5 Benefits of Starting a Side Hustle
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A side hustle is anything you do to earn money outside of your regular job. This might include signing up for DoorDash or Instacart, or perhaps freelancing and building a passive income stream. (Related: How to become a freelance writer and earn extra money in your spare time.)
I firmly believe in multiple streams of income and feel it’s dangerous to rely on one source.
And yes, I realize some jobs are more secure than others, thus reducing the likelihood of a job loss. But not everyone enjoys this type of security. And even when someone lives a relatively simple life, the cost-of-living doesn’t always keep pace with their income.
This isn’t the only reason to at least “consider the possibility” of a side hustle, though. So here’s a look at five benefits of starting a side hustle
1. A side hustle is empowering
A side hustle is an opportunity to do what you enjoy, even if it’s only on a small scale.
I can’t tell you the number of people I’ve heard say, “I wish I could do [such and such]…that’s my passion and it would make me happy.” Yet, they don’t pursue this passion because it might not pay enough to cover their bills.
I get it. We live in the real world, and in the real world we have bills.
But even if your passion doesn’t provide 100% support, pursuing it a few hours a week might bring in several hundred dollars a month.
I believe in doing what makes you happy, and with a side hustle you can. Don’t put your passion on the back burner just because it doesn’t earn $50,000 a year (or however much you need).
Besides, when you don’t rely on your side hustle income to pay expenses there isn’t a lot of pressure to earn money. You can do it for the enjoyment and fulfillment.
Do you enjoy photography? If so, maybe spend one day a week taking and editing your photos, and then create an Etsy store or online gallery of your digital prints. If you’re an expert in a subject, create an online course or share your knowledge on YouTube.
2. A side hustle can build an emergency fund
Another big benefit of a side hustle is the opportunity to prepare for an emergency, such as a decrease in income.
One thing 2020 taught us is that *many* jobs aren’t as secure as previously thought.
Last year I saw a news segment about a local dentist thinking about closing its office. I don’t know about you, but I’ve never heard of a dentist going out of business.
Job losses are scary—no doubt about it. But they can be less scary when you have emergency funds to fall back on.
A minimum 3 to 12 month’s worth of living expenses is recommended. Of course, this is easier said than done. If you’re struggling to build a solid savings, getting a side hustle and saving 100% of the income (after taxes) can provide the jumpstart you need.
Think about it this way: Earning just $500 a month is $6,000 a year.
And if you never lose your job, the money saved can help with other expenses like a car repair, a home repair, etc.
3. Side hustle money can pay off debt
It’s easy to get into debt, but not so easy to get out.
Between high balances, high interest rates, and only paying the minimum, it might take years to pay off a relatively small credit card balance. In the meantime, you end up paying hundreds in interest.
The amount you owe makes up about 30% of your credit score. So if you keep your credit card balances high or maxed out, your credit score will suffer. At which point a lot of things become more expensive.
If you’re not earning enough on your job to dig yourself out of debt, a side hustle might help get rid of your credit card balances faster. And this doesn’t only apply to credit card debt.
Maybe you’re trying to knock out student loan debt, a car loan, or tackle your mortgage. Increasing your income gives you the ability to live a debt-free life.
4. You can enjoy more experiences
Side hustles are also great for enjoying more experiences.
I have two mottos. Number 1: spend less on things and more on experiences. And number 2, travel is the only thing that can make your life richer.
I believe both in my soul, but of course, you need extra money to travel and have more experiences.
Living simple can definitely free up cash for experiences. But even if you keep your expenses low, your income might not be enough to do the things you enjoy.
Vacations and experiences don’t have to be elaborate or expensive. Even so, there’s a price to just about everything. You might need to earn more per month, which is possible with a side hustle.
5. Your side hustle might grow into something bigger
And the biggest reason why I think you should consider a side hustle—especially if you aren’t happy in your field: It can potentially turn into something big.
In other words, something that can actually support you and your family.
Depending on what you do, and the amount of time you devote to it, a side hustle can eventually replace your income. But there’s no way to know what a hustle can do…until you get it off the ground.
Did you find this information helpful, or got a question on starting a side hustle? Let us know ↓↓
Benefits of starting a side hustle FAQ
What is a side hustle?
A side hustle is an extra job you do on the side of your main one. It’s a way to bring in more cash, like driving for Uber or selling crafts online. You can choose flexible hours and fit it around your main job, making it a good option for some extra income.
What is the best side hustle?
There’s no one-size-fits-all “best” side hustle. It depends on your skills and interests! Do you like creating things? Try selling crafts or handmade goods. Tech-savvy? Offer virtual assistant services. Free time evenings? Deliver food or drive for rideshare. The key is finding something that fits your schedule and lets you earn extra cash.
What are the benefits of starting a side hustle?
Side hustles can boost your income, giving you a financial safety net or extra savings. They offer flexibility, letting you work when it suits you. You can explore passions, try new skills, and even build a career change foundation. It’s a chance to meet new people and grow your professional network.