(This is the first of a 3 part series on Side Hustling for parents)
Over the past decade parents have felt their wallets get smaller. In addition to raising children who cost us over $200k during our lifetime, the average income has been shrinking. According to a recent study the median income for America’s middle class has fallen from $72,956 to $69,487 since 2000.
To make the situation worse, many parents have credit card balances, lingering student loans, car payments, mortgages, and increasing expenses. Did I mention we still have to pay for school fees, day care, clothes, sports, and the list goes on.
With all of these expenditures in our lives, how are we supposed to get ahead? How can we pay off debt? How can we save for retirement? How can we obtain financial freedom?
Although I believe a few budgeting hacks would dramatically improve the financial lives of many parents, a side hustle is your quickest way to improving your money problems.
I know what you are saying…”WHOA, Travis. I have children to raise, a spouse, a house to clean, and a full time job. Where in the world would I find time to side-hustle?” That’s a great question, but I am not going to debate that today (however I will in an upcoming post).
A side hustle can be the game changer your family needs! I know many people who are earning between $500-$4,000/month on the side. Personally, I earn over $2k a month selling things on Amazon. If you don’t believe yet, let me explain more.
7 Reasons Parents Need a Side Hustle
1) Debt Reduction
Let’s assume you have a side hustle where you earn $1,000 extra a month (very attainable). After taxes you’ll have $800 leftover. We’ll also assume you have $20,000 in credit card and student loan debt.
You would be able to pay off that debt in a little over two years! After that you have an extra $1k a month to save.
2) Increased Retirement Savings
Now we’ll assume you have paid off your debt. So you decided to invest that $800/month in ROTH IRAs for you and your spouse.
If you do this for 25 years at a modest return of 8%, you will have an additional $757,962 in your retirement accounts that will be tax free at distribution. That makes retirement a little easier and maybe a little sooner!
3) More Experiences
Numerous studies show that experiences, not things make us happier. These experiences can be vacations, sporting events, or just time off to spend with your family.
If you can earn extra money, then you will be able to afford some of these experiences without going into debt. Your family will remember those times more than the toys they got at Christmas.
4) Survive a Layoff
One thing we learned during the “Great Recession” is that no one is really safe in their corporate job. Layoffs were common from 2008 and even now.
A side hustle can help you in two ways. 1) Build an emergency fund if you are laid off. 2) It can help you supplement money while you are laid off. Both of these will make a lay off much easier for you and your family.
5) You Learn New Skills
Side hustling has helped me learn a ton of new skills. Some include:
– How to build a web site
– How to run my own business
– Idea generation
Some of these skills I have learned have also helped me in my day job and made me a better employee.
6) It’s Exciting
As I have mentioned before, 70% of people in the country dislike their job. Sometimes our careers/jobs become boring and mundane. A side hustle allows you to work on something you enjoy…something that excites you.
A side hustle can give you something to look forward to and something to call your own.
7) It May Take You into the Unknown
If you find the right side hustle, it may take you into a direction you never thought possible. You may even make more money at your side hustle than at work. Which gives you great options.
You may think this is impossible, but you should check out a few of these rock stars who have turned their side hustles into something much greater:
As you can see, I really believe in a side hustle. The number one objection I receive is TIME. In my next post, I will show you how to carve out time in your day and week to make a side hustle work.
Do you side hustle? If so please share.
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