2868: Side Hustles Aren’t A Necessity - But They Can Change Your Life by Kevin of Financial Panther on Extra Income

[00:00:00] [SPEAKER_00]: This is Optimal Finance Daily.

[00:00:03] [SPEAKER_00]: Side hustles aren't a necessity, but they can change your life by Kevin of FinancialPanther.com.

[00:00:10] [SPEAKER_00]: And I'm your host and personal finance enthusiast, Dianna Merriam.

[00:00:15] [SPEAKER_00]: This show is actually one of multiple shows in our network covering different topics

[00:00:20] [SPEAKER_00]: like personal development, health, and relationships.

[00:00:23] [SPEAKER_00]: So if you like narration-style podcasts, be sure to search for Optimal Living Daily

[00:00:28] [SPEAKER_00]: wherever you're hearing this and check out our other shows.

[00:00:32] [SPEAKER_00]: But for now, let's get right to today's post as we optimize your life.

[00:00:41] [SPEAKER_00]: Side hustles aren't a necessity, but they can change your life by Kevin of FinancialPanther.com.

[00:00:50] [SPEAKER_00]: In the divide between whether or not to side hustle, I've always been firmly on the side of the side hustle.

[00:00:58] [SPEAKER_00]: The way I see it, if you can figure out a way to earn extra money doing something you enjoy,

[00:01:03] [SPEAKER_00]: then why shouldn't you do it?

[00:01:05] [SPEAKER_00]: That's not to say the arguments about why side hustles are bad are wrong.

[00:01:10] [SPEAKER_00]: They have some valid points.

[00:01:12] [SPEAKER_00]: Side hustles often don't pay much, and they can be a waste of time.

[00:01:17] [SPEAKER_00]: You could also say side hustles personify the worst of hustle culture,

[00:01:23] [SPEAKER_00]: glorifying people sacrificing their lives in pursuit of work and money.

[00:01:28] [SPEAKER_00]: I've always had a bit of a mixed view when it comes to hustle culture and how I feel about it.

[00:01:33] [SPEAKER_00]: On the one hand, I get it, too many of us sacrifice our lives for work and money.

[00:01:38] [SPEAKER_00]: We put work at the center of everything, even above our lives and our family and friends.

[00:01:45] [SPEAKER_00]: I made a deliberate choice a few years ago to go my own way instead of continuing in the rat race.

[00:01:51] [SPEAKER_00]: It led to me quitting my job not because I was making so much money from creating online,

[00:01:58] [SPEAKER_00]: but because I wanted to gain back more control of my life and my time.

[00:02:03] [SPEAKER_00]: And while I can make a comfortable living doing what I'm doing now,

[00:02:06] [SPEAKER_00]: blogging and doing gig work, I'm probably never going to make as much as I could have made

[00:02:12] [SPEAKER_00]: if I kept grinding it out as a lawyer.

[00:02:15] [SPEAKER_00]: That being said, I don't always see what the problem is with telling people to hustle,

[00:02:19] [SPEAKER_00]: working hard, trying your best at whatever it is you do.

[00:02:23] [SPEAKER_00]: These all seem like good characteristics to instill in yourself,

[00:02:27] [SPEAKER_00]: which I guess gets me to the ultimate point of this post about side hustles

[00:02:31] [SPEAKER_00]: and what they're all about.

[00:02:32] [SPEAKER_00]: You don't have to side hustle to meet your financial goals.

[00:02:36] [SPEAKER_00]: If it's not for you, it's not for you.

[00:02:39] [SPEAKER_00]: By no means are side hustles a necessity, but they can change your life eventually.

[00:02:45] [SPEAKER_00]: Here's what I mean.

[00:02:46] [SPEAKER_00]: The arguments for why you shouldn't waste your time side hustling.

[00:02:51] [SPEAKER_00]: Before we get into what I mean about side hustles and how they can make you rich,

[00:02:55] [SPEAKER_00]: let's address some of the common criticisms I sometimes hear about

[00:02:59] [SPEAKER_00]: why side hustles aren't worth doing.

