Passive income refers to money earned with little to no effort on an ongoing basis. While the concept of generating income without putting in a lot of effort is appealing, the question of whether passive income is truly passive is a subject of debate.

The reality is that while passive income streams may require less ongoing effort than traditional forms of income, they still require some degree of work to set up and maintain. For example, owning a rental property requires initial investment, property maintenance, and tenant management. Similarly, dividend income requires research and investment in the stock market, while online businesses require significant upfront work to establish and promote the business.

It’s important to note that some forms of passive income are more passive than others. For example, investing in dividend-paying stocks can be relatively passive, as once the investment is made, investors can simply wait for the payments to arrive. On the other hand, running an online business or managing a rental property can require ongoing effort to maintain and grow the business.

Additionally, the degree of passivity in passive income streams can also depend on the individual’s level of involvement. For example, some landlords choose to hire property managers to handle tenant management and property maintenance, while others prefer to do it themselves. Similarly, investors can choose to be hands-on with their investments or leave them to a professional investment manager.

In conclusion, while passive income streams require less ongoing effort than traditional forms of income, they are not entirely passive. Passive income streams require some degree of work to set up and maintain, and the degree of passivity can vary depending on the individual’s involvement and the specific income stream. However, the potential for generating income with minimal effort still makes passive income an attractive option for those looking to increase their income streams.