5 Common Passive Income Myths (And What You Actually Need to Know)

If you’ve ever typed “how to make money while you sleep” into Google, you’ve probably been hit with a tidal wave of “passive income” promises. Endless YouTube videos, blog posts, TikToks… and most of them make it sound like you just click a few buttons, take a nap, and BOOM, you’re rich.

Umm… not quite.

Don’t get me wrong, passive income is real, and it can absolutely change your life, but there are some major myths floating around out there that can make the whole thing feel confusing, or worse, like it’s only for people with money, time, or tech teams. Spoiler: it’s not.

In this post, I’m breaking it down and getting to the bottom of these passive income myths, to show you what passive income really looks like, especially when you’re just getting started.

Myth #1: Passive Income Means No Work at All

This is probably the most common one.
People love to say things like:

“Just set it and forget it!”
“Make it once and cash checks forever!”

Sounds dreamy, right? But here’s the deal: passive income doesn’t mean zero effort; it means front-loaded effort.

You’re still gonna have to put in the work. Whether you’re launching an online course, writing an ebook, starting a YouTube channel, or building a digital product shop… it takes time, energy, and consistency.

The difference? Once it’s up and running, it keeps working for you—even when you’re not actively clocked in. That’s the passive part.
So yeah, not effortless… but definitely not the same grind as a 9-to-5.

Myth #2: You Need a Lot of Money to Start

This one used to trip me up too.

People hear “passive income” and instantly think of buying a rental property or investing thousands into the stock market, and hey, those are legit options, but they’re not the only ones.

There are so many ways to build passive income with little (or no) money upfront.
Here are a few:

• Start a blog or YouTube channel
• Sell digital products like templates or printables
• Create a low-content book and list it on Amazon
• Promote products you already love through affiliate links

Most of those cost more time than money, which is great if you’re just starting out or working with a tight budget.

So no, you don’t need to be rich. You just need to start.

Myth #3: “Once it’s set up, you never have to touch it again.”

I wish. I really wish.

Wouldn’t it be nice to launch a course, disappear for a year, and still see Stripe notifications rolling in?

Here’s the truth: even passive income needs a little maintenance now and then.

• Online courses may need occasional content updates
• Affiliate websites need fresh blog posts and SEO tweaks
• Printables shops need seasonal uploads and occasional marketing
• Even investments may need rebalancing

So it’s not “do it once and never lift a finger again,” but it is much more flexible than the traditional work model. You’re in control, and that’s a beautiful thing.

Myth #4: You Have to Be an Expert

So many people hold themselves back because they think they need to be the expert before they start.

Let me say this loud for the folks in the back: You don’t need a PhD to teach, share, or sell something valuable.

You just need to know more than the person you’re helping, and guess what? You already do.

If you’ve figured out how to organize your life with Notion, meal prep like a boss, launch a tiny ebook, or juggle work and side hustles, you’ve got knowledge someone else needs. You don’t have to be the best. You just have to be helpful.

I have found that people relate more to someone who’s just a few steps ahead than someone who seems untouchable.

Remember, real growth happens as you create. So don’t wait for “expert status.” Just start with what you know, and let the process shape your expertise.

Myth #5: Passive Income is Only for Entrepreneurs

This is one of the most limiting beliefs out there. You don’t have to quit your job, build a team, or launch a six-figure business to start earning passively.

You can:

• License your photography or music
• Create and sell Canva and/or Notion templates
• Invest a little in dividend stocks
• Monetize a skill or hobby with digital products

If you have a little creativity and consistency, you can absolutely start earning passive income alongside your current job or responsibilities.

Look, passive income isn’t a fantasy. It really can help you create more freedom and flexibility in your life, but it’s not a magic button, and it’s definitely not instant.

It takes time, effort, creativity, and a willingness to keep going when it feels slow, but if you’re willing to build something now that keeps working later? That’s where the magic is.

So tell me, which myth were you believing before today? I’d love to hear in the comments.

If you’re ready to stop just researching and actually start building, check out The Passive Income Playbook. It’s my step-by-step course that shows you how to create and sell digital products, even if you have zero audience or experience.

You in? Let’s do this.