hustle

5 Unexpected Side Benefits of Your Side Hustle

Claire Millard — Wed, 06 Apr 2016 09:00:14 +0000

The quirky cool girl you always see knitting on the train? Her side hustle is selling on Etsy. The tech support guy you sometimes sit with at lunch? He does his own freelance web design. And that chatty stranger who stopped you in the street to take an Instagram photo of your outfit? She's hustling, too, with her commercialised blog.

Everyone is at it. The side hustle in all its forms is a distinctly Millennial concept. With more options than ever, you might be tempted. Here are five unexpected reasons why you should get hustling today.

1. Compound Interest

One of the main draws to starting a side hustle is the option to bring in some extra cash. Which is great if you have a handbag habit or exotic vacation to fund. But where this gets really, ahem, interesting, is interest — compound interest, to be precise.

Money earned and invested while you're young is worth more to you than money earned when you're further down your career path. Simply by saving the income from a single high school summer job, you could use compound interest to beat the average American pension pot. (See also: This Is How Rich You'd Be If You'd Saved the Money You Earned in High School)

But the early years are precisely when we are least inclined to cut our costs to pay off student debt or start investing in a 401K. That's where the side hustle comes in. Prop up your earnings, and use the extra to invest. You won't regret it.

2. Unemployment Insurance

When the robots come to take over your job, do you have a plan B?

Your side hustle might be your perfect insurance against unemployment in a world where organizational change and layoffs are all too familiar. Pick a field where you can develop marketable skills, and even if the worst should happen, you can fall back on them to earn your keep.

Tech-based side hustles are particularly useful in this respect, as you learn the skills that will be really in demand in the next few years. But don't forget the more traditional practical skills people seek out, like hairdressing, beauty services, and skilled trades.

3. Increased Confidence

If you're not sure what your side hustle could be, then pick something that takes you out of your comfort zone. Learning a new skill and pushing your own boundaries will do wonders for your confidence, as well as building a business.

Try building on a skill you're already confident in, but in a way that stretches your boundaries. For example, if you play a musical instrument well, offer lessons to improve your teaching technique, or design an interactive web course to share your knowledge with other learners.

Technology makes it easier than ever to find creative ways to connect with people who might be interested in your knowledge, products, or skills. Treat it as a challenge to increase your own experience level while earning on the side.

4. Creating New Passions

Turning something that's currently a hobby, into an income generator is a sure way to make sure you dedicate more time to it. Rather than feeling a slightly guilty twinge when you "waste time" on your passion, you're investing in your business and yourself.

Even better, you might discover new passions and interests along the way. These can help keep you fresh and interested, and give breadth outside the usual industry silos we get trapped in.

5. Professional Development

Even if you have no expectation that you will change your career course, your side hustle can add value to the day job. Most of us need to practice continued professional development, and the side hustle can be a good way to do that while profiting from your efforts.

For the best results, choose a route that allows you to develop skills to complement the work you do on a daily basis. If you work in an area that values vocational skills, you could become a trainer or assessor for the relevant qualifications. In a large team environment or in a corporate setting, think about training as a coach or mentor, to add value in your day job as well as build your freelance business. If you're a skilled writer or public speaker, deepen your knowledge of a niche area related to your job and write for industry magazines, or pitch to present at conferences. These are all ways to bring in additional income, while also improving your prospects in your main employment.

It's easy to see why more and more of us are seeking out a side hustle to add some variety to our working life. From offering a creative outlet and allowing for further personal and professional development, the benefits go far beyond the immediate cash boost you can get from taking on some extra work.

Do you have a side hustle that changed your life? Let us know in the comments!

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This article is from Claire Millard of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Things I Learned About Money After I Went Freelance

Kentin Waits — Mon, 21 Mar 2016 09:30:25 +0000

Accurately or inaccurately, I've always considered myself a financially savvy guy. I avoid consumer debt like a pro, keep my wants in check, get all OCD about saving for retirement, and hunt for bargains like a steely-eyed warrior. But when I decided to chuck my 9-5 job eight years ago and commit to building a freelance business, I realized that I still had some serious learning to do. My new venture taught me a few brand-new money lessons and served as a refresher course on others. Here are seven things I learned about money once I went freelance.

1. There's Power in Profit

In a traditional work arrangement, a company produces a good or service and the management team determines how much employees can be paid in order to safeguard or maximize profits. Once you become your own employer, the distinction between payment and profit blurs — to your benefit. If you control costs and price your labor correctly, the profit can be a powerful force to fund expansion, pursue additional training, or enjoy more free time.

2. Budget or Go Bust

Especially in the early days of any freelance business, income can be unpredictable. That's why knowing how to build a budget and live within it takes on a whole new level of importance. A well-structured monthly budget should leave a financial cushion to help you ride out late payments, adjust to unforeseen expenses, and squirrel away money for taxes.

3. Stay Lean

No matter how dogged your determination, lean months are inevitable in any one-person enterprise. Planning ahead, keeping overhead in check, and staying financially disciplined are make-or-break strategies. I apply the same principles to freelancing as I do to traditional employment — in today's economy, it's smart to be prepared for a layoff at any time and have six months' worth of income set aside for cash flow interruptions.

