Financial Foundations #6: How to Start a Side Hustle | Financial Feminist

Intro

In this episode of the “Financial Feminist” podcast, Tori, a money expert and author of Financial Feminist, explores the topic of side hustles and passive income. She discusses how these additional sources of income can help accelerate financial goals and provides guidance on choosing the right side hustle. Tori also emphasizes the importance of fair compensation and the need for policy change to ensure people don’t have to rely on side hustles to make ends meet.

Main Takeaways

Building a Side Hustle

• Side hustles provide more control over how you make money and can help achieve financial goals faster.
• A side hustle is usually a business or extra income where you provide a good or service in exchange for money.
• Side hustles can range from businesses that grow to become full-time jobs to freelance work or part-time jobs.

Passive Income

• Passive income is something that makes you money with little to no effort, but often requires upfront effort.
• Side hustles and passive income can both be sources of income, but require different levels of effort and time commitment.
• Passive income requires upfront effort, but can provide income without ongoing active effort.
• High yield savings accounts are an easy way to earn passive income.

Choosing a Side Hustle

• Questions to ask yourself when choosing a side hustle: What do you love doing? Are you good at it? Do you have time for it?
• Evaluate your schedule to see if there’s time for a side hustle.
• Consider the flexibility of the side hustle before choosing one.
• Take it seasonally and re-evaluate if it’s working for you.

Starting and Managing a Side Hustle

• Put money away for taxes if you own a business or work as a 1099 contractor.
• If you’re self-employed, put money away for taxes in a high yield savings account.
• Find a supportive community to help with the emotions and logistics of running a business.
• Write down everything you’re good at that you can monetize and get realistic about time commitments.
• Don’t wait for perfection, just start and figure things out as you go.

Diversifying Income and Financial Empowerment

• Understand the importance of diversifying your income streams.
• Use your money as a tool for protests and supporting causes you care about.
• Learn about investing in stocks and how it can help you build wealth.
• Recognize the importance of financial literacy and education.
• Take control of your finances and empower yourself to make informed decisions.

Summary

Building a Side Hustle

Building a side hustle can provide more control over how you earn money and accelerate your financial goals. Side hustles can range from businesses that grow into full-time jobs to freelance work or part-time jobs. It’s important to choose a side hustle that aligns with your interests, skills, and available time. By diversifying your income streams, you can increase your financial stability and have more control over your financial future.

Passive Income

Passive income is a way to make money with little to no ongoing active effort. It requires upfront effort to set up, but once established, it can provide a steady stream of income. High yield savings accounts are a simple way to earn passive income. By exploring different avenues for passive income, you can create additional financial security and potentially achieve financial independence.

Choosing and Managing a Side Hustle

When choosing a side hustle, it’s important to consider your passions, skills, and available time. Evaluate your schedule to ensure you have enough time to dedicate to your side hustle. Additionally, consider the flexibility of the side hustle and whether it aligns with your lifestyle and goals. Managing a side hustle involves proper financial planning, such as setting aside money for taxes, finding a supportive community, and being realistic about your time commitments. It’s essential to start and learn as you go, rather than waiting for perfection.

Diversifying Income and Financial Empowerment

Diversifying your income streams can provide financial stability and allow you to use your money as a tool for supporting causes you care about. By investing in stocks and gaining financial literacy, you can build wealth and have more control over your financial future. Taking control of your finances and educating yourself empowers you to make informed decisions and achieve financial independence.

Conclusion

Side hustles and passive income can be powerful tools for accelerating financial goals and achieving financial independence. By choosing the right side hustle, managing it effectively, and diversifying income streams, individuals can take control of their finances and create a more secure future. It’s important to remember the importance of fair compensation, policy change, and systemic support to ensure that people don’t have to rely on side hustles to afford their lives. With the right mindset and strategic financial choices, anyone can embark on a successful side hustle journey.