Myth of Passive Income

There are 100s of posts and videos bombarded with the dream of passive income every day. It is a dream sold that you get money flowing to you always while you relax or enjoy your vacation. But there is a problem, how it is portrayed is actually a myth. For example, if you have a large amount of money invested in a mutual fund or FDs, then yes, this type of passive income makes sense because you will get the money flowing regularly.

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Passive Income is money earned with little or no effort at all. The true passive income is like dividends from stocks, rental income, etc where the money will continue to come without your intervention. But mostly, the passive income concept sold by many is a myth. They say, get a skill and try to generate a business from that skill and run it on autopilot, and you are set for life. The problem is that nothing lasts forever.

By the time the passive income goes mainstream, it starts to die, and the people who sold the myth might have earned, but not the people who have followed. For example, a few years back, Amazon's Kindle started gaining popularity, and now it has gone down the drain. A few years back, blogging was at the top, but now it is not earning anything. And the same applies to dropshipping, YouTube automation channels, Instagram theme pages, etc. These trends rise fast, but they die faster,r and they are actually not the true definition of passive income.

In simple terms, if your passive income depends on another system change, then it is actually not passive. It's a rented success, for example,e if you are a great YouTuber earning in lakhs and then you get 3 copyright strikes your channel would be deleted and you have to start afresh. So most of the passive income out there is not passive in the sense, it needs regular updates.

For example, someone would be doing blogging has to change to YouTube to be relevant. People need to adapt to the change for their passive income to continue to work otherwise, it will bite the dust. So the smart alternative is to have active income with leverage, which actually increases your active income. Once your active income increases, you can increase your true passive income, and then you are set for life.

Posted Using INLEO