Is Passive Income Real or Just a Myth? The Truth You Need to Know
We all want it. We all talk about it. But is passive income actually real—or just a bunch of hype?
In this episode of the Money Ripples Podcast, I tackle the question so many people ask: Is passive income truly passive, or is it just another hustle in disguise?
Whether you’re an entrepreneur, a busy professional, or someone trying to escape the rat race, this deep dive into passive income will show you what works, what’s a scam, and how to build real freedom without becoming a landlord or launching a side hustle.
What Is Passive Income—Really?
The term “passive income” gets thrown around a lot. But most of the time, it’s used incorrectly.
You’ve probably heard things like:
- “Start a passive business on Amazon or Etsy!”
- “Flip houses to earn passive real estate income!”
- “Build a dropshipping store for recurring passive cash!”
Let’s be clear: those are not passive. Those are active businesses that require time, energy, and constant management. They may earn you money—but they don’t buy back your time.
True passive income = income that continues whether you work or not.
That’s why I define real passive income as income that comes from investments, not efforts. And yes, it’s 100% possible—but only if you understand what you’re doing.
The Biggest Myth: Passive Income Is Effortless
Recently, I sat down with a tech entrepreneur in Austin. He runs a multimillion-dollar AI business and asked me, “Chris, does anything actually create passive income? Even real estate takes time.”
He’s not wrong—passive income does not mean passive thinking. You don’t get to shut your brain off, toss money at something, and hope it magically grows.
In fact, that’s exactly what he did: He threw his profits into the S&P 500 ETF (SPY) just to get it off his plate. But when I asked him what happens when you ignore your money (just like you’d ignore your spouse or your business), he admitted: “Yeah… I’ll probably lose it.”
The Problem with Set-It-and-Forget-It Investing
Many people treat the stock market like a savings account:
- They throw money into index funds or retirement accounts.
- They ignore it for 30+ years.
- They hope for the best.
But hope is not a strategy. The real problem? If you’re working hard for your money and just handing it off to Wall Street, you’re not building freedom—you’re just delaying disappointment.
Your money deserves the same attention, strategy, and care as your business or career.
That’s why passive income must be built intentionally—with stewardship, not neglect.
What Truly Passive Income Looks Like
If you’re wondering, “Okay, Chris, what actually works?” here are three types of truly passive income that my clients use every day:
1. Lending Your Money Out
This could mean:
- Private lending to real estate investors
- Investing in lending funds (like Central Lending)
- Hard money loans
✅ You don’t manage properties.
✅ You don’t fix toilets.
✅ You can earn 10–12% (or more) returns.
❗You still need to vet the borrower or lending fund carefully.
2. Syndications
These are group investments where you put money into a large real estate deal—like apartments, self-storage, or even oil & gas—and let the operators do all the work.
✅ 100% hands-off once you’re in
✅ Passive income plus tax benefits
✅ Great for diversification
❗Not all syndicators are created equal—due diligence is key.
3. Turnkey Real Estate
This is where a company handles everything:
- Buys or builds the property
- Finds and manages tenants
- Sends you the checks
✅ You own real estate
✅ You don’t manage it yourself
❗You still need to monitor property managers and performance
Note: Turnkeys are semi-passive. You’re not doing the heavy lifting, but you still need to be a steward—not a set-it-and-forget-it investor.
“But Chris, I’m Too Busy to Do All This!”
That’s the point.
Most of our clients are high earners, entrepreneurs, and busy professionals. They don’t want to build a side hustle. They want results.
That’s why we created our VIP strategy process—to shortcut the path and help you:
- Get matched with pre-vetted investments and operators
- Ask the right questions (without becoming a real estate expert)
- Free up time while earning monthly passive income
We’ve helped clients free up $6,000+ per month so they could finally stop working weekends, spend more time with family, and create a life of freedom—not just work.
Why Stewardship Is the Secret to Wealth
Here’s the truth no one tells you: passive income requires stewardship.
- You don’t need to babysit your money.
- You don’t need to spend hours analyzing investments.
- But you do need to pay attention.
Just like your health, your relationships, or your business—if you ignore your money, it won’t grow.
“To him who is faithful with little, more will be given.” – Matthew 25:21
That’s why I’m so passionate about showing clients how to manage their money intentionally—without sacrificing time, peace of mind, or family.
Where Should You Start?
If you’re just starting out:
- Don’t worry about investing yet. Focus on cashflow, debt elimination, and emergency savings.
- Start with infinite banking if you’re building liquidity and want a safe place to store cash while earning.
If you’ve got cash and want to put it to work:
- Don’t go it alone. Work with someone who’s been there.
- Use our passive income network to get pre-vetted deals that are actually passive.
Final Thoughts: Passive Income Is Real… If You Do It Right
Don’t fall for the lie that passive income is a fantasy.
It’s not a unicorn. It’s not a scam.
It’s just misunderstood—and misused by people trying to sell you something.
With the right strategy, network, and stewardship, you can create passive income that buys back your time and builds the life you truly want.