October 4, 2025 • 36 mins
The episode provided from an article from Trader Suggest titled "10 Ways Millennials Can Make Extra Money Now To Save for Retirement," written by Adidas Wilson. The episode offers practical strategies for Millennials to generate supplemental income through the gig economy, e-commerce, and other digital ventures to bolster their retirement savings. Specifically, it outlines ten methods, including freelancing, teaching online, renting out assets, and starting a content channel, detailing how to begin each hustle, the potential earnings, and the impact on long-term retirement accounts like IRAs. The piece emphasizes that consistent discipline and strategic investment of these extra funds are crucial for building significant wealth over time.
https://tradersuggest.com/10-ways-millennials-can-make-extra-money-now-to-save-for-retirement/
“If you don't find a way to make money while you sleep, you will work until you die.”
Warren Buffett
https://tradersuggest.com/10-ways-millennials-can-make-extra-money-now-to-save-for-retirement/
“If you don't find a way to make money while you sleep, you will work until you die.”
Warren Buffett
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the Deep Diet. This is the show where
we dig into the details, pulling out the most actionable
insights from finance and strategy.
Speaker 2 (00:07):
Glad to be here today.
Speaker 1 (00:08):
We're tackling something really critical. We're building essentially a blueprint
for millennials how to generate extra income right now and
funnel it straight into retirement savings.
Speaker 2 (00:19):
Yeah, and it's so important because the traditional paths they
just aren't cutting it for many people.
Speaker 1 (00:24):
Anymore, exactly. I mean, we all see the headlines rising
living costs, student debt is just crushing. The job market
feels well uncertain. So our mission today for you listening
is to really pull out the ten most effective, most
practical ways you can use the gig economy, technology, your
own creativity to get that extra cash flowing and build
(00:46):
real wealth for the future.
Speaker 2 (00:48):
And I think we have to stress that strategic conversion part.
You mentioned. The sources we looked at really hammer this home.
Relying just on say an employer match, Yeah, it's probably
not going to be enough for real financial.
Speaker 1 (01:00):
Independence down the road, not in this climate.
Speaker 2 (01:03):
Right. So this sight income it's shifted from being like
nice extra cash to a strategic necessity. It helps compensate
for all those economic pressures.
Speaker 1 (01:12):
I completely agree, And that word necessity brings up the
power of compounding, doesn't it, And we have to keep
talking about that.
Speaker 2 (01:17):
Absolutely. It's the core principle.
Speaker 1 (01:19):
Taking that money you earn maybe tonight driving for uber
or this weekend, selling crafts online, and getting it invested immediately.
That gives it what thirty forty, maybe fifty years to grow.
Speaker 2 (01:30):
That time horizon is everything. It's the biggest advantage millennials
have financially speaking.
Speaker 1 (01:36):
But you have to fuel it. You have to put
money in now for that advantage to mean anything.
Speaker 2 (01:40):
Precisely, it's about turning today's effort into decades of potential growth.
You know that fifty bucks you meet freelancing tonight, it's
worth way, way more than maybe starting to save that
same fifty bucks ten or fifteen years from.
Speaker 1 (01:53):
Now, exponentially more valuable. Okay, so let's get into this blueprint.
We've structured the ten strategies into three main themes just
to make it easier to follow. First up using the
skills you already have and creating products that can scale.
Speaker 2 (02:07):
Good starting point.
Speaker 1 (02:08):
Then we'll talk about monetizing assets you might already own.
Things lying around the house, basically.
Speaker 2 (02:13):
Making your stuff work for you.
Speaker 1 (02:15):
Yeah, and finally we'll cover those more immediate effort based
income streams. The flexible gigs sound.
Speaker 2 (02:22):
Good, sounds perfect. Let's dive in.
Speaker 1 (02:24):
All right, section one. Here we're focusing on ways to
earn that, leverage your professional skills, your creativity, and maybe
build something once that keeps paying you less trading time
directly for dollars ideally.
Speaker 2 (02:36):
Yeah, this is a great place to start because it
taps into skills many millennials already have, you know, things
they learned in college or using their main job, coding, writing, design, maybe.
Speaker 1 (02:47):
Marketing, skills that already command decent rates.
Speaker 2 (02:49):
Exactly high value skills right off the bat.
Speaker 1 (02:52):
Which brings us straight to way number one, freelancing in
your skill set using platforms like upwork, hoever maybe freelancer
dot com.
Speaker 2 (03:02):
The accessibility is just amazing, now, isn't it. You can
basically spin up a side consulting gig using your nine
to five expertise pretty quickly.
Speaker 1 (03:09):
But it's not just signing up right the sources mentioned
optimization being key.
Speaker 2 (03:14):
Oh, definitely, signing up is just step one. You need
a profile that really pops and Actually, some sources suggested
using AI tools maybe like chat GPT to help craft
those descriptions, not just listing what you can do, but
focusing on the problems you solve for clients.
Speaker 1 (03:29):
That's a smart angle. So beyond the profile itself, what
are the practical steps? What does someone do to get
started and actually land gigs?
Speaker 2 (03:37):
Well, you absolutely need a portfolio, even if you have
to create some spec projects initially, just to show what
you can do. That's crucial, okay, And when you're sending
out proposals, the advice is clear, focus less on being
the absolute cheapest and more on showing you understand the
client's problem and how you're the specific solution right value
(03:57):
over price exactly. And look for anyone starting out, the
advice is pretty consistent. You might need to set your
rates a little competitively at first, maybe even slightly lower
than you'd like.
Speaker 1 (04:07):
Why is that just to get work?
Speaker 2 (04:08):
It's about getting those first few reviews, like maybe the
first five, because those reviews act like currency on these platforms.
They build trust, they show you deliver. Once you have
that social proofs, then you can start raising your rates.
Speaker 1 (04:20):
Okay, that makes sense. Build credibility first. Now, let's talk money.
The potential earnings sources say what twenty tow one hundred
dollars an hour. That's a huge range, it is.
Speaker 2 (04:30):
It depends heavily on the skill, your experience, your reviews.
Speaker 1 (04:34):
Let's use that concrete example from the outline. A writer
say they charge fifty dollars for a short article, maybe
take some an hour or two. They do five of
those a week. That's an extra thousand bucks a month gross.
Sounds great on the surface, And here's the challenge I
want to bring up. Are we being realistic about the
net profit? Because when you freelance, suddenly you're hit with
self employment tax, right, and you probably need to make
(04:56):
quarterly payments. That sounds like a hassle.
Speaker 2 (04:58):
That's a super important point. Yeah, the thousand dollars gross
is definitely not one thousand dollars in your pocket. Freelancers
absolutely have to budget for taxes. A good rule of
thumb is to immediately set aside, say twenty five percent,
maybe even up to thirty five percent of everything you earn.
Speaker 1 (05:13):
Wow. Okay, so that thousand dollars might only be what
six hundred and fifty or seven hundred dollars net.
Speaker 2 (05:18):
Potentially yes. But here's the thing. Even at seven hundred
dollars net, the retirement impact is still massive because it's
consistent money you wouldn't have otherwise had.
Speaker 1 (05:27):
Right, So let's run the numbers on that net amount.
Let's be conservative. Say someone nets seven hundred dollars and
decides to invest five hundred dollars of it each month
consistently into something like a low cost index fund inside
maybe a raw ira. What does that look like over
say forty years.
Speaker 2 (05:43):
Assuming a pretty standard historical average return maybe around seven
percent per year, that five hundred dollars a month grows
to over six hundred thousand.
Speaker 1 (05:51):
Dollars over six hundred grand.
Speaker 2 (05:52):
Yep, just from that side gig money after taxes. It
really shows how powerful that discipline is, turning side cash
into series retirement security even after dealing with the tax stuff.
Speaker 1 (06:02):
Okay, that really puts it into perspective. Let's shift away
number two. Monetizing a side hustle with e commerce. This
feels more creative. Maybe platforms like Etsy, eBay, Shopify.
Speaker 2 (06:11):
Yeah, this is definitely where creativity can pay off. But
the key here, according to the sources, is finding your niche,
like a really specific.
Speaker 1 (06:18):
Niche what do you mean by specific.
Speaker 2 (06:20):
Well, not just selling clothes, but maybe selling curated vintage
band t shirts from the nineties, or not just crafts
but handmade ceramic planters for succulents. You see very targeted.
Speaker 1 (06:33):
Got it? So find that specific audience.
Speaker 2 (06:35):
Then what them presentation is everything? Good product photos are
non negotiable. You need decent lighting, clear shots, and really
good descriptions that use keywords people actually search for on
those platforms. Think about the SEO within Etsy or eBay.
Speaker 1 (06:50):
Makes sense now. Earnings here seem even more variable. The
sources mentioned five hundred dollars up to maybe five thousand
dollars a month for successful sellers. That's a big jump
from free lancing. Potentially it can be.
Speaker 2 (07:01):
Yes, the feeling is potentially higher, But there's also the
challenge of inventory. Right, if you're selling physical goods, you
have to buy them first. That ties up capital.
Speaker 1 (07:09):
Good point. Is there a way around that?
Speaker 2 (07:11):
Yeah, that's where drop shipping often comes up. It's mentioned
frequently as a lower overhead way to get started.
Speaker 1 (07:17):
Explain drop shipping quickly for someone who hasn't heard of it.
Speaker 2 (07:19):
Sure, Basically, you set up an online store, you list
products for sale, but you don't actually hold any inventory yourself.
When a customer buys something from your store, you then
place the order with your supplier off and overseas and
they ship the product directly to the customer.
Speaker 1 (07:35):
Ah, so you never touch the product.
Speaker 2 (07:37):
Correct, You're essentially the marketer in the middleman. It removes
the risk of buying a bunch of stock that might
not sell.
Speaker 1 (07:43):
Okay, that sounds almost too good to be true. What's
the catch.
Speaker 2 (07:47):
The big risks are quality control in shipping times. If
your supplier sends out a shoddy product, or it takes
six weeks to arrive, guess who gets the blank?
Speaker 1 (07:56):
You do your store's reputation exactly.
Speaker 2 (07:59):
So if you go drop shipping route, you had to
be incredibly careful about vetting your suppliers. But whether it's
physical products or drop shipping, the successful strategy involves really
understanding your costs, your cost of goods sold or cogs
to make sure your prices give you a healthy profit
margin before you try to scale up.
