If you’re in your 20s and 30s, chances are, you’re having a difficult time prioritizing your financial goals. You have so many things you want to save for, but student loan debt and credit card debt may be getting in the way. And what about investing? If you can’t manage to save and pay off debt simultaneously, where are you going to find the money to invest?
That’s where having a side hustle comes into play. What’s a side hustle, you ask? If you haven’t heard, it’s basically a side gig you work alongside your regular 9-5 job. It needs to be flexible enough so you can work on it outside of regular working hours – usually on the weekends, or at night.
Typically, side hustles are also remote work. There are so many ways to get gigs online, there’s no reason to waste your time with traditional job applications trying to get a second job that’s local.
If this sounds interesting to you, read on to find out why every millennial can benefit from having a side hustle.
Side Hustles Allow You to Reach Financial Goals Quicker
Going back to our initial example – if you’re wondering how you can afford to save, invest, and pay down debt, the answer isn’t by cutting back on all your expenses. Cutting back is limited – once you’ve saved all you can save, there’s not much else you can do.
Earning more, on the other hand, is unlimited. Your income potential knows no bounds. That’s why side hustles are great if you haven’t been able to score a raise at work.
Think of it this way: if you can earn just $100 extra per month, how much easier would it be to reach your financial goals?
If you’re paying down debt, an extra $100 per month can help you save on interest. Say you currently have a loan for $11,874, with a 5% interest rate on a 60 month term. Your minimum payment is $224.08. If you pay the minimum, you’ll end up paying $1,570.60 in interest over the life of the loan.
However, if you were able to pay $324.08 per month toward that loan, you’ll knock the interest paid down to $1,037.56. You’ll also have the loan paid off sooner – June 2018, versus February 2020.
What about investing? Let’s say you open an account and initially put in $1,000. After that, you contribute your $100 per month over the next 30 years. You’ll end up with a nice balance of $120,965.20, assuming a 7% annual return. How cool is that?
Side Hustles Give You Extra Skills
I’m not just talking about job-related skills, either. You’ll need amazing time management skills if you want to side hustle and work your 9-5.
I’ve seen many people work an additional 20-30 hours per week on their side hustles. How will you balance hanging out with friends and spending time with family in the middle of all of that? You learn to prioritize what’s important to you.
Other than that, you do learn amazing skills that you can apply to your regular career. If you’re a freelance writer, and you have to deal with a lot of email, or writing reports at your job, then you’ll get more efficient with your writing.
You’ll also learn to get over rejection very quickly. Most freelance work is based around pitching people and showing them you’re worth hiring. The process can sometimes be brutal, but it will prepare you for any rejection you might face in the future.
Along with that, you’ll quickly realize what your strengths are, because you need to show clients the value you can provide. This is excellent material for when you have to answer that dreaded question on an interview.
Side Hustles Allow You to Have Passion Projects
Is your day-job unfulfilling? If you’re like most millennials, the answer might be “Yes.” Not to worry – side hustles tend to offer creative outlets for people.
If writing has been your dream, then start a blog. They’re simple to get running, even if you’re not the most technology savvy person out there. Blogs are a great platform to use to showcase your work, and can often get you clients. You can also monetize your blog with ads, so that when you build up traffic, you’ll get paid.
Are you someone who absolutely loves social media? Could you live on Twitter or Pinterest all day? There are companies that will pay you to do that. I know, seems like a dream come true, right? Social media marketing is huge right now, and even individual bloggers will pay to have you schedule updates for them.
Love pets? Start a pet sitting business on the side. Become the neighborhood dog-walker, let people know you’re offering the service, and let them spread the word for you.
Do you happen to love your job? Are you amazing at it? You could also become a consultant, as long as it doesn’t interfere with your day job (don’t violate any contracts!).
Bonus: In many cases, side hustles can eventually morph into full time jobs. If you can get enough clients and dedicate enough time to it, you might find yourself earning more from your side hustles than your day job. If you want the flexibility of working from home, consider starting a side hustle with the intention of growing it into a business someday.
Side Hustles Are Awesome
Overall, there aren’t many downsides to side hustles, except for how time consuming they can be. However, since you’re the boss, it’s ultimately up to you to decide how much time you dedicate to them. The goal is to choose a side hustle that you enjoy so much, you don’t mind working outside of your day job. Actually, it shouldn’t feel like “work” at all!
Do you have a side hustle? Are you interested in getting started with one?