For most people, a side hustle is just another way to earn a few extra bucks…
But, have you ever thought about a side hustle as an investment?
Probably not, and here’s why:
Most people see a side hustle as a part-time job. A less glamorous, smaller version of your nine to five to boost your savings, pay off debt or afford a holiday that your paycheck can’t buy.
Investments, on the other hand, make your money work for you. The idea is to invest some cash and let time do the rest. Until the day you hit it big, buy a yacht and sail off into the sunset.
But what if you don’t have those big chunks of cash to invest? Or perhaps the thought of risking your hard-earned money in the stock market simply gives you the shivers?
Does this mean you’re doomed for middle-class mediocrity forever? Absolutely not!
Luckily, there’s another thing that money can’t buy.
What if, by investing your time into building a side hustle around your passions could land you a bigger pay-out and, more importantly, a more fulfilled life than any stack of cold cash ever could?
To explain, and in true Wall Street fashion, we have to evaluate a side hustle as an investment.
The nature of an investment
In simple terms, an investment refers to any mechanism used to grow an existing asset with the goal to increase it’s value over time.
Now imagine time as your greatest asset. Can you actively invest your time with the goal to build a life that is better, more meaningful and valuable somewhere down the line?
More importantly, could an online side hustle really be your path to financial freedom, a more fulfilling life and give you the freedom to live and work from anywhere on this planet?
Only time will tell.
The Compound Interest Effect
If you’re still reading this, you probably have a pension.
And you get how the effect of compound interest works. By continually investing a fixed amount of your salary, and earning interest over a long period of time, your once tiny jar of savings snowballs into a substantial pot of cash that will sustain you for your golden years to come.
But it takes 40 years to grow the fruits of your lifetime’s labour. If you’re lucky, you might actually get to enjoy those fruits.
Sadly, not many people do.
A recent study by the World Economic Forum shows that across the globe, 51% of employees with a workplace pension won’t save enough to live their ideal retirement life. That’s either you or Nick in the cubicle next door…
But what if you started doing things differently? Since Plan A is to work hard and patiently wait 40 years to “retire”, because you feel old, tired and burnt out, why not focus on creating a Plan B?
The next ten years of your life will come and go, regardless of how you choose to spend that time.
Let that sink in for a minute.
Why can’t you start investing your time and allow the effect of compound interest to turn your efforts into a big burning ball of passion that creates not only wealth, but freedom, fulfilment and so much more?
The Return on Investment
To make sense of any investment, you have to calculate the return on investment. Or in simpler terms, if I put in X, how much can I expect to get out?
But let me flip that on it’s head for a minute.
How much is not having a side hustle is costing you financially?
Earning More vs Spending Less
Over centuries, it has been ingrained into humankind to save what we have. Most people still live with a scarcity mindset. And it’s not our fault. Advice from financial “gurus” and retirement planning “consultants” all revolve around one idea:
But how much is the saving mentality actually costing you?
Instead of finding ways you could save, or spend less, what if you started focusing your energy on earning more? Creating multiple streams of income is the fastest way to fill your tank.
Learning a profitable skill like affiliate marketing can not only boost your income, but allow you drop the scarcity mindset and discover a life of abundance online.
Stagnant Wage Growth
Let’s face it, you’re slowly working towards your ceiling at your day job.
Perhaps you’re already there? For most workers around the globe, wages continue to stagnate. A study by Forbes predicted low and middle-class income growth to remain flat, despite soaring stock markets and a healthy world economy at the start of 2020.
How quickly things changed. Along came COVID-19, leaving a flat-lined economy in its wake. Unless you’ve been living under a rock for the past 6 months, you can bet your life you won’t be asking for a raise anytime soon.
But relying on your wage growth alone to determine your financial trajectory is a case of putting your eggs in one basket. By choosing to start a side hustle, you can blow off the roof and raise your earning potential. After all, your income can only grow to the same extent you do.
Your Time is Worth More on Your Watch
Time is money. But how much is one hour of your time worth to your employer?
On average, you can expect to earn more per hour of freelance work than you will as an employee. So why not swop your overtime for a side gig and earn an income online? Going solo and becoming your own boss might not be for everyone, but getting the highest ROI for your time invested probably isn’t the worst idea in the world.
Check out this list of 7 profitable side hustles you can start in 2020.
Getting Your Toes Wet
You’ve gotta risk it to get the biscuit, right?
Well, not always.
The idea of risking your life savings on starting a new business venture is too much to handle for most. But a side hustle gives you the chance to start small.
Quitting your day job from day one is not the ideal conditions to start any entrepreneurial journey. But getting your toes wet while you keep your day job, can provide you with the freedom to explore your options without the risk.
An online side hustle doesn’t need an office, employees or any big overhead costs, so getting started is easier and less risky than ever before.
Personal Growth & Fulfilment
If your day job provides you with enough to live a comfortable life, or support your family, but somehow you’re still feeling empty, you’re not alone.
Americans are divided. One in two say their job is purely a source of income, not a meaningful part of their lives. The other half report their jobs give them identity, or they find purpose in their work.
Who are you when you take away your job title?
A side hustle can give you the chance to earn an income around your passions and find fulfilment in what you do. Engineers become writers, bus drivers sell wine, and teachers don their aprons to become gourmet chefs online.
- Could an Online Side Hustle Become Your Best Investment Yet?
- The Beginner’s Guide: How to Start an Online Side Hustle From Scratch
- 7 Stunning Ideas to Start a Profitable Online Side Hustle
- 5 Reasons Why Millennials Need an Online Side Hustle in 2020
- 3 Reasons Why Wanting is Not Enough
Time & Geographical Freedom
The sharp neon light glares in your eyes after another night of no sleep. Your company computer has passed its peak and makes a deep hum as the file loads. “When can we expect the data report by?” your boss asks. His tone sends a chill down your spine. In the corner of the room, Mrs Smith is going through the copier manual with the intern for the third time.
You get the picture. Even in the modern world, selling your time for money and being tied to one geographical location is something that still enslaves most of us.
But the desire for freedom is deeply rooted inside us all.
So what if you could…
Ditch your desk to decide when and where you work from? Or choose your daily routine to dance to your rhythm? Explore Portugal, spend more time with your kids, or wrap yourself in a blanket and work from the comfort of your sofa.
This type of freedom can be yours by replacing your income online. It might take a year or two to reach that point, but thanks to technology, starting an online side hustle has never been easier than today.
The Bottom Line
You don’t need boatloads of cash to create a better future. You can start by investing your time to start, grow and scale an online side hustle from scratch.
Whether you’re looking to create more financial freedom, or you’re seeking personal growth and a sense of fulfilment, starting a side hustle around your passions can become the best investment you ever made.
Start small, learn new skills and challenge yourself to increase your value. Then use the effect of compound interest to snowball your actions over time.
May you always reap what you sow.