Speaker 1 (08:17):
Okay, profit margin is key, which leads us to the
long term impact. Let's say someone builds a successful shop.
Maybe it's drop shipping, maybe it's handmade goods and they're
consistently clearing one thousand dollars a month in profit. If
they start saving that at age thirty.
Speaker 2 (08:31):
And they get that same seven percent average return we
talked about by age seventy, that one thousand dollars a
month could grow to over one point two million dollars.
Speaker 1 (08:39):
Wow, one point two million dollars from a side hustle.
Speaker 2 (08:42):
Yeah. The advice usually is when you start reinvest a
good chunk of the profits back into the business, maybe
more inventory, better photos, marketing ads. But once it's stable
and profitable, start funneling that excess cash directly into your
retirement accounts systematically.
Speaker 1 (08:58):
Okay, let's look at way number three. Teaching or tutoring online.
This seems like it's tapping into that big shift towards
online learning, especially since well recent years.
Speaker 2 (09:06):
Absolutely the demand exploded and it hasn't really gone away.
Platforms like vip kid check tutors preply. They connect tutors
with students all over the world.
Speaker 1 (09:15):
And it's not just the classic subjects right, like math
and English.
Speaker 2 (09:18):
Not at all people assume that, but the sources highlight
huge demand for specialized skills. Think teaching someone Python, coding,
or advanced Excel skills for finance jobs, or music theory,
or even how to use specific software like Adobe Photoshop.
Speaker 1 (09:34):
So niche skills are valuable here too, very much so.
Speaker 2 (09:37):
And if you have any kind of certification in your area,
that adds a lot of credibility and usually lets you
charge a higher hourly rate.
Speaker 1 (09:44):
Within this teaching world, there's also a passive income angle,
isn't there?
Speaker 2 (09:48):
Yes, definitely. This involves creating online courses. You put in
the work up front, maybe it takes say forty or
fifty hours to script, record, and edit really good course.
You upload it to platforms like or skill share, and
then and then, if you've chosen the good topic and
marketed it reasonably well, it can generate income passively. The
thoughts would suggest anywhere from maybe one hundred dollars up
(10:10):
p on thousand dollars a month per course. Potentially, it
depends hugely on the topic and competition, of course.
Speaker 1 (10:16):
Okay, but let's stick with the active tutoring for the
retirement math. Say someone tutors ten hours a week, maybe
charges thirty dollars an hour. That's twelve hundred dollars a.
Speaker 2 (10:23):
Month, right, and if they save half of that six
hundred dollars a month. We're back to building really significant
wealth over time, just like the freelancing.
Speaker 1 (10:31):
Example, and it feels maybe a bit more efficient than freelancing.
Speaker 2 (10:35):
Sometimes it can be because often the platform itself does
the marketing for you. They bring the students to you.
You just have to deliver the tutoring. Less time spent
finding clients.
Speaker 1 (10:45):
Good point. Okay, before we leave this section on skills
and products, let's jump ahead slightly to weigh number eight
because it fits so well here selling digital products. This
feels like the ultimate scalable model.
Speaker 2 (10:57):
It really is, and anyways, it has potentially the highest
profit margins because there's often no physical cost of goods.
We're talking ebooks, downloadable templates like budgeting spreadsheets or resume designs,
maybe printables like planners or checklists, guides.
Speaker 1 (11:11):
Things you create once.
Speaker 2 (11:12):
Exactly, create it once, sell it potentially hundreds or thousands
of times. Your main costs are maybe platform fees and marketing.
The profit margin can easily be over ninety percent.
Speaker 1 (11:22):
That sounds incredibly appealing for retirement savings, minimal ongoing effort
once it's set up. Where do people typically sell.
Speaker 2 (11:29):
These platforms like Gumroad are really popular for digital creators.
Etsy is also surprisingly good for certain types of printables
or templates. The key again is marketing, usually through social media,
maybe a blog or building an email list.
Speaker 1 (11:42):
And the potential earnings.
Speaker 2 (11:44):
The sources suggest even a single relatively low priced product,
say a ten dollars template, if it hits the right
niche and gets consistent sales, could realistically bring in five
hundred to two thousand dollars a month.
Speaker 1 (11:55):
Wow.
Speaker 2 (11:56):
And because it's often passive recurring income, it just perfectly
suited for that immediate automated transfer straight into a retirement account,
less temptation to just spend it because it sort of
arrives automatically.
Speaker 1 (12:06):
Okay, that's a powerful set of strategies based on skills
and creation. Let's shift gears section two. Now we're moving
away from income based purely on your effort or creative output,
and more towards maximizing things you already have. Could be
physical stuff, could be your online presence.
Speaker 2 (12:22):
Right. This is all about optimization, making sure your assets
aren't just sitting there costing you money, but actually generating money,
often with less active effort required than say, freelancing every night.
Speaker 1 (12:34):
It feels like the barrier to entry might be lower
here for some people.
Speaker 2 (12:38):
It can be Yeah, yeah, because the core asset, the car,
the room, the online profile. It already exists.
Speaker 1 (12:45):
So let's start with Wayne number four renting out assets.
We all have stuff we don't use. Twenty four to seven.
Speaker 2 (12:50):
Absolutely, think about your car. How many hours a day
does it just sit parked? Or maybe you have a
spare bedroom that's mostly just filled with junk, or even
an unused parking space if you live in a city.
Speaker 1 (13:01):
These are all potential income streams.
Speaker 2 (13:03):
Immediately convertible into cash flow.
Speaker 1 (13:04):
Yes, okay, let's get specific with platforms for spare rooms.
The obvious one is Airbnb. Sources suggest that could bring
in what five hundred dollars to maybe two thousand dollars
a month in a decent location.
Speaker 2 (13:16):
Yeah, easily, especially in tourist areas or major cities. For cars,
you've got platforms like turow that could add maybe three
hundred to eight hundred dollars a month to your income,
depending on the car and how often you make it available.
Speaker 1 (13:27):
And the parking space one is interesting. You mentioned spacer
right or similar platforms.
Speaker 2 (13:31):
If you have a driveway or garage spot, you don't use,
especially near a busy area or a train station. You
can rent it out monthly with very very little effort.
Speaker 1 (13:39):
Okay, this sounds great, potentially quite passive, but there have
to be catches. What are the big warnings here?
Speaker 2 (13:47):
Oh? Absolutely? The main one is regulation and insurance. This
isn't just casual pocket money. You're running a mini business
and you have to treat it seriously.
Speaker 1 (13:55):
Now. So with Airbnb, for instance, before you.
Speaker 2 (13:57):
Even think about listing a room, you absolutely must check
your local city and sometimes even hoa regulations on short
term rentals. Many cities have cracked down hard, requiring permits,
limiting the number of days you can rent, imposing taxes.
Ignoring these can lead to big fines.
Speaker 1 (14:14):
Okay, so do your homework on local laws. What about insurance? Like,
if I rent my car out on Turo, does my
regular car insurance cover the renter if they crash it?
Speaker 2 (14:23):
Almost certainly not. Your personal policy likely excludes commercial use. Now,
platforms like Turo do provide their own insurance policies, usually
with different levels the renter can choose, but you need
to read the fine print very carefully, both on Touro's
side and your own policy to make sure you're fully
covered and not accidentally violating your personal insurance terms right.
Speaker 1 (14:45):
Skipping that step could wipe out any earnings pretty quickly
if something goes wrong instantly.
Speaker 2 (14:50):
Same goes for homeowners insurance. If you're doing airbnb, you
likely need a writer or a separate policy for short
term renting.
Speaker 1 (14:56):
Okay, so crucial caveats there, But assuming you navigate the
rules in an insurnt properly, the income potential is steady.
If someone pulls in, say one thousand dollars a month
combined from renting a room in their car when they
aren't using it, and invest that.
Speaker 2 (15:11):
Even if we assume a slightly lower return, maybe six percent,
because maybe it feels a bit less certain than market returns,
that thousand dollars a month invested consistently over forty years
could still grow to over eight hundred thousand dollars over.
Speaker 1 (15:25):
Three quarters of a million dollars essentially generated while you sleep.
Speaker 2 (15:28):
That's the appeal. It's leveraging something you already own to
build wealth passively.
Speaker 1 (15:33):
Okay, let's move to a different kind of asset, your
digital presence way number five creating content on social media
or YouTube. This feels very tailored to millennials and gen
Z who grew up online.
Speaker 2 (15:48):
It really is. It's about taking something you're already doing,
maybe sharing your fitness journey, reviewing tech gadgets, talking about history,
playing video games, and turning that hobby into a tent
until revenue stream.
Speaker 1 (16:01):
The key seems to be specialization again right, Finding that
niche audience.
Speaker 2 (16:05):
Absolutely, you don't need millions of followers. A smaller, highly
engaged audience and a specific niche can be very valuable
to advertisers. The challenge, though, is consistency and patience. You
have to show up, create content regularly, and stick with
it long enough to actually reach the point where you
can make money.
Speaker 1 (16:22):
What are the main ways people make money from this?
It's not just ads, is it? No?
Speaker 2 (16:25):
Ads are just one piece. Ad revenue, like from YouTube,
is highly variable. It might be one dollar per thousand views,
it might be ten dollars depending on your audience and topic.
Then you have sponsorships, brand's paying you to feature their
product or service. This can start small, maybe fifty dollars
for a post on Instagram, but for established creators it
can run into thousands per campaign. And finally, affiliate marketing,
(16:48):
where you recommend products and include special links, and you
get a commission if someone buys through your link.
Speaker 1 (16:54):
So it's a mix and the source is stressed. You
don't need to be huge exactly.
Speaker 2 (16:58):
That was a key takeaway. In a relatively small channel,
say ten thousand dedicated subscribers on YouTube or a similar
following on Instagram or TikTok and the right niche could
realistically generate five hundred and two thousand dollars a month
by combining those methods.
Speaker 1 (17:12):
Smartly, and the potential for scaling here seems quite high.
If you hit it.
Speaker 2 (17:16):
Big, it can be Yes, the income can grow dramatically
if your audience tastes off, which means if you maintain
that investment discipline we keep talking about consistently saving say
fifteen hundred dollars a month or more. Once you reach
that level, this could potentially fund millions in retirement.
Speaker 1 (17:32):
Savings, but it requires that upfront grind totally.
