One thing that most wealthy people have in common is that they have more than one source of income. Many have multiple businesses and investments and other revenue streams that are putting money in their pockets.
Most folks however, are living with one source of income, their paycheck. And with just one source of income (or perhaps two, if you live in a household where both people work).
With a single source of income comes financial fragility and insecurity. If you lose your job, then you’re heading for trouble. In this article by the Atlantic, they report that upwards of 47 percent of households would not be able to afford a $400 emergency expense. That’s scary. There has to be a better way.
What is a Side Hustle?
The term has been made popular by Nick Loper of Side Hustle Nation, but it represents your side business. An additional revenue stream, an additional source of income for your household, another way for you to take care of yourself and your family. It could be something as simple as walking your neighbor’s dogs or selling products you make on Etsy. Putting your talents to use. I think that EVERYONE should have a side hustle. Whether you are in the workplace or you stay at home with the kids, everyone needs to have more than one source of income. If something happens to one source of income you should not be worried about how you’re going to put food on the table. Create your own safety net with a side hustle.
That’s really up to you. If you love to cook, perhaps you can sell your baked goods or meals to people. If you’re more crafty, perhaps you can make products that you can sell on Etsy. If you’re a great writer, you could start a freelance writing business. There are literally hundreds of opportunities out there which you can try. If you need some ideas, I strongly recommend you check out this book, Buy Buttons, which have a ton of low cost “side hustles” that you can start.
What About Passive Income?
You hear all the time about earning money while you sleep and that’s essentially what passive income is. While passive income can afford you the opportunity to earn money while sleeping, the term passive can be misleading. Any type of business that you start is going to require a lot of hard work. You’ll typically do a ton of work right up front and then over time as your business begins to grow, you can be more hands off than during the initial stages, but you’ll still have to check in on your business from time to time to keep things going.
Other sources of passive income, such as investments, are more passive, but still require you to tweak your portfolio from time to time in order to keep things in balance.