Clients are often surprised when the first thing we talk about when discussing investing is side hustles. “I thought you were going to teach me about investing” they often shout. Yet for me, side hustles are one of the most important investments you can start.
What are Side Hustles?
While most people work full-time, be it as an employee or as someone who is self-employed, a side hustle is something you do outside normal work hours to generate additional income. Or, they are something you can add to an existing business. For example, a person could have a full-time business but on the “side” they have an eBay account where they sell items they have lying around their homes which they are unlikely to use again.
Another example could be a Veterinary Practice. The sole purpose of a Veterinary Practice is to look after sick animals. On a recent visit to a local Vet they had
- diet plans for dogs and cats along with a variety of food supplies
- toys for pets
- collars and harnesses
- Insurance plans
- Activity centers for dogs
All of the above “add-ons” to their business are side hustles.
Side hustles are simply an additional way of making money outside of the normal working day.
How Much Money do They Generate?
There are many variables to be considered about the amount of income a side hustle can generate. For many a few extra dollars a day is very handy and welcome to most family budgets. However, side hustles can over time and depending on your skills and knowledge generate a large income.
A friend of mine, has an eBay business. It started as a side hustle generating regular monthly income. She travelled to France buying boxes of items from markets for around €1 a box. Each box containing 10, 20 or more items. She cleaned the items and then listed them on eBay. The items sold for different amounts but generally a €1 box of items would return €5,000 or more in sales.
She decided to put more time into her side hustle eventually building a business generating €100,000 or more. She was so successful she then started a training course on how to sell on eBay. Her side hustle generated a full-time income which allowed her to spend a lot of time travelling around euro collecting €1 boxes of items from markets which she could sell on eBay.
Impact on Mindset
On of the biggest challenges for new investors is mindset. Many come from the mindset of an employee or being self-employed. With both of these income streams it requires trading time for money. Becoming an investor is about having money work for you so you have more time to do the things you want to do. For many, this is a difficult change in mindset.
Starting a side hustle helps to change the mindset. As the side hustle grows so does the shift in how someone thinks about money. They start to see the possibilities of changing their ideas around money and how it can impact upon their lives.
This is such an exciting time for them as they start to see possibilities and opportunities around them. It’s exciting for me as a coach and mentor when the shift becomes a reality as I know this is someone who will go on to create the type of lifestyle they dream of rather than settling for the one they’ve been handed.
When this mind shift takes place then I know the client is ready to become an investor because investing is 80% mindset and 20% skill.
As we move into the Age of the Entrepreneur the change of mindset becomes essential.
Different Types of Side Hustles
By now I hope you can see the importance of having side hustles. They not only generate more income but they are a practical way to change the way someone thinks and behaves around money to someone who is able to become and investor and start generating investment income.
So, what are some types of side hustles you could start today?
- 1. eBay – take a look around your home. What haven’t you used in the past 6 months? Could you list it for sale on eBay?
- 2. YouTube – create videos about a hobby or interest and post on YouTube. Build a following and then monetize the site to start earning an income. Some of the most popular sites on YouTube these are reaction sites and review sites. Reaction sites are where you react to a video or piece of music. Review sites are where you have a product and show a viewer what the product looks like when you bought it including unpacking it, putting it together and using it. How to videos and information videos are also very popular.
- 3. Affiliate Marketing – selling someone else’s product or service for which you receive a commission for every sale made through your unique link. My own business offers 50% commission rates on many of the training courses we offer. Check out the Affiliate Hub
- 4. Network Marketing – there are many different products and services now sold through Network Marketing businesses it’s easy to find something which compliments your existing business, hobby or interests.
- 5. Amazon – offers many opportunities from having an Amazon store to being an affiliate for them. You can even become a publisher writing and selling your own books.
These are just a few ideas to get you thinking about the possibilities and opportunities. There are many different types of side hustles. The key thing to remember is they are free or low cost to get started and have the possibility of generating income.
Are Side Hustles Investing?
A business is one of the most important investments a person will ever create. A successful business is an asset which can be sold for profit. It can be bought to expand an existing business. More importantly, a business should generate additional income which can be used for other investment opportunities.
Side hustles, let the owner learn skills but more importantly make the transition from employee or being self-employed to being an investor. It helps you move from trading time for money to having money work for you. As you grow you business it helps you move from working in your business to working on your business so you move from having a job to becoming a business owner.
For me, side hustles are fundamental to starting the journey towards becoming an investor.