{"id":10938,"date":"2022-09-27T17:42:14","date_gmt":"2022-09-27T22:42:14","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10938"},"modified":"2022-09-27T17:42:15","modified_gmt":"2022-09-27T22:42:15","slug":"3-ways-to-build-a-home-based-side-hustle-that-helps-you-beat-todays-inflation-worries","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10938","title":{"rendered":"3 Ways To Build A Home-Based Side Hustle That Helps You Beat Today\u2019s Inflation Worries"},"content":{"rendered":"\n

The U.S. Bureau of Labor Statistics\u00a0reported inflation continues to rise<\/a>. With prices increasing at an 8.3% annual rate, it makes sense to investigate what strategies you can muster to counter this trend.<\/p>\n\n\n\n

What is the best way to beat inflation?<\/h3>\n\n\n\n

Inflation means the cost of living increases. As your expenses rise, you need solutions to increase your revenues. You don\u2019t have a lot of choices. If you\u2019re working, your company raise represents the best way to fight inflation. But is an 8.3% raise realistic?<\/p>\n\n\n\n

\u201cWith the value of your savings and earnings being eroded by inflation, one immediate action you can take is to earn more,\u201d says Nick Loper, Founder of SideHustleNation.com in Sammamish, Washington. \u201cIf an inflation-matching raise at your job isn\u2019t feasible, it\u2019s only natural to turn to a side hustle or home-based business.\u201d<\/p>\n\n\n\n

And what if you\u2019re no longer working or close to retirement? It turns out, the answer might be the same whether you\u2019re working or retired.\u00a0AARP cites recent research<\/a>\u00a0that suggests the percentage of new business start-ups from the 55-64 age group rose from 14.4% in 1996 to 25.8% in 2018. If you consider how easy it is for recent retirees to pick up where they left off as independent contractors, you won\u2019t be surprised by these numbers.<\/p>\n\n\n\n

\u201cAs the nature of work has shifted toward knowledge work, people retiring from such work can return as consultants more easily and continue to earn while not working full-time,\u201d says Dr. Aleksandar (Sasha) Tomic, Economist and Associate Dean for Strategy, Innovation and Technology at Boston College in Chestnut Hill, Massachusetts. \u201cAs such, they are attractive to companies as they bring knowledge and experience and are not looking for a full-time position with all the extra cost that can bring. Also, people are staying healthier and living longer, so they are more likely to pursue a business of their own in retirement.\u201d<\/p>\n\n\n\n

How do people survive high inflation?<\/h3>\n\n\n\n

While not new, this trend toward the gig economy has rapidly expanded. This tendency likely alleviates much of the inflation-induced financial stress.<\/p>\n\n\n\n

\u201cOver the years, I\u2019ve had many clients employ side hustles to bring in extra cash, but never as many as I\u2019ve seen over the past 18-24 months,\u201d says Charles Catania, Principal of Branding with Chuck in Vernon, Connecticut. \u201cFor many, the extra income helps make ends meet. The burden of inflation still exists. Side hustles just make life more manageable.\u201d<\/p>\n\n\n\n

It doesn\u2019t take much to ease the pressure of higher prices. The near double-digit inflation rate represents the historic extreme and may not bode well if sustained.<\/p>\n\n\n\n

\u201cThe inflation rate over the last year was 8.3%,\u201d says Kari Brummond, Accountant and Content Manager at TaxCure.com in Trumbull, Connecticut. \u201cThis means that on average, most people spend 8.3% more than they did a year ago for the same purchases. A lot of people have to dip into savings or resort to credit cards<\/a>, but if you earn enough at your side hustle, you can use that money to cover the increased cost of living.\u201d<\/p>\n\n\n\n

However, the numbers may be more manageable than you might fear for the immediate future, especially if you embrace your inner entrepreneur.<\/p>\n\n\n\n

