5 Ways Your Side Gig Can Help You Escape Debt Forever
Written by
Martin Dasko
Edited by
Molly Sullivan
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If you’re trying to pay off your debt, you’ve likely looked into side hustles to help you make extra money to contribute toward your payments. The good news is that there’s more to a side hustle than just making a few extra dollars, as the right gig can change other aspects of your life.
What are the different ways that picking up a side gig can help you get out of debt and stay out of debt in the long run?
The Side Gig Can Turn Into a Steady Income Stream
“If you can find a side gig that scales, it’s a great tool that can reduce debt more effectively than you might with your primary income alone,” said James Watts, founder of the EdTech platform Teach.io.
If your venture grows into something more, you can have a steady cash flow that covers your debt payments and helps you pay your expenses in the future so that you don’t have to worry about relying on credit cards again.
Watts elaborated, “Your time and effort don’t need to scale along with the growth of your side gig.”
This scalability is crucial because it means that as your financial goals expand, your side gig can grow to meet them. The goal is to find a side gig that can turn into a consistent income stream without much additional effort in the future. For example, if you invest in a vending machine business, start selling digital products on Etsy, or pursue any venture along those lines, you can have money coming in for the long run. These funds could be used to pay off your debt and build for your other financial goals.
Your Side Gig Can Be a Passion Project
“Find a side gig that aligns with personal passions or lifelong hobbies so that it can become more than just a way to make extra money since it becomes a sustainable part of your life,” Watts said.
If your side hustle allows you to focus on a passion, you’ll have something that occupies your time and gives you personal joy. This will provide you with something to fill your spare time so that you’re not spending frivolously and racking up credit card debt again.
Watts noted, “This blend of passion and income ensures that the side gig can be a lasting one, providing steady income and preventing the risk of going back into debt.”
Your side gig can also be an activity that you already enjoy doing so you can make money from your hobbies. This could help you limit your expenses so that you can cut costs while increasing your income.
Your Side Gig Could Force You To Learn About Money Management
“A benefit of a side gig is that it is a way to educate yourself when it comes to managing your money,” Watts shared. “It teaches valuable lessons in budgeting, saving and investing. It can help you to make informed decisions that improve your financial well-being.”
While you may not be interested in your personal finances, you’ll have to take your business banking seriously since you’ll have to get your accounting in order. This process could teach you valuable money management lessons that apply to your daily banking. Sometimes, we all need a little nudge to get our finances in order.
You Start Thinking Differently
One of the main benefits of a side gig is that you open yourself up to new possibilities that you weren’t aware of previously.
“It helps you to think differently, see what’s possible, and grow,” Watts said.
When you discover that you can make extra money on the side, you can gain an extra bit of confidence, which can improve your relationship with your finances. The change in mindset will help you focus on taking your finances seriously. Once you start to think differently, you can look for new solutions to paying off debt and ensuring that you don’t get back into it.
You’re Constantly Growing and Evolving
“You’ll learn and grow with a side gig, gaining new skills that can make you valuable in the job market,” Watts said.
Pursuing a side hustle will pressure you to learn new skills and improve your communication skills. You can then use this advancement to grow and evolve as a person. As you evolve, you may drop old spending habits that once kept you in debt.
Closing Thoughts
Watts concluded, “It’s about strategically leveraging a side gig for long-term financial health and personal fulfillment.”
Finding the right side gig can help you get out of debt and manage your finances effectively. You never know what kind of chain reaction will come from making positive financial changes. The decision to pursue a side gig could be the inspiration that you need to learn about money management.
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