Speaker 2 (17:35):
It's often nonlinear. You might put in hundreds of hours
for almost zero financial return at the start. Then suddenly,
if the algorithm picks you up or video goes viral,
the income can accelerate very quickly.
Speaker 1 (17:47):
Patience is key, Okay, that brings us to weigh number six.
This one feels different, purely passive, but requires some capital
to start investing in dividend stocks.
Speaker 2 (17:58):
Right. This isn't about generating immediate cash for tonight's bills.
This is a long term strategal. It's about using existing
money to generate more money, specifically cash flow that you
then immediately reinvest.
Speaker 1 (18:10):
So less of a side hustle, more of a side
investment strategy that fuels itself exactly.
Speaker 2 (18:15):
It's not about timing the market or picking hot growth stocks.
It's about buying shares and stable established companies. Think big names,
blue chips that have a long history of paying out
a portion of their profits to shareholders as dividends.
Speaker 1 (18:28):
Like who what are some classic examples?
Speaker 2 (18:30):
You know the companies like Coca Cola, Johnson, Johnson, Procter,
and Gamble. Big, boring, reliable companies.
Speaker 1 (18:36):
Often Okay, So how does someone actually start this? If
they have, say a few thousand dollars they want to
put to work this way.
Speaker 2 (18:44):
First step is opening a brokerage account. If you don't
have one, platforms like Fidelity, Charles Schwab, even robin Hood
offer these. Then you research companies with a consistent history
of paying and ideally increasing their dividends.
Speaker 1 (18:58):
And then the crucial part.
Speaker 2 (18:59):
The crucial part is turning on a dividend reinvestment program
or DRIP. Almost all brokers offer this. It means whenever
a company pays you a dividend, instead of that cash
landing in your account, the broker automatically uses it to
buy more shares or even fractional shares of that same
company stock.
Speaker 1 (19:16):
Ah so it compounds automatical cisely.
Speaker 2 (19:18):
It's completely hands off compounding.
Speaker 1 (19:19):
But let's address the initial return. It often seems quite small.
The example used was a ten thousand dollars investment with
a three percent dividend yield. That's only three hundred dollars
a year. Doesn't feel like it moves the needle much
at first.
Speaker 2 (19:32):
And that's the mental hurdle people need to overcome. You're right,
three hundred dollars a year isn't life changing initially, but
the focus has to be on the long term. That
three hundred dollars it's reinvested buys more shares. Those new
shares than earn dividends next quarter, and those dividends buy
more shares.
Speaker 1 (19:49):
It's a snowball rolling downhill exactly.
Speaker 2 (19:52):
A slow starting snowball, but one that gets bigger and
bigger over decades purely from reinvesting those payouts plus any
natural stock price appreciation.
Speaker 1 (20:01):
So show us the power of that that initial ten
thousand dollars reinvesting dividends. Maybe the stock grows a bit too,
Let's say an eight percent total average annual return. What
does that look like over say thirty years.
Speaker 2 (20:13):
Over thirty years, that initial ten thousand dollars investment could
grow to around one hundred thousand dollars.
Speaker 1 (20:18):
Wow, a tenfold increase roughly.
Speaker 2 (20:20):
Yes. And the key is that growth could happen without
you adding another dollar of your own money after the
initial investment. It's your money working for you, quietly compounding
in the background. It's a really powerful strategy for long
term le security.
Speaker 1 (20:33):
Set it and forget it essentially pretty much.
Speaker 2 (20:35):
Yeah, once you've picked solid companies and turned on the drip.
Speaker 1 (20:38):
Okay, we've covered skills, products and leveraging assets. Now let's
move to our third and final category, transactional income and
spot gigs. These feel like the most immediate ways to
get cash in hands.
Speaker 2 (20:50):
They generally are Yes. These strategies often have the lowest
barrier to entry. If you need money this week, these
are often the go to options. They relying mostly on
your available time and willingness to.
Speaker 1 (21:02):
Do the work, and flexibility seems key here.
Speaker 2 (21:04):
Huge flexibility, that's the main appeal for many people. You
can fit these gigs around a main job, studies, family commitments,
You work when you want to, basically so way.
Speaker 1 (21:14):
Number seven is probably the most common example. Gig economy
jobs driving for Uber or Lyft, delivering food with door
Dash or grub hub, doing odd jobs through task.
Speaker 2 (21:24):
Grab it right. These at base platforms connect you directly
with people needing a service right now. Sign up, pass
the background checks, maybe a vehicle inspection, and you could
often be earning money within days or a week.
Speaker 1 (21:35):
What's the realistic earning potential here? The source is mentioned
fifteen to twenty five dollars an hour.
Speaker 2 (21:40):
That's the typical range, sided yes, but it's heavily dependent
on your location big city versus rural town, the time
of day, demand surges happen.
Speaker 1 (21:50):
So if someone commits to say, ten hours a week
pretty consistently, they.
Speaker 2 (21:54):
Could realistically expect to generate somewhere between maybe six hundred
than one thousand dollars a month in gross earnings.
Speaker 1 (22:02):
Okay, gross earnings. I have to bring up the net
profit question again, especially for driving gigs.
Speaker 2 (22:06):
Please do it's critical that.
Speaker 1 (22:07):
Fifteen to twenty five dollars an hour. That's before gas,
right before extra wear and tear on your car, oil,
changes tires. Not to mention this self employment tax we
discussed earlier.
Speaker 2 (22:17):
Absolutely, those are all very real costs that eat into
the gross figure. Gas is obvious, but the increased maintenance
and depreciation on your vehicle are significant hidden costs. Plus, yes,
setting aside that twenty five thirty five percent for taxes.
Speaker 1 (22:29):
So when you factor all that in, what's a more
realistic net hourly rate? People should expect maybe closer.
Speaker 2 (22:34):
To twelve dollars eighteen dollars.
Speaker 1 (22:36):
That's probably a more realistic range for many drivers. Yes,
after accounting for all expenses and taxes. It varies. Of course,
If the net pay is lower, what's the strategic value then?
Is it still worth it for retirement saving?
Speaker 2 (22:47):
I think the strategic value shifts. It's less about maximizing
your hourly wage and more about the immediacy and consistency
of the cash flow you can generate. How so well
even if you're only netting, say eight hundred month consistently
from driving fifteen hours a week. If you take that
eight hundred dollars and religiously invest it every single.
Speaker 1 (23:06):
Month, the compounding still works its magic exactly.
Speaker 2 (23:09):
That eight hundred dollars a month invested at that seven
percent average return over forty years could still grow to
nearly one million dollars nearly.
Speaker 1 (23:17):
A million bucks from a part time driving gig, just
by being disciplined with the savings.
Speaker 2 (23:21):
Right, So the goal isn't necessarily the highest pay per hour.
It's generating a reliable, consistent stream of cash that you
can immediately divert into investments. That consistency is the superpower.
Speaker 1 (23:32):
Okay, that reframes it nicely. Let's look at way number nine.
Participating in the sharing economy, but focusing on services rather
than just renting out physical things.
Speaker 2 (23:41):
Yeah, this overlaps a bit with gigwork, but it often
involves more personal services, often leveraging trust. Think pet sitting
or dog walking through platforms like Rover, or babysitting via
care dot com. Maybe even running errands or offering specialized help.
Speaker 1 (23:56):
Okay, so more person to person interaction. Often it's the
key to success here. If I want to start pet sitting,
how do I get clients?
Speaker 2 (24:04):
Reputation is absolutely everything in these fields. Since you're often
going into people's homes or caring for their pets or children,
trust is paramount.
Speaker 1 (24:13):
So how do you build that trust as a newbie?
Speaker 2 (24:16):
You have to deliver outstanding service from day one, go
above and beyond, and then crucially you need to actively
ask your first few happy clients for reviews on the platform.
Those positive reviews are like gold. They are the social
proof that attracts more clients and allows you to potentially
charge more later.
Speaker 1 (24:32):
Aim for five stars every time.
Speaker 2 (24:33):
Basically, yes, average service won't cut it if you want
to build a steady income stream.
Speaker 1 (24:38):
What kind of earnings are we looking at?
Speaker 2 (24:39):
The sources gave some snapshots. Pet sitting might range from
twenty to fifty dollars per day, depending on whether it's
dropping visits or overnight stays. Babysitting typically falls in the
fifteen to thirty dollars per hour range, again depending on
location and experience.
Speaker 1 (24:54):
So doing this part time, maybe a few evenings or
weekends a month, you could.
Speaker 2 (24:59):
Quite reasonably and rate an extra five hundred to fifteen
hundred dollars a month doing this type of service work.
Speaker 1 (25:03):
And the nice thing here might be repeat business.
Speaker 2 (25:06):
Huge potential for repeat business. If someone trusts you with
their dog or their kids and you do a great job,
they're very likely to hire you again and again. That
creates a much more predictable income stream, which is ideal
for setting up those automated savings transfers.
Speaker 1 (25:19):
Makes sense? Okay, Final strategy way number ten flipping items
for profit. This sounds kind of fun, actually it can be.
Speaker 2 (25:27):
This is really for the bargain hunters, the people who
enjoy the thrill of the find. The basic idea is simple,
buy low, sell high.
Speaker 1 (25:33):
Where do you find things to buy low?
Speaker 2 (25:35):
Thrift stores, garage sales, flea markets, as date sales, even
online marketplaces like Facebook marketplace, looking for deals.
Speaker 1 (25:42):
And then you sell them where eBay eBay is.
Speaker 2 (25:45):
A classic platform for flippers. Poshmark is great for clothing.
Sometimes local markets or even specialized Facebook groups work well too.
Speaker 1 (25:53):
What's the strategy here? You can't just buy random junk, right,
How do you know what's actually worth flipping?
Speaker 2 (25:59):
No, you definitely need strategy. It requires research. Smart slippers
often specialize in a certain category. Maybe vintage toys or electronics,
or designer clothes, or even something niche like used textbooks
or board games.
Speaker 1 (26:11):
How do they research?
Speaker 2 (26:12):
A key tool is looking at sold listings on eBay,
not just what people are asking, but what things actually
sold for recently. That gives you the true market value.
So when you're at a garage sale and see something interesting,
you can quickly look it up on your phone and
see if there's a decent profit margin before you buy it.
Speaker 1 (26:29):
UH data driven thrifting exactly, and.
