Few people need a reminder that the corporate world is fairly unstable. 50 years ago, people could get a good job with a good company and retire with a pension. Today, this loyalty is a thing of the past. Pensions are going the way of the mastadon and the woolly mammoth. This is why many workers today have started side hustling.
What Is Side Hustling?
Simply put, side hustling is the act of trying to make money outside of a “normal” 9-to-5 job. Not only is the job market unstable with people averaging about 12 jobs over their lives, wages have stagnated when figuring inflation into the equation.
Only recently did the per capita household income exceed the purchasing power that families had in 1999. Between 1999 and 2012, households lost about $5,000 in purchasing power.
With jobs paying less and layoffs and downsizing distinct possibilities, it’s a good idea to have a side hustle to bring in extra money. This extra money could help a family pay bills, pay down debt, or save for the future. A side hustle might not need to bring in thousands each month to make a sizable difference in your family’s budget.
Even an extra $50 or $100 can start to make a difference. If you’re able to pay all of your bills and make minimum payments on your debt, that $100 could help you build up an emergency fund of $500 or $1,000 that could help you avoid going into debt to pay for an emergency.
When my first kid came along, I was bringing in less than $30,000 a year. I needed a side hustle, and I’ve been trying to make money online ever since. I’m working on paying down the last few thousand from my graduate school and trying to invest at the same time. I’d be unable to do so without bringing in some side hustle income.
What Types of Side Hustling Are Feasible?
There are lots of ways that you can make money from side hustling. I noted several of these on this list post about ways teens can make money in the summer.
Getting a second job is possible for many people. This might involve flipping a few burgers, stocking a few shelves, or delivering a few pizzas. You might feel like this work is beneath you. It’s not. If you’re in debt or you have no retirement savings, just a few thousand extra bucks each year can be a big help.
It’s also possible to create a second (or third, or fourth) job. For example, I’ve noted on here that my blog is a sort of a side hustle. It makes me a few bucks each month. I don’t get rich from it (at least not yet), but it brings in a few bucks each month.
I also do some freelance writing that brings in a few more dollars a month. Watching videos and searching the web also bring in a few bucks a month. Put all of these side hustles together, and I brought in a bit more than $400 in side hustle income in August 2017. I’ve made even more in the past when I wasn’t publishing it on this blog.
Persistence Pays Off
Personal finance is not a sprint. It’s a marathon if you have the good fortune of living a life that reaches a relatively normal length. It might be tempting to quite side hustling if you’re only making $50 a month. It’s important to remember the power of a dollar so that you can stay motivated.
A dollar a day in extra income that you can invest will add up to $365 at the end of a year. If you then invested that and got an 8% return, after a year, you’d have $394.20. But, it get’s even better. If you keep up with saving another dollar each and every day, you’d save another $365, which would make nearly $760.
If you can keep this up for 50 years, saving just a dollar a day and earning an 8% return, you’d be pushing a nest egg of $300,000. A dividend yield of 4% on that $300,000 would throw of $12,000 in passive income at this point.
Double the investment to $2 a day for the same period of time, and you could get $24,000 in passive income. And remember, passive income is the best income. Of course, getting a later start will mean that you’d have to make and save more than $1 a day more than your bills to get this far ahead.
Regardless, a side hustle could definitely bring in more than $2 a day if you play it right. Even answering a survey or two could lead to that much. Figuring out a side business where you could write on the side or walk dogs or mow lawns might mean that your side hustling could bring in several hundred a month. Even starting a blog (affiliate link) could wind up being a profitable side hustle.
Side hustling is not likely to make much in the first few weeks. However, each and every dollar is an important building block in your road to financial stability and eventual financial freedom. Don’t get discouraged if you only made $5 this week. Try to make $6 next week. The future you will be glad that the present you did, especially if you don’t spend all of that money.
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