I am a big advocate of having a "side hustle", I often give this advice to, well, honestly anyone that will listen. There are several reasons why everyone could use a little extra cash flow. Here are just a few reasons why you should pursue a second income.
A side business can satisfy your desires beyond what is allowed by your fixed income. Perhaps you want to get a new vehicle or take a cruise, with a side business you can put aside your profits toward your indulgences without really having to compromise your budget.
Extra Money- Whether you desire extra money for needs or wants, or to give a boost to your rainy day fund, running a side business will give you additional funds.
Tax Planning- This is most likely the second most important reason. Building wealth and preserving it are two very different things. Because we all pay homage to our Uncle Sam, we end up taking home just a portion of what we earn. Owning a small business, no matter how big or small, has tremendous tax advantages. But suffice it to know for now that owning a business can significantly lower your tax rate.
Lessons To Take Away- First of all, you are in for a rude awakening when you realize how little of what you make is what you keep.
Second- When you start learning about the tax advantages of running a side business, you will realize how big of a mistake you had made all these years by not starting up. Careful tax planning is critical to preserving wealth and building it over time. You may just hit the biggest jackpot of your life by reading this blog.
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