The Cost Of A Side Hustle
Tuesday, December 8, 2020, 6:00 AM | Leave Comment
According to a survey from Bankrate, nearly half of all employed Americans are currently working a side hustle job in order to supplement their full-time income.
In the age of supposed higher wages, increased employment opportunities and lower priced commodities, it begs the question why are so many people actively engaged in a side hustle?
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Prevalence Of The Side Hustle
It is no surprise that recent worldwide events have caused many people to lose their jobs. In economics terms, this uncertainty leads to instability and panic. And one way to offset this financial worry is to increase your income and diversify it.
Hence, the side hustle.
And with so many side hustle options available, with seemingly no risk and hardly any upfront costs, the allure is appealing.
The great thing about the modern era of the internet means you can not only find side hustles that suit your skills and talents, but also you have many options to learn and develop new skills.
This in turn can be refocused towards making extra money for a myriad of reasons, including:
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Reducing existing debt levels
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Stockpiling an emergency fund
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Investing for future retirement
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Reducing monthly outgoings by paying off mortgage
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Buying back time to spend with family by working less but more profitable hours
And so is this side hustle business as easy as everyone says?
And could your financial freedom be just one easy side hustle away?
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The True Cost Of A Side Gig
In fact, the true cost of a side hustle needs to be viewed from multiple angels. If you already possess the skills and infrastructure necessary to begin operating your side gig, the costs will be lower. And this will go towards your bottom line or take home pay.
For example, a writer could quite effortlessly transition into freelance writing almost immediately. And there are a great many online resources where they could begin to generate work and start getting paid.
The true cost for this type of side hustle scenario is firstly the time you give to the side gig and secondly how much it pays relative to your existing income.
On the other hand, a side hustle that requires new skills, or the very least, the development of existing skills will obviously cost you a great deal of time. But if this forgone time initially pays less than your existing income, you can see it as a form of long term investment. Whereby the payout will be in multiples as time goes on.
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Utilize Your Skills And Attributes
One way to speed up the time it takes to maximise the returns of a side hustle is to utilize your existing skills. This is like your secret weapon, and makes total sense when considering the side gig as a business.
You not only have a leg up on your competition in terms of the quality and efficiency at which you can operate, but also you will find it easier and less of a time constraint.
If however you don’t enjoy your existing job, or don’t have any concernable skills that fit the bill of a new side hustle, then learning is your only option.
But this isn’t necessarily a bad thing.
Remember, it also makes sense from a business perspective to diversify your risk. And having multiple streams of income that lend themselves to a range of skills is doing just that.
Conclusion
It has never been easier to diversify your income by way of side hustling. The opportunities are plentiful and it takes but a mere Google search to be bombarded with possibilities.
The true cost of the side gig you choose will be split between your time given and the opportunity cost of income lost from new skill development.
The whole process can be streamlined and made more efficient by picking a side hustle that utilizes your existing skills and talents. But when this is not possible, rest easy in the knowledge that you are diversifying your income, spreading your risk and opening the doors to a whole world of possibility.
Throw us a like at Facebook.com/doable.financeAuthor Bio
Hey, I’m Chris. I have a degree in Business Economics from the University of Liverpool, own a small fast food business and run LifeUpswing.com. I will help you to make money, save money, and think about money in a way that will give you back your freedom.
