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8 Things You Can Do With Money From a Side Job

8 Things You Can Do With Money From a Side Job

Taking on a part-time job or making money from a side hustle can bring in more money than you know what to do with. Here are eight ideas for what you can do with money from a side job.

Make ends meet. If you’re having trouble paying bills with the income from your regular job, money from a side job will be much needed. You can use the income to comfortably cover your bills and other expenses.

Pay down your debt. Sometimes it's tough paying off debt with money from a main job. Money from a side job help you pay off debt much faster than relying solely on your regular wages.

Save up for the vacation you’ve always wanted to take. Taking on a side job can generate additional income that you can use for the “fun” things like going on vacation. Using cash for your vacation is better than putting it on a credit card because you won’t have to spend the next few months paying off the balance. (The exception is to use your credit card for the rewards then pay the balance in full later.)

Build your emergency fund. Having a few months of living expenses stashed away can help cover you the event of job loss. Or, you can use the money to cover any unexpected expenses that would ordinarily go on a credit card. The money from a side job can help you build a bigger emergency fund faster than if you only had one income to use.

Put it in your retirement account. Money from your side job can help you max out your annual retirement contribution. The more money you can stash away for retirement, the more comfortable your retirement will be. Saving earlier gives you more time for compounding interest and a bigger retirement fund.

Help out a loved one in need. Once you’re in a good place financially – your debt is paid off and you’re saving toward retirement – consider helping out the people around you. You may have college bound relatives who need help with books or a friend who needs help pursuing a professional license. 

Give to a charity. You can donate some of your extra funds to an cause that means something to you. You may be able to get a tax break for your donation, but if not, you’ll have helped out a worthy cause.

Turn it into a full-time income. Your side job may become so lucrative that you’re able to leave your regular job. Before you make the switch, make sure you consider the impact taxes and health insurance will have your on your income.

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Comments 1

Frank on Tuesday, 08 March 2016 09:36

I have said this before, buy in today’s age, more and more people are getting “side jobs”. It can be a great way for someone to get out of financial trouble and get some extra cash. These 8 ways are a great way to use that extra cash.

I have said this before, buy in today’s age, more and more people are getting “side jobs”. It can be a great way for someone to get out of financial trouble and get some extra cash. These 8 ways are a great way to use that extra cash.
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