During tough economic times, it is logical that people will find alternative means to make more income. This is where side hustles come into the picture. In the last seven years, the number of Americans with side hustles increased by 10%. Even that doesn’t compare to the number of people who gained one in the last three years. 67% of Americans managing side hustles with mainstream jobs started three years ago. The spike recorded in 2020 was influenced by the pandemic. Below is a discussion of why side hustles are a good idea.
- Wealth creation
According to a 2021 survey on Americans’ access to wealth, it was revealed that 13.61 million households make the mark. This means that these households crossed the $1 million minimum net worth threshold. Interestingly, this excludes their primary residential properties. From a wider perspective, 10% of the American population has already created wealth and is doing more to increase their returns. Having a side hustle is a tested way to begin the wealth creation journey.
The truth is, if you’re not paying off any debt, you may have an increased chance to venture quicker into wealth creation without having to worry about high interests. That is not to say that people who owe cannot create wealth. The profits you make from your side hustle can be geared into several wealth creation outlets. For example, trading stocks or forex with the extra money you make can be an excellent idea. However, if you have little knowledge about it, you would find it useful to learn to trade. Indeed, what you started as a means to live more comfortably can become a conduit to attain financial independence.
2. Backup plan
There is a very good reason for the saying, ‘never put all your eggs in one basket.’ With the job market plummeting in April 2020 and US employment reaching an all-time high of 14.70%, side hustles became life-savers. People who were already engaged in these on-the-side income-generating activities could keep their heads above water. Others fortunate enough to get paying side hustles during the pandemic easily came to terms with losing their mainstream jobs.
Unfortunately, those with no backup plan faced financial difficulties that dramatically increased jobless claims in 2020. It pays to think about the future and unexpected events when dealing with reality. Having a backup plan can come of great use on a rainy day, so keep this in mind.
3. Opportunity to discover a new passion
Many people have started side hustles as a means to generate extra income, only to realize down the road that it is a real passion. Talk about literally stumbling on a passion. Something that was a hobby now turned into a job can be a motivating tool to make it work. Moreover, doing what you love never feels like a stressful job, anyway. A typical example of this is Mark Zuckerberg. During his time at Harvard University, his side project, a social media platform for students on campus, turned out to be a global multibillion-dollar business. Indeed, there are several more examples like Zuckerberg. With the right dream and determination, your side project or hustle can turn out to be a discovery to serve countless purposes.
4. Self-awareness and development
Training and professional development courses may be obligatory when you have a contract with your employer in a mainstream job. While there is truth in the perception that most of the training is generic and not designed to suit individual strengths and weaknesses, there is more. You may become overly reliant on these training sessions simply because they are provided by your employer and can be a means to an end. On the other hand, the parameters may differ dramatically when you take on a side hustle and wish to develop.
First of all, you understand the benefits of self-awareness and how bespoke training can positively impact your side hustle. Secondly, it is easy to determine which personal and professional areas need fine-tuning relevant to the cause. Under these circumstances, you cannot underestimate the value of focused and targeted training. Furthermore, a side hustle draws more detailed attention to making money on your own. You sharply become aware that your actions and inactions can affect how much you make in a period.
5. Instills a sense of purpose
People with a renewed sense of purpose tend to have twice the energy levels of those without it. Here, energy and motivation go hand in hand. When you’re passionate about your side hustle, it is easy to maintain your focus and interest on the subject at hand. There is also optimism, resilience, and a sense of hope that things will work out for the better good.
What a side hustle does is to build an inner desire to brave the odds. Usually, the elements that act as detractors from the main job may be absent here, so keep this in mind. For instance, effective time management may not be a problem, especially when you control your hours with a side hustle.
6. Peace of mind to experiment with ideas
Steady income flow from your regular job can be a major advantage. Indeed, as you balance your side hustle and day job, there may be little to no pressure in making large sums right away. The psychological satisfaction of knowing that you have a regular salary to fall on allows you to experiment with your side projects.
The usual debilitating fear of making a loss can be significantly reduced. More so, you may feel no immediate pressure to quit your job unless it becomes necessary. In your mind, you know that you can continue to handle both until the side hustle takes off. At that point, it becomes demanding enough to require your 100% attention.
There are many more things you stand to benefit from juggling a side hustle with your day job. With all this, it is worth noting that persistence, patience, and commitment play significant roles here.