The phrase side hustle is a household phrase these days. It is the thing to do. Or is it? How do you know if a side hustle is right for you and your family? If you want these answers and more…keep reading.
First, let’s define side hustle: any type of work in addition to one’s full-time job (yes, full time stay at home Moms…that MLM is a side hustle). The word hustle itself means to obtain money aggressively.
Let’s be clear! We are here for the EXTRA income. We fully support any activities that allow you to become debt free and build financial wealth. We just don’t think it should come at a certain cost- like the overall well being of your family.
After graduating with my masters, I remember thinking “ I need another 30K a year. God, help me get an additional 30K.” Have you been there? Okay, maybe your number wasn’t an additional 30 thousand a year but I’m sure you have a number. The funny thing is that my 30K was arbitrary. It was my best guesstimate. Having more financial literacy and debt free behavior under my belt, let me take a moment to say “DON’T GUESS” at your debt and families needs.
Like circa 2015 Kelah, you think you need a side hustle. And, you’re probably half-way right.
Along my journey, I did the following to try and bring in more money: MaryKay, Resume Writing, Life Insurance Sales Person, and ad hoc Consulting. For the record, none of these activities got me the 30K per year I thought I needed. This is where we want to help you.
…but before you jump head in and invest time and/or money, we want you to do (consider) the following list.
In the mist of striving for an additional 30K a year, I learned a few things. And, here they are:
1. Become a better steward
You have more resources than you think. This one is simple; but, hard because it forces you to look in the mirror and see behaviors you may not love about yourself. The truth is you’re looking for something that is already there. You have money coming in. The question becomes- are you maximizing what you have? Once we started maximizing our money, I realized I had the 30k all along. I was just wasting it. In the end, I didn’t need a side hustle. I just needed to manage what I had better.
2. Start a budget
The problem with more money is more spending. Most of us think that winning the lottery will solve all our problems. Spoiler alert- it won’t! The same is true for your side hustle. If you get a side hustle before understanding your needs and wants, then you just have more money going down the drain. This goes hand-in-hand with being a good steward. Starting a budget makes being a good steward practical. This step will help you see what you actually have and how to steward it better…if not, you’ll burn through the hustle money too.
3. Have a defined plan or exit strategy
Plans and exit strategies are things most people don’t think about. Taking on a side hustle will take you away from other things. How long do you want to hustle hard (because remember this is work in addition to your full time job, and other roles like spouse, parent, child to aging parents, etc) You shouldn’t add more to our plate without taking things away. Hello Burnout! Before you get that side hustle know when it’s going to end. You need a goal for that money. Here are a few questions to get you started:
- What do I need more money for?
- How long will it take me to acquire the money to do X?
- What am I giving up to achieve this goal? (family time, possible 9-5 promotion, dating, ect).
- Based on the goal I have, what type of side hustle works best for me (and my family)?
- Do I want my side hustle to turn into my main hustle?
- How much “extra” time do I really have to work my side hustle?
- How much of an investment can I afford to lose?
4. Have a defined goal
I need more money ain’t it! We all want more money. The better question is “for what?” What do you need to do with the extra money that will come in from your side hustle. Let me help you with good responses. You may want to do one of the following:
- Pay off your student loans
- Save for a down payment on a house
- Jump start your retirement account
- Generate more cash to supplement living expenses for aging parents
- Pay for camp for your kids
- Save to have start-up capital for the business of your dreams
Did you notice a pattern in the list? Each item will have a defined number attached to it, so the side-hustle should not be intended to be perpetual (especially if you’re not passionate about it). Think of going after a side-hustle as a jump start, not dedicated income that you rely on.
5. Plan to communicate
Communication is always the missing link in any negative situation. Please understand that this hustle will take you away from family and friends…and maybe your day job. We know you think you can handle it all. But the truth is that you will get tired and burnout (if you don’t have a plan). Depending on what your side-hustle is…how you show up for your day job will begin to be impacted too. Think through who needs to know and who can serve as your accountability partner. Even single people need to do this…your loved ones want to know you’re safe.
6. Ask for a raise or go after a promotion instead
Have you ever considered just asking for a raise instead of dividing your time and energy between two or more jobs? If you need more money to help an aging parent, it may be easier (less stress) to simply get the increase from your current employer. Did you know that 70 percent of workers who ask for a raise get some level of an increase? Those are amazing odds! If you feel you need more help in this area, contact us. Kelah has been in HR for almost two decades and can provide career coaching.
7. Evaluate the season you’re in
This one is super important for families. Before taking on a side hustle ( be it mom or dad), you should assess where you are in life against the need for extra income. If your family just welcomed a new bundle of joy, then it may not be the best time for one parent to be away from the house for extended periods of time (unless you have a village that can help the parent at home). If you’re newly married, the first year of marriage ain’t the time to hustle for more money (the hustle should be how to communicate , love, and become one unit). You get the picture! Give real thought to where you are in life. It’s totally okay to put “success” on hold to ensure you and your family are healthy, happy, and whole.
In case it wasn’t clear, I never got the side hustle that generated the 30K I wanted. Instead, it was the shift in our money mindset and management that helped me to realize the 30K was always there. The money was just vanishing on non-essentials.
So, what should be your next steps? Here is what we want you to do:
- Become a better steward of what you have. Download our budget allocation template and use it on your next pay day.
- Set some financial goals.
- If your goals call for a side hustle, create a plan and map out your exit strategy.
