If you earn a decent income and have stable finances, you may not be looking to join the growing trend among Americans to start a side hustle. But should you look for a side gig even if you aren't hurting for money at the moment? The answer may be yes. Here are a few key reasons to do so and how to make the most of this opportunity within your overall financial plan.
1. Your Situation Can Change
Just because you have a good job and your portfolio is growing right now doesn't mean that things won't change on a dime. Everyone is at risk of a poor economy, natural disaster, job loss, or just rising inflation. Wealth management isn't just about making money — it's also about planning how you can keep it for a lifetime. Diverse streams of income help with that.
2. It Gives You Options
A side gig increases your choices for supporting yourself. You might find a whole new career or have the chance to work part-time but earn more. You could start a business out of a hobby. A rental unit may result in mostly passive income — perhaps during retirement. But if you don't explore these or other opportunities, you limit your options to the ones currently on the table.
3. You Have the Funds
Good times are great times for setting and reaching a goal. You have the funds to put toward setting up a business, buying real estate, or investing in someone else's idea. If you wait until you lose a job, you don't have that seed money anymore. Maximize this financial potential by including designated bank accounts for the purpose of setting up future income streams.
4. It Provides Targeted Boosts
Your overall portfolio and financial plan may be healthy in some areas, but is it robust in every area? Could you put more into retirement? Could you plan better for expensive vacations? Increase liquid emergency funds? Or get rid of high-interest debt? Consider developing your side hustle with the express purpose of putting the funds toward a specific weak point.
5. You Benefit from Stimulation
Many people complain of burnout in their 9 to 5 jobs. Meanwhile, retirees may miss the mental stimulation from social interaction and interesting work. Side gigs aren't just about earning more money. They can also help keep you sharp, engaged in life, active, and part of a social network. Don't overlook the physical and mental health benefits of the right off-duty activities.
Where Should You Start?
Not sure what type of side hustle is right for you? Or how to fund it? Start making a plan by meeting with a wealth management planner today. They will work with you to identify your goals, create budgets, set timelines, and integrate them into your overall financial plan. For more information on wealth management, contact a professional near you.
Unfortunately, personal finance is not a subject that is widely taught in schools. And yet, to be a functioning adult in society, you need to know the basics about earning money, saving money, taking out loans, paying interest, and so forth. Money makes the world go 'round, and you won't get very far in the world without a basic money education. There are many ways to learn more about money, from reading books to visiting a personal financial advisor. You can start by reading some of the articles on this blog, which address a wide range of financial topics for people in every situation.