Speaker 2 (26:32):
The sources specifically mentioned that flipping vintage clothing can be
quite profitable, especially in or near cities where there's high
demand for unique fashion finds.
Speaker 1 (26:42):
This feels like it might generate lump sums of cash
rather than a steady hourly rate.
Speaker 2 (26:46):
Often, yes, you might find one amazing item that nets
you one hundred dollars profit, then nothing for a few days,
then a few smaller flips. The income can be irregular.
Speaker 1 (26:56):
Which means discipline is extra important.
Speaker 2 (26:59):
Here, absolute lutely critical, because when you get that one
hundred dollars two hundred dollars profit from a flip, the
temptation is huge to just see it as bonus spending
money you have to have the system in place to
immediately move that profit into your savings or investment account
before it disappears.
Speaker 1 (27:14):
What's the overall potential monthly income from flipping?
Speaker 2 (27:18):
It really varies wildly based on effort, skill, and luck.
The sourcesuggested anywhere from maybe two hundred dollars a month
if you're doing it casually, up to two thousand dollars
or even more if you really dedicate time and get
good at sourcing high margin items.
Speaker 1 (27:32):
Okay, wow, that's ten distinct ways to bring in extra cash. Freelancing,
selling products, renting assets, gigwork, flipping, a lot.
Speaker 2 (27:40):
Of options, huge range of possibilities.
Speaker 1 (27:42):
Yeah, but, as we've hinted at all along, just earning
the money isn't the end goal, is it. It's only
half the equation.
Speaker 2 (27:47):
Not even half. Arguably, the execution on the savings and
investment side is where the real wealth building happens.
Speaker 1 (27:53):
Right, So, how do we make absolutely sure this extra
cash actually becomes long term retirement wealth and doesn't just
get absorbed into slightly higher monthly spending. Lifestyle creep is real.
Speaker 2 (28:06):
It's incredibly real, and it requires deliberate strategic discipline to
combat it. The sources consistently highlighted four essential tips, really
non negotiables for maximizing the retirement impact.
Speaker 1 (28:18):
Okay, let's break them down.
Speaker 2 (28:19):
Tip number one, automate your savings. This is the bedrock.
You have to take the decision making out of it
each time you get paid from your side hustle.
Speaker 1 (28:28):
What does that look like?
Speaker 2 (28:29):
Practically, as soon as that money hits your checking account,
whether it's fifty dollars from a DoorDash shift or five
hundred dollars from a freelance project, you should have an
automatic transfer already set up, ideally sending fifty percent or
even more of that income directly into your designated retirement
savings account an IRA, maybe a brokerage account.
Speaker 1 (28:46):
So it moves before you even really see it or
have a chance to think about spending it.
Speaker 2 (28:50):
Exactly, remove the temptation. Automate the discipline That consistency it
creates is this single most powerful factor in making compounding
work for you over decades.
Speaker 1 (29:00):
Okay, automate savings. Got it? Tip number two?
Speaker 2 (29:03):
Invest wisely, so the money lands in your retirement account automatically,
what do you do with it? Then?
Speaker 1 (29:10):
Good question?
Speaker 2 (29:11):
Stocks, bonds, crypto, Well, the overwhelming advice from the sources,
especially for long term retirement saving, is to keep it
simple and low cost. Focus on broad diversification, meaning meaning
primarily using low cost index funds or exchange traded funds EPs.
These funds hold baskets of hundreds, sometimes thousands, of stocks,
(29:33):
like an S and P five hundred index fund owns
a small piece of the five hundred biggest US companies.
Speaker 1 (29:38):
Why is that better than picking individual stocks?
Speaker 2 (29:41):
Because it gives you incident diversification, spreading your risk, and crucially,
the management fees on index funds and ETFs are typically
extremely low. This means more your money stays invested in
working for you rather than going to fund managers. The
mantra is don't try to beat the market, just own
the market through these funds.
Speaker 1 (29:57):
Okay, low cost diversified funds makes sense.
Speaker 2 (30:00):
Tip number three minimize taxes. This is about being smart
with where you put that Automated savings. Using the right
accounts can save you a fortune in taxes over the
long run, making your money grow much more efficiently.
Speaker 1 (30:13):
Which counts are best for the side hustle money For most.
Speaker 2 (30:16):
Millennials, the sources strongly recommend maximizing contributions to a WROTH IRA. First,
if you're eligible based on income. Why WROTH specifically, because
with a WROTH you contribute money you've already paid income
tax on. Like from your side, hustle. The huge benefit
is that all the growth and qualified withdrawals in retirement
are completely tax free. Since most people expect to be
(30:38):
in a higher tax bracket in retirement than they are
now paying the tax upfront can be a massive advantage long.
Speaker 1 (30:45):
Term tax free growth and withdrawals. That's powerful. What else?
Speaker 2 (30:48):
The other account that kept coming up, often surprisingly to
people is a health savings account or HSA. But only
if you have a high deductible health insurance plan, right.
Speaker 1 (30:57):
I've heard HSA is called a secret retirement account.
Speaker 2 (31:00):
Why because they offer a unique triple tax advantage. One,
the money you put in is pre tax or tax deductible,
reducing your current taxable income. Two, the money inside the
HSA can be invested in grows tax free. Three if
you withdraw the money for qualified medical expenses now or
decades later in retirement, those withdrawals are also tax free.
Speaker 1 (31:22):
Triple tax free.
Speaker 2 (31:23):
Yeah, and here's the kicker. If you don't need the
money for medical bills, so once you turn sixty five,
you can withdraw it for any reason. Just like a
traditional IRA or four to one K. You'd pay ordinary
income tax then, but you still got the upfront deduction
and decades of tax free growth. It's an incredibly powerful
savings vehicle.
Speaker 1 (31:39):
If you qualify Okay, so prioritize raw IRA then HSA
if eligible. Good tax strategy. Now, before we get to
the last tip, we have to address that big question
we touched on earlier, the student debt dilemma.
Speaker 2 (31:50):
Yes, huge issue for so many listeners.
Speaker 1 (31:52):
If someone has, say, fifty thousand dollars in student loans
at six percent or seven percent interests, and they start
making an extra thousand dollars a month from a side hustle,
should they invest that money hoping for a seven percent
market return or should they throw it all at the debt.
Speaker 2 (32:04):
This is where the sources provide a pretty clear framework. First,
absolutely make sure you're contributing enough to your employers for
one K to get the full company match. That's free money.
Always take the free money.
Speaker 1 (32:15):
First, Okay match first?
Speaker 2 (32:17):
Then what Then you basically compare the interest rate on
your debt to your expected risk adjusted investment return. If
your student loans have a high interest rate, let's use
your example, six percent or seven percent or maybe even higher.
Paying that debt off aggressively is often the mathematically smartest move.
Why because paying off a seven percent loan is equivalent
(32:38):
to getting a guaranteed, risk free seven percent return on
your money. The stock market might average seven percent over time,
but it's not guaranteed year to year. Eliminating that high
interest debt is a certain win.
Speaker 1 (32:49):
So treat the debt payoff like an investment with a
guaranteed return equal to the interest rate.
Speaker 2 (32:54):
Exactly, attack the highest interest debts first with that side income.
Once this high interest loans are going on, then you
pivot and start funneling one hundred percent of that extra
cash flow into your roth IRA, your HSA, your brokerage
account for those index funds.
Speaker 1 (33:07):
That makes perfect sense. Pay off the guaranteed high interest
liability before funding the variable return asset precisely.
Speaker 2 (33:14):
Which brings us neatly to the final and perhaps most
crucial piece of advice Tip number four, which is stay disciplined.
You have to mentally and behaviorally wall off this side.
Speaker 1 (33:27):
Income, meaning don't let it become slush money.
Speaker 2 (33:30):
Absolutely not. It cannot become money for ordering more takeout,
or upgrading your car or taking fancy your vacations. You
have to consciously, deliberately treat every dollar of that extra
income as a tool purely for building long term financial security.
Silo it, invest it, don't let lifestyle creep eat it away.
Speaker 1 (33:48):
That discipline underpins everything else.
Speaker 2 (33:50):
It really does, because without it, even the best side
hustle just becomes extra spending, not extra wealth.
Speaker 1 (33:56):
So let's bring it all together with that powerful projection.
Speaker 2 (33:58):
Again.
Speaker 1 (33:59):
If someone manages to combine, say two or three of
these strategies, maybe they freelance a bit, rent up their
car on weekends, and sell some digital templates, and they
consistently generate an extra two thousand dollars a month.
Speaker 2 (34:09):
Net, and they follow these steps, automate the savings, invest
wisely in low cost funds, use tax advantage to accounts
like a rough, and stay disciplined.
Speaker 1 (34:18):
Investing that two thousand dollars a month at a seven
percent average return.
Speaker 2 (34:21):
The result over a typical working lifetime could be over
two point four million dollars by retirement age.
Speaker 1 (34:27):
Two point four million just from side income handled strategically.
Speaker 2 (34:31):
That's the potential power we're talking about. It transforms the
financial picture from maybe uncertain to potentially abundant. It's achievable
with today's tools and the right discipline.
Speaker 1 (34:42):
It really puts control back in the hands of the
individual despite the economic headwinds.
Speaker 2 (34:46):
Completely hashtag tag tag outro.
Speaker 1 (34:48):
So we've done the deep dive, We've laid out the blueprint.
I think the biggest takeaway for you listening has to
be that combination leveraging the unique opportunities of today, the
gig economy, the digital plot forms, and pairing it with
that rigorous automated investment discipline.
Speaker 2 (35:04):
That pairing is the key. It's the framework for overcoming
a lot of the financial anxieties many people are feeling.
Speaker 1 (35:10):
We've given you ten specific ways to get started earning
that extra cash. We've shown the math how even seemingly
small amounts like two thousand dollars a month can compound
into millions over time if invested correctly.
Speaker 2 (35:23):
Which leads us to the final thought we want to
leave you with. It's not really a question of if
you can find at least one side hustle from this
list that fits you.
Speaker 1 (35:30):
Yeah.
Speaker 2 (35:31):
The real question, the one to really mull over, is this,
which combination of two or three of these ten methods
makes the most sense for your specific skills, your available time,
your lifestyle.
Speaker 1 (35:42):
Right, which combination feels sustainable for you?
