Tuesday, August 20, 2019

The Case for A Side Hustle: 3 Reasons Why Everyone Needs A Side Hustle

I was reflecting the other day on how it has been about 8 months since I began my Seeking Alpha side hustle. This reflection led me into thinking about how this side hustle has positively impacted me in several ways. I'll be discussing the three ways my side hustle has improved my finances and my life.

Reason #1: A Decent Income Generator



As a personal finance blogger, I'm all for transparency, which is why I believe in revealing the income that I have generated from my Seeking Alpha side hustle. While it's not an absolutely life changing amount, my earnings from Seeking Alpha are actually on track to surpass the income I generated at my first part-time gig in the first two years of college. That still manages to blow my mind.

As illustrated above, in nearly 8 months I've been writing for Seeking Alpha, I have earned just over $3,800 (my first article was published Christmas Eve last year). This works out to about a $500/month average, although recent months have been higher due to the fact I generally write 2 articles a week.

Even net of all taxes, I've still managed to earn about $3,000. This works out to nearly $400/month in additional income.

As I pointed out in my post on the impact of many side hustles, this income that I'm generating not only allows me to save and invest more, but it also means that I theoretically need less to eventually stop working the day job to cover my expenses.

After all, if I am already able to write a couple articles a week working a full-time job, there's no reason I couldn't write at least another couple a week as part of my semi-FI schedule.

Reason #2: It's Something I Find Enjoyment In Doing

While I do sometimes find some enjoyment in my day job, there are just as many days where I don't, and I feel a bit stressed out to say the least.

The great thing about side hustles is that I believe there is a side hustle for just about anybody.

Are you artistic and creative? Perhaps you could start a graphic design side hustle and pull in a few hundred dollars a month doing something you enjoy as a service to small businesses.

Are you analytical and do you enjoy investing? You could start an investment research side hustle and rake in at least a few hundred dollars a month with a bit of effort while also doing something you enjoy.

Whatever it is that you enjoy, chances are there is some type of way you can monetize it and also have fun doing it.

In my case, I find that the interaction with the Seeking Alpha community has improved my knowledge as an investor and some readers have provided me with fresh perspectives that I wouldn't otherwise have came across if I didn't write for Seeking Alpha.

Financial Panther has a great blog post that discusses how side hustles are often more than just the money, and I couldn't agree more. Side hustles can distract you and take your mind off whatever other stresses you have in your life when you maintain a balance with them.

While I wouldn't suggest someone side hustle 30 or 40 hours a week on top of a 9 to 5, there's certainly a case for side hustles to be a part of everyone's life.

Some Seeking Alpha readers have even private messaged me asking for my thoughts on particular stocks, and I have wrote about stocks to address their inquiry, which leads me into my final reason.

Reason #3: Other Opportunities Are Bound To Come To You

One final thing that is interesting about quite a few side hustles is that while many stay pretty casual and as a way to release stress for the side hustler, there is often the possibility that the side hustle could eventually turn into something much bigger, and lead to other opportunities.

In my case, writing for Seeking Alpha attracted the attention of dividend research firm, Sure Dividend. While I haven't yet wrote any pieces for them, I do intend to in the near future and the option is on the table for me.

Had I never started writing for Seeking Alpha, I likely never would have received this offer to write for Sure Dividend. It's also great because besides the dividends I'm receiving from the companies I own, my paycheck from my employer, and earnings from Seeking Alpha, I'll also have an additional income source through Sure Dividend.

The more we are able to diversify our income, the better off we'll be at dealing with the loss of any one of those incomes.

The great thing about a side hustle for a site like Seeking Alpha or Sure Dividend is that you never really know who is reading your work. I even once received a private message from the CEO of a mid-cap REIT that I wrote about, which was pretty cool.

You may even receive a full-time job offer at an investment firm or if you keep at your side hustle diligently for a few years, your following could become so large that it may eventually become worthwhile to quit your job and focus on your side hustle full-time.

While I'm a long ways away from being able to consider focusing considerably more on my side hustles, I know that the longer I write, the more my online presence will grow.

As I continue to increase my income and keep my expenses fairly low, my net worth and passive income will both grow. This could eventually give me the courage to make the leap toward making my side hustle my full-time job as my following and my income both grow.

Conclusion:

Beyond just the financial benefits of a side hustle, there is also the added benefit of side hustles being able to take your mind off of any stress at work, school, or with your family/friends. Some may find side hustles as a therapeutic release to help them cope with whatever issues are going on in their life.

Obviously, the financial benefits of a side hustle are quite notable. They can be a great way to earn hundreds, if not thousands of dollars a month in extra income which can be allocated to paying off student loans, building an emergency fund, investing, or even rewarding oneself through purposeful spending.

And in some cases, side hustles can lead to other opportunities and interesting interactions with others. The possibility of one day being able to turn your small-time side hustle into lucrative full-time work is just another reason to consider a side hustle.

Discussion:

Did I miss any reasons why we all need a side hustle? Are there any examples you can think of to further support my reasons for a side hustle? As always, thanks for reading and I look forward to replying to any comments you may have.



2 comments:

  1. I totally agree.
    Side hustle is not just about money, but it is not voluntary work either. It should be something relatively enjoyable that has potential for making money :)

    Right now I am doing matched betting, and it is really cool because I have sometimes enjoyed casual sports betting and I also like to make money online.

    - Financial Nordic

    ReplyDelete
  2. Financial Nordic,

    I'm glad you enjoyed the blog post. Side hustles should certainly be something that one takes some enjoyment in that also comes with the potential to make a bit of money. Thanks for the comment.

    ReplyDelete