Side hustle is the buzz term everyone is talking about. Having a side hustle isn’t necessarily a new concept, but it is one that’s increasingly attainable and realistic for more people.
You can work full-time and do something on the side to earn extra money. For example, if you have a vehicle that meets the requirements, you can drive for Lyft or Uber. If you have a talent or skill, you can market your services as a freelancer on Upwork. Maybe you earn passive income through an e-Commerce site.
Whatever it is, having that extra income is great, but the objective should be growing your earnings.
Even if you just earn a small amount of money from a side hustle, when you’re smart about how you grow it, it becomes something much more than just a little extra.
The following are some ways to grow your money you earn from your side hustle, even if it’s not a lot right now.
Consider Investing Through DRIPS
DRIP stands for dividend reinvestment plans, and they allow investors to open it without a stockbroker. This is great for small investors because they can create regular purchase instructions, where money is automatically drafted from a checking or savings account at intervals they choose.
That money then goes toward purchasing stocks in the companies they choose as well.
When you use a DRIP, you’re typically buying directly from the business, and there usually aren’t commission fees charged.
There are also multiple options for how you’ll invest dividends. Overall it’s a good way for people to invest even small amounts of money, such as side hustle earnings.
Look At Safe Investments
If you don’t have a lot of money you can or are willing to invest, you probably want to go with some safer lower-risk options.
CDs and money markets can be good options, as can high-yield savings.
For many years these low-risk investment vehicles weren’t necessarily the best option because interest rates are so low, but they have been rising and are likely to continue doing so.
If your side hustle is a small business that you ultimately want to turn into something full-time, don’t forget the fact that investing in yourself can be extremely valuable.
You can take courses on Udemy as an example, and learn more skills that you can bring to your business.
Don’t be afraid to invest in yourself. Ultimately one of the best ways you can grow your wealth is to start a business.
Finally, Wall Street is no longer reserved for the wealthy, thanks to new fintech options.
Explore something like Betterment. Setting up a Betterment account is extremely easy, and you highlight what your goals are and some personal information. Then, Betterment creates a portfolio based on your needs.
They invest everything for you, there is no minimum deposit amount, and fees are very reasonable.
It’s a set-it-and-forget strategy, and you can create recurring withdrawals from your checking or savings, so you’re regularly building your investment account over time.