The importance of a side hustle:
As you continue on the path to financial independence, you have two main ways to accelerate your progress. You can either reduce your expenses or increase your income. A side hustle is a perfect way to increase your income.
Another way to accelerate your path to FI is to slash your expenses. That's where house hacking can come in handy. Use our House Hacking Quick Start Guide to start your journey.
Let’s explore how a side hustle can dramatically affect the trajectory of your financial future and how to start your own side hustle.
What is a side hustle?
A side hustle is a means of earning income on top of your day job. You may have also heard the terms moonlighting or part-time jobs to describe a side hustle.
Depending on your goals, a side hustle may just be for fun or you may have the intention of building this into your main source of income at some point in the future. It could be as simple as walking dogs after work or building a freelancing business in your free time.
No matter what, you work on your side hustle when you make time for it after or before work.
How a side hustle can transform your life
A side hustle brings more financial freedom and flexibility into your life.
When you are no longer entirely reliant on the income from your day job, you may start to enjoy that power of knowing that you would still have an income without it. Even if you have no plans to leave your day job, it is always nice to know that you have options.
Imagine if you earned even just an extra few hundred dollars a month. Consider how that would impact your budget for the better. It could allow you to pay down debt ahead of schedule or build your investment portfolio more quickly. If you channel the money you are earning into your financial goals, then you could potentially reach FI much sooner.
Aside from the additional income, a side hustle could be an avenue to explore your passion. For example, you could start the business that has always been stuck in the back of your mind. Since it would be a side hustle, you wouldn’t feel the pressure of needing to make your fledgling business support your family and have the opportunity to enjoy the business-building process.
Do you have time for a side hustle?
In most cases, you absolutely have time for a side hustle. Even if you only have a few spare minutes each day, you could use that time to build a side hustle.
One of the best things about a side hustle is that you can pick something that suits your schedule. You’ll be able to find a hustle that works for you, even if you don’t have too much time.
However, it will come down to your priorities. If you don’t make time for a side hustle, then you won’t have the time for one. After all, most of us can easily waste hours on the couch with a good TV show. If you choose to use your time hustling instead of wasting it away, you might find that you had more space on your calendar than you realized.
How to find a side hustle
If you are trying to find a side hustle, then the number of options might seem overwhelming. After all, there are an unlimited number of side hustles just waiting to be uncovered.
Start your search with your interests. What do you like to do in your free time? Is there a way to monetize it? Would you still be happy doing this hobby if it turned into a side hustle? It is important to think through these questions before committing in a big way.
Also, you need to consider your reasons for starting a side hustle. Are you looking for something lucrative? Or do you want to simply build your passion project even if you don’t earn a lot of money? Make sure that you are clear about your financial goals of a side hustle before you dive in.
Finally, consider the amount of time that you want to commit to your new side hustle. If you only want to commit 2 hours a week, then don’t sign up for something that will require more time.
If you want something flexible with no time commitment, the ride-shares or food delivery might be good options. However, if you want to replace the income from your day job then you’ll have to think bigger.
The bottom line
A side hustle can help you reach financial independence more quickly. Only if you are willing to put in the time and effort required to build a successful side hustle. If you are up for the challenge it can be an exciting way to completely revolutionize your life.
House hacking is an easy way to work on the other side of the equation – cutting your expenses. Use our House Hacking Quick Start Guide to start your journey.