Want to start a side hustle business? Eleven years ago, when my daughter was born, I started a little “side hustle” that turned into a million dollar business. Whether you are a stay-at-home mom, a full-time wage earner, a farmer, or retired — everyone should start a home business. Often called a “side hustle,” a part-time home-based business has huge financial benefits. And it’s a lot easier to get started than you think!
In this post, I cover 5 main reasons to start a side hustle business from home. Scroll down to the bottom to learn how you can get started today…
5 Reasons Everyone Should Start a Side Hustle Business
I personally believe everyone should have a part-time “side hustle” business. Most of us don’t make as much money as we would like and we’re saddled with student loan debt, high taxes, and high insurance premiums. And these days, outsourcing and downsizing is a constant threat and retirement packages and pensions are rare.
Side hustle businesses are part-time “on the side” projects you do in your spare time to bring in extra income. Anyone can set up an LLC on LegalZoom (it’s easy) and start a part-time business selling makeup or supplements, walking dogs, making YouTube videos or writing a blog, tutoring kids or teaching guitar lessons.
Instead of watching 4 hours of TV a day or wasting time on Facebook or Instagram, turn a few extra hours a day into spinning gold. OK, not really gold. Dollar bills, ya’ll.
Why start a side hustle business? I have 5 reasons why a side hustle business can help to create the freedom and security we all want more of…
1. Pay Off Debt and Invest
These days, most of us have debt. Credit card debt, medical bills, student loans, you name it. It’s tough to pay off debt when you can’t increase your salary.
The worst part about debt is it prevents us from using that extra money to invest. If only we could set money aside to invest in real estate or Bitcoin… but we’re stuck paying bills.
When you start a side hustle business, you can create extra money each month out of thin air. You don’t have to ask your boss for a raise or more hours. All you have to do is invest a little of your time to run a business on the side… on weekends, in the evenings, or early in the morning before the kids wake up. That’s how I built my first business back in 2007 after my daughter was born.
Here’s a fun fact: if you invested a measly $100 in Bitcoin back in 2010, you’d be worth about $8 million right now.
Or take real estate investing… all you need is 10 passive income rental properties netting $500 per month to yield $60,000 per year. And, once those homes are paid off, you own them.
Here’s how it works… You typically put about 30% down on a home. To buy 10 rental properties that cost $100K each, you’d be investing around $300,000 for $1,000,000 worth of property (since the mortgages will be paid by the renters).
Let’s say your properties double in value in 20 years’ time (that’s a conservative estimate, as I’ve read that homes in the U.S. have an average annual appreciation rate of 5-9%). You’d be sitting on $2 million. That’s a nice amount of money to retire on — for most Americans, anyway.
We all know we should be investing in order to save for retirement… but who has extra money to put aside? And you can’t get ahead with your corporate plan of mutual funds investments. If you could find a way to create an extra couple hundred dollars a month to pay off your debt, and then eventually start investing that money, it would be life-changing.
The question is… How do we get that extra income to start investing?
Answer: A side hustle business.
2. Develop Multiple Revenue Streams
One of the biggest downsides of a job is you can get fired. In fact, working for someone else is one of the riskiest things you can do. Because you can get fired at any time, and when you get fired, you have no income and no backup. Putting all your eggs in one basket is always a bad idea.
Starting a side hustle business gives you more security. If anything ever happened and you lost your job, you’d have money coming in to help get you through.
As a blogger, I have multiple revenue streams within my business. I make money from the ads on my site, from products I promote as an affiliate (I earn a commission on products sold), and products I sell via direct sales. Direct sales is a lot like affiliate marketing, only you also earn from the people who are also selling in your downline. I’ll go into more detail about direct sales and why it is the best side hustle in my next blog post…
3. Create Passive Income
This is why a business is different than a job. A business creates PASSIVE income. That means you make money while you sleep.
Over the years, I’ve seen this happen for many online influencers, bloggers, affiliate marketers and people in direct sales. And I’ve done it myself.
When you own a business, it makes money every single month, whether you work or not. Say you have a family emergency and someone gets sick or you are going through a move… the ability to take time off and not have to work is such a blessing.
4. Save Money on Your Taxes
If you’re only getting W-2 income, you’re paying way too much in taxes. Why? Because wage earners don’t get very many tax deductions. They have to pay the full tax due to the government, which can be anywhere from 25% to nearly 50% of your income.
Unless you start a side hustle business. When you have a home-based business bringing in 1099 income, you can write off anything and everything you use for your business… computers, printers, office supplies, your cell phone. And if you travel for your business (for conventions or trainings or research), you can write that off, too. Go to lunch or dinner with business colleagues? Tax-deductible!
So, not only can your home business bring in extra money to pay off debt and invest, but it’s also lowering your tax bill.
5. Work Anytime, From Anywhere
Wouldn’t you love to be able to fund a family trip to Costa Rica or Australia or the south of France? Wouldn’t it be awesome to be able to spend summers in Hawaii or Italy? And what if you didn’t have to work 9-5 and you could work flexible hours, and maybe stay home and homeschool your kids?
Guess what… you can! When you work for yourself, especially when you have a location-independent business like direct sales or blogging, you can literally work from anywhere. And your schedule is your own.
Watch My Webinar: How to Start a Side Hustle
So… how do you start a side hustle? This month, I’m going to be teaching this in a brand new live webinar.
In this webinar, you’ll learn from my experience:
- How I started my first side hustle business back in 2007 when my daughter was a baby
- How I grew that little coffee-table business into $1.3 million in annual revenue within 5 years
- Why losing that million-dollar business was the best thing that ever happened to me
- The lessons I learned from that business and why I am going a different direction now
- My plans for making my next million(s) — and how you can, too
Sign up and I’ll send you an email announcing soon when the first webinar will be!