I think we can agree that in most cases income at a day job is capped. There are obviously exceptions, especially if you work on commission, but in general nobody gets rich working a 9-5 all their life.
When you add a side business to your regular day job that all changes and you start to see the real potential. This is why I think people who are looking to aggressively improve their financial situations need to have their own side business.
And, note that when I say side business I am talking about businesses you can start for very little or no money at all. (Online businesses, freelance services, etc.)
Here are five reasons why you might consider starting a side business.
Unlimited Income Potential
For the first year you might have to work extra hard to bring in any income from your side business. But after you start to build momentum and see all of your work pay off you realize that the sky really is the limit.
For me it took two years of really hard work to earn much from my efforts. But now that I’m in my third year things are starting to really take off and I feel like my income potential is unlimited!
Accelerated Progress Toward Financial Goals
If you’re working really hard on saving money or paying down debt a side business can help you reach your goal even faster. And if you’re looking to make money from your new venture immediately, then become a freelancer.
As a freelancer you’ll start earning money as soon as you start working! You can put all your “extra” side business income toward your personal finance goals.
We’ve seen what a down economy can do to jobs in recent years. The truth is nobody’s job is safe. If you have a side business to fall back on you’re in a much better position than your peers.
You learn so much about yourself when you’re trying to make a brand new business work. You have to really push yourself outside of your comfort zone and try new things.
The process is scary and liberating all at the same time. You start to realize your strengths and weaknesses, you learn SO much, and you grow as a person.
Starting your own side business is not like getting a regular 9-5. Everything is up to you! You get to take something you enjoy doing and turn it into a money making affair.
You choose who you want to work with, what and how many hours you’ll work, and everything else along the way.
I think having a side business is a smart financial move for those who can tolerate the first year or so. Starting your own business, even a very small one, is not an easy feat. However, I’ve found it to be enjoyable and absolutely freeing from a financial perspective.