Let’s face it: the single overjoying mindset doesn’t pay the bills to most people. The evidence is everywhere. Credit cards are at their maximum – sometimes just to keep the lights on. Emergency savings are low if present. Many Americans need to get emergency loans to cover unexpected costs.
Enter a new action hero: Side Hustler. Side Hustlers overcome income challenges like the nunchuck experts in a room full of black belts. Just as Bruce Lee changed the face of martial arts action films, Side Hustle is changing the American workforce.
Question of the Month: How can side hustle improve your financial resilience?
When teaching children and students about budgeting and general financial health, you should also start a conversation about income diversification. Certainly, going to college and stepping into a career is great, but that’s not the right path for everyone. And it may not be enough to achieve your goal, let alone pay off your debts or go ahead.
Let’s say you did what our society expects. You go to university, earn a degree and work in your field. Not as fast as you would like, but you are paying off your student debt. But then, a recession strikes and you are fired. How do you achieve your goals in the tough job market?
If you’ve been building a side hustle mentality since college (or even better, high school), you may have a secondary income stream to keep you floating to maintain a more savings and secondary income stream while you’re looking for a new job. With a little diversification of income, you are ready to survive the storms of life.
Side hustles can solve many cash flow issues
According to Bankrate’s 2024 Living Paycheck to Paycheck Survey, more than one in three workers (34%) live their payroll. If you get paid on a biweekly schedule, things can get a little tougher before each payday. Rather than relying on credit cards to resolve cash flow issues, side hustles can increase the revenue they need to avoid new debt.
Many side jobs are paid daily. For example, if you use Uber, Instacart, or Doordash, you have the option to cash out when you finish a side hustle shift (though this option can incur a small fee). I met
Nashville Uber drivers make between $300 and $400 on average weekend nights, and confront the insanity of downtown Broadway. If there are unexpected costs, you can go out in the morning and go home in the afternoon. This way, you can eliminate credit intermediaries and avoid spreading the costs of that emergency over several months.
Just like mortgage interest, your income is usually paid late. You have been working for two weeks and your employer will catch up with you by giving you a salary. Using daily payer stolen can access your income as you earn and smooth out many cash flow bumps.
Diversification of income as a path to building wealth
I’m a man who holds numbers. Looking at numbers in black and white makes it easy to determine the next step or choose between two options. In the age of mortgages, I created a detailed breakdown for my client, outlined the points that were broken after refinancing, and provided an overview of the amounts I would save.
Let’s say you graduate from college, do your first real job in Corporate America, earning $50,000 a year. You can save $200 a month after covering your expenses and paying for your student loan, but you haven’t saved for retirement or made meaningful progress in student debt.
Now, imagine you get a part-time job with the sole purpose of increasing your savings. By making an eight-hour shift over the weekend, you can earn an extra $1,200 per month after tax. If you put your side hustle income directly into savings, let’s see how your money grows over time.
| month | Main job savings | Main Employment Savings + Side Hustle Savings |
|---|---|---|
| 1 | $200 | $1,400 |
| 6 | $1,200 | $8,400 |
| 12 | $2,400 | $16,800 |
After doing my second job of the year, I was able to greet nearly $17,000 socks. That money can be used to build an emergency fund, pay off student loan debt early or start savings at home. Imagine how much money you could save if you kept this schedule for several years.
So, but how do I get there?
You encounter deniers and experience self-doubt as you go out into the world of side hustles. The Industrial Revolution strengthens the mentality of one job, one caregiver in the workforce, and despite hundreds of years of progress, the idea has deeply ingrained in most people’s minds.
If you want to start a business or get a side hustle, consider the following:
- Don’t let your doubts stop before you begin. One job, One Care Mind Frame has been around for hundreds of years, so it can be difficult to accept multiple things. Check for yourself about self-difficult languages, knowing no time, where to start.
- Start small. You can start without any major commitment by driving an Uber, working as a private tutor, or providing freelance writing services to local businesses.
- Be consistent. It may take some time to get into the ditch, especially if you’ve been in one workplace for a while. To be successful, you need to show up and do your job just like you in your main job.
- I will open up time for fun. Burnout is a real threat if you slowly fuss out 40 to 60 hours (or more) a week. Take your time to have fun – go to the movies, hang out with friends, have a barbecue with your family.
After graduating from university, I taught elementary school for six years. To make up for my small income, I started offering freelance editing services aside. Over the next few years I have established a reputation and a trustworthy client base and eventually moved full-time into the world of editing. I built a small business that did more than paying the bills – it became a passion. It took tenacity, long hours and tenacity, but turning the fuss on my side into a full-fledged business (and a new career) was the best thing I did for myself!
– Katie Lowry
Bankrate Loans Editor
Final Words from Denny of your BFF (Best Financial Friend)
One argument for the idea of multiple income is to burn both ends of a candle. And to some extent you’re exchanging money. But if you don’t have the money Invest in real estate Or funding a startup business could be a great stoppage for side hustles.
Adopting side hustle attitudes when you’re young has allowed you to put you on the fast track to retirement savings and other financial goals. This is especially true as a young citizen is much cheaper than the latter part of life when you usually have a home, car, child, dog and have more financial responsibility. If you are modest with your income on your side, you can build nest eggs, make a down payment at home, or set yourself up to retire early.
After sending out the loan for 25 years, I can absolutely say this with confidence. Earning money will improve your financial health than ever before.