[00:03:02] [SPEAKER_00]: Here are a few arguments I often come across.

[00:03:06] [SPEAKER_00]: Argument 1. Side hustles don't pay much.

[00:03:10] [SPEAKER_00]: Side hustles don't pay very much.

[00:03:12] [SPEAKER_00]: That's one big argument for why side hustling isn't worth doing.

[00:03:16] [SPEAKER_00]: And I can't necessarily say I disagree with this.

[00:03:20] [SPEAKER_00]: Most side hustles don't pay much.

[00:03:23] [SPEAKER_00]: Almost anyone reading this can probably find a side hustle that earns 20 or 30 dollars per hour,

[00:03:29] [SPEAKER_00]: but that's probably not going to be enough to make major changes to your financial life,

[00:03:34] [SPEAKER_00]: at least not immediately anyway.

[00:03:37] [SPEAKER_00]: But here's the thing.

[00:03:38] [SPEAKER_00]: Small amounts do matter, even if they don't seem like they do.

[00:03:42] [SPEAKER_00]: 20 or 30 dollars of extra money in a day isn't a lot of money.

[00:03:47] [SPEAKER_00]: It's certainly not enough to live on.

[00:03:49] [SPEAKER_00]: But given enough time and consistency, it can add up,

[00:03:53] [SPEAKER_00]: especially if you give enough time for compounding to take effect.

[00:03:58] [SPEAKER_00]: I'll go into some more detail on what I mean later in this post.

[00:04:02] [SPEAKER_00]: Argument 2. Side hustles have a high failure rate.

[00:04:07] [SPEAKER_00]: If you're starting a side hustle that you're trying to scale into something,

[00:04:11] [SPEAKER_00]: then you're going to have two problems.

[00:04:13] [SPEAKER_00]: It's not going to pay much at the beginning, and it has a high chance of failure.

[00:04:18] [SPEAKER_00]: I started this blog over five years ago.

[00:04:21] [SPEAKER_00]: It made almost nothing for the first three years.

[00:04:25] [SPEAKER_00]: My hourly rate was pennies.

[00:04:28] [SPEAKER_00]: And while I defied the odds and kept writing through all of that,

[00:04:32] [SPEAKER_00]: most of the people who started around the same time as me quit long ago.

[00:04:37] [SPEAKER_00]: That's why I rarely talk about scalable side hustles in my monthly side hustle reports.

[00:04:43] [SPEAKER_00]: Most people simply aren't going to make much money

[00:04:46] [SPEAKER_00]: or get past that inflection point where their side hustle can sustain itself.

[00:04:50] [SPEAKER_00]: But that's not what side hustles have to be about either.

[00:04:54] [SPEAKER_00]: Every side hustle you do doesn't have to become a full-time business in itself.

[00:04:59] [SPEAKER_00]: That's why I've always promoted gig economy side hustles.

[00:05:04] [SPEAKER_00]: Those are the ones that anyone can do.

[00:05:06] [SPEAKER_00]: You almost can't fail with them.

[00:05:09] [SPEAKER_00]: And if you understand how to make the gig economy side hustles work for you,

[00:05:14] [SPEAKER_00]: they can make a lot of sense.

[00:05:16] [SPEAKER_00]: Basically, they're not meant to be full-time jobs.

[00:05:19] [SPEAKER_00]: They're supposed to be ways to earn a bit of extra money.

[00:05:24] [SPEAKER_00]: And argument three, side hustles take too much time.

[00:05:28] [SPEAKER_00]: If you're trying to create something out of nothing,

[00:05:31] [SPEAKER_00]: then absolutely any side hustle you pick is going to take a lot of time.

[00:05:35] [SPEAKER_00]: I spent hours per day working on this blog when I was working full-time.

[00:05:40] [SPEAKER_00]: I needed to create content because that was the only way

[00:05:43] [SPEAKER_00]: I was going to get this blog off the ground.

