Financial independence is the ultimate dream of any worker who’s tired of his 9-5 job. Being financially independent means, you don’t have to slave away, clocking in hours, and trading time for your money. However, this is quite difficult when you don’t have the resources, knowledge, and most especially time to do so. That leaves others with the impression that the lucky few can only achieve financial independence.
The Side Hustle Economy
Putting those impressions aside, there is a way to be financially independent over time. No, you don’t have to be a big-time CEO, nor should you invest all your savings in a business venture. All you have to do is to create a side hustle.
The side hustle economy is alive and thriving. According to Interstate Associates, as much as 44 million Americans admit to having a side hustle. It could be a business, another job, or any other income-generating project that they hope would help them reach their financial independence goals.
What are some ways to succeed in having a side hustle and earning money to retire rich eventually? Here are some basic principles you should know.
Interstate Associates Shares How to Side Hustle Your Way to Financial Independence
Do your research
The first step in having a side hustle for financial independence is performing your research and weighing the pros and cons. Some people can be quite dabblers. Those who have an idea but then abandon them later on for another seemingly “shiny opportunity.”
Do not be like this! It is crucial to think about what you’re getting into, how much money you can potentially make, and if your schedule and resources allow you to commit to the side hustle you choose.
Pick a side hustle that aligns with your passion and current market demand
For a side hustle to be sustainable, you have to pick the common ground where your passion meets the current demands. If you enjoy taking care of children, and you know that there is a shortage of childcare centers in your area, you can use your passion as an advantage to meet that need.
It is not ideal for picking something that you think will sell, but you are not passionate about. You may end up quitting when things don’t go your way. In the same way, it is also not best to pick something out of pure passion–when there’s no market for it, your side hustle will not thrive.
Decide to commit to your side hustle
If you have the goal of being financially independent through your side hustle, Interstate Associates suggests that you need to pick a schedule where you know you can commit to working on it.
For example, you may want to start a blog or a website to earn money. If you want this plan to succeed, you must set aside a specific time of your day to make posts and promote your website online. Dilly-dallying will probably give you some form of income, but it will not make you financially independent.
Turn your profits into income-generating assets.
Once you commit to your side-hustle, you are guaranteed to see results. However, there’s a fine line between using the profits ‘just to pay the bills’ versus a strategy where you will use the profit to make income-generating assets.
What are some examples of income-generating assets that you can purchase?
Stocks and Bonds
Stocks and bonds are defined as shares from a company. As you purchase a share, the company will pay you dividends depending on how well the market is doing.
It is debatable to some, but wisely investing in real estate can allow you to have rental properties for passive income.
As you save money from your side hustle, you can invest in other businesses that would generate more profit in the long run.
Interstate Associates mentions that the key to financial independence is making your money work for you. When you use profits to make more profit-making platforms, you are on your way to being financially independent.
These are just some of the strategies you can utilize to have a stable income through a side hustle. The key takeaway is working passionately while meeting the demand while using the profits to make more income over time.