Your Side Hustle Could Help You to Retire Quicker

 

Photo by 金 运 on Unsplash

Do you have a side hustle? Are you contemplating starting one? A side hustle is an extra job, gig or business that provides a supplementary income to your main source of income. When you start a side hustle, the goal is to earn some extra money however, sometimes the side business becomes more profitable than your main source of income. 

Side hustles are powerful and if you operate your side business or side job effectively, you might just retire earlier than you expected. 

If you want to use your side hustle to retire earlier than the usual 65 years old, then take note of some of the tips in this article. 

Live Below Your Means 

One of the most powerful pieces of advice for building financial freedom is to keep your spending low. Live below your means, don't live above your means. You should be saving more than you spend. Your side hustle income shouldn't be seen as a source of spending money, you should be putting money aside to invest rather than spend. 

Here is an example, if you own a property and you have a monthly mortgage payment of $1000. You might want to reduce that living expense by renting your property for approximately $1200 per calendar month. Then,go ahead and rent a place for $700 per month in a cheaper area. You will save an extra $300 per month and you will also receive an extra $200 per month. Use this money to pay off your mortgage quickly, once you eliminate your mortgage payment, you can really start working your way towards financial freedom. 

Look at Retirement Differently 

When you tell people that you want to retire early, they automatically assume that you want to stop working and do nothing at all. However, retiring early doesn't mean that you have to stop work, what it means is that you have enough passive income to work less and live more. For example, your living expenses work out to be $1000 per month, you receive $3000 in passive income. You can effectively retire and work whenever you want instead of chaining yourself to a desk every day. 

Invest 

Investing is crucial, just leaving your money in a bank savings account is not the best way of managing your money. Invest your money wisely into stocks, cryptocurrency and other investments to ensure that eventually, you will have a passive income. 

Last year, I invested $200 in purchasing two domain names, they were dental and medical field domain names. I left them sitting for a few months and eventually placed them on a domain auction site. Both domains eventually sold for $10,000 each. There are many smart ways to invest, it doesn't always have to be in the most obvious places. The key is to invest your money wisely so that you have a stable and solid income when you finally slow down. 

When you first start making money from side hustles, your goal should be to increase your income slightly, by about $100 to $200 per month. You don't want to burn out and stop side hustling altogether. Therefore, start slow and see how it goes, when you reach your initial goal, branch out and start exploring ways to make even more money from your side hustle. 

The goal is to able to work less and live more, I currently have two side hustles and I recently started one more. This new side hustle is generating an extra $1000 per month at present and I hope to grow this side hustle to $5000 to $10,000 extra money per month. This is the side hustle that I am doing at the moment >>>> My newest side hustle 

If you are thinking of starting a side hustle or gig, start small and build up. You can sell products online, freelance, take up an Uber or DoorDash job, there are lots of things you can do to start making extra money to boost your chances of retiring earlier than everybody else.