Whats not to love about earning money in your sleep?
Sounds awesome in theory, but in practice, it often doesnt work this way.
With passive income, the idea is to build a system that automatically earns you money.
And with some of these methods, occasional maintenance is a lot more hands-on than it seems.
You invest money in the real estate, find a tenant and earn a return month after month.
Seems simple and passive, right?
But any rental property owner will tell you: its not that easy.
And if you hire a property management company, thatll take a big chunk out of your income.
This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities.
So much so that the IRS has a deduction for it.
Of course, this will probably take a lot of upfront time and effort.
But, to make real money over the sustainable long-haul, you must treat these like any other business.
In other words, you must provide real value to real customers with a real need.
And the only way you’re able to do that is actively.
Theres also interacting with readers, keeping up with social media, responding to reviews, and so on.
But that doesnt mean theres no ongoing work involved.
For one, youre only going to make money if people actually come to your blog.
Theres promoting it, too.
However, it took those bloggers years of work to build their content and their site.
It usually takes years of consistent work to earn passive money from a blog.
Thats awesome, but essentially, that just means its fun work.
The work, whether you enjoy it or not, is still necessary to generate income.
A solid example oftrulypassive income is investing or earning interest in a savings account.
Image adapted fromKittichai(Shutterstock).
