The Side Hustle | Ways to Use Your Extra Money

Adam Herod
Dec 10, 2018
4 min read

Updated: Dec 18, 2018

Here are some great reasons to consider or continue a side hustle.

History of the Hustle

It used to be that working extra was the way to get ahead. If the boss came around with a clipboard, employees needing the extra funds would sign up for extra shifts, night shifts and overtime.

If you were a single worker providing for a family, then the extra work was the only way to stay ahead.

Although working 60+ hour weeks for a single job is still a necessity in a few industries, those in non-traditional positions have made the side hustle a way of life.

We can envision the side hustle as a point of innovation dreamers and thinkers, or a path to revenue generation for those in need.

The world, and the markets for that matter, crave human innovation and improvement. In that light, I've laid out a few points that will show you why a side hustle might be right for you.

Money to Shake Down Debt

I love the idea of using a side hustle to pay down debts.

Career starters and those with lower than average paying jobs (ref: teachers) often work a side job to make ends meet. But if you're fortunate to be in a position where your needs are met by your current role, then a side hustle can be used to accelerate debt payments!

Not many of us think about debt repayment this way, but if you pay down debts with a side hustle you are inevitably increasing the power of your primary income.

What could be better than using your side hustle as a way to progressively buy yourself freedom from debt?

Here's how it works: If your mainline job allows for you to cover all of your expenses, then any debts you pay off using funds from your side hustle will increase your staying power from your mainline income.

You want to think of your side hustle as a way to lessen the burden on your primary revenue stream.

The longer you work at your side hustle paying down debts, the less you need the side hustle to escape your debt repayments.

Money to Invest and Grow

Once you've beaten back your debts, you can view your side hustle as a way to begin or increase your active investing.

Here are two ways you can invest using your side hustle:

Relief Investment: No matter which stage of your career, you can use your side hustle money to provide relief from your 401(k) or 403(b) investment. Let's say you contribute 10% to your workplace retirement plan for each paycheck, but that 10% gives you quite a pinch. You can view your side hustle money as a way to keep yourself on track with your workplace investment, while providing relief each month so you can afford your standard of living.
Direct Investment: If you are able to meet all of your needs, including retirement investing, with your primary source of income, then any extra money you earn from a side hustle be used as a direct investment into your emergency savings, Roth IRA or brokerage account. Most would use their side hustle money for fun expenditures; however, with a little planning you can create a steady cash hoard for later use.

Skills for Now and Forever

Since the job market has been steady for the past few years, those in urbanized and suburban experiencing growth may have the ability to choose side hustles that boost their resumes.

Working a primary job and a side hustle can afford you the money you need to meet your goals, but working a side hustle that adds value to your resume is a double bonus that may lead to higher income opportunities later on!

If you can view your side hustle as leverage or an opportunity to gain a high-income skill, then you are doing more than impacting your wallet - you're impacting your overall growth.

Inevitably, your goal will be to increase your hourly rate and decrease the time you need to invest each week to meet your financial goals. Some people work more hours for more money, but if you can leverage your experiences in both your primary and side positions you can work fewer hours for more money.

Respite from Your Primary Career

A side hustle can not only provide you with extra money, but it can give you a break from the monotony in your primary work. Vacations are often viewed as a way to break away, and there's no denying their value in extending our work longevity; however, simply working a side hustle that provides pure enjoyment and extra money can be more effective on a weekly basis.

Consider the following: (a) You've planned a vacation that's four months out, and (b) you are a dog lover working a side hustle that requires you to be on-site three times per week.

Waiting four months may be a drag, and if our goal is to make the most of every day then wishing those days by can be a real waste. Instead, if you get a chance to break away from your primary role and work with animals or children, you will benefit from the respite and the charity and rejuvenation of your time invested benefiting others.

Add to that a vacation and your life has now created a greater impact, overall.

Networking

Finally, a side hustle can be a great way to network with people outside of your current industry. If you're in a sales, this is a great way to grow your business. If you're in a dead end job and will soon look for an exit, this could be a great way to build a reputation with others and seek opportunities.

Whatever you decide to do with your extra time, it's important to consider it as an opportunity for personal health and well-being.

I can think of no greater way to cause an impact than breaking away from your mainline work, seeking respite through benefiting others, and leveraging your extra funds to build a better today.

Who knows? Maybe that side hustle of yours could turn into a full time business, where you can experience the benefits of being your own boss and setting your own schedule!

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You can message Adam at wealthmapblog@gmail.com.