[00:05:45] [SPEAKER_00]: It was essentially a second full-time job on top of my day job.

[00:05:50] [SPEAKER_00]: But side hustles don't have to take up a lot of time either.

[00:05:54] [SPEAKER_00]: Even when I was working a traditional full-time job,

[00:05:57] [SPEAKER_00]: I still took an hour or so per day doing side hustles

[00:06:00] [SPEAKER_00]: that I could fit into my day-to-day life.

[00:06:03] [SPEAKER_00]: Gig economy apps like DoorDash and Uber Eats aren't time sensitive.

[00:06:08] [SPEAKER_00]: When I wanted to do them, I could turn them on.

[00:06:11] [SPEAKER_00]: When I was done, I just stopped.

[00:06:13] [SPEAKER_00]: It's not an all-or-nothing approach with these side hustles.

[00:06:17] [SPEAKER_00]: You can pick up whenever you want,

[00:06:19] [SPEAKER_00]: do a little bit at a time, and make a little bit of extra money.

[00:06:23] [SPEAKER_00]: An hour a day can change your life.

[00:06:26] [SPEAKER_00]: I think it's true.

[00:06:27] [SPEAKER_00]: An hour a day can really change your life.

[00:06:29] [SPEAKER_00]: Even earning small amounts of extra money per day

[00:06:33] [SPEAKER_00]: and investing it all can change your future.

[00:06:36] [SPEAKER_00]: Consider what an extra $20 per day can mean

[00:06:39] [SPEAKER_00]: if you can save that amount every day for 30 years.

[00:06:43] [SPEAKER_00]: That's over $730,000 in the future,

[00:06:48] [SPEAKER_00]: all from earning $20 extra per day doing anything.

[00:06:52] [SPEAKER_00]: And if you can get that number to $30 per day,

[00:06:55] [SPEAKER_00]: you'll literally be a millionaire, more than a millionaire actually.

[00:07:00] [SPEAKER_00]: Most of us have an hour a day to earn some extra money.

[00:07:04] [SPEAKER_00]: And I can almost guarantee that almost anyone can earn $20 to $30 an hour

[00:07:09] [SPEAKER_00]: every day without having to do much.

[00:07:12] [SPEAKER_00]: Walking a dog for 30 minutes can bring in $15 to $20.

[00:07:16] [SPEAKER_00]: Doing a few deliveries on a bike with Uber Eats or DoorDash

[00:07:20] [SPEAKER_00]: should earn most people $20 or $30 within an hour.

[00:07:24] [SPEAKER_00]: And there are countless other things you can do.

[00:07:28] [SPEAKER_00]: I know it's something I have no trouble doing,

[00:07:30] [SPEAKER_00]: and I'm not the exception either.

[00:07:32] [SPEAKER_00]: But most people won't do this because it's not easy and it's not fast.

[00:07:37] [SPEAKER_00]: It takes time.

[00:07:38] [SPEAKER_00]: It requires you build a habit.

[00:07:40] [SPEAKER_00]: And you won't see results early on.

[00:07:42] [SPEAKER_00]: You might not even notice anything's happening until years have passed.

[00:07:47] [SPEAKER_00]: I started tracking my side hustle earnings five years ago.

[00:07:50] [SPEAKER_00]: Today, I'm shocked to find that I've made over $130,000 from side hustles.

[00:07:56] [SPEAKER_00]: It's crazy these small things I've done every day for years have added up.

[00:08:02] [SPEAKER_00]: It doesn't require much.

[00:08:03] [SPEAKER_00]: That's not to say it's easy, but it's not out of reach either.

[00:08:08] [SPEAKER_00]: You don't need a side hustle, but they can help.

[00:08:12] [SPEAKER_00]: This isn't an either or proposition.

[00:08:15] [SPEAKER_00]: You don't need a side hustle to become rich.

[00:08:17] [SPEAKER_00]: They aren't a necessity.

[00:08:19] [SPEAKER_00]: If you want to become rich or have money, the formula to do that has always been there.

