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One Side Hustle Can Help You Reach $1mm On Retirement

NOTE: I’ll be going on vacation and also traveling for work for the next two weeks (to 11/21/2016).  Blogging will be less frequent, but there’s already a lot of great content that you can review in the meantime!  Just go into blog history or click any of the Category pages on the right side of this page.

Do you have free time every week?  One (or more) side hustles can help set you up for retirement, and combined with this pro-tip on getting rid of one or more of your vehicles, help you earn hundreds of thousands or millions of dollars by retirement.

How does it work?

Most of us have skills that we can use in our free time that other people will pay for.  This could be as simple as tutoring, editing or consulting, or as sophisticated as dabbling in real estate, creating art, or computer science/design.

Whether you can earn $10 or $100/hour doing your side hustle, let’s say you set a goal of earning $5,500 a year (coincidentally, this would maximize your IRA contribution).

Contributing that same $5,500 to a tax advantaged account and earning 7% a year for 38 or more years can result in more than $1mm by the time you retire.  See below:

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No matter what you decide to do as your side hustle, I recommend 1) getting one, and 2) getting one that you enjoy so that your time spent hustling doesn’t feel like work.  That way, you can increase your wealth and kill time enjoyably.

Here are some other ideas for side hustles that anyone could consider:

  • Driving for a rideshare company
  • AirBNB an extra bedroom
  • Trading up/selling on Craigslist
  • Babysitting
  • Dog walking
  • Painting (Sample Paint Kit)
  • Rent your car (i.e. on Turo)

Are there any other interesting side hustle ideas to consider?

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