Personally, I was always told that renting year after year was throwing away money and that I should consider buying a house. Then, I look at some of my homeowner friends and I wonder how they can afford to maintain, furnish, and upgrade their homes.

According to the U.S. Census Bureau, last year, the homeownership rate for millennials who were 35 and under dropped to 35% which is a 4% decline since 2010.

Now, the reason why fewer millennials are buying homes could be due to a lack of interest or for financial reasons. I figure it’s most likely a combination of both but it still leads many of us to ask, is renting really cheaper than buying?

The Advantages of Renting

 
Renting can be a better option if you’re looking for housing arrangements that are somewhat flexible. Typically as a renter, you only have to sign a lease for a year, 6 months, or even on a month-to-month basis which provides you with more freedom to move, travel long-term, etc. as opposed to being tied down with mortgage payments for 30 years.

The initial investment to rent a house or apartment is also quite low when compared to the rigorous process of coming up with a down payment for a house and paying for inspection fees and closing costs.

When you have lower costs upfront, you can use the rest of your money to cover living expenses, save, and invest, etc.

Another thing I love about renting is that there’s often no responsibility to take care of maintenance and repairs. If something breaks or if your home needs to be remodeled or updated, your landlord will most likely take care of it. I love that my apartment even pays for our carpet to get cleaned and our walls to be repainted every year.

Renters insurance is dirt cheap since you don’t have to pay to insure the property itself and most of your utility bills can be covered in the price of your rent if you live in an apartment.

Again, not having to pay for these expenses as a renter can help put more money in your pocket that can be used elsewhere in your budget.

The Advantages of Buying

 
Buying a home is an investment that you tend to put a lot of money into upfront. The costs of buying a home fluctuate depending on the market in your area and your credit, but if your credit score is good and you choose a home that’s in your budget, your monthly mortgage may end up being less than the average rent rate in your area.

The more you put down on your home, the better because you can keep your mortgage low and avoid costly expenses like mortgage insurance. If you have a fixed interest rate, you probably won’t have to worry about your mortgage payments being subject to increase each month like a renter would.

Plus, you can always refinance your mortgage later down the road to get a lower interest rate and reduce the amount of your housing payments even more. Owning a home allows you to build equity in a property as opposed to paying rent each month and having no equity.

You’ll also have the freedom to decorate, rearrange, and update your home however you please, unlike if you were a renter.

The Disadvantages of Renting

 
Renting definitely has some disadvantages along with quite a few hidden fees people should consider. For starters, depending on your landlord, your rent rate could increase every time you sign a new lease making your cost of living higher each year. This is what my husband and I are dealing with right now and we find the rent increase unnecessary because our apartment has not even been upgraded since we moved here.

While upfront costs may be cheaper than buying, they may not be as low as you expect because some landlords prefer a high security deposit and sometimes expect 1-3 months of rent when you move in.

Plus, if you have pets, not all landlords accept pets. For the ones that do, you may have to pay a much higher rent rate or add on an annual deposit or monthly fee if you wish to add a pet to the lease.

There are also many more picky rules and regulations for renters to abide by while homeowners can enjoy a little more freedom in regards to what they do with their property.

The Disadvantages of Buying

 
The biggest financial disadvantage I see homeowners mention (when compared to renting) include the ongoing costs of maintaining and repairing a home. Homeowners must keep a larger emergency fund on hand than renters because they have more responsibilities regarding the upkeep of their property.

Contrary to popular belief, the value of your home may not increase during the first few years so you’ll have to wait things out and spend several years paying down your mortgage if you want to see some ROI.

Homeownership is also generally a long-term commitment meaning you can’t just pick up and leave when you want to. You’d have to wait at least a few years and either sell or rent your home out if you wish to move somewhere else.

Other Financial Implications

 
Given the typical pros and cons of buying or renting a home, you must consider that there are other financial implications that can influence your decision. Debt is a big one, for example.

According to Student Loan Hero, the average class of 2016 graduate has $37,172 in debt and tuition prices are rising faster than inflation. Lenders look at your debt-to-income ratio when considering you from a mortgage to see if you can actually be able to afford a home.

If you’re looking to rent, your debt will still play a role in your ability to afford it which is why for the first time in 100 years, more adults between the ages of 18 – 34 years old are choosing to live with their parents over sharing a living space with a partner or living alone according to Pew Research Center.

Your income and other living expenses will also play a big role. If you are trying to buy a home that is our of your price range, renting may sound cheaper or vice versa.

So Which One is Better?

