Why Everyone Should Start A Side Hustle

October 28, 2019

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Thanks to the accessibility of the internet, there are plenty of opportunities to earn money right from the comfort of your home and in a flexible way. From blogging and YouTube to freelancing or running a home based business, there are a number of things to consider based on your skills and interests.

Here are a few reasons why establishing a side hustle is something that everyone should consider.

Get out of debt quicker

Debt doesn’t discriminate; it can affect people from all backgrounds and have a devastating impact on your life. Whether your debt was a result of a collapsed business or poor financial planning or anything in between, it makes sense to bring down the sum as quickly as possible to avoid high interest costs. Setting up a low risk side hustle means you can start earning money but without spending much to get started.

Freelancing is one example, you can sign up to a freelancing website without spending a penny and start accepting work right away. Anything you earn from your side hustle can go into an account which can then be used to pay off debt. If you save up a lump sum, you can pitch an amount to your creditor and ask for the rest to be written off. Depending on the type of debt and how long you’ve had it, there’s a chance they’ll accept.

Build savings

Once you’re out of debt, it’s important to start saving money; having a buffer can prevent you falling back into debt or arrears if you come up against a difficult financial situation. Use your side hustle earnings solely for saving, set up a separate savings account and transfer all of your additional earnings into this.

It will quickly start to build, and you still have the earnings from your regular job to pay your bills. If you struggle to save money normally due to low earnings or high living costs, then this extra source of income can be a great way to build up some savings.

Have a backup source of income

Even if your job feels very ‘safe’, none of us really know what’s around the corner. Companies go into administration all the time, jobs are lost and people are forced into redundancy. Even an accident or illness could lead to you no longer being able to do your job. You might even make a silly mistake that lands you in jail and your family having to find a jail bondsman!

Whatever the situation, if you lose your job and your regular wage, having a backup source of income to fall back on can be a real lifeline. You have the ability to earn some extra cash from home which you can live on or at least keep you going until you find another job.

Work towards financial freedom

Once debts are paid and you have a sufficient level of savings, this gives most people a feeling of financial freedom. It allows you to start overpaying things like your mortgage to get it paid more quickly, it gives you the ability to start saving for luxuries and extra items that make life more comfortable.