely that lots of income that aren’t really passive have been purported as such.
Therefore, the idea of passive income isn’t new, but it’s more about dedication, grit, and perseverance. To help you understand where I am driving at, let’s look at some of the passive income myths you might find.
Read more: 25 Best Passive Income ideas
10 Passive income myths on the internet
1. Set and forget it
Most passive incomes can never be “set and forgotten.” Picture this; the world is so dynamic, that your users or customers today, change their demands at every second. Since real-life can never be simple, your passive income stream must be modified consistently to make persistent income. For instance, you can build a blog today as your passive income. Tomorrow, you might need to run some promotions, or seek personalized technical support, or enroll in an online class to find another way to connect with your audience. Because the industry changes all the time, you can’t stay on top if you aren’t doing anything to remain there. Even when you delegate responsibilities to others, you need to continually check-in, refine your idea, and boost your vision to stay relevant. According to Enterprenur.com, your passive income needs an active presence to remain sustainable.
2. A single weekend, 24 hours … and dollars start popping
Sure, you can begin a business today, but that depends on lifelong knowledge to succeed. Most revenue streams can’t build your money overnight. Even saving money in a high-interest savings account or retirement account, demands more time to become a success. No matter how small your business idea, you need lots of research, planning, and effort to make it work. Even owning a blog demands lots of planning, don’t get fooled.
3. You need just one reliable income stream
Regardless of how you want to build your income, you need more than one income stream to make it to the top. Relying on a single investment source is the same as pitting yourself against the strong wind. You need to diversify your income to generate more money. When you expand, you boost your chances of achieving financial freedom.
4. You can get so much for nothing
No such thing as making money without hard work, money, or knowledge exists. Get-rich-quick schemes are downright sleazy, and most often, they are frauds and nothing more. Avoid all those selling fake claims on the market. Within months, you will reap great rewards for your perseverance on the right path.
5. Real estate is super safe
No matter the ideas you have, you carry risk. You may have heard that home flipping and property management are some of the best forms of making money. Sure, they can make you money, but success is never truly “passive.” You will deal with the ups and downs of the real estate market, bad tenants, repairs, updates, unwarranted expenses, and many more. Therefore, no many what part of the real estate market you pick; you carry an enormous risk as well.
6. You must become an entrepreneur to make money
Sure, there are thousands of successful entrepreneurs out there, but a thousand more are unsuccessful. Statistics show that 30% of businesses fail within the first year and over 66% within the early 10. This is owing to the fact that not everyone is cut out to be an entrepreneur. Every one of us has a unique gift and purpose. You can still work in a corporate firm, and with judicious money management, make a thousand more. Find that which you can be passionate about, become obsessed with making it work, and you will make lots of returns.
7. You need a lot of money to get started
Many businesses need cash, but you can always get started with a few dollars and pennies. For example, you can invest in the stock market with only $1, 0000. Your blog might also need your efforts, a few spare change, and patience. However, additional savings will always speed up your success, but what matters most is the amount of time you are prepared to add to your investment opportunity.
8. Great ideas come naturally
Sure, there are many ideas we think of daily. Some are great, but others are simply not feasible. Even the great ideas we have to need careful planning to make things work. Therefore, you must be prepared to research, plan, execute, test, and modify your strategy. So, even if you pick only the best idea from one of the best passive income ideas in the world, you must be prepared to plan.
Here’s a little extra to think about when debunking all those myths surrounding good passive income ideas. To really live off passive income, you must work hard for it anywhere within 10 to 30 years, depending on how much you invest and how smart you are.
You also need to earn up to $55,000 to do that. Overall, these figures will only work even the world is static. Therefore, you must maintain an active presence in your businesses to become successful.
Every big gun you know out there is still continually working on their businesses to sustain their income strategy. However, there’s one quote you should always remember, “Keep things simple.” Warren Buffet draws us to the fact that simplicity wins at the end of the day. Never complicate matters for yourself. You don’t have to learn everything or wear too many hearts. Learn to delegate and always with a strategic plan of the future. In no time, that passive income idea you have will begin yielding great rewards.
Now, you know all about the passive income myths to avoid, let us talk about which ones you feel are indeed overrated. Hit me up with your answers, questions, and concerns.