 
You’ll see mixed information everywhere online about whether it’s cheaper to buy a home or rent. At the end of the day, you have to live somewhere so I can’t give a universal answer as to whether renting or buying a home is better. It all depends on where you want to invest your money and how the pros outweigh the cons for each option.

Ultimately, the housing market in your area could determine whether it’s cheaper to rent or buy and what the better option is for you long-term.

In my area, renting and buying a home averages out to about the same investment. Rent can be a tad bit higher than a mortgage depending on how much you put down but overall, renting is cheaper for us at the moment because we’re not financially prepared for all the upfront and ongoing costs of owning a home.

This can and will change, however, just because renting or buying a home is cheaper for you right now, that doesn’t mean it will always be the case. Some people may own a home for a few years, then go back to renting or the other way around.

Before you let anyone tell you which one is cheaper or better, consider your own preferences, do your research on the pros and cons, and run some of the numbers.

 
 
Do you think renting or homeownership is better or cheaper for you at this time and why?
 
 

For some of us, it’s harder to save money during the summer because there’s so much fun stuff to do. No one wants to be cooped up in the house all day when you can travel, go to beaches and BBQs, and attend festivals.

Spending on splurges like restaurant food, pricey hobbies, events, vacations, etc. can really interfere with your budget and even cause you to spend more than you earn.

This doesn’t mean you shouldn’t splurge and enjoy some of your money at all, but you need to keep it controlled in order to avoid not being able to pay for your actual necessities or even getting into debt.

When you’re tempted to splurge over the next few months or just want to treat yourself every now and then, here are a few ways to save so your spending doesn’t get out of control.

1) Plan Your Spending

 
This kind of sounds ironic when you’re talking about a splurge, but some splurges can actually be planned. For example, if you really want to go to a concert or sporting event, odds are you’ll know about it several weeks or months in advance so you can have time to plan for the expense.

It also helps to set a specific budget category for entertainment and miscellaneous expenses. If you don’t spend the money allotted each month, you can just set it aside until something comes up.

Planning your spending and saving up ahead of time can also help you score early-bird discounts on pricing for some purchases helping you reduce your spending on the splurge.

2) Use Coupons

 
Using coupons is a great way to cut the costs of any spending you do. While clipping coupons to save on food and household items isn’t always the best use of time since the coupon amounts are often small (DC may disagree!), you can save big when you use coupons to get discounts on big-ticket items along with outings and events.

Groupon is one of my favorite sites to use to find discounts on splurges I have. For example, if you want to save money on a gym membership, museum ticket, restaurant purchase, a one-hour massage, electronics, or even a wedding gift for someone, you can find deals on Groupon to generate savings or even use Groupon’s coupon section to save.

Another site I like to use to score discounts and coupons is Ebates. As long as you’re signed in to your free account, Ebates will search each website you visit for deals and coupons. They will also give you cash back offers on select purchases.

All you need to do with Ebates is make sure you opt in so you can receive the cash back and coupons.

3) Use Amazon or eBay

 
For everything that you can’t get at a discounted price with Groupon, I recommend using Amazon or eBay. eBay allows you to bid for some items to get them for a cheaper price, and Amazon has really competitive prices for quality brands.

For example, fit desks are all the craze right now because they allow you to use your laptop or tablet while you exercise. However, they’re pretty pricey depending on where you get them from but you can compare prices from different sellers to find the best deal and model for you.

If you have Amazon Prime, you can enjoy free 2-day shipping on your orders and if you have Ebates, you can even earn a little cash back.

If you have a Swagbucks account, you can also earn points and cash back on your purchases on Amazon or eBay and you can redeem your points for free gift cards to your favorite retailers.

4) Go the Community Route

 
When you’re thinking about a splurge, consider free and cheap offerings in your community before you spend a ton of money elsewhere.

If you’re looking to pick up a new hobby, take a class, or join a sport, see if any community organizations offer a free or discounted solution.

I found a free baseball camp for my son this year and they’re even covering the price of his uniform and shoes. I didn’t have to put him in a sport this year but it’s fun to get him involved, especially when I find something that our community offers for free.

5) Discount Days

 
Many museums, aquariums, zoos, art galleries, etc. offer free admission or discount days to help you save money.

First, choose where you want to go, then check their website to see if they offer any special days when you can receive discounted admission.

BONUS TIP: Make Good Use of Your Credit Card Perks

 
If you have credit cards that offer rewards, you can use your cards wisely and strategically to save money on a nice vacation in the future. If you get a frequent flier rewards card, you can reduce the cost of your flight and fly direct instead of having to take several layovers to save money.

