Passive income sounds like the ultimate dream, right? Money rolling in while you sip coconut water on a beach somewhere? Well, before you quit your job and start planning your billionaire retirement party, let’s bust some common myths.
In our recent podcast episode, we had a real, engaging conversation about passive income—what’s real, what’s wishful thinking, and how you can actually make it work for you. From people believing that passive income is only for the rich to why following the crowd isn’t always the smartest move, we kept it fun, insightful, and straight to the point.
Let’s get into it.
Myth 1: “You need a lot of money to start making passive income.”
Truth bomb—if this were true, only rich people would be getting richer. The reality? Many successful passive income earners started small and scaled up over time.
Think about it. Big businesses don’t start as billion-dollar empires. They start as ideas, side hustles, or small investments that grow over time. Whether it’s renting out a spare room, starting a YouTube channel, or putting a small amount into low-risk investments, the key is to start where you are with what you have.
Takeaway: Instead of waiting till you have millions, start with what you can afford and reinvest your earnings to grow.
Myth 2: “Passive income means zero effort or hard work.”
This is probably the biggest myth out there. People hear “passive” and assume it’s all hands-off. But here’s the truth—there’s no such thing as 100% effortless income (unless you have a magic money tree, in which case, please share!).
Even the most ‘passive’ income streams require setup, maintenance, and occasional adjustments. If you want to earn from a blog, you need to write content. If you want rental income, you need to manage your assets. If you invest in stocks, you still need to monitor your portfolio.
In short, passive income is like planting a tree—it takes effort at the beginning, but once it grows, it starts bearing fruit consistently.
Takeaway: It’s passive over time, not from day one. Set it up right, and you’ll enjoy the long-term benefits.
Myth 3: “Once you set it up, passive income lasts forever.”
Wouldn’t that be nice? Unfortunately, even passive income needs maintenance. Nothing runs itself forever without a little TLC.
Real estate needs property management. Digital products need updates. Even long-term investments need to be reassessed in line with inflation and market trends.
The SMART goal-setting framework also comes in handy when setting your passive income stream. If your passive income stream isn’t Specific, Measurable, Achievable, Relevant, and Time-bound, you might just be throwing money into something that won’t last.
Takeaway: Passive income needs occasional check-ins to keep it alive and thriving. Don’t just “set and forget.”
Myth 4: “Passive income replaces your 9-to-5 instantly.”
We all love a good ‘quit your job’ success story, but the truth is—passive income takes time to build.
Think about it: Even the best passive income streams—rental properties, dividends, digital businesses—did not start replacing salaries overnight. The process requires consistent reinvestment, patience, and multiple income streams working together.
And let’s not forget—money moves. Inflation, economic shifts, and personal emergencies can all impact how much your passive income is really worth over time.
Takeaway: Build gradually, reinvest wisely, and don’t quit your job just yet. Give your passive income streams time to stabilize first.
Myth 5: “Investing in a virtual platform is risky.”
There’s risk in everything, even leaving your house in the morning. But not all risks are created equal. The key to investing safely in digital platforms is understanding risk levels, doing research, and spotting red flags. If it sounds too good to be true (double your money in two weeks!)—it probably is.
Takeaway: Instead of chasing hype, know your risk appetite and pick legitimate, regulated platforms that align with your goals.
One of the platforms we discussed and will always advocate for is Yield by Credit Direct—a fund management solution designed for Nigerians who want to put their money to work safely and grow it over time. Yield offers Flex and Fixed plans with transparent terms, no hidden fees, and up to 21% annual returns.
If you’re looking for a reliable way to earn passive income, check it out here
Final Thoughts: Start Small, Keep Growing
The biggest takeaway from this episode? It’s okay to start small. Mistakes will happen. Some investments may not work out. But the key is to keep learning, adjust when needed, and stay in the game. Because at the end of the day, Dangote still dey find money, so who are we not to?
Want to hear the full conversation? Click to watch the full episode on YouTube or listen on Spotify!
