Why you should consider a side hustle-unless you like living paycheck to paycheck!
Before I get started, let’s talk about what a side hustle is exactly. Instead of getting a second job, a high number are starting their own businesses. It is not necessarily a full blown, full time business. It can be, but more than that it is a secondary revenue stream to your day job. And I believe that it’s critical that everyone have one.
Regardless of how much money it makes, it will help reduce your stress, give you more freedom, and make you happier. Whatever you choose, anything can pretty much be a side hustle if you construct it correctly, but some ventures lend themselves to lower maintenance and faster revenue. And some even residual income.
Side hustles are becoming increasingly more common for the average American than ever before
The NY Post reported that Bankrate.com revealed over 44 million Americans are juggling side hustles. That means for every 10 working age adults, at least 1-2 of them are bringing in more than one income every month. Why is that important? Because if you are not one of those 44 million, then there are some big benefits they are enjoying that you are missing out on.
Here are some reasons why you should consider having a side hustle:
- Wages aren’t growing — and haven’t been for a long time.
Wages in the US, along other countries as well, have been stagnant for years. Wage growth has remained weak for many American workers in recent decades. After adjusting for inflation, U.S. wages were only 10 percent higher in 2017 than they were in 1973, with annual real wage growth just below 0.2 percent.
2. The cost of living keeps going up.
Not only are wages not growing, but the cost of living just keeps spiking. Prices are rising even faster especially for the middle class and across the board in key areas like education, healthcare, and housing. You’re paying more, but you’re not getting more. Some say, to live comfortably, the average person should earn twice as much as their yearly expenses.
3. Americans have fallen back in love with debt.
Let’s look at the total household debt—a category that includes mortgages, student loans, and car loans along with credit card and other debt. Overall, Americans’ debt hit a new high of $13 trillion last year, surpassing the previous record set in 2008 by $280 billion, according to the New York Fed.
4. Job security is LONG gone.
No employer can assure you lifetime employment anymore. No private company can. No public employer can. I think that we can all agree that gone are the days when you work for the same company for most of your working life, sometimes for 20-25 years. Workers now migrate from job to job over their career in search of greater fulfillment and compensation. Today, the average person changes jobs ten to fifteen times (with an average of 12 job changes) during his or her career.
5. Retirement savings…
Northwestern Mutual’s 2018 Planning & Progress Study, found that 78 percent of Americans say they’re ‘extremely’ or ‘somewhat’ concerned about not having enough money for retirement. And they should be. A shocking 21 percent of Americans have nothing at all saved for the future, and another 10 percent have less than $5,000 socked away for their golden years, the study found.
Those between the ages of 55 and 64 who have retirement savings only have a median of $120,000 socked away, Bankrate reports, citing data from the Federal Reserve. That’s only 12 percent of the $1 million many experts recommend, and it’s worth noting that even $1 million doesn’t stretch as far as it used to.
6. It can be an outlet for your passions.
This isn’t mandatory when choosing your side hustle, but I do recommend you select something in a field that you’re passionate about. Why? Because you’ll work harder on something you love and it will give you an outlet to take part in your passions. Which will make it feel less like a job and make you look forward to working on it. I find as though some are just caught up in the rat race of their job, so a change of pace is also nice.
7. It will give you freedom.
When I started my side hustle, I was already a traditional small business owner, and I had NO intentions of ever leaving my career and what I built, however things changed when I was no longer able to physically work like I was. Not to mention the amount of hours I put in and stress I was constantly enduring. My side gig eventually turned into a full time income, and I had options. I chose to walk away and gain all of my time back. I get to be where I want, when I want, and travel as much as I want! I think everyone deserves that kind of freedom!!
8. You’ll meet some of the most amazing people.
You will have the opportunity to be around some of the most inspiring and successful people. What I have found, is that entreprenuers love to help other entrepreneurs. I have gotten the best coaching, tools and advice from other successful individuals. They have pushed me and believed in what I could accomplish, even when I didn’t have belief in myself. I have formed some of the most amazing friendships with people I would’ve never met.
9. Tax advantages.
In the book-Lower Your Taxes Big Time by Sandy Botkin CPA & former IRS Attorney, the first chapter is titled:Why You Would Be Braindead Not to Start a Home-Based Business (If you don’t already have one). In this chapter he explains why everyone who is employed should have some kind of a business. If you don’t have one, you are losing thousands each year. Of course, you should always consult a tax professional, but point is, there are many tax deductions you may not be benefiting from as an employee.
10. You’ll be happier.
I know when you first started reading this post, it may have been a bit depressing. Truth is, when you remove the stressors of money, and time, it’s amazing how you feel! Even if you are making just $300 extra per month, it can make a huge difference-anything helps. And TIME-This year, I have been speaking a lot about how valuable time is. You can always get more money, but once time is gone, you can’t get it back. Life is short, so spend your time, truly doing the things you want with the people you love. Don’t wait, just do it NOW!!
Do you have a side hustle? Are you looking for some ideas? I may be able to help!