In today’s culture, the term “side hustles” are popularly used in context with the millennial generation, as they often need flexible part-time income to keep up with increased housing costs, expensive student loan debt, and stagnant wages. A new nickname for Millennials is the “1099 Generation”.
However, Millennials are not the only ones appreciating the benefits that technology has brought to the landscape to make side hustles as efficient and flexible as possible. More and more people in retirement are dipping their toes in the water, too. According to a CareerBuilder survey, 19 percent of those ages 55 and older have a side hustle. Why? As stated in an article titled The Rules of a Side Hustle, “It’s never been easier or cheaper to have a side business, nor has it ever been more potentially scalable. A viable webpage (with an online payment system included) can be thrown together in a couple hours for almost nothing. And simple mobile apps like Uber or Airbnb allow you to monetize your car or home for extra income.”
Many different creative opportunities fall under the category of “side hustle”. An article titled Retirement Side Hustles for Extra Money lists several ideas, such as renting out idle storage space, providing feedback for websites, taking surveys online, teaching skilled lessons, selling goods at a farmers market, becoming a mystery shopper, and the list continues. Many retirees take on “gigs” not just for the extra cash, but also for the social interaction and community support.
Before diving into a side hustle, be sure to research the logistics and fine print. If something sounds too good to be true, it probably is. As with any type of paid work, there are always trade-offs. Be sure to protect your energy, mental capacity, and creativity. Also, be sure to create awareness around the costs involved. Are there start-up costs or maintenance costs involved? Is there a liability that needs to be protected? Also, be sure to keep self-employment taxes in mind. These taxes could be higher than W-2 income taxes.
If you would like a second opinion on how a “side hustle” fits into your overall financial plan, please call Sharkey, Howes & Javer at 303-639-5100 or send us a message to schedule a complimentary consultation.