A Side Hustle That Actually Works
I just wrote a A Simple Guide to Financial Freedom based on my experiences with Financial Freedom. Consider giving it a read if you are interested in this topic.
Making money is hard.
Which is why most side hustles (and real businesses) fail. The idea that you can do something on the side that will make any significant money is almost absurd when you think about it.
You are trying to do something extremely challenging (making money) and you are also saying it isn’t your primary focus (it is a side hustle after all)?
I have tried lots of side hustles and failed with pretty much all of them. I have made a bit of money here and there but when I did it took much more than what a side hustle would suggest. That said, I have learned a lot and I don’t regret my experiments. Starting a side hustle may be naive. The odds are stacked against you. But while you may not make any money, you will learn a lot.
If your goal is money, I have one “side hustle” that has worked for me. And it has worked wonderfully well. It is different from what you would usually consider a side hustle, hence the quotes. But if we broaden our scope a bit I think it qualifies.
Not only do I think it qualifies — I think it may be the best side hustle anyone can start.
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My side hustle is this: build an efficient life.
Most of us have a ton of waste in our daily lives. We are so far from efficient we barely know what it means. We spend money on things we don’t need and time on things we don’t want. Cleaning up some of this mess is good for your wallet and your life in general. It is good for the earth as well.
Instead of starting a side hustle to do more, your goal should be to do more with less. To do more with what you already have. And remove what you no longer need.
Primarily, your hustle will be to reduce expenses. If you can live a fulfilling life with fewer expenses, that is a beautiful showcase of efficiency.
Being more efficient also means less time wasted. The real reason we want more money is often to buy more time. But there are other ways of getting more time — often much easier ways. Efficiency gives us that time.
So how does this side hustle make any money?
First up, reducing expenses is more effective than increasing income. Fewer expenses means more savings and less savings needed. If you find $500 worth of monthly inefficiencies (easier than you’d think), that $500 is income from your side hustle.
Once you have leftover money each month, invest in productive assets. You money should not sit idle in a bank account. That is inefficient use of money. Neither should it be spent on things you want but don’t need — that is even more wasteful. Your money should be put to good use. And investing in productive assets like companies, rental properties, etc. will do that.
… and that’s pretty much it. Don’t believe this works? I does for me. Since I started this journey I’ve made more money with this simple idea than I have with anything else except my fulltime job.
A few other reasons why I like this side hustle:
- You learn valuable money skills
Stuff like budgeting, accounting, and financial literacy in general. You learn about the stock market and compound interest. We live in a capitalist society so these things are important — yet many people never even learn the basics.
- You learn valuable life skills
Being more efficient means learning how to maintain your gear. I recently went for a deep dive into bike maintenance by working on my old bike. I learned a ton and I enjoy the result so much more than I would have had I just taken it to the mechanic. If I have a defect while riding far from home I now have a better chance at fixing it.
You can also learn stuff like frugality, what really matters to you, how to make healthy (and cheap) food, etc. And you’ll do tasks that put your body to use instead of sitting in front of a screen all day.
- Overall you become a more rounded and resilient person
Specialization has lifted our society to where we are today. We can achieve amazing things when we split up jobs and focus on just one thing. But if you only have one thing in your life it becomes brittle. As a person you don’t want to be too specialized.
Instead of ordering takeout, learn to cook. Instead of buying new stuff, learn how to fix and make do with what you have. While most of your peers are zoned out in front of a screen, you’ll be building, creating, and learning new things.
- It is fun and rewarding
Living the consumer life just ins’t that interesting.
Living an efficient life is.
As part of this journey I have built tools for myself to track my expenses, I have learned a ton about money, investing, and taxes. As I’m writing this I just finished up the major maintenance job on my old bike and it is so much more rewarding than simply getting someone else to fix it for me.
These are just a few examples of many. The efficient life is harder and more uncomfortable than the consumer life. But with the hardship comes immense satisfaction and joy.
So what are you waiting for? Start living your efficient life now.
Postscript on efficiency: you may think spending more time on your job is the most efficient use of your time. If you are well paid it seems logical that you should focus on that and use money to remove other chores in life: cleaning, maintenance, etc. That may be the right choice. But only focusing on money is a very narrow way of looking at the world. Learning how to maintain your bike or your car is a valuable lesson. It is not just a chore — it is a task filled with rewards, knowledge, and a healthier body. Remember to consider these things when you evaluate whether sitting in a office for more hours is really the best way to spend your time.