You don’t have to be a serious credit card churner to take advantage of sign-on bonuses for your favorite credit cards. You can also use cash back to your advantage and use it to pay for some of your travel expenses or even food while you’re away.

I like using credit card reward points for all-inclusive resorts because food and some activities are included with your stay so you can really feel like your splurging without spending a ton of extra money.

Just remember to avoid letting credit card rewards cloud your better judgment. Make sure you don’t go overboard and always pay your bill off in full each month. The mere rewards aren’t worth getting into debt over.

While I don’t want to encourage you to make regular splurges, they’re going to happen from time to time and there’s not really anything wrong with enjoying your money as long as you can comfortably afford it.

To create even more breathing room in your budget, you can use some of these tips to save money on your favorite splurges so you can still meet your financial goals.

 
 
What do you find yourself splurging on from time to time? Have you ever used any of these techniques to save money?
 
 

Not all side jobs are the same and flexible side hustles are great this time of year because they allow you to make extra money while still being able to check items off your summer bucket list.

If you want to earn more but don’t want to be tied down to an hourly schedule, here are 5 flexible side hustles to consider this summer.

1) Drive For Uber or Lyft

 
I believe I’ve said this quite a few times, but driving for Uber has allowed my husband to pay off his car loan early and save for several others expenses. Uber and Lyft are both ridesharing apps that allow you to use your own car to drive passengers to their destinations.

Passengers pay for the ride on the app and Uber or Lyft takes a cut of the fee but drivers keep the rest and get paid weekly.

To start driving for Uber or Lyft, you must:

• Be 21 years or older
• Pass a background check
• Have a smartphone so you can pull up the Uber/Lyft app
• Have a 2005 4-door car or newer (age of car varies by state)
• Have auto insurance
• Pass a vehicle inspection

Uber and Lyft are two different companies so you could very well drive for both and earn even more money. Uber and Lyft drivers tend to make an average of $30/hr. Plus, passengers also give tips with will increase your earnings.

What I love about this side hustle is that you don’t have to be confined to a certain schedule. You can drive whenever it’s convenient for you. My husband usually drives a few nights a week but if he’s busy or tired he will skip some days and pick back up when it fits in his schedule.

2) Running Errands

 
Another flexible way to earn extra money this summer with your car is to run errands. There are several companies that will pay you to do this in your area.

Agent Anything is a site where students get paid to do ‘missions’ for clients who need errands ran or other tasks taken care of in their local area. Only current college students will be accepted on this site and considered for work so keep that in mind.

DoorDash is a site that will pay you to deliver food to customers in your local area. You can pick up deliveries whenever you’re available and must be at least 18 to sign up. Door Dash deliverers earn an average of $20 per hour.

Postmates is another site that will pay you to run errands in your area on your own time. Like Door Dash, you must be 18 to get started. It’s stated on their website that you could earn $25/hr and what I love about Postmates is that you don’t even need a car to work. You can run errands on foot or by bike if you wish.

3) Direct Sales

 
Direct sales is not for everyone, but if you’re targeting the right audience and making a difference, it could be a great flexible way to earn more money.

The problem is, there are many multi-level marketing scams out there that trick people into recruiting others to earn money or simply sending all their money to the company. You should avoid any companies that have extremely high start-up fees or monthly membership fees, won’t buy back unsold inventory, or base a majority of your commission on what other reps sell who are under you.

With direct sales, you want to find a company you truly believe in that has ethical standards and policies. Then, you just need to have fun with it. It helps if you’re a people person and have the ability to promote yourself across a wide variety of mediums.

For example, if you already do a ton of promotion on Facebook, try using a different platform to reach a new audience.

4) Mystery Shopper

 
If you love to shop, becoming a mystery shopper this summer will allow you to get paid for it. Mystery shoppers get paid to eat, try out different services, and buy products from retailers in their area.

Companies pay mystery shoppers to observe employees, working conditions, and other aspects of the places they visit and report their findings and observations after the experience usually in the form of a survey.

Mystery shopping is extremely flexible because you can choose which assignments you accept along with the time and location. Mystery shoppers get reimbursed for any money they spend on food or other products as part of the assignment.

How much you can earn really varies by the assignment but you can expect to earn an average of $5 to $25 or more depending on what the requirements are and how much time it will take you.

For example, one mystery shopping assignment may only require you to stop by an ice cream shop and make a small order while another assignment may require you to get an oil change at an auto repair shop and call ahead to speak to a service agent.

5) Bartender

 
Night owls may gravitate toward this side hustle. Bartending is not as easy as people think it is, but it’s possible for anyone to become properly trained and make good side income bartending.

You just need experience which will not take too much time to round up.

