Jonathan Kvicky, renowned for his proficiency in the fields of business and technology, has achieved numerous impressive milestones as an engineer and serial entrepreneur. And, while he loves to preach a lifestyle of calculated risk through smart investments, another piece of advice he gives to all those seeking financial freedom is to start building up “side hustles”.
As the name implies, a side hustle is an activity performed on the side, usually to complement one’s main source of income, but it can also be used for personal fulfillment, experimentation in another field, or simply for pure enjoyment. In the not-too-distant past, side hustles were an obscure concept mainly associated with people who couldn’t make ends meet with just their regular jobs. But, with more and more millennials striving towards faster and more secure financial freedom, that narrative has totally changed.
Normally, people starting supplementary gigs for financial reasons tend to do so because of one of three reasons:
#1) Offset Inflation Spikes and Plateauing Wages
Inflation, the decline of purchasing power of a given currency over time, is something which flagrantly disobeys the laws of gravity – it goes up and rarely ever comes down. In contrast, wages have barely increased, especially in comparison to annual inflation spikes. Now, more than ever, side hustles are being used to try and offset these diminishing returns.
#2) Clear Debts Faster and Prop up Savings and Investment Accounts
In the face of economic uncertainty, you can never save enough. Over fifty-percent of US households live paycheck to paycheck, and that number seems to be gradually climbing. Young people joining the workforce for the first time, especially out of school, are beginning to realize early on that money from side hustles can be saved and re-invested in assets to pay off debt faster over time.
#3) Diversify Income for Financial Stability and Security
The “gig-economy” presents an excellent opportunity for people to start diversifying their income, thereby reducing their overall financial risk. Individuals are learning not to be complacent putting all their eggs into one basket with only a single primary source of income. The future is always unpredictable, and now more than ever, safety nets are being put up in the form of side gigs to relieve the pressure of uncertainty. And, with the growth of more and more people turning towards the internet for purchases of goods and services, there is an untapped market that people are discovering within their own passions and talents.
“The best part about side hustles is that virtually anyone can start one,” says Kvicky. “The key to starting out is to first think small. Start with something that interests you – can you monetize it and still enjoy what you’re doing? Can you establish yourself as an authority in the field? Is there an in-demand service that you can readily offer? The answer to these initial questions can set you down the right path to discovery. Then, once you get the ball rolling and start bringing in some money, you can replicate the process and start another.”