Speaker 2 (35:45):
Exactly because sustainability is what guarantees the consistency. Which mix
will allow you to reliably hit that savings target month
after month, year after year. And once you start generating
that cash, what's the immediate priority? Is it smashing that
high interest student debt or is it getting fund straight
into that roth IRA or maybe that triple tax advantaged HSA.
(36:05):
Nailing that sustainable combination and your specific capital allocation plan,
that's your path forward.
Speaker 1 (36:11):
A lot to think about, but incredibly empowering. Find your mix,
automate the process, and build that future. Well said, until
the next deep dive, happy earning and happy investing.
Welcome to the Deep Diet. This is the show where
we dig into the details, pulling out the most actionable
insights from finance and strategy.
Speaker 2 (00:07):
Glad to be here today.
Speaker 1 (00:08):
We're tackling something really critical. We're building essentially a blueprint
for millennials how to generate extra income right now and
funnel it straight into retirement savings.
Speaker 2 (00:19):
Yeah, and it's so important because the traditional paths they
just aren't cutting it for many people.
Speaker 1 (00:24):
Anymore, exactly. I mean, we all see the headlines rising
living costs, student debt is just crushing. The job market
feels well uncertain. So our mission today for you listening
is to really pull out the ten most effective, most
practical ways you can use the gig economy, technology, your
own creativity to get that extra cash flowing and build
(00:46):
real wealth for the future.
Speaker 2 (00:48):
And I think we have to stress that strategic conversion part.
You mentioned. The sources we looked at really hammer this home.
Relying just on say an employer match, Yeah, it's probably
not going to be enough for real financial.
Speaker 1 (01:00):
Independence down the road, not in this climate.
Speaker 2 (01:03):
Right. So this sight income it's shifted from being like
nice extra cash to a strategic necessity. It helps compensate
for all those economic pressures.
Speaker 1 (01:12):
I completely agree, And that word necessity brings up the
power of compounding, doesn't it, And we have to keep
talking about that.
Speaker 2 (01:17):
Absolutely. It's the core principle.
Speaker 1 (01:19):
Taking that money you earn maybe tonight driving for uber
or this weekend, selling crafts online, and getting it invested immediately.
That gives it what thirty forty, maybe fifty years to grow.
Speaker 2 (01:30):
That time horizon is everything. It's the biggest advantage millennials
have financially speaking.
Speaker 1 (01:36):
But you have to fuel it. You have to put
money in now for that advantage to mean anything.
Speaker 2 (01:40):
Precisely, it's about turning today's effort into decades of potential growth.
You know that fifty bucks you meet freelancing tonight, it's
worth way, way more than maybe starting to save that
same fifty bucks ten or fifteen years from.
Speaker 1 (01:53):
Now, exponentially more valuable. Okay, so let's get into this blueprint.
We've structured the ten strategies into three main themes just
to make it easier to follow. First up using the
skills you already have and creating products that can scale.
Speaker 2 (02:07):
Good starting point.
Speaker 1 (02:08):
Then we'll talk about monetizing assets you might already own.
Things lying around the house, basically.
Speaker 2 (02:13):
Making your stuff work for you.
Speaker 1 (02:15):
Yeah, and finally we'll cover those more immediate effort based
income streams. The flexible gigs sound.
Speaker 2 (02:22):
Good, sounds perfect. Let's dive in.
Speaker 1 (02:24):
All right, section one. Here we're focusing on ways to
earn that, leverage your professional skills, your creativity, and maybe
build something once that keeps paying you less trading time
directly for dollars ideally.
Speaker 2 (02:36):
Yeah, this is a great place to start because it
taps into skills many millennials already have, you know, things
they learned in college or using their main job, coding, writing, design, maybe.
Speaker 1 (02:47):
Marketing, skills that already command decent rates.
Speaker 2 (02:49):
Exactly high value skills right off the bat.
Speaker 1 (02:52):
Which brings us straight to way number one, freelancing in
your skill set using platforms like upwork, hoever maybe freelancer
dot com.
Speaker 2 (03:02):
The accessibility is just amazing, now, isn't it. You can
basically spin up a side consulting gig using your nine
to five expertise pretty quickly.
Speaker 1 (03:09):
But it's not just signing up right the sources mentioned
optimization being key.
Speaker 2 (03:14):
Oh, definitely, signing up is just step one. You need
a profile that really pops and Actually, some sources suggested
using AI tools maybe like chat GPT to help craft
those descriptions, not just listing what you can do, but
focusing on the problems you solve for clients.
Speaker 1 (03:29):
That's a smart angle. So beyond the profile itself, what
are the practical steps? What does someone do to get
started and actually land gigs?
Speaker 2 (03:37):
Well, you absolutely need a portfolio, even if you have
to create some spec projects initially, just to show what
you can do. That's crucial, okay, And when you're sending
out proposals, the advice is clear, focus less on being
the absolute cheapest and more on showing you understand the
client's problem and how you're the specific solution right value
(03:57):
over price exactly. And look for anyone starting out, the
advice is pretty consistent. You might need to set your
rates a little competitively at first, maybe even slightly lower
than you'd like.
Speaker 1 (04:07):
Why is that just to get work?
Speaker 2 (04:08):
It's about getting those first few reviews, like maybe the
first five, because those reviews act like currency on these platforms.
They build trust, they show you deliver. Once you have
that social proofs, then you can start raising your rates.
Speaker 1 (04:20):
Okay, that makes sense. Build credibility first. Now, let's talk money.
The potential earnings sources say what twenty tow one hundred
dollars an hour. That's a huge range, it is.
Speaker 2 (04:30):
It depends heavily on the skill, your experience, your reviews.
Speaker 1 (04:34):
Let's use that concrete example from the outline. A writer
say they charge fifty dollars for a short article, maybe
take some an hour or two. They do five of
those a week. That's an extra thousand bucks a month gross.
Sounds great on the surface, And here's the challenge I
want to bring up. Are we being realistic about the
net profit? Because when you freelance, suddenly you're hit with
self employment tax, right, and you probably need to make
(04:56):
quarterly payments. That sounds like a hassle.
Speaker 2 (04:58):
That's a super important point. Yeah, the thousand dollars gross
is definitely not one thousand dollars in your pocket. Freelancers
absolutely have to budget for taxes. A good rule of
thumb is to immediately set aside, say twenty five percent,
maybe even up to thirty five percent of everything you earn.
Speaker 1 (05:13):
Wow. Okay, so that thousand dollars might only be what
six hundred and fifty or seven hundred dollars net.
Speaker 2 (05:18):
Potentially yes. But here's the thing. Even at seven hundred
dollars net, the retirement impact is still massive because it's
consistent money you wouldn't have otherwise had.
Speaker 1 (05:27):
Right, So let's run the numbers on that net amount.
Let's be conservative. Say someone nets seven hundred dollars and
decides to invest five hundred dollars of it each month
consistently into something like a low cost index fund inside
maybe a raw ira. What does that look like over
say forty years.
Speaker 2 (05:43):
Assuming a pretty standard historical average return maybe around seven
percent per year, that five hundred dollars a month grows
to over six hundred thousand.
Speaker 1 (05:51):
Dollars over six hundred grand.
Speaker 2 (05:52):
Yep, just from that side gig money after taxes. It
really shows how powerful that discipline is, turning side cash
into series retirement security even after dealing with the tax stuff.
Speaker 1 (06:02):
Okay, that really puts it into perspective. Let's shift away
number two. Monetizing a side hustle with e commerce. This
feels more creative. Maybe platforms like Etsy, eBay, Shopify.
Speaker 2 (06:11):
Yeah, this is definitely where creativity can pay off. But
the key here, according to the sources, is finding your niche,
like a really specific.
Speaker 1 (06:18):
Niche what do you mean by specific.
Speaker 2 (06:20):
Well, not just selling clothes, but maybe selling curated vintage
band t shirts from the nineties, or not just crafts
but handmade ceramic planters for succulents. You see very targeted.
Speaker 1 (06:33):
Got it? So find that specific audience.
Speaker 2 (06:35):
Then what them presentation is everything? Good product photos are
non negotiable. You need decent lighting, clear shots, and really
good descriptions that use keywords people actually search for on
those platforms. Think about the SEO within Etsy or eBay.
Speaker 1 (06:50):
Makes sense now. Earnings here seem even more variable. The
sources mentioned five hundred dollars up to maybe five thousand
dollars a month for successful sellers. That's a big jump
from free lancing. Potentially it can be.
Speaker 2 (07:01):
Yes, the feeling is potentially higher, But there's also the
challenge of inventory. Right, if you're selling physical goods, you
have to buy them first. That ties up capital.
Speaker 1 (07:09):
Good point. Is there a way around that?
Speaker 2 (07:11):
Yeah, that's where drop shipping often comes up. It's mentioned
frequently as a lower overhead way to get started.
Speaker 1 (07:17):
Explain drop shipping quickly for someone who hasn't heard of it.
Speaker 2 (07:19):
Sure, Basically, you set up an online store, you list
products for sale, but you don't actually hold any inventory yourself.
When a customer buys something from your store, you then
place the order with your supplier off and overseas and
they ship the product directly to the customer.
Speaker 1 (07:35):
Ah, so you never touch the product.
Speaker 2 (07:37):
Correct, You're essentially the marketer in the middleman. It removes
the risk of buying a bunch of stock that might
not sell.
Speaker 1 (07:43):
Okay, that sounds almost too good to be true. What's
the catch.
Speaker 2 (07:47):
The big risks are quality control in shipping times. If
your supplier sends out a shoddy product, or it takes
six weeks to arrive, guess who gets the blank?
Speaker 1 (07:56):
You do your store's reputation exactly.
Speaker 2 (07:59):
So if you go drop shipping route, you had to
be incredibly careful about vetting your suppliers. But whether it's
physical products or drop shipping, the successful strategy involves really
understanding your costs, your cost of goods sold or cogs
to make sure your prices give you a healthy profit
margin before you try to scale up.
Speaker 1 (08:17):
Okay, profit margin is key, which leads us to the
long term impact. Let's say someone builds a successful shop.
Maybe it's drop shipping, maybe it's handmade goods and they're
consistently clearing one thousand dollars a month in profit. If
they start saving that at age thirty.
Speaker 2 (08:31):
And they get that same seven percent average return we
talked about by age seventy, that one thousand dollars a
month could grow to over one point two million dollars.
Speaker 1 (08:39):
Wow, one point two million dollars from a side hustle.
