Growing up, I had no idea what wealth was. In fact, my family’s house cost just $8,000. The kicker? To afford it, my dad had to borrow money from his ex-wife.
As a result, it was obvious who was wealthy in our small town, judging by their big houses and fancy cars. My definition of happiness was eating all-you-can-eat cheeseburgers at McDonald’s on Tuesdays. Ramen noodles and Totino’s pizza were also staples of our diet.
But I didn’t understand wealth until I became a millionaire myself. The reason? The small town I grew up in limited my exposure to the wealthy. After moving to Nashville, I saw those giant houses for the first time. You know, the kind that makes you wonder what the owner does for a living.
More importantly, as a financial planner, I spoke with clients who had built nest eggs worth millions. As I talked with these successful individuals, as well as business owners and entrepreneurs, I noticed a common theme — something 95% of people did not do. And, that my friends, is finding a way to make money on the side.
Understanding the Framework
Robert Kiyosaki’s “Rich Dad, Poor Dad” was a turning point. It opened up a whole new perspective on how to build wealth, despite some criticizing the book and its author. Specifically, this model challenges the traditional pattern of going to school, getting a job, and retiring at 65.
However, it is important to note that Kiyosaki does not provide you with a step-by-step guide. It’s more of a reframe of how you think about wealth creation. This is about rewiring your brain so that it accepts that there is another option.
Different Paths to Wealth
Among the examples Kiyosaki gives is multi-level marketing (MLM). Despite not being my cup of tea, MLM helped me understand the idea of trying something new. One of the key takeaways is that the wealthy are willing to create additional income streams. Side hustles, businesses, or anything that generates income alongside your day job can be included here.
The Power of Scale
Consider a raise at work. Perhaps you’ll get a 3-5% raise and a bonus. However, these increases tend to be incremental rather than exponential. Achieving real wealth requires not only increasing your income but scaling it as well. By creating systems and processes, you can generate income without investing the same amount of time. Instead of working harder, you should work smarter.
Wealthy people tend to think this way, even though it sounds implausible. The goal is to create income-producing assets over time, allowing you to work less and earn more.
Having started this blog, GoodFinancialCents.com, I made this concept a reality. I could generate revenue from my content through affiliate marketing, ads, and more. It changed everything. As a result, I made money while sleeping—something I never thought would be possible.
The Synergy of Multiple Streams
After the blog’s success, a YouTube channel, a podcast, a book, and even courses were created. The different revenue streams on this website work together, creating a synergy that fuels growth. It’s kinda similar to how Elon Musk leverages Tesla, SpaceX, and SolarCity for success.
Embrace the Experimentation Mindset
To unlock wealth, you must be willing to try new things. I have nothing against garage sales or eBay flips, but that means thinking beyond them. Even though these side gigs can provide extra income, they aren’t scalable. Instead, put yourself out there with new business ideas and be open to experimentation.
I indeed failed at MLM and real estate ventures. Other ideas sounded great but ultimately fell flat as well. However, each experience taught me something. As a result, I was able to refine my approach and move on to the next opportunity. Remember, the beauty lies in taking that leap and putting yourself out there.
Don’t Let the Haters Win
Wealth rarely follows a linear path. In other words, failures and setbacks will inevitably occur. However, you need to stay the course and not listen to the haters — whether they are colleagues, family, friends, or those who want to keep you safe and predictable. The last thing you want is their negativity to stop you from reaching your full potential.
Instead, try making extra income, experiment, and create a life you deserve by joining the 5%. Perhaps you will surprise yourself and achieve a wealth and riches you never dreamed possible.
FAQs
Why should I consider starting a side hustle?
Among the many reasons to start a side hustle are:
- To earn additional income. Side hustles can help you pay off debt, save for a down payment on a house, or supplement your income.
- In order to gain experience. A side hustle can enhance your skill set, give you experience in a different field, and help you build your professional network.
- Pursuing a passion. If you’re interested in turning a hobby or passion into a business, you can turn it into a side hustle.
- You want to be your own boss. You can be your own boss with the help of a side hustle.
However, a survey by Insuranks found that many survey respondents who took on extra work attributed it to economic conditions. Almost half (44%) of those who took on a side hustle said they did it for money, while 28% said it was to cover inflation-related increases.
Due to inflation, around half of Americans (51%) are also considering starting a side business. Another 26% said they work extra jobs to pay off their debt more quickly.
What are some popular side hustle ideas?
Among the most common side hustle ideas are:
- Freelancing. You can become a freelancer if you have writing, editing, design, or other skills.
- Starting a blog or website. You can monetize your blog or website if you’re passionate about a particular topic through advertising, affiliate marketing, or selling products and services.
- Teaching online courses. Creating and selling online courses is possible if you have expertise in a particular subject.
- Selling handmade crafts or products. You can sell handmade crafts or products online or at local markets if you are creative and enjoy making things.
- Starting a dropshipping business. With a dropshipping business, you don’t have to maintain inventory. By partnering with a supplier, you can ship products directly to your customers.
However, in terms of side hustles, motion graphics designers, web developers, and writers, bloggers, or vloggers were the highest-paid.
In the end, the best side hustle for you will depend on what interests you, what skills you have, and what time you have. The key to finding a side gig you love is to make sure you have the time and energy to pursue it.
What are some common challenges of starting a side hustle?
Starting a side business can be challenging for a variety of reasons, including:
- Lack of time. When you have a full-time job and other commitments, it can be difficult to find time for your side hustle.
- Lack of money. For some people, starting a side hustle requires an initial investment.
- Lack of knowledge or experience. You may need to learn new skills or gain experience if you are starting a new side hustle.
- Marketing and promotion. Your side hustle may struggle to attract customers and get noticed.
How can I overcome the challenges of starting a side hustle?
The challenges of starting a side business can be overcome in several ways. Here are a few tips:
- Set realistic goals. You won’t become successful or rich overnight. As such, be realistic about your side hustle goals and be sure to celebrate your progress.
- Use your time wisely. Be consistent with your side hustle time each week.
- Start small. Don’t try to accomplish everything at once. Over time, gradually build your side hustle.
- Learn from others. Consult with other entrepreneurs or side hustlers who have had success.
- Don’t give up. Be patient and persistent when starting a side hustle.
Can I turn my side hustle into a full-time business?
There is a possibility of turning a side hustle into a full-time business. In order to achieve this, though, you will need to put in a lot of effort, dedication, and time.
The best way to convert your side hustle to a full-time business is to create a detailed business plan and monitor your progress regularly.
