Why Is Passive Income So Important?

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Having a 9 – 5 job and running your own business is a great thing and all, but something you should strive to acquire and build is your “passive income.” (Though the majority of the time it isn’t really passive, it requires a little attention) Passive income is a beautiful thing that ANYONE can start building with very little money. Why is passive income so important? I’m going to explain some reasons and give a few options to consider that require little money.

The rainy days

Say that you get laid off work or business slows down drastically, if you have passive income you can at least know that you will have some money for food. (If it gets that bad) Continue to build up your passive income and it not only covers your meals, but also your bills like electrical or a mortgage. Passive income can be there when your job or business can’t be.

Even more money

One of the best parts of passive income is that it makes you even more money. More money means more investments, which leads to…more passive income! Passive income investments tend to multiply your money MUCH quicker than keeping it in a bank account. You should aim for something that has at least a 7% return on investment. (ROI) If you can get something that has an even better ROI, like real estate, then go for it!


Now this may be a touchy subject for some people, but I’d still like to mention it. If you start building a passive income today and continue to build it until your older, you should be able to comfortably retire. Maybe even earlier, much earlier, than the usual 65 year old mark. I don’t like the idea of a 401k, putting your money into some program/account that won’t let you put your hands on it until you reach the required age. If you do then you’ll be fined. It’s your money! Why would you do that? I know that some of you might say, “That’s the point, so you won’t be tempted.” But why not invest it in something that will start giving you money back immediately, not when your 65? Waiting till 65 is such a gamble, anything can happen.

Here are some options to start generating passive income that requires very little capital:

  • REITS (Real Estate Investment Trusts)
  • Blue-Chip Dividend Stocks
  • Write a book
  • Youtube
  • Website

Let me know in the comments below if you are going to start building passive income with any of the options above!

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