Having a job is essential if you want to pay the bills, but side gig income is the key when it comes to building wealth. Some forms of side hussle cash are easier to manage than others while working a full-time job, so you have to be choosey when deciding how to build wealth.
How employment and side gigs go hand-in-hand
Many people live paycheck to paycheck, but whether you do or not, extra income will still enable you to build more wealth than you could with a full-time job alone. Most people have dreams or ideas about what they want their life to look like, and having both a job and another gig on the side will help you achieve those dreams.
Employment and side jobs should be like two sides of the same coin. Both are important ways to make money and work toward the lifestyle you want. If you aren't living paycheck to paycheck, a job will also enable you to save money to invest in a side hustle. After all, you have to spend money to make money.
Ideas for side gigs
Perhaps one of the most popular forms of side gig money is owning rental income. No job is genuinely passive because you have to put some work into it, but with rental income, the amount of time and effort you have to put in will be minimal if you hire a property management firm.
Other examples of the above income include affiliate marketing, peer-to-peer lending, dividend stocks, investments in crypto, and creating an app. For the purposes of this article, we will look at real estate as a method of earning gig salary..
How real estate can help
If you have enough capital for a down payment on a property, you can buy something and rent it out. It would be a good idea to work with a realtor who can help you identify properties that will bring in a steady income as rentals. You can even put leverage to work by taking out a mortgage on the property.
However, if you're going to do that, you should make sure it will rent for enough to not only cover the mortgage, taxes, maintenance and any other expenses you might have but also leave some left over for your bank account.
Since you probably won't be able to have regular office hours as a landlord, you should hire a property management firm to make your side business truly passive. They will help you find excellent tenants and handle all aspects of your rental property, including maintenance, paying bills and other aspects of owning property.
Another way to earn side gig cash with real estate
Owning rental property isn't the only way to earn side gig money with real estate. If you don't want to hire a property management company and go that route, you might consider investing in real estate investment trusts. They offer another truly passive way to make some extra money while working a full-time job.
"Passive income is every investor's dream, and it's becoming more obtainable than ever through REITs as well as crowdfunding opportunities across real estate and other asset classes. For investors planning long term — be it for retirement or another savings goal — the opportunities are innumerable." said Michael Weisz, President of Yieldstreet.
Buying a publicly-traded REIT is just as easy as buying a stock, which you can do through Robinhood or another online broker. REITs offer extra cash because owning shares in them entitles you to sizable dividends. The average dividend stock in the S&P 500 pays only 2% dividends, but many REITs pay as much as 5% dividends.
REITs are required to pay out at least 90% of their taxable income to shareholders in the form of dividends. If you own a diversified portfolio of REITs, you could capture quite a bit of side hussle cash while still working a full-time job. REITs earn money by owning properties and collecting rental income or purchasing mortgages on the secondary market and collecting interest.
Whether you invest in REITs or buy property to rent out, real estate offers some excellent opportunities for those who want some gig economy money while they work a full-time job.