I cut my spending to the bone after graduating college, but I didn't pay off my $40,000 of student loans until I started a side hustle
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When I started my online side hustle in 2008, I had no idea it would eventually lead to full-time income. But one thing I did expect from my part-time business was help paying off my debt. Whether you are working to pay off credit cards, an auto loan, or student loans, a side hustle can help you reach a much faster payoff.
Budgeting is an important part of managing your personal finances, but many people find that after paying rent or making a mortgage payment, going to the grocery store, and taking care of other life necessities, there isn't enough money leftover for debt payments. If that sounds familiar, read more to learn why a side hustle is perfect to help you pay off debt.I lived in inexpensive housing and cut unnecessary expenses, like cable TV that used to cost me $70 per month. But knocking out that much debt so fast took more than a few small budget tweaks.
You can only budget so much before you hit a baseline and can't cut any more. If you make $20,000 per year, getting out of debt will be tough no matter how much you budget. But your income can grow forever.If your side hustle earns you $100 per month, that's an extra $1,200 per year toward your debt. If you can make $1,000 per month, or about $250 per week, you have an extra $12,000 per year to pay off debt. Unlike a day job where your income is a fixed hourly rate or an annual salary, your side hustle income has unlimited earning potential.
I'm as big a fan of binge-watching Netflix as anyone else, but think about how much time is wasted each day that could be more productive. Also, look at where you use your time and what that may cost. If you spend your time on an expensive hobby, focusing on an income-earning side hustle can turn expense time into income time.
For example, if you love to spend your downtime shopping, there is little more that can come out of it than you spending money. If a side hustle reduces your shopping hours, it's a win-win for your money.
I have tried a lot of different hustles over the years - I ran a flash mob company. I sold joke bracelets. I have spent time as a website developer, social media manager, and other online ventures. The ones that didn't work well are now in the past. I stuck with what works and my total income has grown ever since.
No matter where you are in life, you can probably find a way to make a side hustle work. And unlike a job with a boss, you get to keep all the profits. Pouring them into your debt payoff can help you cut months or years from your payoff plan and save you a bundle on interest. That's a serious financial win nearly anyone would enjoy.
Want to put your your side-hustle money in a high-yield savings account and help it grow? Consider these offers from our partners:Copyright © 2021. Times Internet Limited. All rights reserved.For reprint rights. Times Syndication Service.
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