You need a side hustle
Most people don’t think about side hustles when they are employed. They feel that they are getting a stable income and do not need a side hustle – or don’t have the time. Though valid in many cases, it is worth considering the cost of not hustling.
Remember – good times don’t last forever, and we need to prepare for bad times – both financially, through educating yourself and personal development.
7 Reasons you need a side hustle
The top reasons you need a side hustle is:
- You need to diversify your income streams
- Hustles can help you reach financial goals faster
- It can help you with better time management
- Hustles can help you grow your skillset
- It might open opportunities to hustle fulltime
- You might be able to build and fund your dream through your hustle
- Hustles open the doors for networking and opportunities
Let’s get into more details below.
1. Diversify your income streams and risk
The biggest risk you can have is having a single source of income
Most people only have a single source of income and a very niche skill set in that industry. As we grow older, our employer might opt to hire 4 juniors to do our work – costing him the same as our salary. Though diversification can be reached through passive income investing (ETFs, property, etc), it is worth investing in yourself and a hustle – especially to keep you busy. Hustling is a perfect opportunity to get another income stream and you quite often get to do what you love.
2. Reach your financial goals faster
Some people have ambitious financial goals – either of necessity or by choice. Imagine being over-indebted and in need of extra cash. Or wanting to FIRE (i.e. retire early). For most of these situations, any extra cash will be welcome.
Consider adding your income from your side hustle into your financial plan – and consider the impact that it will make.
3. Hustles help you plan your time better
One of the top excuses I hear from people is that they don’t have the time for a hustle. 95 % of people struggle with time management – it’s not just a matter of hustles, but also of overtime from current employment, family responsibilities and networking.
“Lack of direction, not lack of time, is the problem. We all have twenty-four hour days.”
Side hustles can help us prioritise our lives – as we need to plan and manage the workload, clients that we take on and make better decisions.
4. Upskill and grow with your side hustle
I was listening to the book “How I built it” by Guy Raz. One of his interviewees explained that she enjoyed exploring and experimenting with cosmetic creams. She realised she could make this a hustle when she heard the following quote:
If you had to get up at 3 am in the morning to do something – what would it be? If it excites you at this time, you know you’ve found it.
Here’s the lesson – we can grow into what we love and upskill in that field. Don’t let anyone tell you that it’s not possible. You can make a success of anything given enough time and resources. And don’t be stuck with resources being only money (see my post here for no money hustles)!
If you want to do a course about something before you start, that’s awesome. Just don’t get stuck with the knowledge but without the knowledge of the practical application.
5. Growing a side hustle might grow full time
We know that everyone loves their full time job – and if you do, welcome to the 5% of the population. If you don’t enjoy what you’re doing, it might be time for a change. Consider starting a few hustles on the side and decide which ones you enjoy the most.
Remember – if you have momentum in a hustle, it will create more momentum and can grow into a full-time thing where you can do what you love.
6. Build your own dream
Personally, my biggest issue with full-time employment was that I had to sacrifice my personal dreams for those of my employer. Though I am fully aware that we need chiefs and indians, many people are chiefs stuck in the job of an indian.
If you have the ambition to become more – to be your own boss and build your own dream, then you can hustle your way to what you want in life.
7. Expand your network and opportunities
For a long time, I have complained that I don’t have a large enough network. The issue is often not that you don’t have the network, but that you don’t leverage the network intentionally. In other cases, you can strategically expand your network to invite opportunities your way.
If you offer a service or product, it is a (non-spammy) conversation starter at a braai that will allow you to connect with people who would be interested in your services. I do want to stress that intention, purpose and non-spammy networking is recommended. Please don’t spam people with “buy my stuff”!
Doing a side hustle can help you to diversify your income streams and reach financial goals faster. On the practical side, you can develop better time management and grow your skillset.
I know it is not for everyone – and I encourage you to follow your dream – and if a side hustle will enable your dream, then do it! Never overlook the power of networking, growing and educating yourself. Happy investing!
Sources consulted and extra reading
- Discover.com – 4 Reasons You Need a Side Hustle
- One step outside – 8 benefits of starting a side hustle
- Forbes – Here’s Why You Should Consider A Side Hustle
- Millennial money man – 7 Reasons Why You Absolutely Need a Side Hustle
Article reposted with permission from Frugal Local.