“Put your future in good hands–your own.” – Unknown
On many levels, we are experiencing a shift – politically, socially, economically. A trifecta that has given rise to three trends, two of which, I’ve talked about recently: the Sheconomy and New Economy.
Individually and collectively, these “economies” are profoundly (re)shaping your relationship to work — as well as your relationship to money. But the factors that have brought us to this point didn’t just recently pop up. It just feels that way.
That’s often how you and I experience and perceive change.
Case in point: Working a side-hustle – aka making money on the side of your full-time employment.
Of course, this isn’t a new phenomenon. People have been working additional jobs or running a business on the side to earn extra money for eons. Sometimes out of financial necessity; other times, as a way to pursue a personal hobby or passion.
But you can see why the full-time/side-hustle duality has garnered increased attention over the last ten years. Especially when you consider the impact of the employment trends that are not likely to reverse course, which were largely sparked by the economic trends triggered by the 2008 Great Recession (e.g., 4.4 years is now the average length of time an employee stays with his/her employer).
In fact, according to a 2016 study by CareerBuilder, where they surveyed approximately 3,200 full-time workers in the private sector, 29% of workers, across all age ranges, have a side-gig. (Not surprisingly, millennials outpace other age groups.)
Not only is what seems “new,” actually old. My fingers are crossed that the percentage of workers with a side-gig increases. Because having more than one source of income is one of the smartest money moves you can make!
Having multiple streams of income is one way to amplify your financial power.
Having multiple streams of income provides a level of financial security, freedom, independence, and resiliency a single income cannot match. This is true for far more people than for whom it is not.
In principle and practice, it is similar to diversification. If diversification is strategic when it comes to mitigating certain investment risks, wouldn’t you garner the same benefits when it comes to your income? After all, doesn’t all the ways in which you want being financially free to manifest in your life start first with your income and what you do with it?
I say “yes!” What say you?
If you, too, say yes, then please be careful not to make this oft overlooked mistake: having a side-hustle that is actually costing you money!
There are a myriad of reasons why you might start (or continue with) a side-hustle. Maybe you want to:
- get out of debt, faster
- build up a savings account, faster
- monetize a hobby or passion you find fulfilling
- finance special goals
- stabilize erratic income
- …fill in the blank
Regardless of your motivation to earn extra income, there tends to be a practical side (usually financial in nature) and an emotional side (usually about control and options) to your decision to “protect” your finances.
But if your side-hustle isn’t profitable, then it isn’t serving you in the way you intended. And if you are like most people I know with side-hustles – especially if you never have any intention of making it your main gig – you are not very rigorous with stress-testing its financial soundness. Most likely, this is because you are measuring “success” by one metric: cashflow.
In other words, if it’s bringing in the extra cash you need, for whatever purpose you need, then it’s successful. Indeed, positive cashflow is paramount for the survival of any business endeavor. But positive cashflow does not guarantee profitability. You need both.
Yet, most side-hustles are simply not structured to achieve both even though it’s probably safe to assume you’re seeking both. So, let’s make sure your financial game-plan can deliver that which you want.
Because it’s not enough to have a side-hustle. What you want is a profitable one!
And, I can help you with that on two key fronts.
On the mindset front (like dispelling the myths that you work on your side-hustle in your “spare” time or that you have to hate your job to start a side-hustle), and on the financial front (by giving you a framework to strategically connect your side-hustle money to your personal goals).
The Sheconomy and New Economy may have given rise to the recent surge in side-hustles. But, I don’t see this as a negative reflection on the state of our overall economy. Instead, I view this as an invitation to create your own opportunities – “to put your future into good hands — your own.”
Speaking of…
There a few seats available for next week’s The Comfort Circle™ dinner. On Wednesday, March 29th at 6:30pm we’re going to talk about tweaking the financial game-plan of your side-hustle. Whether you intend to make your side-hustle your main gig or simply want to make it more profitable, there’s a seat at the table for you. Click here to grab one of the three seats and join us in Manhattan (midtown).
