It is very important to build up a passive income, especially in today’s day and age where everything is getting more expensive, bill notices end up coming sooner and sooner, and student loan debt can easily pile on. A primary income can only take care of so much of these expenses. It is very important to build up secondary streams of passive income in which you can start building a rainy-day fund to help pay for emergency expenses, as well as everyday items. There are a few reasons it is important to build up a passive income, and these are; to help pay for day-to-day items, save money for the future, and have disposable income in case of emergency.

It is a great idea to build up a passive income to supplement your primary form of income. If you work a full-time job, that would be the primary form, and any other way you make money other than that job is a secondary/passive form of income. I say passive because this does not mean getting a part time job at night or on the weekends. Passive income means money that you can build up just a few minutes a day, or by not even touching the money at all. Great ways to do this is by investing in interest earning accounts, or playing a little more active of a roll by taking surveys or joining other money making websites online a couple of minutes a day. The money you can earn from these can help you buy groceries, that new pair of shoes, or a dinner at that restaurant you always wanted to try. Having this second form of income, however small it is, can help you stay away from swiping your credit card, or using that money from your primary form of income.

Secondly, it is important to build up a passive income because it is always good to start saving up for the future. Yes, you may have a IRA or a 401K, or you may even have a pension waiting for you after you retire, but the more money you have in the future the better. If you have a secondary form of money that is passively increasing throughout your life, that small amount you started out with will be a good chunk of change in the future.

Finally, the third reason why building up a passive income is important is to have an emergency fund. Accidents happen. Medical emergencies arise. Heck, even last minute tickets to the super bowl can count as an emergency in some people’s eyes. Regardless, whatever you view as an emergency, it is best to have some disposable cash available. We are far past the time of having a cookie jar on top of the fridge, so having some money in the bank which you can spend quickly is not a bad idea. Once you have built up a strong passive income, you can use this as your rainy-day fund, where you can expense out emergencies to that account, not having to touch your primary source of income, which you can use for bigger expenses.

In the end, it is wise to build up a secondary/passive income. The more money the better, and starting to build up second streams of an income is one of the quickest way to achieve this. However, you want to be smart while doing so. Do not join scamming websites, or put your money into financial accounts that are low interest building, or have high rates. IT is always smart to do some research beforehand.

About the author:

This is a guest post from Ben Nieds. Ben Nieds is a young writer that regularly contributes to He is originally from Chicago, but moved to Florida for the weather and college football (Go Noles!). He enjoys making money online, and helping others do the same. Check some of his other writings out at for some financial advice, and survey site reviews.

Posted by Emma R. Worden