Bartending is flexible because you can get the bulk of your hours in during the evenings and weekends whether you work at a bar or private venue. The tips also make this option appealing including the fact that bartenders make around $20/hr including tips according to PayScale.

Earning extra money in the summer doesn’t mean you have to be glued to your work all day. When considering a side hustle, choose something that’s enjoyable and flexible so it fit around your schedule.

 
 
Will you be side hustling this summer?
 
 

Freelancers tend to work in some creative capacity whether it includes writing, editing, graphic design, programming, social media management, or digital marketing just to name a few.

When you freelance, you work as a contractor and can set your own rates and often choose the hours you work which are two perks that appeal to most people.

However, the one obstacle freelancers run into is work drying up or not being able to get enough clients. If you can’t get hired for freelance gigs, you won’t be able to earn any money so that’s step one.

If you’ve been thinking about getting into freelancing or are currently a freelancer looking for ways to land new work, here are 8 things you can do to improve your chances of getting hired for more gigs

1) Start a Website or Blog

 
As a freelancer, it’s important to have a professional online home. If you’re freelancing virtually, potential clients will like to see some type of ‘proof’ of your abilities and you want your website to be the first thing that pops up when they Google your name.

Having a website or blog not only improves your credibility, but it can also serve as a portfolio where you can showcase your work. It’s also easy to set a basic website up with Bluehost for cheap even if you’re not very technical.

2) Put a ‘Hire Me’ Page On Your Website

 
Once you have your professional website set up, be sure to create a ‘Hire Me’ or ‘Work With Me’ page to list your freelance services and/or rates. This is crucial because no one will know the type of work you specialize in or that you’re hiring unless you bring it to their attention.

Feel free to put samples of your work and include your experience on this page.

You can even promote your hire me page on social media, link to it in blog posts, and optimize it for SEO. For SEO, choose a keyword phrase that describes your services. That way, when someone is looking for a freelancer in your niche, your hire me page has a better chance of showing up in the search results.

My first official freelance client actually reached out to me after seeing my hire me page and since I have analytics for my blog, I can see that this page in particular gets views each day.

Even though everyone who looks at my hire me page doesn’t turn out to be a client, it helps that it’s getting organic traffic as opposed to me having to send out pitches each day.

3) Get Testimonials

 
Testimonials are great for leveraging new freelance client contracts. When you work with a client or even if you do some trial work, be sure to ask for a testimonial that you can put on your website or in pitches.

With real testimonials from pleased clients, prospective clients may feel more comfortable hiring you since you have someone who can vouch for your performance.

4) Raise Your Rates

 
This may sound weird, but you might want to consider raising your rates if you’re not able to get hired for any freelancing gigs. With freelancing, you can definitely sell yourself short and it doesn’t benefit anyone in the end.

If your rates are extremely low for your industry, it may scare some clients off and cause them to wonder why your services are so cheap. When you charge more, it often means that an exceptional service can be expected.

I work with freelancers from time to time to help run my business and from my experience, the ones who have super cheap rates hardly ever provide a good service. It’s actually gotten to the point where I question the credibility of someone who approaches me with a dirt cheap rate and I’m willing to pay more just to have the work done right because it saves me time.

If you are confident in your skills and know you can solve a problem for your clients or save them time and money with your services, don’t be afraid to charge a fair rate.

5) Make Sure You’re Pitching the Right People

 
As a freelancer, you must send pitches from time to time especially if you’re just starting out and don’t have any leads.

Pitching can be a pain for some, but I actually like it. I’ve learned to love pitching because I send strategic hot and cold pitches to prospects and I don’t overdo it.

For me, the quality of the pitch is a lot more important than the quantity of the pitches. To create the perfect pitch, I search for my ideal client. I identify what type of individual or business, I’d love to work with, then I look for options and do some quick research on them.

I may peek at their website or blog and interact, follow them on social media, or read their social media feeds to get more of a feel for what their needs are.

If I’m responding to a job ad, I’ll have more information but I do my own research as well regardless.

Then, I craft a pitch that’s to-the-point but showcases my skills, services, and how I can help them. I make sure I’m sending it to the right person and check for spelling and grammar before sending it off.

I also try to send a follow up a few days after sending my pitch just to bump my email back up in the other person’s inbox. Some people receive tons of pitches and/or emails regularly so it never hurts to send a follow up after a few days in case they miss your original email or forget about it.

6) Don’t Exclude Job Boards Entirely

 
While I personally favor sending pitches and networking, I don’t think new freelancers should avoid using job boards entirely.

The problem I have with some job boards is that they are extremely competitive which forces freelancers to offer extremely low rates just to get gigs.

