Use a Side Hustle to Build a Third Income Stream — Here’s How and Why
Don’t put all your eggs in one basket, don’t have only baskets, don’t have only eggs
There is no mistake just focusing on one job from 9 to 5 and doing that job well. After all, it was one of the main economic activities I did throughout my career before and after school.
The income from my corporate job and my side job are helping me build a third income stream of passive investments.
Although I have spent some time in some non-scalable ventures, an online side hustle is an arsenal of gold that I am using to buy my ticket and get on the ship of financial freedom.
I spend most of my time making money in a corporate job, but I won’t necessarily stop my 9 to 5 job because I am using it to build a third income stream.
If I had to start all over again, I would do 90% of what I did from the beginning, but with a slightly different approach. I would spend less time focused on just working 9 to 5 and more time on building a scalable online side business.
An Online Side Hustle Can Be a Goldmine to Buy Financial Freedom — Explore It
Nobody said that starting a side business or project would be easy. A scalable business is a smart choice, and it will involve work and effort on your part.
An online business can be scalable because the ability to reach millions of people is unlimited. There is also a low cost of entry and you don’t need to invest a lot to start a side business online.
And, if you can make $8 in an online business, you can make 6–7 figures, with the sky being the beginning and not the limit.
You also have geographical freedom and can work anywhere and anytime. This allows you the greatest freedom to be able to combine your main job remotely and a side activity online.
As I write this article, I have two income streams that are helping me build a third income stream from passive investments:
My side job writing online
My remote corporate job.
This article I wrote recently and you can read it here.
Reasons Why An Online Side Business Is Necessary While Working a 9 To 5 Job
There are several monetary and non-monetary reasons why it makes sense to pursue a side job, especially a digital job, in addition to working a full-time job.
Reason 1: A large influx of money coming in produces a significant increase in your cash flow and net worth because there is a limit on saving
This is very simple to understand. There is a finite capacity of how much money you can save after you have earned it, but the capacity to earn a lot of money is unlimited.
A little mathematics and examples can help me make this clearer.
For example, if I earn over $100,000 per year after taxes and have household expenses of $50,000. I can save $50,000 per year.
And if I have an extra income of $50,000 in my online side business, even though it is only 50% of my primary income, it represents 100% of my savings.
To be financially free, I need my passive income streams to be greater than what I spend on my lifestyle. A second income stream online can accelerate and multiply my savings.
Reason 2: Your Money, Paycheck, or Income Doesn’t Depend on the Decision of One or Two People
Focusing only on your professional career or corporate job not only makes you susceptible to the risk of losing 100% of your income if you resign or are laid off, there is also a high chance that one or two people who have a strong direct influence on your total compensation.
Depending or not on the corporation’s income, your direct manager can afford to reduce your salary substantially. The opinion of just one person can have a profound impact on your lifestyle.
Don’t put all your eggs in one basket, don’t have only baskets, don’t have only eggs
With a scalable online side business, you don’t expose yourself to the whims of one or two people making compensation decisions.
Reason 3 — You Need Something of Your Own
You are more free and powerful when your identity is tied to your name.
Let me give you an example:
When I worked remotely, I would always say that I was a software engineer working for ABC or XYZ. I didn’t feel very confident, so I used as a hitchhiker the companies I worked for to build my first income stream. I was a “super” engineer because I worked for corporations that have million-dollar businesses and I work on things that are trending.
This happens to many people — you tie your identity to your work and who you work for. There is no mistake to work for a corporation.
Working for a corporation also has the effect of impacting how you behave. When you work for someone else, you can be fired by that same person, so you better behave yourself. But this is hardly the case with social media and the Internet.
Having something that is uniquely yours means that you can tie your identity to something that no one can take away. If someone ever asks you what you do, you can be more confident and inspiring to that person, because, let’s be honest, it’s probably more interesting anyway.
But a side job doesn’t have to be a second job
A side job can be something you do on the side, that doesn’t conflict with your 9 to 5 job or take up too much time and energy. The hack here is to find something that doesn’t distract you from the main revenue stream, your 9 to 5 job, but still offers you an opportunity to earn more.
Final thoughts
From an economic and financial standpoint, starting a side business while working a full-time job is a smart decision you can make.
Side jobs or businesses are a great way to protect your income, enjoy some personal fulfillment, start a third income stream, and be financially free. In this case, the extra money is not simply extra income, but a way to build a third income stream.