\u201cBy starting a small home-based business, you can help to beat inflation even if you only make a small profit,\u201d says John Bergquist, managing member of Lift Financial in South Jordan, Utah. \u201cFor example, if grocery expenses have gone up 10%, and let\u2019s assume your grocery budget was $1,000 per month, then your overall expenses in that category only increased $100 per month. While that is disheartening every time you go to the store, if your side business \u2018only\u2019 profited $100, then you\u2019ve effectively covered that cost. The same is true of the monthly gas bill. So even if you only made a couple of hundred dollars extra a month, it could cover the extra costs to your household. That may not seem to be very much money, but as you can see, it\u2019s worth it even if it\u2019s not a large sum.\u201d<\/p>\n\n\n\n

In fact, you can be an \u201cEntrepreneurial MVP\u201d with just a modest amount of elbow grease. To accomplish this, you must appreciate what \u201cMVP\u201d represents when looking to start a side hustle. Here\u2019s a brief summary of three factors to consider when building a home-based side hustle that will help you beat today\u2019s inflation worries.<\/p>\n\n\n\n

\u201cM = Money\u201d\u2014More Cash Means Less Stress<\/h3>\n\n\n\n

This represents the bottom line. You\u2019ve got to pick a gig that generates positive cash flow, no matter how small.<\/p>\n\n\n\n

\u201cHaving a side hustle helps to counter inflationary pressures by bringing in a second source of income,\u201d says Corina Layton, a Registered Dental Hygienist in Philadelphia who has a side hustle as an Influencer. \u201cBy having more income from my side hustle, I don\u2019t have to stress as much about price increases taking my entire paycheck. I know that I have more than one way to make money, so it takes the pressure off of my main job.\u201d<\/p>\n\n\n\n

The money problem is especially acute if you\u2019re retired and living on an unchanging stream of revenue. Any activity that adds a few more dollars to your wallet goes a long way to fighting inflation.<\/p>\n\n\n\n

\u201cThe biggest problem with inflation is that it eats away at money, so to speak,\u201d says Tomic. \u201cSo, if someone is on a relatively fixed income, their income will likely not adjust fast enough to catch up with inflation and might not adjust highly enough either. This is where a side hustle can help as the price of the goods or services provided would likely adjust more closely in step with inflation.\u201d<\/p>\n\n\n\n

Would you like to learn more about \u201cFinding the Money\u201d? Read this article for a deeper dive into discovering the process.<\/a><\/p>\n\n\n\n

\u201cV = Void\u201d\u2014Do What You\u2019re Already Doing<\/h3>\n\n\n\n

Finding the money is one thing. Finding the void is the key. This is learning to zig when everyone else is zagging. That\u2019s usually where the opportunity lies.<\/p>\n\n\n\n

\u201cMany think that\u00a0starting a business<\/a>\u00a0in light of a recession is risky,\u201d says Dr. Travis Fox, Co-Founder of AllRealms in St. George Utah. \u201cWith an increase in inflation, those with business ideas are less likely to act upon them, opening the door for you to succeed (and make more money) with less competition.\u201d<\/p>\n\n\n\n

To find the void, take what you already do and see where it\u2019s most needed. This gives you the clout to multiply the value (see \u201cmoney\u201d above) of that skill.<\/p>\n\n\n\n

\u201cThe earning opportunity side hustles and home-based businesses present during uncertain economic times is enormous; it just requires you to think outside the box and embrace a new way of earning,\u201d says Kelly Mosser, Consultant and Coach for Entrepreneurs at Kelly Mosser Consulting in New York City. \u201cThe key to a side business that boosts your income without adding additional stress to your day to day is to start a business that has low overhead and leverages skills you already have. Owning your own business can help foster a sense of personal empowerment, freedom, and security that your day job might not offer you. Diversifying your income by introducing a low-stress side hustle is a great way to fortify your financial position against inflation or a potential recession.\u201d<\/p>\n\n\n\n

Would you like to learn more about \u201cFilling the Void\u201d? Read this article for a deeper dive into discovering the process.<\/a><\/p>\n\n\n\n

\u201cP = Pivot\u201d\u2014Tax Savings<\/h3>\n\n\n\n

Finally, realize things are not always as they seem. Sometimes your first attempt fails. That\u2019s when you pivot to turn lemons into lemonade.<\/p>\n\n\n\n