Speaker 2 (08:42):
Yeah. The advice usually is when you start reinvest a
good chunk of the profits back into the business, maybe
more inventory, better photos, marketing ads. But once it's stable
and profitable, start funneling that excess cash directly into your
retirement accounts systematically.
Speaker 1 (08:58):
Okay, let's look at way number three. Teaching or tutoring online.
This seems like it's tapping into that big shift towards
online learning, especially since well recent years.
Speaker 2 (09:06):
Absolutely the demand exploded and it hasn't really gone away.
Platforms like vip kid check tutors preply. They connect tutors
with students all over the world.
Speaker 1 (09:15):
And it's not just the classic subjects right, like math
and English.
Speaker 2 (09:18):
Not at all people assume that, but the sources highlight
huge demand for specialized skills. Think teaching someone Python, coding,
or advanced Excel skills for finance jobs, or music theory,
or even how to use specific software like Adobe Photoshop.
Speaker 1 (09:34):
So niche skills are valuable here too, very much so.
Speaker 2 (09:37):
And if you have any kind of certification in your area,
that adds a lot of credibility and usually lets you
charge a higher hourly rate.
Speaker 1 (09:44):
Within this teaching world, there's also a passive income angle,
isn't there?
Speaker 2 (09:48):
Yes, definitely. This involves creating online courses. You put in
the work up front, maybe it takes say forty or
fifty hours to script, record, and edit really good course.
You upload it to platforms like or skill share, and
then and then, if you've chosen the good topic and
marketed it reasonably well, it can generate income passively. The
thoughts would suggest anywhere from maybe one hundred dollars up
(10:10):
p on thousand dollars a month per course. Potentially, it
depends hugely on the topic and competition, of course.
Speaker 1 (10:16):
Okay, but let's stick with the active tutoring for the
retirement math. Say someone tutors ten hours a week, maybe
charges thirty dollars an hour. That's twelve hundred dollars a.
Speaker 2 (10:23):
Month, right, and if they save half of that six
hundred dollars a month. We're back to building really significant
wealth over time, just like the freelancing.
Speaker 1 (10:31):
Example, and it feels maybe a bit more efficient than freelancing.
Speaker 2 (10:35):
Sometimes it can be because often the platform itself does
the marketing for you. They bring the students to you.
You just have to deliver the tutoring. Less time spent
finding clients.
Speaker 1 (10:45):
Good point. Okay, before we leave this section on skills
and products, let's jump ahead slightly to weigh number eight
because it fits so well here selling digital products. This
feels like the ultimate scalable model.
Speaker 2 (10:57):
It really is, and anyways, it has potentially the highest
profit margins because there's often no physical cost of goods.
We're talking ebooks, downloadable templates like budgeting spreadsheets or resume designs,
maybe printables like planners or checklists, guides.
Speaker 1 (11:11):
Things you create once.
Speaker 2 (11:12):
Exactly, create it once, sell it potentially hundreds or thousands
of times. Your main costs are maybe platform fees and marketing.
The profit margin can easily be over ninety percent.
Speaker 1 (11:22):
That sounds incredibly appealing for retirement savings, minimal ongoing effort
once it's set up. Where do people typically sell.
Speaker 2 (11:29):
These platforms like Gumroad are really popular for digital creators.
Etsy is also surprisingly good for certain types of printables
or templates. The key again is marketing, usually through social media,
maybe a blog or building an email list.
Speaker 1 (11:42):
And the potential earnings.
Speaker 2 (11:44):
The sources suggest even a single relatively low priced product,
say a ten dollars template, if it hits the right
niche and gets consistent sales, could realistically bring in five
hundred to two thousand dollars a month.
Speaker 1 (11:55):
Wow.
Speaker 2 (11:56):
And because it's often passive recurring income, it just perfectly
suited for that immediate automated transfer straight into a retirement account,
less temptation to just spend it because it sort of
arrives automatically.
Speaker 1 (12:06):
Okay, that's a powerful set of strategies based on skills
and creation. Let's shift gears section two. Now we're moving
away from income based purely on your effort or creative output,
and more towards maximizing things you already have. Could be
physical stuff, could be your online presence.
Speaker 2 (12:22):
Right. This is all about optimization, making sure your assets
aren't just sitting there costing you money, but actually generating money,
often with less active effort required than say, freelancing every night.
Speaker 1 (12:34):
It feels like the barrier to entry might be lower
here for some people.
Speaker 2 (12:38):
It can be Yeah, yeah, because the core asset, the car,
the room, the online profile. It already exists.
Speaker 1 (12:45):
So let's start with Wayne number four renting out assets.
We all have stuff we don't use. Twenty four to seven.
Speaker 2 (12:50):
Absolutely, think about your car. How many hours a day
does it just sit parked? Or maybe you have a
spare bedroom that's mostly just filled with junk, or even
an unused parking space if you live in a city.
Speaker 1 (13:01):
These are all potential income streams.
Speaker 2 (13:03):
Immediately convertible into cash flow.
Speaker 1 (13:04):
Yes, okay, let's get specific with platforms for spare rooms.
The obvious one is Airbnb. Sources suggest that could bring
in what five hundred dollars to maybe two thousand dollars
a month in a decent location.
Speaker 2 (13:16):
Yeah, easily, especially in tourist areas or major cities. For cars,
you've got platforms like turow that could add maybe three
hundred to eight hundred dollars a month to your income,
depending on the car and how often you make it available.
Speaker 1 (13:27):
And the parking space one is interesting. You mentioned spacer
right or similar platforms.
Speaker 2 (13:31):
If you have a driveway or garage spot, you don't use,
especially near a busy area or a train station. You
can rent it out monthly with very very little effort.
Speaker 1 (13:39):
Okay, this sounds great, potentially quite passive, but there have
to be catches. What are the big warnings here?
Speaker 2 (13:47):
Oh? Absolutely? The main one is regulation and insurance. This
isn't just casual pocket money. You're running a mini business
and you have to treat it seriously.
Speaker 1 (13:55):
Now. So with Airbnb, for instance, before you.
Speaker 2 (13:57):
Even think about listing a room, you absolutely must check
your local city and sometimes even hoa regulations on short
term rentals. Many cities have cracked down hard, requiring permits,
limiting the number of days you can rent, imposing taxes.
Ignoring these can lead to big fines.
Speaker 1 (14:14):
Okay, so do your homework on local laws. What about insurance? Like,
if I rent my car out on Turo, does my
regular car insurance cover the renter if they crash it?
Speaker 2 (14:23):
Almost certainly not. Your personal policy likely excludes commercial use. Now,
platforms like Turo do provide their own insurance policies, usually
with different levels the renter can choose, but you need
to read the fine print very carefully, both on Touro's
side and your own policy to make sure you're fully
covered and not accidentally violating your personal insurance terms right.
Speaker 1 (14:45):
Skipping that step could wipe out any earnings pretty quickly
if something goes wrong instantly.
Speaker 2 (14:50):
Same goes for homeowners insurance. If you're doing airbnb, you
likely need a writer or a separate policy for short
term renting.
Speaker 1 (14:56):
Okay, so crucial caveats there, But assuming you navigate the
rules in an insurnt properly, the income potential is steady.
If someone pulls in, say one thousand dollars a month
combined from renting a room in their car when they
aren't using it, and invest that.
Speaker 2 (15:11):
Even if we assume a slightly lower return, maybe six percent,
because maybe it feels a bit less certain than market returns,
that thousand dollars a month invested consistently over forty years
could still grow to over eight hundred thousand dollars over.
Speaker 1 (15:25):
Three quarters of a million dollars essentially generated while you sleep.
Speaker 2 (15:28):
That's the appeal. It's leveraging something you already own to
build wealth passively.
Speaker 1 (15:33):
Okay, let's move to a different kind of asset, your
digital presence way number five creating content on social media
or YouTube. This feels very tailored to millennials and gen
Z who grew up online.
Speaker 2 (15:48):
It really is. It's about taking something you're already doing,
maybe sharing your fitness journey, reviewing tech gadgets, talking about history,
playing video games, and turning that hobby into a tent
until revenue stream.
Speaker 1 (16:01):
The key seems to be specialization again right, Finding that
niche audience.
Speaker 2 (16:05):
Absolutely, you don't need millions of followers. A smaller, highly
engaged audience and a specific niche can be very valuable
to advertisers. The challenge, though, is consistency and patience. You
have to show up, create content regularly, and stick with
it long enough to actually reach the point where you
can make money.
Speaker 1 (16:22):
What are the main ways people make money from this?
It's not just ads, is it? No?
Speaker 2 (16:25):
Ads are just one piece. Ad revenue, like from YouTube,
is highly variable. It might be one dollar per thousand views,
it might be ten dollars depending on your audience and topic.
Then you have sponsorships, brand's paying you to feature their
product or service. This can start small, maybe fifty dollars
for a post on Instagram, but for established creators it
can run into thousands per campaign. And finally, affiliate marketing,
(16:48):
where you recommend products and include special links, and you
get a commission if someone buys through your link.
Speaker 1 (16:54):
So it's a mix and the source is stressed. You
don't need to be huge exactly.
Speaker 2 (16:58):
That was a key takeaway. In a relatively small channel,
say ten thousand dedicated subscribers on YouTube or a similar
following on Instagram or TikTok and the right niche could
realistically generate five hundred and two thousand dollars a month
by combining those methods.
Speaker 1 (17:12):
Smartly, and the potential for scaling here seems quite high.
If you hit it.
Speaker 2 (17:16):
Big, it can be Yes, the income can grow dramatically
if your audience tastes off, which means if you maintain
that investment discipline we keep talking about consistently saving say
fifteen hundred dollars a month or more. Once you reach
that level, this could potentially fund millions in retirement.
Speaker 1 (17:32):
Savings, but it requires that upfront grind totally.
Speaker 2 (17:35):
It's often nonlinear. You might put in hundreds of hours
for almost zero financial return at the start. Then suddenly,
if the algorithm picks you up or video goes viral,
the income can accelerate very quickly.
Speaker 1 (17:47):
Patience is key, Okay, that brings us to weigh number six.
This one feels different, purely passive, but requires some capital
to start investing in dividend stocks.
Speaker 2 (17:58):
Right. This isn't about generating immediate cash for tonight's bills.
