If you are employed working for the man (or woman) and do not have a side hustle, here is what you are missing:
Additional Sources of Income with a Side Hustle
Did you know that the average millionaire earns income from seven different sources? I personally earn income from commercial and residential real estate, working interest income from oil and gas wells, books sales on Amazon, courses I sell on Udemy, and more.
You would never own stock in just one company, would you? A smart investor diversifies his or her portfolio and earns income from multiple sources. However, most people derive all their income from a single source, their job.
Explore Your Creative Side
Many people hate their jobs and are only employed so they can keep a roof over their families’ head and food in their bellies. If you are the creative type and love to sew, paint, dance, ride motorcycles, or whatever pleases you, a side hustle can be a great creative outlet for you while helping you earn some money in the process.
Q: Do you know the difference between a side hustle and a hobby?
A: Hobbies cost you money while a side- hustle makes you money.
No or Low Startup Costs
Most side hustles have zero or very low start-up costs. My son works for an automotive repair business and collects all the metal from repairs at the shop like, brake drums, radiators, engine parts to mention a few, and hauls them to the scrap yard each week. This makes him hundreds of dollars each month for something done with very little effort. The money you make from a side hustle can be spent on additional personal consumption, invested for a rainy day, or invested back into the business to help it grow with the hopes of it becoming your next full-time gig.
When you record your earnings on your Schedule C of your 1040 at the end of the tax year, you also get to write off certain business-related expenses. Do you need a cell phone for your side hustle? Then pay your cell phone bills with pretax dollars from your side hustle.
Did you know that the average American spends 35 hours per week watching TV? I don’t think on your deathbed your biggest regret will be that you watched too little TV.
Moreover, the time and money you earn from a side hustle may provide you with the additional income and experience needed to bootstrap your next full-time business or get your next job based on your newly acquired experience.
Test the Waters with a Side Hustle First
A side hustle gives you the opportunity to try out your idea before going all in. You can gauge if the business idea has merit and if people are willing to exchange money for it. Perhaps you want to become a professional tour guide. You can try it out and see if it is something you would really want to do on a full-time basis. Perhaps you’ll discover that you hate the business aspects of the hustle only to discover that your favorite local attraction is looking for a Guest Ambassador.
In conclusion, your job is no longer a safe source of income. According to a 2016 Bureau of Labor Statistics report, the average employee changes jobs every 4.2 years. What will you do the next time you get laid off. A side business might turn into your next full-time venture, it might help pad your nest egg, allowing you to shelter more of your income from the taxman, and give you a reason to get up in the morning and live a happier and more fulfilling life.
What is holding you back from doing that side hustle?
