Welcome to my side hustle report for August 2017!
What is a side hustle?
The answer to this question may vary depending on who you ask. To me, a side hustle is any income earned outside of my full-time salary. For example, income from a side business or a part-time job. For more info about how to get your side hustle on click here.
A word of caution before you dive head first into side hustling..
More money is not always the answer.
I know…that sounds strange coming from me. But I firmly believe that you must fix your money mindset before you can truly transform your finances. If you skip this critical step you will make the same mistakes with the new money that you earn. Before diving head first into side hustling I would recommend:
- Figuring out your ‘WHY
- If you’re in a hole stop digging
- Get to know your enemy
- Create a budget in 5 easy steps
- Establish an emergency fund
Why do I share my side hustle reports every month?
I don’t publish these reports to brag or pat myself on the back or to impress anyone. I share these reports because:
- It helps keep me accountable with the side income. It’s easy to just look at side hustle income as extra cash that I can blow on things I don’t need. Sharing the information with you guys helps me to be more responsible with the money because I know the world is watching (ie. the 15 people that currently read my blog).
- To encourage others to get their side hustle on in order to accelerate debt payoff and advance other financial goals. Side hustles can help you improve cash flow, stop living paycheck to paycheck, or build up a fully-funded emergency fund. The ability to earn multiple streams of income is one of the 10 Habits of Self-Made Millionaires. Multiple streams of income also help decrease your dependence on your full-time paycheck. Wouldn’t it be nice to be your own boss one day? That will never happen unless you (we) get creative, start putting in the work, and make our dreams a reality.
My hope is that I can inspire you to get a side hustle (or two) of your own and earn some extra cash.
Just take a few minutes to think about it…What ability or skill do you have that you can monetize?
Almost everyone I know can benefit from an influx of cash. But, it is important to begin with the purpose in mind. What could you do with a little more discretionary income?
You can use side hustle money to:
- Accelerate your debt repayment
- Fund/Replenish sinking funds for future purchases (e.g. downpayment for a home or a car)
- Get ahead on bills- this is the key to breaking the cycle of living paycheck to paycheck
- Increase your retirement savings
- Invest in a brokerage account
- Experience life more- cashflow travel or fund a hobby or a passion project
- Accumulate start up money for your small business idea…which will generate even more money
What are my side hustles?
**If you are new here keep reading, otherwise feel free to skip to the next section.
My full-time income and my husband’s income serve as the basis for our monthly budget. Anything above those earnings is considered extra because I don’t need it to make ends meet. In addition to my full-time job as a college professor I dabble in several other pursuits:
- Teaching online courses for colleges and universities– I have been teaching online since 2009. Mostly health related courses. As I gained more experience I qualified for more jobs. In 2009 the economy was in the toilet and a lot of people were going back to school because they were out of work. This stream of income skyrocketed which helped me pay off all of the debt I accrued in graduate school. As the economy improved, opportunities were not as abundant but I still make a healthy side income.
- Part-time clinical job– I maintain my certification as a physician assistant and see patients at a local hospital and clinic on an as needed basis. Hospital shifts are normally 10-12 hours and clinic shifts are 8 hours.
- T-shirt business– just started this income stream so it hasn’t turned a profit just yet. Any money that comes in from sales is just recovering my upfront start up costs.
- YouTube– a Google Adsense account is linked to the YouTube channel. This allows me to earn a small amount of money from the ads that run before my video starts. I know it’s tempting to skip the ads, especially the really annoying ones but if you watch until the end it actually helps to support your favorite YouTubers. Just something to ponder.
- Blog/consulting/speaking– The blog is not yet monetized but I am working on developing affiliate relationships in order to change that. Countless other bloggers are absolutely crushing the online blogging game so I am super motivated to figure out how they are doing it and possibly replicate some of that success for myself. Another side hustle is personal finance coaching. Unfortunately I have not done a good job of letting people know that I offer these services. I am working on building a coaching page to the blog to get the word out.