But pivoting isn\u2019t limited to your product or service. It can also apply to the types of benefits you accrue from your side hustle. In fact, while you focus on increasing revenues, you may discover you\u2019re also cutting expenses.<\/p>\n\n\n\n

\u201cHome-based businesses are a quick way to reduce your personal expenses,\u201d says Micah Stateson, President & Founder at Optimized Waste Removal in Fort Worth, Texas. \u201cThe tax savings alone can beat inflationary pressures. Expensing your phone, internet, home office, gas, etc., are all great ways to leverage your small business<\/a> to your advantage.\u201d<\/p>\n\n\n\n

Of course, you\u2019ll want to double-check with your tax advisor to discover how this applies to you.<\/p>\n\n\n\n

Would you like to learn more about \u201cThe Power Pivot\u201d? Read this article for a deeper dive into discovering the process<\/a>.<\/p>\n\n\n\n

Pros vs. Cons: What are some side hustle ideas?<\/h3>\n\n\n\n

Be warned, though, that a small gig can turn into a money and time pit if you\u2019re not careful.<\/p>\n\n\n\n

\u201cA side business is a business,\u201d says Ted Wolf, Co-founder and CEO at Guidewise in Lancaster, Pennsylvania. \u201cIf you can\u2019t fully commit to starting and running a business, then I encourage you to keep your day job. Remember, when you start a side hustle, there are so many things to learn and things that can go wrong. So if your financial situation is in flux, it may be prudent to consider other options. By working a full-time job and running a side hustle, you are creating a situation ripe for making yourself become mentally, emotionally and financially overextended, which could take away from your day job, earning potential and family time. A side hustle or home-based business in some cases may work, but you really have to weigh the risk versus benefits and the longevity of your decision.\u201d<\/p>\n\n\n\n

This may be a concern if you have a full-time job, but not if you\u2019re retired. Yet, the side hustle options available remain similar whether you\u2019re working or living in retirement.<\/p>\n\n\n\n

\u201cI would certainly imagine it\u2019s top of mind for the retiree population,\u201d says Mosser. \u201cHere\u2019s some strategic advice for seniors looking to diversify with a side hustle: Lean into the skills you already have, especially the ones you mastered during your career, and explore the opportunities to freelance remotely. If an employer paid you for a skill, there\u2019s a market for it now, too. Start a profile on platforms like UpWork or Fiverr and find quality freelancing gigs right away, shop your skills among your circle of friends and family, or consider renting out your home on Airbnb or Vrbo the next time you\u2019re visiting overnight with family. An ideal side hustle for a retiree is one that fits into your routine, rather than disrupts it, and one that leverages the decades of experience you already have.\u201d<\/p>\n\n\n\n

That\u2019s not to say there aren\u2019t any risks for retirees.<\/p>\n\n\n\n

\u201cIf you\u2019re tackling a retirement side hustle out of excitement and desire\u2014rather than financial necessity\u2014I\u2019m all for it,\u201d says Loper. \u201cIt\u2019ll keep your mind sharp and let you feel a sense of progress toward something meaningful to you, a critical ingredient in long-term happiness. So, what\u2019s the drawback? The pursuit of \u2018more\u2019 for the sake of more runs the risk of damaging your relationships and truly enjoying your retirement years.\u201d<\/p>\n\n\n\n

Even so, you cannot deny the power of the side hustle. It has the advantage of providing a path to defeat inflation.<\/p>\n\n\n\n

\u201cFinancial burdens are often the biggest stressors in everyone\u2019s lives,\u201d says Fox. \u201cWhy not combat economic stress by embracing your entrepreneurial spirit, becoming your own boss and making some money while pursuing a personal passion?\u201d<\/p>\n\n\n\n

Ideally, you don\u2019t want your passion getting in the way of your success. You don\u2019t want to work harder; you want to work smarter. That\u2019s where the value of becoming an \u201cEntrepreneurial MVP\u201d stands out.<\/p>\n\n\n\n

Money. Void. Pivot. Pay attention to those three factors, and your little gig can deliver fun, invigoration and profits.<\/p>\n\n\n\n

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