It’s true, extra side income is more than you think, let me explain…
My friends underestimate the wealth accumulation advantages of side income. They think that since they already work a full-time job, that’s plenty if not too much work already. So for the most part they go home and then what do they do? Mostly they watch reality TV?!? They sit glued to the TV and before you know it, it’s time for bed. Now granted they are usually watching with their significant other, but still the net gain from a financial or educational perspective is pretty close to nil.
What if instead they went and decided to pick up a side job where they interacted with people and got away from both their dwelling and the TV set? The win would be twofold, first they increase the amount of money they gain, and secondly, they interact with people, which is usually a positive experience and if not that, then at least interesting.
House Working Part-Time?
Why extra side income is more:
Side income has the potential of really adding up since your basic expenses are already covered. The key is that any additional income you gain above expenses can be used to purchase assets (which in my case are investments in the financial markets, but mainly stocks). The spread between your income and expenses is called the savings delta and this spread can really make a huge difference in wealth accumulation
The thing is that an additional savings doesn’t have to be capital-intensive. You don’t have to create a manufacturing business to generate a side income. It can be gig as easy as selling on eBay, or perhaps blogging, or even mowing lawns. The key is that since that money isn’t required to fulfill an expense requirement, it unallocated money that can be used to buy assets (yay).
This is why I claim that extra side income is more than you think. Since the extra income can be invested, it can grow into a wealth snowball that has endless possibilities.
Anyway, these are the ways that I see side income being worth more from a wealth perspective than income that is already accounted for.
Bests,
Don
Great article! I actually have a full-time job but I took baby sitting and dog walking jobs on the side. It’s not more of a job since I love kids and dogs, it was relaxing for me and I get to earn at the same time.
Thanks!
At first I didn’t invest the extra money I made, but now it all goes into investments. Keep up the great path that you have established 🙂
Investing side income is definitely one method to make that money really work for you. Its important you invest it in a smart way, but it can really add up if you do it right.
Totally agree, and if you don’t have the time to invest, just put it in a low-cost index ETF.
It boils down on how we spend our money. Eventhough we work 2-3 jobs and we spend more than save, we can’t really see the money that we are working.
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My wife and I came to an agreement that works really well for both of us. It goes something like this….I only work on my side hustles AFTER both kids are sleeping. Additionally, I agreed to only work three nights a week on these extra jobs provided that I spend the other four nights with her….I am lucky because my wife appreciates the hard work I do for the family and we still get to spend a lot of quality time together working on us!
That the beauty of side hustles, you aren’t confined by when you can and cannot work, at least in some cases.
Congrats on the path you have chosen!
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