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Some people will tell you that the idea of passive income is a myth. But that’s just plain wrong.

It’s more than possible to set yourself up with income you don’t have to actively earn month after month. In fact, 53% of Americans have at least one source of passive income, according to a recent report from First National Bank of Omaha.

That said, it’s important to be realistic about the amount of passive income you can earn and to understand the pros and cons of different passive income sources. Here are a few options you can consider to help meet your financial goals.

1. A CD ladder

The nice thing about certificates of deposit (CDs) is that they could pay you a generous amount of interest without you taking on risk. CD deposits are protected for up to $250,000 per depositor, per bank, provided you use a bank that’s FDIC-insured.

A CD ladder is preferable to a single CD because it gives you more flexibility. By spreading your money among several CDs with staggered maturity dates, you’re less likely to get hit with an early withdrawal penalty if you need quick access to your cash, which is one of the drawbacks of opening a CD.

Since today’s CD rates are still pretty strong, now’s a good time to set up a CD ladder. Click here for a list of the best CD rates to get started.

To give you an example of what a CD ladder might pay you, say you put $1,000 into five CDs with the following terms and APYs:

• 12 months at 4%
• 24 months at 3.6%
• 36 months at 3.6%
• 48 months at 3.55%
• 60 months at 3.5%

All told, you’re looking at a total of $563 in income you didn’t have to actively earn.

2. A stock portfolio

A stock portfolio could be a great passive income source for a couple of reasons. First, if you load up on dividend stocks, you can look forward to quarterly income. To be clear, companies that issue stock aren’t required to pay dividends. But those that choose to do so tend to try to uphold that practice.

Say you own $5,000 of dividend stocks. At a 3% dividend yield, you’re looking at $150 in passive income per year. In reality though, you might eventually be looking at more annual dividend income, since the value of your shares could increase and the companies you own might also opt to increase their dividends, which is a common practice.

An equally good way to earn passive income from a stock portfolio is to hold onto your stocks for many years and let them gain value. And if you want an even more simplified approach, buy shares of an S&P 500 ETF (exchange-traded fund) and see how much value they gain.

Over the past 50 years, the S&P 500’s average annual return has been 10%. Let’s say you put $5,000 into an S&P 500 ETF today. In 20 years, your investment could be worth about $33,600 (assuming the same return).

You should know that stocks are riskier than CDs because your principal investment could lose money. But holding stocks for many years lowers that risk. If that sounds good to you, open a brokerage account and start investing today.

3. An investment property

Owning an investment property could be a great way to generate passive income. If you have the means to buy property and find a home in a desirable neighborhood, you might manage to command a decent amount of rent — and increase it over time. Or you could buy an investment property you rent out on a short-term basis using a platform like Airbnb.

That said, there are some pitfalls you might encounter with an investment property. First, there’s work involved. You could outsource that work to a property manager for true passive income, but then you’re losing a chunk of your profits.

Also, owning physical real estate can be risky. When things break, the costs are on you. You’re also not guaranteed to have a steady stream of tenants. So you’ll need to think about whether an investment property is right for you.

Earning income passively is a beautiful thing. You may not earn a ton of it at first. But the sooner you start, the more you can set yourself up to earn over time.

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