Is Your Side Hustle Worth Your Time? In this video I delve into the crucial aspect of assessing the value of your time invested in …
Is Your Side Hustle Worth Your Time?
In this video, we will explore the crucial aspect of assessing the value of the time invested in your side hustle and how to determine if it is worth your time. Your time is extremely valuable, but there may be times when it doesn’t seem that way. When I needed money, I was willing to work long hours for minimal pay because I needed the money. However, as I built up my savings and ventured into investments and side hustles, I realized that my time was worth a lot more.
Many people find themselves spinning their wheels with their side hustles, unsure if they are truly worth the effort. In this video, I will provide you with a framework to evaluate if your side hustle is worth your time.
Let’s consider an example: My best friend and I started selling trailers with an initial investment of $500. Our goal was to flip trailers and make an extra $500 each month. Within the first month, we made $5,000, and within a year, we turned $500 into over $100,000 in cash.
To determine if our time was worth it, we calculated how many hours we spent acquiring, fixing, and selling the trailers. By dividing our profit by the total hours worked, we found that we were making between $4 and $500 per hour. This side hustle was not only profitable but also enjoyable, making it worth our time.
On the flip side, I started a construction cleanup business with my father, hoping to clean up construction sites for a profit. Initially, the business went well, but when there was a lack of work, I started cleaning people’s homes, which I found to be distasteful and less profitable. After evaluating the hours worked and the profit made, I realized that this side hustle was not worth my time compared to working overtime at my regular job.
To determine if your side hustle is worth your time, calculate your monthly profit and divide it by the total hours worked. This will give you an hourly rate for your side hustle. If this rate is less than what you could earn elsewhere or if the side hustle requires excessive hours, it may be time to reconsider its value.
If you find that your side hustle is not worth your time, don’t be afraid to pivot or explore other avenues for income. I have had over 21 side hustles and have learned the importance of pivoting when necessary. In my course on side hustles, I teach others how to start and grow their side businesses, emphasizing the importance of evaluating their worth and making informed decisions.
It’s essential to understand the value of your time and make informed decisions about your side hustle. By assessing the profitability and enjoyment of your side hustle, you can ensure that your time and efforts are being well spent.
Definitions:
– Side Hustle: a secondary job or income source outside of one’s primary employment
– Pivot: to shift or change direction in one’s business or strategy
– Profit: the financial gain earned from a business or investment
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