Now that you are up to speed…let’s get down to the nitty gritty..
Breakdown of my side hustle income for August 2017.
With the exception of the Google Adsense money, these numbers are take home pay after taxes.
Online teaching & Summer School– $5,991.06
Clinical Job– $1,830.50
YouTube/Google Adsense– $248.07
T-shirt sales: $36.00
August has been my best side hustle month of 2017!
The summer months are usually great months for me financially. Being a university professor allows me a ton of free time and opportunity to earn additional money in the summer. I choose to have my 9 month contract paid out over 12 months and my household budget is based on that regular income. Next months report will likely be less impressive as my work schedule has now returned to normal.
August was an awesome month, but believe it or not, I still feel like I can do better.
And before you say it…No I’m not just being greedy!
I am totally happy with the amount that I earned, what I’m not happy about is what I had to do to earn it. No broken laws or anything! I just worked super hard y’all!
At present, there is an inverse money between my money and my time. The more money I earn, the less time I have. My cash looks good, my free time…not so much.
Trading time for money is getting really old…so old I’m tired of hearing myself complain about it. I would love to develop a few streams of income that allow me to earn money in my sleep. Who wouldn’t? I’m still figuring out how to get there. Best believe when I figure it out I will share it with you! When that time comes I will be happy to rename these features ‘The Passive Income Report’.
Click here to see last month’s Side Hustle Report.
In order to devote more time to developing passive streams of income I need more free time to be creative and to allow my ideas to evolve. I can’t sit back and wish for more free time, I need to make space for it. Hard choices need to be made now for long-term gain. Last week I passed up a 5-week online teaching assignment that would have paid me $1500. The assignment would have required about 5 hours of work per week.
Not a bad deal! But when added to my already jam-packed schedule, I just couldn’t justify accepting it.
“Every choice has consequences. Each time you choose something, you unchoose something else”- Tony Crabbe.
Making the choice to turn down that assignment will create more time for thinking, creativity, and focused attention towards my long-term vision of passive income.
What do I plan to do with my side hustle money this month?
Note: I always return my tithe and offering off the top. No ifs, ands, or buts.
My goals for the remaining money are as follows:
- Complete my car sinking fund. Looking forward to paying 100% cash for my next car. Something I’ve never done before (and never thought I could do)!
- Set aside money to cover my hotel expenses for FinCon in October in Dallas, TX.
- Funnel some cash into my business. I am working on a web-based personal finance course (hoping to launch at the beginning of 2018) and there are a few tools that I will need to get that project off the ground.
- Set aside about 10% for investing in my newly started Vanguard account.
Important Things to Remember When Getting Your Side Hustle on…
- Don’t forget to keep an eye on your tax situation. The year after I began side hustling heavily we owed Uncle Sam a lot of money because we jumped a tax bracket and I hadn’t noticed! Don’t be afraid of a higher tax bill. I will take Bill Gate’s take bill if I can earn Bill Gate’s money. Consider consulting a tax professional to help you figure out your withholdings and prepare for the increase in income.
- Side hustling can be addictive. Earning more money is great, but in many cases, it involved trading time for money. Extra hours worked means time away from family and the other things that are important to you. Remember to give yourself a break and enjoy free time when you can. There is a time to hustle and a time for rest and relaxation. As I continue on the journey to financial freedom I will be working on increasing my passive income (rental properties, investments) so that I can minimize the number of hours that I am actively working away from home.
- Don’t view it as “extra money”. Extra money has a casual connotation. There is no intentionality behind “extra money”. When earning additional income it is critical to name EVERY dollar, meaning every dollar should have a specific purpose. Money that isn’t specifically designated for a purpose, such as saving, investing, paying off debt for example, will most likely be spent on stuff that doesn’t matter. Ensure that you handle this money in a way that aligns with your SMART financial goals.
So, are you convinced yet? What side hustles are you working on?
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