Where To Consider Investing The Money You Make From Your Side Hustle
Side hustle culture is thrive with so many people earning without leaving home. The money you make from your side hustle should be invested to allow it to grow. Spending money on things that depreciate in value like a brand new car will not generate any income for you. A new car loses a large percentage of its value as soon as it leaves the car dealership lot. Financial education can be gained simply by going online and doing your own research. Past generations did not have the luxury of being able to find nearly any piece of information online. Figuring out things like investing in something like a gold bar or silver bullion can help grow wealth if held onto for long enough. The following are areas to consider investing the extra money you make from your side hustle.
Putting Money Aside For Taxes
Tax season can be very worrisome for those with side hustles if they have not paid quarterly taxes or saved money for taxes. The last thing you want to do is waste the money that is owed to the IRS. The mistake is more than common as people are used to taxes automatically coming out of their checks when they are paid.
Investing A Little Bit Each Month In Crypto
Cryptocurrency can be quite a volatile investment but can be very profitable. Putting a small amount of money in various cryptos can be a great investment monthly. NFTs can also be profitable but research has to be done extensively before making a wise investment.
Invest In Creating New Revenue Streams
Vending machines can be a great investment as they take minimal time to manage and can earn monthly. Finding establishments and organizations willing to split profits can allow you to earn from multiple vending machines monthly. Pool tables are another great investment as bars might be willing to split the profits and would rather not invest in a pool table themselves.
An addition to your home can be great if you create an in-law suite. You can rent this space out for months or for weekends on Airbnb. These can be great for a family member out of college that might not be able to afford a traditional apartment. The ability to leverage your home can allow you to maximize the investment you made in your home.
Maximize Your 401k Contribution
Your annual 401k contribution could come with a match from your employer of various amounts. Using the extra money you earn to maximize your 401k contribution will help you avoid paying taxes on the money until you reach a certain age. Doing this over the course of your career will allow you to retire very comfortably. You might even be able to retire early but you will be taxed as a penalty for withdrawing money from your 401k before you have gotten to a certain age.
Stock Market Investments
The stock market can fluctuate for some stocks drastically while others are far more stable. A diverse stock portfolio can allow you to make gains well into the future. You do not want to invest in one single industry as this industry could be crippled by one global event or another. Technology has also made certain industries obsolete due to automation being utilized.
Automated trading options are even available that you can deposit money into regularly. These options utilize artificial intelligence to help grow the funds in your account. You can set how much risk you want to take and even the industries where you want to focus your investments.
Trading apps differ in quality and what they offer in terms of investments. You might not be able to invest in OTC or over-the-counter stocks. These stocks can be high risk and reward but do your due diligence on each company. Keep in mind that some companies might try to increase their stock price with a plethora of press releases that really don’t have much in terms of value.
Saving For A Rental Property
Rental income can be quite passive as your property appreciates in value in a healthy housing market. Finding the right rental property depends on how much work you are willing to do. If you have home improvement and renovation skills, flipping a rental property can be another way to profit. The truth is that property management companies can be a great resource and charge a lower fee than most consumers realize. Mynd offers excellent rental management in Charlotte, so that you can grow your investment without any stress.
Investing monthly from a young age can result in building wealth over the years. Your side hustle can allow you to find financial freedom without impacting your lifestyle in a significant fashion.