There are many reasons to start a side hustle. I began a new side hustle in July 2014: freelance writing online. Some of the reasons why I decided to try my hand at making money online included using writing as a way to express myself, using writing to help and motivate others to get their finances in order, and using writing to occupy my free time with something productive instead of wasting away in front of the TV. 🙂
But of course, the main reason I decided to start a side hustle was to earn more and accelerate my progress toward my financial goals.
Unfortunately, I didn’t make the best use of my side hustle income in 2014. Most of it was used for things like shopping, going out to eat, and paying for entertainment instead of going toward my financial goals. Then I decided to get more serious with my finances for 2015. One way I’m being more serious with my finances is by tracking ALL of my spending, including the spending I do with my side hustle income.
In order to help me stay motivated to continue hustling, I’ve also set some goals for how much side hustle income I’d like to earn each month. Here are just a few goals I’ve set with my side income.
Side Income is Part of My Budget
Due to some changes in my full-time employment status and income, I’ve had to make my side income a part of my budget for 2015. Making my side income part of my budget is a good way to keep myself motivated to work hard and earn more.
For example, if I need $100 from side income to cover expenses in my budget, I know that I have to earn at least $130 from side hustling (because of self-employment taxes). If I don’t earn enough to cover my budget shortage each month, I’ll have to find a way to cut my expenses instead, which is never a fun thing to do when you’re already living on a strict budget. Making my side hustle income a part of my budget gives me an income goal to work toward each month.
Side Income Will Help Me Meet My Other Goals
When I set up my main personal and financial goals for 2015, they were heavily reliant on my side income. For example, one of my goals in 2015 is to quit my full-time job. In order for this to happen, I’m going to have completely replace my full-time job’s income by side hustling.
In reality, this means I will have to earn at least 30-35% more by side hustling each month than what I am currently making at my full-time job thanks to self-employment taxes. Keeping this end goal in sight helps me to continue seeking new client and opportunities to make more money from my side hustle.
Side Income Report Goals
When I first started reading blogs, I loved how some bloggers shared a monthly report of how much they made by side hustling. Since I started side hustling, I too have been sharing a monthly report of my side income and experiences. I find these reports very motivating and now it’s my goal to grow my side income and always beat the month before.
Incorporating side income into as many goals and aspects of your life as possible is a great way to make sure you stay motivated to keep hustling when times get tough and you get tired. This will inevitably happen and when it does, you want to make sure you have good goals in place to help you keep going so you can reach your final outcome, whatever that may be.
Do you set goals with your side income? Do you make it part of your budget or do you put it towards a certain category? Why do you try to make side income?
Photo courtesy of: wetwebwork
Latest posts by Kayla Sloan (see all)
- 12 Tips to Keep Your Finances in Check Each Month of the Year - July 16, 2018
- Should You Allow Your Kid to Get a Part-time Job? - July 9, 2018
- How to Get Paid While Getting Your MBA - June 27, 2018