We all need to work, in some form or another, whether we like it or not. But your plain, old 9 to 5 doesn’t have to be the only option. More and more students and graduates are turning to side hustles, like ridesharing, selling items, writing, delivering food, and more (check out these side hustles that can help you make some serious cash!).
First, let’s look at how to establish your own side business and what you need to know about being your own boss. Then, let’s share some ideas on what you can save for with the extra cash you earn!
Starting a Side Hustle
Almost everyone can make a little extra money doing something they likely already know how to do. If you want to earn money in addition to your job, first figure out what you’re good at. If you love to drive and have an eligible car, you might want to consider driving for ridesharing apps like Uber or Lyft. Maybe you have a skill, like writing, video producing, DJing, photography, or crafting! If so, set up an online shop or build out your portfolio and start advertising to get your name out there. Chances are, there are plenty of people in need of your services! Thumbtack is a cool site that has countless jobs available, with everything from pet sitting to officiating a wedding!
Once you know what you want to do, understand the financial benefits, and costs, associated with your new business. For example, if you are doing freelance work outside of your normal job, you will have to pay taxes on all the money you earn. You will likely have to buy all of your own equipment if you aren’t working for a company. All of these factors influence how much you’ll make with your side gig.
Okay, so you know what you want to do and you have your finances in order. So what should you save for with that extra green in your pocket?
A Vacation
One of the most popular things to save for with the extra cash you earn from your side hustle is a vacation, because they are an elective expense. There’s no better feeling than traveling the world knowing you earned every dime doing something you’re good at, outside of your regular job.
A Home
Making a down payment on a house is difficult for many millennials and recent graduates, but side hustle money can help. While you might not be able to pay off the whole house in cash, you can build a good chunk of change for a down payment.
A New Car
Who would have thought that you could buy your dream sports car with a successful side hustle? These gigs give you a chance to earn cash to then invest and hopefully grow your capital. Even large purchase are within reach with a successful side business.
A New Phone or Laptop
The newest technology always has our eye! Use your side hustle money to buy that shiny new phone or laptop you have your eye on. Even better? You may be able to deduct your purchase from your self-employment taxes (talk to a professional about this).
A Diamond Ring
For all you romantics out there, a side hustle is the perfect path to a diamond ring for your loved one. There’s no sweeter feeling than giving someone you love a ring that you earned yourself, all by being your own entrepreneur.
Side Hustle Tips
The Millionaire Millennial claims that he has made over $1 million in side hustle money. He does this by working hard, but also being smart with his money. Rather than blowing your side hustle cash on an immediate purchase, invest it to make it grow even more. There are countless investing apps available that make this easy and you can build your portfolio around your personal risk tolerance.
Another tip to make the most out of your side hustle money is do something you’re good at, and do it well. Many people starting their side gig turn to apps like Fiverr, but these apps take a cut and the professional ends up making pennies on the dollar. Instead, market yourself to make the most profit.
Side hustles are more than just a way to kill time. You can make some serious cash on your own!
