This day and age, most people have more than one income source to afford the lifestyles they want (and to pay for things they need). Working a full-time job and supporting a family can take up a great deal of time and energy, which is why most opt to start a side hustle. From cutting hair and babysitting to providing professional services and selling products online, there are a number of ways that a person can make extra cash to supplement their income. The only problem is, before this second income source can prove beneficial, you’ll have to invest in it.
Essentially, you start a side hustle to make money, but in order to do this, you need to spend money. From startup costs and marketing materials to the daily costs of operating your side gig, these expenses can add up quickly. Since you still have other things you’re responsible for financially, finding the means to get started and stay afloat until you generate revenue can prove difficult.
Fortunately, with a bit of strategic planning and money management practices, you can fund your side hustle without neglecting your existing financial responsibilities. Here’s some advice listed below:
Cut Way Back on Spending
You may think that you don’t have enough money in your budget to fund your side hustle, but reviewing your budget could tell a different story. You’d be surprised to learn how much money you’re wasting on a regular basis that could be used to fund your side gig. Review your budget, receipts, and financial accounts to get a detailed idea on how much you spend each month and what you’re spending it on.
There are some expenses, of course, that cannot be avoided like housing, utilities, and food, but chances are, you’ll find a ton of things you can eliminate or cut back on. For example, if you’re eating out for lunch every day, start bringing leftovers from home for lunch. If you’re paying for multiple streaming services, select the one you like best and cancel the others. Maybe you’re spending way too much on ATM fees and should start withdrawing funds from your bank.
After you’ve eliminated what you can in unnecessary expenses, try to find ways to reduce the cost of your necessary monthly bills. Refinance your mortgage for a lower monthly rate, use coupons and shop store brands when buying groceries, and shop around for the most affordable rate on things like car insurance.
Get Rid of Some Things
The next way to fund your side hustle without going into debt is to get rid of some of your belongings. Most people have more things than they need lying around the house that others would pay a decent price for. Whether it’s clothes you can no longer fit, old furniture, outdated electronics, or a used car that sits in your driveway all the time, you could sell these things and use the money to fund your side gig. You can sell these items to specialized buyers (junk car, gold, or cell phone buyer), take photos and upload the items for sale on an eCommerce platform, or schedule a day to host a yard sale.
Take Out a Loan
After eliminating and cutting costs in your monthly budget and getting rid of things you don’t really need, you should have a decent amount of money to get started. If you need more, however, then you can look to financial solutions such as a personal loan. For those with bad credit, there are same day loans you can apply for that don’t require a credit check. Before deciding to apply for a personal loan, just be sure that you’re able to make the monthly payments in a timely fashion to avoid going into debt or ruining your credit.
Utilize Free and Affordable Business Tools
Hopefully, you’ve accumulated enough money to get your side business off the ground at this point. When it comes to covering the operational costs of your side gig, you can survive by using free and affordable business tools until you start generating decent profits. For example, social media is completely free and is also a very instrumental tool in marketing your services. You can also use free software and applications for everything from word processing and appointment scheduling to accounting and website development. As you get more money, you can upgrade to more efficient tools to further advance your side hustle.
Having more than one income source is a wise financial move. It’s a great way to make sure you can pay for the things you need while also indulging in things you really want. As with any business venture, you’ll need startup capital to keep you afloat until you start raking in the cash. The above-mentioned tips will most certainly help you generate enough money to start and operate your side hustle without the stress of going deep into debt.