The best way to predict the future is to create it – Abraham Lincoln
There are many reasons you may need a side hustle to meet your financial goals. Side hustles are a great way to meet your financial goals in a much more efficient and timely manner while saving for those things you need and want.
Side hustles can range from a myriad of part-time jobs to bring in extra income each month, to a hobby-turned-business focusing on something you love (Photography would be a good example). Balance is necessary for your life and I’m not advocating working yourself to death.
Why do I need a side hustle?
Below are a couple of reasons you may be in need of a side hustle.
1. It’s likely you have more free time than you think
Life is busy, I get it. There never feels like there is enough time in the day to accomplish all you need and want to do. This may be legitimate in your case, or it may be a mirage. Often, our time management skills are terrible.
We constantly find ourselves running around, 5 minutes late to everything because we don’t keep track of time. Creating a daily schedule to stick to is necessary to properly delegate our time. Just as a budget tells our money where to go, a daily schedule puts us in charge of our time.
Many of us stare at our cell phones mindlessly playing games and scrolling through the thousands of selfies we see on Facebook. The point is, many of us spend a great deal of time wasting time…
2. Side hustles destroy debt at a rapid rate
Can you imagine how much debt you could pay off if you made an extra $500 a month? I hear constant complaints from people who wish they made more money in their daily job and complain about the lack of raises.
They may put in an application for a better paying job, but in the meantime, why not get a second part-time job to increase your income?
I know, an extra job sounds insane but I’m not talking about working 20 extra hours a week. I have a part-time job that I work each week for 5 hours. This one part-time job pays for my yearly vacations, my savings toward a new vehicle, my extra house payment, and our “fun money.”
By only working 5 extra hours a week, I have been able to put myself in a much better financial position rather than complaining about my current rate of pay and doing nothing about it. I am not going to rely on my job to increase my pay – I’m going to take control myself and increase it.
3. Living paycheck to paycheck is killing you
How much financial stress do you have at the end of each month, or daily for that matter? That high amount of stress builds up cortisol in your body which can lead to heart disease and other life-altering conditions.
Do you really think 5-8 hours extra a week to relieve your financial pressure is going to kill you faster than doing nothing about it? If your budget is a problem, remember to set one up! For more information, see my earlier post on Budgets.
4. Side hustles can be aligned with your hobbies and interests
What side hustle you start is entirely up to you. Do you love photography in your free time? Try starting a small business charging people for family photos. Do you love dogs? People pay good money for dog walking services.
The point is, you have the option of doing what you love while making a little extra money on the side. All you have to do is find a way to add value to someone’s life if you’re looking for ideas. Who knows, your side hustle could take off and become your career!
5. Build Wealth
Is your retirement saving where you want it to be? If not, it may be a great idea to work a few extra hours each week to increase that account. People often associate side hustles with debt elimination, but side jobs can rapidly increase your wealth as you save and invest the extra money.
If you budget your regular income and live within your means, the amount of freedom you get from a side job is huge. All of that money is extra to accomplish your financial goals so much quicker. As I stated earlier, my extra money goes towards my house, vacations, fun money, and a new car fund.
Of course, so many people find that setting up a side hustle is so lucrative that it becomes a full-time endeavor. If you are lucky enough to start a side hustle that blossoms into a fully-fledged business, you’ve got to make sure that you are able to protect yourself. If you are starting an e-commerce business, you need e-commerce insurance, but you also need to make sure that you still have that sense of freedom.
If I want to go on a more expensive vacation in a few months, I shift money delegated to go to my other funds into the vacation fund. With this strategy, I am able to pay cash for everything I plan for. For everything unplanned, I have my emergency fund for that.
This entire post focuses on the initial quote…The best way to predict the future is to create it. Are you going to sit around and hope for the best or are you going to create the best situation for yourself? Action is required to take control of your life, your financial inaction is what led you here – let’s change direction!
Do you have a current side hustle? What is it and how has it helped you meet your financial goals? Comment below, I’d love to hear your success story! If you haven’t signed up to receive future articles by email, please add yourself to the bottom of this page. If you have topics you would like future blogs about, let me know and I will add them to the agenda.
Stay safe my friends -you work too hard to be this broke!