- Fulfillment/Purpose – Everyone does not always have the opportunity to work their dream job or pursue their dream career. The reality of the situation is, most people got the best job they could and it may not always be thrilling. I actually like my job as a consultant in the tech world but is it aligned with my purpose? Does it provide fulfillment? Meh. There are times where I feel some fulfillment but I definitely look to other areas for true fulfilment. Side hustles are a way to explore finding purpose and fulfillment.
After college, I jumped right into a corporate job in technology sales. I knew I wanted to make money on the side so I started exploring things I was good at. I went from being a personal shopper to an event planner assistant. I hated both! I was actually really good at event planning but working with people (consumers) can be stressful. There are some things that should just remain a hobby.
Eventually, I explored renovating houses through my own home renovation then boom, Fields Management Group was born. (You can read the full story on how I got started here). Managing projects is my jam! It’s a lot of hard work but it definitely gives me fulfilment and I believe it is aligned with my purpose.
- Extra Income – This is probably the biggest reason people start a side hustle. In 2017, 44 million Americans were reported to have a side hustle and that number has continued to grow exponentially over the last 5 years. I’m definitely one of those people that believes you should have multiple streams of income. I’m not at the 7 streams (like the internet says) but I’m about half way. Depending on the side hustle, you can really make some good money in your spare time. It may start off just being enough to pay for dinner on the weekends or maybe groceries. However, if there is truly a need for your product or service it could take care of a bill or to pay down debt. It all adds up! When I first started my organic skin care line, I was making about $50 in profit a month but it only required packaging the soaps and dropping them off to the post office. That really didn’t take much time out of my day. It’s important to make sure the amount of revenue you are yielding is worth the time you are putting in. Now, I average about $750 a month. It’s a great feeling to have money coming in outside of your nine to five.
- Monetize your talents – The company you work for monetizes your talents every day. Everyone has something they are skilled at. I always felt like my talents weren’t tangible. I had friends in college who could sew clothing, do hair, dance, sing, you name it. It took some time but I figured out my biggest talent was right between my ears. My brain! I am excellent at strategy and execution. I can come up with a plan for just about anything. I can show you the pros/cons and have a timeline on how to execute. The key is spending time with yourself to discover what you are just naturally good at. Rachel Rodgers calls this “the zone of genius” in her book We Should All Be Millionaires. What is something you don’t mind doing for hours and hours? What would you do for free? Send a quick survey to your friends. Ask them to share something they feel you are good at. This is a good start.
- Tax Deductions – So let’s say you start your side hustle and after a few months it starts to take off. You are bringing in on average $3500 a month. That’s $42,000 in additional income. This is no longer a side hustle this is a business! You should register your business with the Secretary of State (LLC, Sole Proprietorship, or Corporation). An LLC usually is the easiest path when you are just starting out with no employees, etc. It literally takes no time to set up. Visit your local Secretary of State website to see if your business name is available. You can register your business directly on the site. You also want a EIN number or Tax ID. You can apply for the EIN number via IRS.gov. It’s important your business is registered so you can leverage the tax deductions. When you have a business you can write off business expenses. This reduces your overall taxable income. If your business is selling cupcakes, you could write off the cost of your ingredients, appliances, packaging, marketing materials, advertising, mileage to deliver to your clients, etc. This can make a big difference in whether your tax rate is 24% or 35%. I am not a tax professional but this has proven extremely helpful to my business and pocket book! I recommend you find a good book keeper and an accountant to manage your balance sheet and taxes once you start bringing in consistent revenue.
I challenge you to make a list of 10 things you are good at or things you like to do. Explore how you may be able to monetize those gifts. People pay for all kinds of things. So don’t second guess yourself! Your gift is valuable.
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