Do you have financial goals that you want to achieve or wish to earn a passive income through something that you enjoy doing? If so, a side hustle might be right for you. Finding the courage to invest in a side venture can be difficult. That’s why we’ve put together a list of the top 5 reasons why getting a side hustle is worth it.
Pay Off Your Debt
One of the top reasons you should consider a side hustle is to help you pay off your debt faster. Having a second income can help significantly in reaching your financial goals. For many, a primary income source is not enough. Oftentimes, it is already being fully stretched between bills and other expenses.
With the assistance of a side hustle, you can take the extra money that you will be making and apply it toward paying down your debt faster. Over time, this will help increase your credit score and allow you to have more financial freedom. You may want to consider setting up a separate savings account for these profits and re-invest them into the side business to help grow. This can help you to properly manage your money and avoid the temptation of using these funds for unnecessary purchases.
Save for an Upcoming Purchase
If you have plans to make a major purchase anytime soon, a side hustle could be right for you. Setting aside extra money each month will help you reach your goals that much faster. Whether you’re looking to purchase a new car, put a downpayment on your first home, or send your child off to college – a side hustle will help you achieve these dreams.
While loan offerings can be competitive for these purchases, any extra money that you can put toward your down payment can help you get a more competitive offering. For example, as a first-time home buyer, you may qualify for an FHA loan, but the more you can put toward that loan, the more it can help you get a more competitive interest rate and fewer payments. Every dollar you save helps you reach your goals.
Create an Emergency Preparedness Fund
Another great reason to get a side hustle is to create an emergency fund for yourself and/or your family. You never know when an emergency expense will pop up, if your job will have unexpected layoffs, or as this year has shown us, a national emergency will arise. As difficult as it is to think about any of these events occurring and the stressors that they carry with them, it’s always important to be prepared.
Having money set aside that you can tap into when these emergencies come up will help lessen the financial burdens that come with them. A helpful strategy when preparing your emergency fund is to determine a set percentage of your income that you can realistically set aside every paycheck. With a side hustle, you’ll be able to set more aside for this fund each month.
Unleash Your Creative Side
Starting this venture doesn’t have to be daunting or stressful. It should be something that you enjoy doing. Find a side hustle that will help you unleash your creative side. Working on something that you’ve always wanted to try or something that you are skilled in can be a great way to make money with a personal passion. For example, designing your own phone cases and selling them online can help you explore your creativity and share your work.
Additionally, having a creative outlet can help you alleviate stress. Creative activities are a great form of self-care and getting paid for your talents makes it even more worthwhile.
Grow Your Entrepreneurial Skills
Having a side hustle can also help you develop entrepreneurial skills. Learning how to run and operate a business can be valuable knowledge for anyone. These skills can help you become more financially wise, self-reliant, and empowered. Not to mention that it feels good to control something of your own and watch it succeed.
Starting a side hustle doesn’t have to be difficult. Choose something that you are passionate about or interested in learning more about. Researching through online guides, videos or training kits can teach you all that you need to know to get started.