Passive Income is (Almost) a Myth!
Ah, the sweet allure of passive income! Who wouldn't want to sip margaritas on a beach while the dollars roll into their bank account without lifting a finger? Sounds amazing, right? But here’s the thing - TRUE passive income is (almost) a myth.
Before you grab your pitchforks, let me explain...
What Exactly Is Passive Income?
By definition, passive income is money you make with zero effort on your part. That's right - zero!
Zilch, nada, nothing.
If you’re still doing anything to maintain it, it’s not passive. It might be flexible, it might be scalable, but it's not truly passive.
What Passive Income Isn't...
Let's clear up some common misconceptions. These examples might sound like passive income, but trust me, they're not.
- Real Estate - Sure, renting out property sounds passive - until something breaks. Even if you have a property manager, you still have to approve repairs, deal with contracts, and occasionally play referee between tenants.
I'm not saying real estate is a bad investment option - I'm simply saying it is not passive...
- Stock Market Investing - Unless you’ve got a crystal ball, you’ll need to research the market, monitor your portfolio, and make decisions about buying, selling, or holding. Not exactly lounging by the pool material.
Don't get me wrong - there is nothing wrong with analysing the markets and placing trades - I am an enthusiastic student of the Foreign Exchange markets myself - just know it is NOT passive income.
- Selling Products (Online or Offline) - Whether it’s e-commerce, digital courses, or even good old-fashioned retail, you’re still generating leads, tweaking ads, answering customer queries, and updating products. None of that happens while you’re binging Netflix.
In short - If you have to do something regularly to keep the money flowing, it's not passive.
So, What IS Passive Income?
Glad you asked! The simplest example I can think of is interest on your bank balance. You park your cash in the bank, and they pay you interest every month. You don’t have to lift a finger. The money shows up while you sleep - no effort required.
Another good example is licensing. I once knew a guy who invented a nifty piece of medical equipment. He licensed it to a manufacturer, and every time they sold a unit, he got a cheque. He did the work once (created the product), and the income kept rolling in for years. Now that is passive.
Why We’re All Chasing the Passive Dream...
I get it - passive income sounds like the ultimate goal. Who wouldn’t want to kick back, relax, and let the cash roll in?
But here's the thing: the moment someone tells you they can teach you how to create a “passive income stream” by running a business, what they’re really doing is handing you a job with homework.
I’m not saying passive income is impossible. It’s out there, but it’s usually the result of years of upfront effort.
If you don’t mind doing some work every day, and you enjoy it, that's great! Just don’t fool yourself into thinking it’s passive when you’re still actively engaged in making it happen.
Here's the Truth - It’s All About Having - and Making Choices
For me, digital marketing is my business of choice. I know that the money I make from it isn't passive. I’m working every day to write blog posts (like this one), build relationships, and grow my audience. And you know what? I’m okay with that. Because at the end of the day, it’s about having control over your time and income.
So, whatever you choose - real estate, stocks, digital marketing - by all means jump in - just make sure you jump in with your eyes wide open. Set yourself free by learning what you need to learn, and take control of your future.
Just don’t buy into the myth that passive income is waiting for you with zero effort.
Let’s Stay Connected!
If you’re on this journey too and want to learn more about what I’m doing with digital marketing, I’ve got something for you!
Grab my FREE report, "Making Money Online - Avoiding the Pitfalls", and join my email list. I’ll send you updates, tips, and recommendations straight to your inbox. Just fill in the little form below.
But don’t worry - I’m not going to flood your inbox with meaningless emails just to stay on your radar. No one needs more spam in their life, right?
My real mission here is to inspire you to chase your dreams, just like I’m chasing mine by building this blog. My dream is to work from home - yes, maybe even in my pyjamas - and the only way I can keep doing that is by putting you, my reader, first. Funnily enough, this journey may seem all about me, but it’s really about you.
I’ll be sharing my stories, the triumphs and the faceplants, so you can see that - if I can make this work, you absolutely can too. So buckle up, because we’re in this together!
Together, we’ll figure out what works and what doesn’t!
I promise not to share your details with anyone - it's just you and me here.
Thanks for reading - let’s stay in touch!
Your Myth Busting Mate,
Sean Street