A salary is a nice thing to have. It’s like a fluffy pillow that eases your head. Knowing that you will receive a certain amount of money from the organization in which you work, around a certain time, is something that is valuable. It helps you plan, and this planning can help keep your finances in order.
However, if you have worked for a while, you’ll come to realize that a salary alone, is never enough. There’s always something that begs to be done, and each month, more expenses seem to come out from nowhere and demand money from your salary. There is inherent danger in depending on your salary alone though. First of all, if you live on your salary, and have little to no money set aside each month, you’re literally dancing on thin ice. If your salary stops coming, you immediately enter panic more, because you have only managed to put aside a small amount (which will soon be exhausted).
Because your living and transport costs are probably supported by your salary, you need a “side hustle”. A side hustle simply means another activity that you engage in that brings in an extra income. It can be anything from selling clothes on Instagram, to partnering to start a small company. So why is it important to have an alternative means of gaining income? Here are 4 reasons why you should establish other money channels:
1. You could use the extra money to build wealth
You may find time to develop a side hustle to be used as a way to build wealth. Since you do not rely on the income from your side hustle, you can constantly put that money in a beneficial investment structure, and over time, it will become a sizeable portfolio. As your money begins to grow, it is best for you to start looking out for strong and experienced people to help you manage and invest it. One such organization is United Capital Plc, a pan African investment group with more than 5 decades of relevant experience in a diverse grange of investments.
2. You could focus on it as your main job
Stories abound of people who started a small passion project while they worked their day jobs, and as the side hustle grew, the income from it grew so much that it matched or exceeded the income they earn from their regular day jobs. There’s no reason this cant be you, especially given the fact that no matter how good it is, one day, you will still need to retire from your regular job. If you have chosen a side hustle that you love, and it has established itself, you can eventually let go of the job and focus on running it more efficiently.
3. You will develop new skills
Say you decided to start selling your home-made fresh fruit juice online. You set up a nice little website and get started. It’s a great way to let out that passion that you’ve always had for good nutrition and a healthy lifestyle, and you’ll be making a little extra money. But as you go, you’ll realise that you will pick up new skills from it. For instance, you’ll learn how to fix prices, how to communicate properly with clients (as some will prefer to text you on WhatsApp rather than buy from the website), how to market your products on Instagram, etc. As you learn more of these skills, you will gain more clarity about whether your current job or career is really what you want to do, and even if it is, you will still have picked up valuable skills in the process.
4. You will be able to test the waters
By starting a small business on the side, you have an opportunity to eat your cake and have it. You can keep your day job while exploring the life of an entrepreneur. This experience alone can give you enough experience and context to either develop an appetite for the entrepreneurship life or to decide to maintain the career status quo.
A side hustle is important not only because of an extra stream of income, it can provide a route to more fulfilment if you’re doing what you love while also opening up more opportunities. Do you have a side hustle? What side hustles are you interested in starting?