This is a long term strategal. It's about using existing
money to generate more money, specifically cash flow that you
then immediately reinvest.
Speaker 1 (18:10):
So less of a side hustle, more of a side
investment strategy that fuels itself exactly.
Speaker 2 (18:15):
It's not about timing the market or picking hot growth stocks.
It's about buying shares and stable established companies. Think big names,
blue chips that have a long history of paying out
a portion of their profits to shareholders as dividends.
Speaker 1 (18:28):
Like who what are some classic examples?
Speaker 2 (18:30):
You know the companies like Coca Cola, Johnson, Johnson, Procter,
and Gamble. Big, boring, reliable companies.
Speaker 1 (18:36):
Often Okay, So how does someone actually start this? If
they have, say a few thousand dollars they want to
put to work this way.
Speaker 2 (18:44):
First step is opening a brokerage account. If you don't
have one, platforms like Fidelity, Charles Schwab, even robin Hood
offer these. Then you research companies with a consistent history
of paying and ideally increasing their dividends.
Speaker 1 (18:58):
And then the crucial part.
Speaker 2 (18:59):
The crucial part is turning on a dividend reinvestment program
or DRIP. Almost all brokers offer this. It means whenever
a company pays you a dividend, instead of that cash
landing in your account, the broker automatically uses it to
buy more shares or even fractional shares of that same
company stock.
Speaker 1 (19:16):
Ah so it compounds automatical cisely.
Speaker 2 (19:18):
It's completely hands off compounding.
Speaker 1 (19:19):
But let's address the initial return. It often seems quite small.
The example used was a ten thousand dollars investment with
a three percent dividend yield. That's only three hundred dollars
a year. Doesn't feel like it moves the needle much
at first.
Speaker 2 (19:32):
And that's the mental hurdle people need to overcome. You're right,
three hundred dollars a year isn't life changing initially, but
the focus has to be on the long term. That
three hundred dollars it's reinvested buys more shares. Those new
shares than earn dividends next quarter, and those dividends buy
more shares.
Speaker 1 (19:49):
It's a snowball rolling downhill exactly.
Speaker 2 (19:52):
A slow starting snowball, but one that gets bigger and
bigger over decades purely from reinvesting those payouts plus any
natural stock price appreciation.
Speaker 1 (20:01):
So show us the power of that that initial ten
thousand dollars reinvesting dividends. Maybe the stock grows a bit too,
Let's say an eight percent total average annual return. What
does that look like over say thirty years.
Speaker 2 (20:13):
Over thirty years, that initial ten thousand dollars investment could
grow to around one hundred thousand dollars.
Speaker 1 (20:18):
Wow, a tenfold increase roughly.
Speaker 2 (20:20):
Yes. And the key is that growth could happen without
you adding another dollar of your own money after the
initial investment. It's your money working for you, quietly compounding
in the background. It's a really powerful strategy for long
term le security.
Speaker 1 (20:33):
Set it and forget it essentially pretty much.
Speaker 2 (20:35):
Yeah, once you've picked solid companies and turned on the drip.
Speaker 1 (20:38):
Okay, we've covered skills, products and leveraging assets. Now let's
move to our third and final category, transactional income and
spot gigs. These feel like the most immediate ways to
get cash in hands.
Speaker 2 (20:50):
They generally are Yes. These strategies often have the lowest
barrier to entry. If you need money this week, these
are often the go to options. They relying mostly on
your available time and willingness to.
Speaker 1 (21:02):
Do the work, and flexibility seems key here.
Speaker 2 (21:04):
Huge flexibility, that's the main appeal for many people. You
can fit these gigs around a main job, studies, family commitments,
You work when you want to, basically so way.
Speaker 1 (21:14):
Number seven is probably the most common example. Gig economy
jobs driving for Uber or Lyft, delivering food with door
Dash or grub hub, doing odd jobs through task.
Speaker 2 (21:24):
Grab it right. These at base platforms connect you directly
with people needing a service right now. Sign up, pass
the background checks, maybe a vehicle inspection, and you could
often be earning money within days or a week.
Speaker 1 (21:35):
What's the realistic earning potential here? The source is mentioned
fifteen to twenty five dollars an hour.
Speaker 2 (21:40):
That's the typical range, sided yes, but it's heavily dependent
on your location big city versus rural town, the time
of day, demand surges happen.
Speaker 1 (21:50):
So if someone commits to say, ten hours a week
pretty consistently, they.
Speaker 2 (21:54):
Could realistically expect to generate somewhere between maybe six hundred
than one thousand dollars a month in gross earnings.
Speaker 1 (22:02):
Okay, gross earnings. I have to bring up the net
profit question again, especially for driving gigs.
Speaker 2 (22:06):
Please do it's critical that.
Speaker 1 (22:07):
Fifteen to twenty five dollars an hour. That's before gas,
right before extra wear and tear on your car, oil,
changes tires. Not to mention this self employment tax we
discussed earlier.
Speaker 2 (22:17):
Absolutely, those are all very real costs that eat into
the gross figure. Gas is obvious, but the increased maintenance
and depreciation on your vehicle are significant hidden costs. Plus, yes,
setting aside that twenty five thirty five percent for taxes.
Speaker 1 (22:29):
So when you factor all that in, what's a more
realistic net hourly rate? People should expect maybe closer.
Speaker 2 (22:34):
To twelve dollars eighteen dollars.
Speaker 1 (22:36):
That's probably a more realistic range for many drivers. Yes,
after accounting for all expenses and taxes. It varies. Of course,
If the net pay is lower, what's the strategic value then?
Is it still worth it for retirement saving?
Speaker 2 (22:47):
I think the strategic value shifts. It's less about maximizing
your hourly wage and more about the immediacy and consistency
of the cash flow you can generate. How so well
even if you're only netting, say eight hundred month consistently
from driving fifteen hours a week. If you take that
eight hundred dollars and religiously invest it every single.
Speaker 1 (23:06):
Month, the compounding still works its magic exactly.
Speaker 2 (23:09):
That eight hundred dollars a month invested at that seven
percent average return over forty years could still grow to
nearly one million dollars nearly.
Speaker 1 (23:17):
A million bucks from a part time driving gig, just
by being disciplined with the savings.
Speaker 2 (23:21):
Right, So the goal isn't necessarily the highest pay per hour.
It's generating a reliable, consistent stream of cash that you
can immediately divert into investments. That consistency is the superpower.
Speaker 1 (23:32):
Okay, that reframes it nicely. Let's look at way number nine.
Participating in the sharing economy, but focusing on services rather
than just renting out physical things.
Speaker 2 (23:41):
Yeah, this overlaps a bit with gigwork, but it often
involves more personal services, often leveraging trust. Think pet sitting
or dog walking through platforms like Rover, or babysitting via
care dot com. Maybe even running errands or offering specialized help.
Speaker 1 (23:56):
Okay, so more person to person interaction. Often it's the
key to success here. If I want to start pet sitting,
how do I get clients?
Speaker 2 (24:04):
Reputation is absolutely everything in these fields. Since you're often
going into people's homes or caring for their pets or children,
trust is paramount.
Speaker 1 (24:13):
So how do you build that trust as a newbie?
Speaker 2 (24:16):
You have to deliver outstanding service from day one, go
above and beyond, and then crucially you need to actively
ask your first few happy clients for reviews on the platform.
Those positive reviews are like gold. They are the social
proof that attracts more clients and allows you to potentially
charge more later.
Speaker 1 (24:32):
Aim for five stars every time.
Speaker 2 (24:33):
Basically, yes, average service won't cut it if you want
to build a steady income stream.
Speaker 1 (24:38):
What kind of earnings are we looking at?
Speaker 2 (24:39):
The sources gave some snapshots. Pet sitting might range from
twenty to fifty dollars per day, depending on whether it's
dropping visits or overnight stays. Babysitting typically falls in the
fifteen to thirty dollars per hour range, again depending on
location and experience.
Speaker 1 (24:54):
So doing this part time, maybe a few evenings or
weekends a month, you could.
Speaker 2 (24:59):
Quite reasonably and rate an extra five hundred to fifteen
hundred dollars a month doing this type of service work.
Speaker 1 (25:03):
And the nice thing here might be repeat business.
Speaker 2 (25:06):
Huge potential for repeat business. If someone trusts you with
their dog or their kids and you do a great job,
they're very likely to hire you again and again. That
creates a much more predictable income stream, which is ideal
for setting up those automated savings transfers.
Speaker 1 (25:19):
Makes sense? Okay, Final strategy way number ten flipping items
for profit. This sounds kind of fun, actually it can be.
Speaker 2 (25:27):
This is really for the bargain hunters, the people who
enjoy the thrill of the find. The basic idea is simple,
buy low, sell high.
Speaker 1 (25:33):
Where do you find things to buy low?
Speaker 2 (25:35):
Thrift stores, garage sales, flea markets, as date sales, even
online marketplaces like Facebook marketplace, looking for deals.
Speaker 1 (25:42):
And then you sell them where eBay eBay is.
Speaker 2 (25:45):
A classic platform for flippers. Poshmark is great for clothing.
Sometimes local markets or even specialized Facebook groups work well too.
Speaker 1 (25:53):
What's the strategy here? You can't just buy random junk, right,
How do you know what's actually worth flipping?
Speaker 2 (25:59):
No, you definitely need strategy. It requires research. Smart slippers
often specialize in a certain category. Maybe vintage toys or electronics,
or designer clothes, or even something niche like used textbooks
or board games.
Speaker 1 (26:11):
How do they research?
Speaker 2 (26:12):
A key tool is looking at sold listings on eBay,
not just what people are asking, but what things actually
sold for recently. That gives you the true market value.
So when you're at a garage sale and see something interesting,
you can quickly look it up on your phone and
see if there's a decent profit margin before you buy it.
Speaker 1 (26:29):
UH data driven thrifting exactly, and.
Speaker 2 (26:32):
The sources specifically mentioned that flipping vintage clothing can be
quite profitable, especially in or near cities where there's high
demand for unique fashion finds.
Speaker 1 (26:42):
This feels like it might generate lump sums of cash
rather than a steady hourly rate.
Speaker 2 (26:46):
Often, yes, you might find one amazing item that nets
you one hundred dollars profit, then nothing for a few days,
then a few smaller flips. The income can be irregular.
Speaker 1 (26:56):
Which means discipline is extra important.
