Broker Check
Here’s Why You Need a Side Hustle to Boost Your Savings

Here’s Why You Need a Side Hustle to Boost Your Savings

July 01, 2022

Has the idea of starting a side hustle to boost your savings ever crossed your mind? If it hasn’t, you risk being left out of the new trend.

According to abank rate survey, about 4 in10 Americans already have a side hustle. The average income from these side hustles is about $700 a month. That is not a bad income, especially in such tough economic times.

The bottom line is that a side hustle is a creative way to help you pay your bills and boost your savings account. So, why would the idea of a side hustle be intriguing for your savings plan?

A Side Hustle Will Supplement Your Savings

Almost everyone across the country feels the tough impact of the rising inflation costs. The cost of everything has gone up, denying consumers like you the high purchasing power you once enjoyed.

Sadly, the income is not increasing in equal measure to the rising costs. However, even when the going gets tough, bills must be paid. So, the saving side of your financial plan is what feels the most pinch. There is simply no money left to save.

Having a side hustle may change this outcome for you. The side hustle will provide you with the extra income you can set aside as your savings during these tough economic times. Even when things aren’t as tough, it may help you increase what you save.

A Side Hustle Offers You More Financial Power

You may have heard stories of someone who turned their side hustle into their main hustle. ACNBC report shows that business formation in the US increased by 42% during the Covid-19 pandemic lockdown.

A major reason for this increase was the result of many people turning their side hustle into profitable businesses. What started as a side hustle to supplement their income during the pandemic became their main business.

Most side businesses are born out of hobbies or things whose passion you have. You will always have the extra motivation to take on the extra risk. After all, you already have a backup plan for your main job. Such passion drives you to successfully convert your side hustle into a profit-making business within no time.

The Extra Income Can Help You Pay off Your Debts

About 1 in 5 Americans still haveunpaid student loans. And that is not the only debt you have to finance. You probably also have taken a mortgage to finance buying your house. Let’s not get into details of how much credit debt you are in right now.

The main challenge is coming up with a solid debt on how to finance all these debts. Your income is sometimes not even enough to pay off your debts and support your expenses. That is not good news for your savings plan.

An extra income from your side hustle can provide reprieve to your debt repayments. You can set targets from your side hustle based on your monthly debt repayment schedule. It will allow you to plan for your main income to include enough for savings.

You May Use the Extra Income to Build Wealth

Have you put your investment plans on hold because you lack enough capital? A side hustle is a great way to build up the capital you need for your investments.

These investments can prove vital in contributing to your retirement savings. Investing your money could mean you have a secure source of income to carry you through to your retirement.

Are You Looking for Tips for Using Your Side Hustle to Boost Your Savings?

A side hustle may be the difference in the amount of money you have in your retirement savings. How is that? Get the details by tuning in toWheeler Wealth Podcast!