It’s hard to get rich from a single job. Most of the time, people accrue their wealth through multiple revenue streams, like owning property or starting their own business. But most of us don’t have the time or money to leave our jobs and start a new business. You probably do have time, however, to start a side hustle.
Side hustles don’t get in the way of your full-time job or other obligations. But when they’re done right, they can attract some serious revenue. Here, we’ll talk about what a good side hustle is and highlight nine benefits they can bring.
What Is a Good Side Hustle?
A good side hustle isn’t just a lucrative one. To make it truly worth your while, your side hustle should meet these five qualifications:
1. You have a personal interest in it.
It’s much easier to be invested in something you actually care about and are already experienced in. If you try to do something new, you’ll spend a lot of time learning and less time making money. Plus, most people start a side hustle to make money fast. Choosing something you know makes it that much easier.
2. It won’t be too expensive to start.
Don’t choose a side hustle that would put you in debt—the point is to make money, not lose it. If your side hustle requires you to spend a large amount of money every month, it probably isn’t worth it. But there might still be some upfront costs that don’t recur, like building a website and buying a domain name; that’s probably more manageable. So start saving money before you start a side hustle to cover any initial startup costs.
3. You have enough time to manage it.
A side hustle with a huge time commitment will leave you exhausted. This can negatively affect your social life and cause you to neglect your full-time job. Figure out how much time you can afford every week to dedicate to your side hustle. You should also determine how long you think you can maintain it for—if you don’t have the energy to maintain it in the long run, it might not be worth it to even start down that road
4. You can do it by yourself.
Your side hustle should be completely dependent on your schedule. That way, you only have to worry about how much work you can handle. Hiring employees can get messy; you have to find a competent candidate and deal with taxes and payroll. You could, however, start a side hustle with a trusted partner, like a friend or your spouse.
5. It has the potential to grow.
Some of the biggest businesses today, like Google and Amazon, started as a small project. So, if you see your side hustle as something that could succeed in capturing a wide audience, it could be worth your time and energy. And if things go well, it could turn into your full-time job.
Why Should You Start a Side Hustle?
We’ll explore the numerous benefits to starting a side hustle below, but the most compelling reason for most people is the obvious one: A side hustle provides you with extra pocket change. If you’re already meeting your needs with your primary work, you can treat your hustle funds as discretionary income and put them toward whatever you want to.
Here are a few ideas for why you should start a side hustle:
- Save up for a vacation.
- Buy birthday or holiday presents.
- Pay off debt more quickly.
- Treat yourself to a nice dinner.
- Save a down payment for a house or car.
- Put aside money for retirement.
- Start a college fund.
- Invest in the stock market.
Ultimately, if you have needs or wants that are important to you—and who doesn’t?—that’s a good reason to get out there and hustle.
9 Benefits of Having a Side Business
Is a side hustle really worth it? Well, here are nine benefits of having a side hustle that can help you decide for yourself.
1. Develop a Broader Skill Set
Even if you’re an expert in your craft, a side hustle is sure to increase your skill set. For example, if you’re starting a baking company, you might learn about new ingredients and techniques that can improve your existing recipes. Or, if your side hustle involves building a website, you’ll gain basic web coding and design skills.
Whatever your side business is, you’ll be able to gain new skills and master ones you already know.
2. Secure Your Income
The notion you can work at the same company for 30 or 40 years until you retire is outdated. A recent study found that baby boomers held about 12 jobs throughout their lifetime.
There are various reasons you may change jobs—you might want a job with a higher salary, want to change industries, or even be laid off. When you’re in between jobs, you won’t have any revenue coming your way. But having a side hustle can get you a second stream of income, which secures at least some funds you can rely on.
3. Make Financial Goals Easier to Reach
With that second revenue stream in mind, side hustles are great for building up wealth to reach your financial goals. Your goal may involve reaching a certain amount in your savings account, buying a home, or just paying off debt.
Having that second source of income will help you reach these goals faster. So when you do achieve them, you have more money to spend on the luxuries of life.
4. Expand Your Business Networks
“It’s who you know, not what you know.” It’s the advice almost all of us have heard when we want to strike rich or get our dream job.
Side hustles will introduce you to new people, like vendors, customers, or even your competition. And while you may not see the benefit of your new connections immediately, those connections can eventually introduce you to more new people who have bigger and better connections.
5. Open Other Job Opportunities
With a wider network, you can find new job and career opportunities. For example, maybe you meet someone with similar goals as you, so you opt to combine your businesses. Or maybe you find you could be a valuable member of another business, which may turn into a new full-time job.
Or, if things go really well for your company, it may turn out to be more lucrative than your current job.
6. Give a Sense of Purpose
Even if you love your full-time job, it can feel like a grind after you’ve worked there for a few years. You may start to feel like you’ve lost meaning in your work. A side hustle can reinvigorate you with a new sense of purpose as you focus on your passions.
7. Improve Mental Health
As you gain control of your new business and grow your professional self, you may see major improvements to your mental health. Spending time on something that energizes you can relieve boredom, which is more important than it may sound—people who are chronically bored are at higher risk for depression, anxiety, drug addiction, and a host of other emotional disorders.
8. Provide a Creative Outlet
Some people are lucky enough to have a full-time job that fulfills their creative passions. Others don’t have that luxury. If you’re part of the latter group, then a side hustle can be your creative outlet. If you’re passionate about your side hustle, then you can let your creativity loose.
9. Offer More Flexibility in Your Schedule
Even though it may seem like you have less time to relax with a side hustle, you’ll have a structured activity to come home to every day. And while you’ll have to plan your time around your full-time job or family commitments, you can work on your side hustle for however much time you have that week.
Go Start Your Side Hustle
What are you waiting for? Start your side hustle today. These benefits of having a side business are plenty of reasons to budget your time and start doing something you’re truly passionate about. With the right amount of effort, you too can make money doing what you love.
Looking for a little extra money before you get your side hustle going? Power Finance Texas can help anyone with a Texas driver’s license get a short-term loan.