by You have seen the posts “Get a Side Hustle” or “50 Side Hustles To Get Right Away”. Before you start a side hustle we are going to encourage you to do a couple of items. Today’s information is going to walk you through questions to ask yourself before you start a side hustle.
Before we really get into it let’s get something out of the way:
“We love hustle, we love the side hustle, for almost our entire working career we have had more than 1 job or side hustle”
Now that we have that out of the way let’s get into some questions to ask yourself before you start your side hustle.
What is the purpose of the side hustle?
We recommend that you should have an answer of “more money” as that will quickly fade. More money is great however there has to be a driving force as to why you want to take on a side hustle.
Why do you want a side hustle?
- Are you looking to increase your income for additional investing dollars?
- Do you want to improve a skill that you have today?
- Would you like to change careers and need some experience?
- Are you looking for additional income to pay down debt?
- Is there a big ticket item that you are saving for that extra funds would help with?
- Are you trying to help a family member or friend in need?
You may not have the answer right away. We encourage you to sit down and think through the why. Right it down. Make sure you know why you are going to take on a side hustle.
Have you evaluated what you spend money on today?
The majority of articles always talk about the extra money that comes from the side hustle. One of the items that is not discussed is you need the funds in the first place.
Are you looking for a side hustle because you are short on funds monthly?
If that’s your reason we admire you for looking for ways to generate additional revenue. Before you take on a side hustle we would encourage you to look at your expenses first.
A few items that can provide quick wins:
- Are you subscribing to too many online entertainment services?
- Is eating out literally eating into your monthly revenue?
- Are you possibly too aggressive on savings that it’s making regular life difficult?
- Have you evaluated what you pay for services such as cell phones, insurance, or cable?
It’s critical to know where your money is going now. Generating additional dollars when you don’t know where your today dollars are going could lead to frustration and we don’t want that for you!
How Much Are You Looking to Generate on a Monthly Basis?
Maybe you looked at our post on Roth IRAs and want to generate enough funds to max out the $6,000 annual limit. Maybe you need $500 monthly to pay down a credit card or a car loan.
We would encourage you to approach your side hustle from at least two angles:
- How much do I need total?
- How much do I need on a monthly basis?
You might find that you need $500 a month to pay off $5K on a credit card that you no longer use. You want to get out of debt and you have determined that this is the fastest way to get this done.
You might also have evaluated that after the debt is gone you would like to save for a new car, build an emergency fund, or start investing in an index fund.
What is the bigger picture?
This isn’t always the easiest answer. We get people frequently telling us “why does it matter?” It matters because when it’s 10:37 PM on a Wednesday night and you are working on your side hustle you need a BIG why.
You will want an answer that is big enough so you choose the work over the latest episode of the “it” show on Netflix or sleep.
If you have a big vision such as:
- Changing the financial future for your family
- Eliminating debt so you are free to make different decision monthly
- Changing careers to one that you are more passionate about
Big visions provide motivation. You can use that motivation to create discipline so when motivation fades you are so disciplined it no longer matters.
We want you to be able to improve your financial future. We want you to do it without sacrificing your health in the process. Sure there will be late nights however we want it to be short term while you work toward the future you deserve!
Twins Rules for Financial Success
As with all of our content here we want to encourage you to follow three core rules :
- Have an Emergency Fund/Squirrel Funds
- Invest for the Long Term
- Invest Automatically & Consistently
