Many workers are turning into aspiring entrepreneurs in the hopes that they can achieve financial stability and independence. A growing number of people are beginning to realize that putting all their energy into one job is actually making it harder to achieve that sense of security, and therefore they are turning their passions and skill sets into income-generating projects in a blooming “gig economy”.
One person who understands this growing trend all too well is tech investor and entrepreneur Jonathan Kvicky, who at the age of thirty two has founded and flipped a number of successful startups, all while working full-time as a senior software engineer. Recently, Kvicky came into the limelight by showcasing one of his investment portfolios in which he had turned a $20,000 investment into over one million in less than a year’s time. And while the majority of that profit was made through tech investments, the initial fund was formed as a result of various side hustles which he would work on during his job’s off-hours.
According to Jonathan, here are five solid reasons why someone should consider starting a side hustle in 2021:
1. Side hustles help diversify your sources of income
If you suddenly lost your 9-5 job, where would you turn for income? If you don’t have an emergency savings fund, losing your full-time job could quickly turn financially catastrophic. Working a side hustle, until you at least have a solid emergency fund, is a smart way to ensure you’ll be able to cover your bills in the event that you unexpectedly lose your job or can’t work.
2. You can grow your professional network or establish new connections
Side hustles give you exposure to other working professionals who can turn you on to new opportunities or ideas. In addition, surrounding yourself with others in a similar field or line of work which you’re passionate about can help fuel personal growth and development in that space.
3. Extra income makes it easier to take ownership of your finances
Whatever your financial goals may be, extra income can help you achieve those goals more quickly. It’s especially important to consider a side hustle if your full-time job only pays you enough to cover your monthly bills and everyday expenses. Americans for decades have grappled with the effects of wage stagnation as hourly wage growth fails to keep up with inflation rates. That means that if you don’t get regular raises, the money you bring home will cover less and less each year.
4. Another source of income makes you resilient during times of volatility and uncertainty
The worldwide COVID-19 pandemic was an eye-opening experience for workers around the world. Many people quickly lost their jobs or got furloughed during the pandemic, leading to extreme financial stress and uncertainty. If your job gets affected by a global event or industry shift and you find yourself making less money, it’s possible to pivot towards a side hustle that you already have established to help get through the difficult time.
5. A successful side hustle makes you confident and keeps you motivated to follow your passions
Everyone likes feeling like they’re doing a good job. Although side hustles do require more work, they also help you build productive habits and give you additional opportunities to succeed professionally and financially. As your successes compound, you’ll begin feeling more confident in your work, as well as yourself.