How To Make Investing Your Side HustleHampton Wealth
When it comes to making money, most people think of their day job as their only option. But what if there was a way to make some extra money on the side, without having to give up your precious free time? Well, there is – and it’s called investing.
Making extra money on the side is a great way to get ahead in life. You can use the extra cash to pay down debt, save for a rainy day, or even invest and grow your savings. Investing can help you achieve all that.
Investing doesn’t have to be complicated or risky. In fact, with the help of a broker or investment firm, it can be quite easy to get started.
And if you start small and reinvest your profits, you can grow your portfolio over time and eventually turn investing into your main source of income.
So if you’re looking for a way to make some serious money on your down time, investing should be at the top of your list.
What is investing?
If you’re new to the term, simply put, investing is putting your money into something with the expectation of earning a return.
This can be done in a number of ways, but the most common are through stocks, bonds, and mutual funds.
When you invest in these things, you become a part-owner of the company or fund and are entitled to a portion of the profits. Of course, there’s always the chance that you could lose money as well, which is why it’s important to do your research and understand the risks before you dive in.
Investing may sound like something that’s only for wealthy people, but that’s not true at all. In fact, you can get started with just a small amount of money. And the best part is, you don’t have to be an expert in order to do it. There are plenty of resources available online (like this post!) and through books that can teach you everything you need to know.
If you need extra hand-holding, there are also investment firms that can help you get started and manage your money for a fee. They will often have lower minimums than if you were to go it alone, making them a great option for those just starting out.
Why is investing a great side hustle?
There are a few reasons why investing can be a great way to make extra money. For one, investing can provide you with a stream of income that you can rely on in the future.
As your investments grow, you will start to receive regular payments from them. This can be a great way to supplement your income and make sure you have a steady stream of money coming in without having to worry too much about finding a new job or working extra hours.
Investing can also be a great way to diversify your income. When you invest, you are not just relying on one source of income. If you have investments in different areas, then this can help to protect you if one of your sources of income dries up.
Another reason why investing can be a great way to make extra money is that it can help you to reach your financial goals quicker. When you invest, you are essentially putting your money into something that has the potential to grow over time.
This means that the longer you leave your money invested, the more it could grow. This can help you to reach your financial goals quicker than if you were just relying on your income from your job.
Finally, investing can be a great way to get tax breaks. In some cases, you may be able to deduct the amount you have invested from your taxes. This can help you to save money and make even more money from your investments.
While investing can be a great way to make extra money, it is important to remember that it comes with some risks. Before you invest, make sure you do your research and understand what you are investing in.
Never invest more money than you can afford to lose. With careful planning and research, investing can be a great way to make extra money and secure your financial future.
Tips for starting out in investing
If you’re interested in making some extra money on the side, here are a few tips to get you started in the world of investing:
1. Decide what you want to achieve
The first step is to decide what you want to achieve with your investments. Do you want to grow your savings? Make extra income? Save for retirement? Once you know your goals, you can start to look for investments that will help you to reach them.
2. Do your research
Before you invest in anything, it’s important to do your research and understand the risks involved. There are plenty of resources available online and through books that can teach you about investing. It’s also a good idea to speak with a financial advisor to get professional advice before making any decisions.
3. Start small
If you’re new to investing, it’s best to start small and gradually increase your investment amount as you become more comfortable with the process. There’s no need to go all in from the beginning – you can always increase your investments down the road.
4. Be patient
Investing takes time and patience – don’t expect to see immediate results. It’s important to stay disciplined and invested for the long term in order to achieve your financial goals. Know that there will be ups and downs along the way, but as long as you stick to your plan, you should be successful in the end.
5. Reinvesting your profits
As your investments grow, you can reinvest your profits to earn even more money. This is a great way to compound your earnings and accelerate your progress towards reaching your financial goals. Remember that reinvesting is not mandatory – you can always take your profits out and use the money as you see fit.
6. Stay diversified
Investing in different types of assets can help to reduce your risk and maximize your chances of success. When you diversify, you are investing in a variety of different things, which means that if one investment fails, you still have others that may do well. This helps to protect your portfolio from market fluctuations and gives you a better chance at achieving your long-term goals.
Some options to consider are stocks, bonds, mutual funds, and real estate. While cryptocurrency has gained popularity in recent years, it’s important to remember that it is a volatile market and should only be invested in with caution.
7. Review your progress regularly
Investing is not a “set it and forget it” proposition – you need to monitor your progress and make sure that your investments are performing well. Check in with your financial advisor on a regular basis to ensure that you’re on track. Take some time every quarter or year to review your portfolio and make any necessary changes.
But I Don’t Have Time!
It might all sound like a lot of work, and you’re wondering how you can squeeze in the time to take up investing as a side hustle when you have a full-time job and a family to take care of.
But the great thing about investing is that it doesn’t have to take up a lot of your time.
You can set up a portfolio and let it grow without putting in a lot of hours. And the returns can be much higher than other side hustles.
Start small and invest in companies that you’re familiar with. Then, as your portfolio grows, you can start to diversify and invest in other companies and industries.
And don’t forget, you can always use a financial advisor to help you with your investments. They can do the heavy lifting while you focus on your day-to-day life. Make sure to shop around and find an advisor who aligns with your investment goals.
Another way is to research investment opportunities and look for ones that fit your schedule and risk tolerance. You can find many high-quality investments that don’t require a lot of time to maintain, like index funds and exchange-traded funds.
So don’t use the excuse that you don’t have time to invest. With a little planning, you can easily make investing a part of your busy lifestyle.
But What If I Don’t Have Any Money To Invest?
There are still options available to you. You can start by looking into some of the best brokerage accounts for beginners. These accounts often have low minimum deposit requirements and offer commission-free trading. This means that you can get started with investing without a lot of upfront costs.
You can also look into robo-advisors. These are online platforms that offer automated investing services. They often have low minimums and fees, which makes them a great option for those just starting out.
Don’t let the thought of investing intimidate you – it’s easier than you think, and it could be the key to financial freedom. Whether you’re a working or stay-at-home mom looking to make some extra money, a recent grad just starting out, or anyone in between, there’s no time like the present to start investing.
So what are you waiting for? Get started today and make investing your side hustle!
Our HWG advisors are always here to answer your questions and help you get started. Give us a call today to learn more about how we can help you reach your financial goals.