Nairalogue with Ifeoma Adeoye: Do Not Under-Estimate the Power of Your Side Hustle

The importance of having multiple revenue streams, for anyone who is interested in building wealth, cannot be over emphasized. Even if it is dividend pay-outs from stocks or buying and selling things on the side and making a margin, it is important for everyone to have a side hustle.

A side hustle is, as the name implies, something you do on the side. It does not matter if you have a job or you are self-employed or you are a stay at home mum. Any extra activity you do to generate additional income, outside your main “job” is a side hustle.

For as long as I can remember, I’ve always had a side hustle, no matter how small and “crappy” it is. I get a sense of fulfilment from knowing that I am due to get an extra N100 from somewhere that I could put to alternative uses.

Given the current state of our economy, not all of us can be brave enough to up and quit the safety of the steady salary that we get from our current employment. Now, more than ever, it has become imperative for the average Nigerian to find ways to increase their revenue flow. Maintaining a hustle on the side may mean that we cannot give it the time and effort it requires to turn it into a full blown multi million naira business in the short term, but guess what? That little extra is better than nothing in the interim.

Earning an additional N30,000 every month may not seem like a big deal but the power of saving and compounding the entirety of that money should not be underestimated.

Let us assume that you have a full time job and you make ends meet with the salary you get from this job. Let us also assume that you have a side hustle from which you generate N30,000, net, every month. Since you “survive” on your salary, you can save this additional N30,000. Assuming you invest this N30,000 in mutual funds (assuming 10% return per annum) every month, at the end of twelve months, your account would look like this:

 

Not bad right? Now imagine that this is repeated and compounded over the next five years – That will be N2,342,471! That N30,000 a month side hustle. It doesn’t seem so small now, does it?

It is very easy to start and manage a side hustle. Most side hustles require minimal start-up costs and the amount of time you have to put in every month is also fairly minimal. Earning that little bit more every month adds up eventually. It may look like a “little” sum to you now, but in time, your “little” five figure side hustle income will turn into seven figures and people will wonder how you did it.

Earn, Save, Invest, REPEAT!

Remember, start now, start small – just do it!

Photo Credit: Stephen Coburn | Dreamstime.com