Speaker 2 (26:59):
Here, absolute lutely critical, because when you get that one
hundred dollars two hundred dollars profit from a flip, the
temptation is huge to just see it as bonus spending
money you have to have the system in place to
immediately move that profit into your savings or investment account
before it disappears.
Speaker 1 (27:14):
What's the overall potential monthly income from flipping?
Speaker 2 (27:18):
It really varies wildly based on effort, skill, and luck.
The sourcesuggested anywhere from maybe two hundred dollars a month
if you're doing it casually, up to two thousand dollars
or even more if you really dedicate time and get
good at sourcing high margin items.
Speaker 1 (27:32):
Okay, wow, that's ten distinct ways to bring in extra cash. Freelancing,
selling products, renting assets, gigwork, flipping, a lot.
Speaker 2 (27:40):
Of options, huge range of possibilities.
Speaker 1 (27:42):
Yeah, but, as we've hinted at all along, just earning
the money isn't the end goal, is it. It's only
half the equation.
Speaker 2 (27:47):
Not even half. Arguably, the execution on the savings and
investment side is where the real wealth building happens.
Speaker 1 (27:53):
Right, So, how do we make absolutely sure this extra
cash actually becomes long term retirement wealth and doesn't just
get absorbed into slightly higher monthly spending. Lifestyle creep is real.
Speaker 2 (28:06):
It's incredibly real, and it requires deliberate strategic discipline to
combat it. The sources consistently highlighted four essential tips, really
non negotiables for maximizing the retirement impact.
Speaker 1 (28:18):
Okay, let's break them down.
Speaker 2 (28:19):
Tip number one, automate your savings. This is the bedrock.
You have to take the decision making out of it
each time you get paid from your side hustle.
Speaker 1 (28:28):
What does that look like?
Speaker 2 (28:29):
Practically, as soon as that money hits your checking account,
whether it's fifty dollars from a DoorDash shift or five
hundred dollars from a freelance project, you should have an
automatic transfer already set up, ideally sending fifty percent or
even more of that income directly into your designated retirement
savings account an IRA, maybe a brokerage account.
Speaker 1 (28:46):
So it moves before you even really see it or
have a chance to think about spending it.
Speaker 2 (28:50):
Exactly, remove the temptation. Automate the discipline That consistency it
creates is this single most powerful factor in making compounding
work for you over decades.
Speaker 1 (29:00):
Okay, automate savings. Got it? Tip number two?
Speaker 2 (29:03):
Invest wisely, so the money lands in your retirement account automatically,
what do you do with it? Then?
Speaker 1 (29:10):
Good question?
Speaker 2 (29:11):
Stocks, bonds, crypto, Well, the overwhelming advice from the sources,
especially for long term retirement saving, is to keep it
simple and low cost. Focus on broad diversification, meaning meaning
primarily using low cost index funds or exchange traded funds EPs.
These funds hold baskets of hundreds, sometimes thousands, of stocks,
(29:33):
like an S and P five hundred index fund owns
a small piece of the five hundred biggest US companies.
Speaker 1 (29:38):
Why is that better than picking individual stocks?
Speaker 2 (29:41):
Because it gives you incident diversification, spreading your risk, and crucially,
the management fees on index funds and ETFs are typically
extremely low. This means more your money stays invested in
working for you rather than going to fund managers. The
mantra is don't try to beat the market, just own
the market through these funds.
Speaker 1 (29:57):
Okay, low cost diversified funds makes sense.
Speaker 2 (30:00):
Tip number three minimize taxes. This is about being smart
with where you put that Automated savings. Using the right
accounts can save you a fortune in taxes over the
long run, making your money grow much more efficiently.
Speaker 1 (30:13):
Which counts are best for the side hustle money For most.
Speaker 2 (30:16):
Millennials, the sources strongly recommend maximizing contributions to a WROTH IRA. First,
if you're eligible based on income. Why WROTH specifically, because
with a WROTH you contribute money you've already paid income
tax on. Like from your side, hustle. The huge benefit
is that all the growth and qualified withdrawals in retirement
are completely tax free. Since most people expect to be
(30:38):
in a higher tax bracket in retirement than they are
now paying the tax upfront can be a massive advantage long.
Speaker 1 (30:45):
Term tax free growth and withdrawals. That's powerful. What else?
Speaker 2 (30:48):
The other account that kept coming up, often surprisingly to
people is a health savings account or HSA. But only
if you have a high deductible health insurance plan, right.
Speaker 1 (30:57):
I've heard HSA is called a secret retirement account.
Speaker 2 (31:00):
Why because they offer a unique triple tax advantage. One,
the money you put in is pre tax or tax deductible,
reducing your current taxable income. Two, the money inside the
HSA can be invested in grows tax free. Three if
you withdraw the money for qualified medical expenses now or
decades later in retirement, those withdrawals are also tax free.
Speaker 1 (31:22):
Triple tax free.
Speaker 2 (31:23):
Yeah, and here's the kicker. If you don't need the
money for medical bills, so once you turn sixty five,
you can withdraw it for any reason. Just like a
traditional IRA or four to one K. You'd pay ordinary
income tax then, but you still got the upfront deduction
and decades of tax free growth. It's an incredibly powerful
savings vehicle.
Speaker 1 (31:39):
If you qualify Okay, so prioritize raw IRA then HSA
if eligible. Good tax strategy. Now, before we get to
the last tip, we have to address that big question
we touched on earlier, the student debt dilemma.
Speaker 2 (31:50):
Yes, huge issue for so many listeners.
Speaker 1 (31:52):
If someone has, say, fifty thousand dollars in student loans
at six percent or seven percent interests, and they start
making an extra thousand dollars a month from a side hustle,
should they invest that money hoping for a seven percent
market return or should they throw it all at the debt.
Speaker 2 (32:04):
This is where the sources provide a pretty clear framework. First,
absolutely make sure you're contributing enough to your employers for
one K to get the full company match. That's free money.
Always take the free money.
Speaker 1 (32:15):
First, Okay match first?
Speaker 2 (32:17):
Then what Then you basically compare the interest rate on
your debt to your expected risk adjusted investment return. If
your student loans have a high interest rate, let's use
your example, six percent or seven percent or maybe even higher.
Paying that debt off aggressively is often the mathematically smartest move.
Why because paying off a seven percent loan is equivalent
(32:38):
to getting a guaranteed, risk free seven percent return on
your money. The stock market might average seven percent over time,
but it's not guaranteed year to year. Eliminating that high
interest debt is a certain win.
Speaker 1 (32:49):
So treat the debt payoff like an investment with a
guaranteed return equal to the interest rate.
Speaker 2 (32:54):
Exactly, attack the highest interest debts first with that side income.
Once this high interest loans are going on, then you
pivot and start funneling one hundred percent of that extra
cash flow into your roth IRA, your HSA, your brokerage
account for those index funds.
Speaker 1 (33:07):
That makes perfect sense. Pay off the guaranteed high interest
liability before funding the variable return asset precisely.
Speaker 2 (33:14):
Which brings us neatly to the final and perhaps most
crucial piece of advice Tip number four, which is stay disciplined.
You have to mentally and behaviorally wall off this side.
Speaker 1 (33:27):
Income, meaning don't let it become slush money.
Speaker 2 (33:30):
Absolutely not. It cannot become money for ordering more takeout,
or upgrading your car or taking fancy your vacations. You
have to consciously, deliberately treat every dollar of that extra
income as a tool purely for building long term financial security.
Silo it, invest it, don't let lifestyle creep eat it away.
Speaker 1 (33:48):
That discipline underpins everything else.
Speaker 2 (33:50):
It really does, because without it, even the best side
hustle just becomes extra spending, not extra wealth.
Speaker 1 (33:56):
So let's bring it all together with that powerful projection.
Speaker 2 (33:58):
Again.
Speaker 1 (33:59):
If someone manages to combine, say two or three of
these strategies, maybe they freelance a bit, rent up their
car on weekends, and sell some digital templates, and they
consistently generate an extra two thousand dollars a month.
Speaker 2 (34:09):
Net, and they follow these steps, automate the savings, invest
wisely in low cost funds, use tax advantage to accounts
like a rough, and stay disciplined.
Speaker 1 (34:18):
Investing that two thousand dollars a month at a seven
percent average return.
Speaker 2 (34:21):
The result over a typical working lifetime could be over
two point four million dollars by retirement age.
Speaker 1 (34:27):
Two point four million just from side income handled strategically.
Speaker 2 (34:31):
That's the potential power we're talking about. It transforms the
financial picture from maybe uncertain to potentially abundant. It's achievable
with today's tools and the right discipline.
Speaker 1 (34:42):
It really puts control back in the hands of the
individual despite the economic headwinds.
Speaker 2 (34:46):
Completely hashtag tag tag outro.
Speaker 1 (34:48):
So we've done the deep dive, We've laid out the blueprint.
I think the biggest takeaway for you listening has to
be that combination leveraging the unique opportunities of today, the
gig economy, the digital plot forms, and pairing it with
that rigorous automated investment discipline.
Speaker 2 (35:04):
That pairing is the key. It's the framework for overcoming
a lot of the financial anxieties many people are feeling.
Speaker 1 (35:10):
We've given you ten specific ways to get started earning
that extra cash. We've shown the math how even seemingly
small amounts like two thousand dollars a month can compound
into millions over time if invested correctly.
Speaker 2 (35:23):
Which leads us to the final thought we want to
leave you with. It's not really a question of if
you can find at least one side hustle from this
list that fits you.
Speaker 1 (35:30):
Yeah.
Speaker 2 (35:31):
The real question, the one to really mull over, is this,
which combination of two or three of these ten methods
makes the most sense for your specific skills, your available time,
your lifestyle.
Speaker 1 (35:42):
Right, which combination feels sustainable for you?
Speaker 2 (35:45):
Exactly because sustainability is what guarantees the consistency. Which mix
will allow you to reliably hit that savings target month
after month, year after year. And once you start generating
that cash, what's the immediate priority? Is it smashing that
high interest student debt or is it getting fund straight
into that roth IRA or maybe that triple tax advantaged HSA.
(36:05):
Nailing that sustainable combination and your specific capital allocation plan,
that's your path forward.
Speaker 1 (36:11):
A lot to think about, but incredibly empowering. Find your mix,
automate the process, and build that future. Well said, until
the next deep dive, happy earning and happy investing.
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