The question many people ask themselves. But rarely explored in depth. Making money while you sleep: Is it really possible?
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Sleeping and making money: is it really possible?
The answer is… Yes.
You can actually earn money while you sleep.
However, there is an important nuance.
❌ You will never make money without having done anything beforehand.
On the other hand, you can work today so that your money continues to generate income tomorrow, even:
- when you sleep
- when you travel
- when you enjoy your family
But for that you will need some passive income.
Let's see how this works.
Is it possible to earn money without working?
The answer is no.
No one will pay you simply because you exist.
Even so-called “passive” income requires a minimum amount of work:
- save
- invest
- managing your investments
- declare your taxes
But once that work is done, your investments can continue to generate income for years.
And sometimes, managing a passive income takes you less than 5 minutes a month.
In other words:
👉 You work once… and your money continues to work for you.
What is passive income?
Passive income is income that no longer depends directly on your time.
Unlike a salary, you are no longer obliged to exchange each hour of work for money.
For example :
- an ETF
- an apartment for rent
- a SCPI
- a blog
- a YouTube channel
Once in place, these revenue streams can continue to generate money with very little work.
Why do people say that you can earn money while sleeping?
Because the financial markets don't stop while you sleep. For example, while you are:
😴 to bed
🏖️ on vacation
👨👩👧 with your family
In truth, your investments continue to evolve.
- The companies you own through the stock market continue to grow
- The rents from your passive real estate assets continue to distribute rents or dividends to you.
- Dividends are paid out every six months from your shares.
- Compound interest continues to generate interest.
In short, your money works for you, while you do something else. Even sleep.
Concrete example with an S&P 500 ETF
Let's take an example:
Paul invests 100,000 $ in an ETF replicating the S&P 500. And he doesn't touch his investment for ten years.
Assuming an average net return of 7% per year, Here is the result:
| Starting capital | Capital after 10 years |
|---|---|
| 100,000 $ | 196,000 $ |
👉 His assets have increased by 96,000 $.
And yet…
During those ten years, Paul probably only devoted a few minutes a month to his investments.
His money continued to generate income through compound interest.
In reality, his money was always working, even while Paul slept.
Is this really money earned "without doing anything"?
Not exactly. Before winning those 96,000 $, Paul had to:
✔️ Work to save 100,000 $
✔️ accept market fluctuations
✔️ invest
✔️ Keep your investment for ten years
In other words, he did the work upstream. Then, his capital did the work for him.
That makes all the difference.
The best passive income streams
There are many ways to generate passive income.
For example :
- Growth ETF
- Dividend ETF
- real estate
- SCPI
- REIT
- crowdfunding
- blog
- YouTube channel
- crypto-assets (riskier)
Each solution has advantages and disadvantages.
It is therefore essential to understand an investment before putting your money into it.
Compound interest: the real driving force
The real secret isn't the S&P 500. It's compound interest.
Every year:
➡️ Your capital generates profits
➡️ These gains themselves generate new gains
➡️ the snowball effect is becoming increasingly powerful.
This mechanism is what allows you to earn money while you sleep.
The risks of passive income
Warning: Passive income is not guaranteed income. All investments carry risk.
For example :
- market decline
- bankruptcy of a company
- rental vacancy
- dividend decrease
The higher a return seems, the greater the risk is generally!
It is therefore essential to diversify your investments and only invest in what you understand. And to accept the risk of losing money.
Conclusion
Is it really possible to make money while sleeping?
Yes.
But only because you worked beforehand to build up capital. Then, that capital can generate income for years thanks to compound interest.
Ultimately, true wealth isn't just about working more. It's primarily about making your money work for you. By choosing the right financial investments.
Making money while you sleep: Is it really possible?
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Faced with not very effective financial education, as was my case before. I actually decided to create this blog following a change in my life since my early adult life.
Compared to before, I was a person who consumed a lot until the day I understood that my consumption was making me sadder and poorer. From now on, I prioritize the minimum of my needs to be happy and achieve financial freedom.
Without realizing it, I also began to prioritize savings and investments to depend on a boss for as short a time as possible and to accelerate my personal projects.
For several years I have felt happy and I have become richer in a way that I would never have imagined given that I have an average salary in Switzerland.
It is for this purpose that I decided to create this blog. To share, learn and teach with others who seek freedom, simplicity and long-term wealth.
Are you rather minimalist or frugal Jonny?
I am both a minimalist and a frugalist. However, there are situations where I lean more towards an art of living.
To conclude, I think the most important thing is to feel comfortable in your life and I have found a balance between these lifestyles without reaching the extremes.
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