In this day and age, when you only have your day job as an income source, this means you are only one step away from poverty. It may sound ridiculous and a tad bit funny but it is a simple fact. Let me put it this way, what if in a blink of an eye you lose your one and only job? How will the bills be paid? How can you provide for the kids? Will your car be repossessed by the bank since you’ll miss your payments?
Here are 3 reasons why we (need to do a little or a lot of) side hustle:
1. Augment the monthly income. In my experience, our family’s monthly income is broken down as follows: Utilities, Groceries, Car payment, Gas allowance, House amortization, kid’s allowance (clothes, books, basic needs aside from food), bi-weekly weekend dining out and our community love offering. We would like to eat or go on dates (as a couple) once in a while.
2. Insurances and Emergency fund. Medical care expenses are often the reasons people’s savings go down the drain. Giving priority and wanting to earn more in order to afford insurance is also one of the reasons we side hustle.
3. For investment and savings. As we can see (or cannot see) in number 1, savings is not on that list. Most people like to have something set aside for the future. Our side income could be used for purchasing another (small) property on a mortgage that we could rent out and earn a little bit more from this generating passive income.
Looking at these three reasons, the majority of them pertain to preparing for the future. But how about the present? I believe that the best way to live in the present is to live within your means and simplify life. Spend more time and effort on experiences rather than things because it may be cliché and worn out but really the most important things in life; love, family and community, are free.
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