4. The Taxman Cometh

When I became a one-man enterprise, the level of importance I placed on income tax awareness went from about a two to a solid 10. As part of the freelancing set, your tax obligations can change significantly. Learn all you can and retain a trusted tax advisor who caters to the self-employed. (See also: Freelancing: A Beginner's Guide to Doing It Right).

5. Income Is Fluid and Largely Controllable

Money is just labor in physical form, right? As much as I knew this before, going solo helped me understand it far more profoundly. Once my freelance career gained traction, I realized that I had control over my income in a new and direct way, and I could exercise that control to increase my billings and, in turn, grow my savings.

6. Negotiating Skills Are Non-Negotiable

Whether you're buying or selling, negotiating helps you get the best deal possible and it's one of the essential life skills every freelancer needs. Freelancing full-time has challenged my negotiation skills and forced me to take my skill level from "proficient" to "expert." Negotiating tactical discounts to forge new client relationships, working out the details of retainer agreements, and establishing realistic project timelines require flexibility and fortitude.

7. The Devil's in the Details

As with all things financial, the details matter. Keeping track of contracts, hours, rates, outstanding invoices, and expenses means the difference between success and failure. Likewise, knowing how to project income from month-to-month based on accurate record-keeping helps me plan for major expenditures, invest in my business, and pay estimated taxes each quarter. (See also: 16 Time and Money Saving Apps for Freelancers).

Remember, we keep learning (and relearning) money lessons as our lives and careers evolve. And when it comes to freelancing, experience is a quick and able teacher. The goal is be open to the lessons and broadly apply what we learn to build more financially independent lives.

Do you work freelance? What has it taught you about making and managing money?

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Five quick and simple scams that could happen to you today

Paul Michael — Thu, 07 May 2009 19:50:17 +0000

Any long-time readers of Wise Bread know that I like to keep up-to-date on hustles, scams and con jobs. They change all the time, and new ones are invented daily. A US version of the UK show The Real Hustle has been trying out some very simple but effective cons on the American public, and they’re getting away with some serious money. Watch, learn and stay alert. One of these could catch you out the next time you leave the office or home, even if it’s just to grab some quick cash from an ATM or a small bite to eat.

The ATM Hustle
Here, two ways to grab your cash at an ATM are outlined, and in both methods you never even know you’ve been the victim of a scam. The second version is more prevalent and has many variations as it requires no technology. Street teams work areas in busy cities, I was victim to a version of the second one about ten years ago in London. When using an ATM, keep your wits about you and if anything looks or feels suspicious, walk away.

The Laptop Switch-Off
Right now I’m on the hunt for a used laptop for my wife, so this one really caught my attention. If you’re a fan of Craigslist, you may be tempted by a used laptop at a great price. In this case, a $1000 Macbook for $500. But listen to that voice in your head, and realize that deals too good to be true usually are. When you buy a laptop, keep your eye on the machine at all times, test it thoroughly and most important, don’t hand over your cash until the actual laptop is in your possession.

The Café Manager Scam
This one is all about questioning authority, or in this case, never questioning it. In most cases, we believe what we are seeing and hearing because we have no reason not to. When a guy in a suit approaches you in a café or restaurant and says he is the manager, why wouldn’t you believe him? Big mistake. It just goes to show how far confidence can get you (hence, con man). At a restaurant table, there should be no reason at all to hand your credit card before the start of a meal, even if you’re ordering drinks. And if you want to open a tab with a card, do it at the bar.

The Bag Snatch
So simple and yet so effective. All it takes is a small distraction, just a conversation or someone asking the time, and your valuables are gone. Never put your bag down in a busy place, or if you do, keep one foot on the handle or strap.

The Distract & Conquer Con
Here, the con artists take advantage of the Good Samaritan syndrome. BY posing as tourists and asking for help, they’re able to get close to people and walk away with some very nice valuables. Again, keep these items on you, there’s no need to have a cell-phone laying out on the table when jacket pocket will do the job just as well.

You can find many more examples of hustles and con jobs at TruTV.com, under The Real Hustle. Stay safe and aware folks.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 more ways to hustle free drinks.

Paul Michael — Mon, 28 May 2007 21:47:49 +0000

My favorite scammers from The Real Hustle have been busy. I know over 130,000 of you enjoyed (and hopefully tried out) the friendly scams in my last post . Well, the hustlers have come up with a whole bunch of new ways to grab some free booze. There are some great new cons here, some require props, others a little practice, but I guarantee any one of them will get you something for nothing. What I do like is the justification behind them, which I never thought of before but it works every time.

"If you lose and buy me free drinks, you can play this trick on your mates and get free drinks bought for you." Great! It's like Pay It Forward in reverse. At some point everyone in the world will get a free pint of ale or a wee dram of scotch. What a wondeful world that will be.

So, here's your new ammo. Take notes people and have fun.

1 - On a roll: The Beer Bottle and the 20

2 - Chain of fools: The escaping ring

3 - Balancing act: The impossible stack of coins

4 - Swipe it: The hand is quicker than the dough

5 - Hole truth: The note and the coins

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: