Imagine this attractive scene:

You are lazing about on a tropical beach sipping piña coladas while money flows effortlessly into your bulging bank account from your passive income sources.

After all, passive income refers to money earned without effort and ongoing involvement after the initial setup.

No action required.

Hence, the word “passive”.

No doubt, passive income streams may seem appealing, promising a life free from the chains of work.

Everyone can see its attraction.

However, putting aside the fact that the vast majority of people would have had to work hard in the first place to earn income to be invested, achieving true passive income is incredibly elusive.

The reality is that rental properties, dividend stocks, or online businesses all demand attention or monitoring, and require proactive involvement.

For example, rental properties require regular maintenance, tenant management, and dealing with unexpected, often frequent, costs.

Dividend stocks necessitate ongoing research and monitoring of news or market trends, because the stock you bought at the right price for the right reasons might have changed.

(And even if you bought the stock at the right price for the right reasons, you might not have bought it at the right time.)

Even passive online businesses require constant updates, marketing strategies, and customer engagement.

In general, passive income strategies are subject to change and adaptation. Economic fluctuations, emerging and disruptive new technologies like ChatGPT, and evolving consumer demands and changing tastes and preferences require constant and frequent adjustment.

While passive income is often portrayed on mainstream and social media as the Holy Grail of financial freedom, promising freedom and wealth, it is crucial to question such narratives.

The reality is that passive income is an idealised concept, perpetuated by savvy marketers seeking to sell dreams.

While it is possible to generate income with less direct effort, it remains an ongoing process requiring active management and adaptability.

Embracing reality allows us to approach passive income strategies with realistic expectations, actively tending to income streams we create.

Stay safe on your journey towards financial freedom.