Why a second income is important! Why you have to start now!

Published: March 2, 2019 at 10:23 am

Last Updated on September 11, 2021

Most of us at some point or the other would have told ourselves: “how I wish my income was higher!” The reasons are obvious: high expenses, EMIs that we can almost drown in, the fear of not investing for our goals etc. Why just dream about it? In this post, I agree that a secondary source of income is important for most of us and why we need to start now.

Today if we talk about second income, making money online seems to the first choice especially among younger folk. Yes, the internet is a crucial component in making money online or offline today. Most of the wannabe bloggers, affiliate marketers, drop-shippers and Youtuber with dreams of making Lakhs each month are (much) less than 30. Sadly, most them are astonishingly clueless about how to get started, making the perfect prey to digital marketing gurus.

No, I am trying to say, I will show them (or anyone) how to make money better and they are the not intended audience of this post. I am writing this for those with 10-15 years of work experience. Practically of them would have picked up direct or lateral skills related to their jobs and I think they should seriously think about how to make money out of this.

This article is not for those who want a second income immediately and therefor not meant for the younger audience mentioned above. I am referring to building a second income that will bear fruit 5,10 or 15 years from now when we need it the most.

Why a second income is important for everyone

Viewers may have seen this video recently:

We all need to be multi-crorepatis by the time of retirement. Crorepati is no longer a dream, it is mandatory. Therefore:

  • A secondary income will supplement income from our retirement corpus, act as a cushion
  • If we could not invest enough, we could live off the secondary income for a few years
  • It will keep us busy and not pester our spouse or children after retirement–something we can wake up to do
  • One can always do something for free to keep busy, but it will not suit everyone money is a good stimulant for many
  • Hopefully, such an engagement will keep us healthy

Why we need to start work on a secondary income today

  • If we start today, we will have an established service by retirement. That much time is necessary
  • The secondary income would not be small then. It will be small now and that is perfectly okay!
  • Do not put pressure on yourself – that you need the second income immediately!

Many young people make this mistake. Instead of learning new skills and using it to make more money, they look for shortcuts and give up when they fail. If equity investing needs patience, secondary income generation requires a lot more patience!

How should I build a second income?

Your work experience must have taught you skills on which your current income depends on, directly or indirectly. Make a list of those. Out of these, what would people find useful and pay for. That is a natural starting point of a second income.

Why a second income is important! Why you have to start now!

Since time is on your side, you can consider learning a new skill (something that you always wanted to do) and then hope to build an income from it. Whatever you choose, the lower your expectations of success, the more successful you will be.

Series on secondary income creation

This is the second part of a series on a second income creation.

Part 1: Eight ways in which websites make money

Part 2: this post

Part 3: If you want to a start a blog, do this first! (coming soon)

Part 4: Two types of making money online and why you need to choose before starting (coming soon)

Video version of part 1

Video version of part 2

Also watch fresh content from freefincal on YouTube



Do share if you found this useful

Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!  More than 700 investors and advisors use this!
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 2600 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 600 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
My new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Did you know? We have more than 1000+ videos on YouTube to explore! Join our YouTube Community!

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored three print books, You can be rich too with goal-based investing (CNBC TV18), Gamechanger, Chinchu Gets a Superpower! and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements, write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps