Your Side Hustle Could Help You to Retire Early
What is a side hustle? A gig, job or small business that you manage alongside your full-time earner, which is often referred to as your main hustle.
Sometimes the side hustle ends up earning you more money than your main gig. However, even if you only earn an extra $200 or $300 per month from your side hustle, it can still help you to retire early. Extra income is always a good thing so you should never underestimate the power of the side hustle.
That little insignificant side business could eventually save you from financial hardship when you retire. How so?
Keep Your Spending Low
Don’t be tempted to start spending high as soon as you start earning extra cash from your side hustle. This is a major mistake, instead of spending that extra money, forget about it, act like that money never arrived in your bank account. Extra money shouldn’t necessarily mean extra spending. In fact, you can actually find ways to reduce your spending even further.
When you reduce your living expenses, you can start to think about retirement earlier. For example, if you live in a house that requires you to pay $1000 per month for a mortgage, you should consider getting rid of that expense as soon as possible. One good way would be to rent your property for slightly more than $1000 per month and rent another property in a cheaper area for $700 per month.
Say you rented your property for $1300 per month, you would generate an extra $600 per month because you would save $300 from not having to pay $1000 out of pocket and you would also gain $300 from the rent. You could invest some of the money and overpay your monthly mortgage to pay it off faster.
Don’t forget your side hustle earnings here, the money from your side hustle could also be invested and used to pay off your mortgage fast.
The idea that we must work for 30 to 40 years, save 10 to 20 per cent of our earnings and retire by the time we are 65 is archaic. Reframe retirement and think about it as a time where you can comfortably live off your passive income as opposed to living off the money that you exchange your time to receive.
There is no law that states that you need to retire at 65, you could potentially start living a life of semi-retirement in the next five years if you plan well enough.
Getting a side hustle could help you move closer to your goal of retiring early.
Investing is key, I am not an expert when it comes to investing however, I have made a bit of money with Bitcoin over the years by investing some of my side hustle earnings. If you are not investing you are sleeping on your extra income.
A few months ago, I invested in three domain names. One recently sold for $10,000 and I purchased it for $50 at the time. I think if I held on to it, I might have made more profit but I was happy with my $10,000, I don’t regret my decision to sell at that time.
There are so many ways to invest and reap some serious financial benefits. Right now, as I write this, Dogecoin seems to be the way to go. I purchased $1000 of Dogecoin, I might buy more.
When you first jump on the side hustle game, set your goal to earn an extra $100 per month. When you reach that, scale up to start earning more. Even an extra $100 per month could be life-changing if you invest in the right places. The goal is to generate enough passive income to take your foot off the accelerator, you can work less and live more.
I have spoken about this in previous articles, I have one main business and a couple of side hustles. I recently jumped on another side hustle that is generating me an extra $2000 to $3000 per month. This is the hustle that I am doing at the moment >>> My latest side hustle
I plan on relaxing and living more and working less in the next two to three years. I am well on my way to achieving that goal with my main hustle and my side hustles generating between $10,000 and $15,000 per month.