[00:08:24] [SPEAKER_00]: Earn a good income, make more than you spend, save the rest.

[00:08:29] [SPEAKER_00]: If you do that for long enough,

[00:08:31] [SPEAKER_00]: you're almost guaranteed to get to where you're trying to go.

[00:08:34] [SPEAKER_00]: But while side hustles aren't a necessity,

[00:08:37] [SPEAKER_00]: I think it's absolutely true that they can make a big difference for anyone.

[00:08:42] [SPEAKER_00]: Small amounts, day by day, all add up.

[00:08:45] [SPEAKER_00]: It's not fast.

[00:08:46] [SPEAKER_00]: It's not glamorous.

[00:08:47] [SPEAKER_00]: But it works.

[00:08:49] [SPEAKER_00]: So take advantage of this fact.

[00:08:51] [SPEAKER_00]: Find something you enjoy doing.

[00:08:53] [SPEAKER_00]: Keep doing it.

[00:08:54] [SPEAKER_00]: And keep doing it for a long time.

[00:08:57] [SPEAKER_00]: Eventually, some amazing things can happen.

[00:09:04] [SPEAKER_00]: You just listen to the post titled,

[00:09:06] [SPEAKER_00]: Side Hustles Aren't a Necessity, but They Can Change Your Life

[00:09:10] [SPEAKER_00]: by Kevin of FinancialPanther.com

[00:09:13] [SPEAKER_00]: And I'll be right back with my commentary.

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[00:10:15] [SPEAKER_00]: This is a paid advertisement.

[00:10:18] [SPEAKER_00]: Fun fact!

[00:10:19] [SPEAKER_00]: Hosting this podcast is actually my first paying side hustle.

[00:10:24] [SPEAKER_00]: Podcasting alone now covers all of my ridiculously low living expenses.

[00:10:29] [SPEAKER_00]: I'm basically able to pay my bills with two hours of work per day,

[00:10:34] [SPEAKER_00]: which is amazing.

[00:10:35] [SPEAKER_00]: But that never would have happened if I wasn't first willing to hustle

[00:10:39] [SPEAKER_00]: outside of my full-time job in corporate America.

[00:10:43] [SPEAKER_00]: There are a lot of reasons why side hustles can be a good idea.

[00:10:46] [SPEAKER_00]: But if the sole reason why you're doing it is for money,

[00:10:50] [SPEAKER_00]: it'll probably lead to burnout.

[00:10:53] [SPEAKER_00]: I think it's really important that you pick a side hustle

[00:10:56] [SPEAKER_00]: that you enjoy or that ticks some other boxes for you.

[00:11:00] [SPEAKER_00]: A big reason why I get to host this show

[00:11:03] [SPEAKER_00]: is because I created the Economy Conference,

[00:11:06] [SPEAKER_00]: which is known as a party about money.

[00:11:08] [SPEAKER_00]: And while that business hasn't made me any money yet,

[00:11:11] [SPEAKER_00]: it's led me to some pretty incredible opportunities, like this show.

[00:11:17] [SPEAKER_00]: I created Economy not as a side hustle,

[00:11:20] [SPEAKER_00]: but much more as a passion project.

[00:11:23] [SPEAKER_00]: I wasn't getting a lot of meaning out of my corporate career,

[00:11:26] [SPEAKER_00]: and I wanted to create something I was proud of,

[00:11:29] [SPEAKER_00]: rooted in a subject matter that I care deeply about.

[00:11:33] [SPEAKER_00]: I believe having the right motivations for Economy

[00:11:36] [SPEAKER_00]: and this role as the host of OFD

[00:11:39] [SPEAKER_00]: has led me to an encore career beyond my wildest dreams.

[00:11:44] [SPEAKER_00]: And that's a wrap for another Monday show.

[00:11:47] [SPEAKER_00]: Have a great rest of your day and start to your week,

[00:11:49] [SPEAKER_00]: and I'll be back tomorrow where your optimal life awaits.