When you charge next to nothing for your work, it wastes your time and energy and can put you in a rough place financially.

If you’re going to use job boards, make sure you’re choosing opportunities that will pay you a comfortable rate. Some job boards to consider trying out include: Upwork, Elance, Toptal (exclusively for software engineers and digital designers), 99 Designs, People Per Hour, FlexJobs, Freelance Writing Jobs.

7) Join Facebook Groups

 
Social media, more specifically, Facebook groups are becoming a great place to find freelance jobs and network with other freelancers. There are so many Facebook groups these days for all different types of interests.

If you are a freelancer and looking to join a community, I’d recommend signing up for a Facebook group that caters to freelancers in your particular niche.

Sometimes the group may allow you and others to post job leads, but other times, you can just introduce yourself, share what type of work you do, and interact with the group to build a relationship with people.

Once you meet more people and get to know them, the better chances you have of getting recommended for a job if they know someone who is hiring.

I’ve landed quite a few gigs from Facebook group postings. Don’t make the mistake of viewing other freelancers as competition. There is plenty of work for everyone and most freelancers want to refer someone credible if they can’t take on a job.

8) Learn to Love Networking

 
Finally, if you want to get hired for more freelance gigs, you have to get used to networking. Your network will play a huge role in your success as a freelancer.

It’s important to build positive relationships with other people because you never know who you might work with one day. Also, many freelance jobs aren’t even advertised online since some people prefer referrals so having the right people in your network can help you land more work.

A network is also great for support, advice, and brainstorming.

To grow your network, you can start by interacting with people on social media. Follow them and engage with their posts so you get to know each other. You can also comment on blog posts and attend free webinars.

Attending conferences is one of my favorite ways to network, but I don’t do it often. If you’re going to attend a conference, make sure it’s something that truly aligns with your goals and you can get a good return on your investment by attending.

You can also attend local small business meetups in your area or even speaker presentations and events to meet others who may be interested in hiring you for your services.

The key to networking is not to meet as many people as possible and clean out your business card supply. It’s taking the time to get to know other professionals, following up with them, and maintaining a positive relationship even if most of the interaction is online.

Summary

 
Getting and securing work as a freelancer requires a bit of prep work, but once you start doing some of these things, you’ll find that it’s easier to land more gigs. It all comes down to promoting your services across a wide variety of mediums.

 
 
If you’re a freelancer, have you ever done any of these things to get hired for more gigs?
 
 

Having any type of debt can often hold you back from saving more, investing more, and using your money for leisure purposes but when your monthly student loan bill is as high as your rent/mortgage or grocery budget, it can seem very disheartening.

While I recommend a combination of spending less and earning more help you pay off large amounts of debt, if you feel your student loan payment is too high and starting to become unmanageable, here are some options to help you lower your minimum payment.

Apply For an Income-Driven Repayment Plan

 
Income-driven repayment plans were designed to help federal borrowers base their minimum monthly payments on how much they earn. Under income-based repayment, student loan payments are capped at 10 – 15% of your discretionary income.

Not all types of federal student loans are eligible. Only borrowers with these types of student loans may take advantage of an income-driven repayment plan.

• Direct Subsidized loans
• Unsubsidized loans
• Direct Graduate PLUS loans
• Stafford loans
• FFEL Consolidation Loans
• Federal Direct Consolidation Loans

If you do have any of these federal student loans and are struggling to make your minimum monthly payment, you can apply for an income-driven repayment plan (you must apply each year) and will be eligible for student loan forgiveness after 25 years.

Below are a few common types of income-driven repayment plans.

Pay As You Earn (PAYE)

 
This plan was introduced in 2012 and requires that you’ve taken out student loans on or after October, 2007. You must also prove you need financial assistance with repaying your loans and your monthly payments will be no more than 10% of your discretionary income. All loans are eligible for forgiveness after 20 years.

Income-Based Repayment Plan

 
This is an option to consider when your current income doesn’t support your minimum monthly student loan payment. Payments are capped at 10-15% of your discretionary income but could be as low as $0 if you have no income.

Income Contingent Repayment

 
Your income isn’t required in order to qualify for this type of payment option. Monthly payments are calculated at 20% of your discretionary income and the repayment term is 25 years.

Keep in mind that a contingent repayment plan may not be more affordable than your standard repayment plan so you really want to make sure there’s a savings opportunity before you switch to this plan.

Switch to a Graduated Repayment Plan

 
This is an option for federal student loan borrowers that I took when I started paying back my loans. The graduated student loan repayment plan allows your minimum monthly payments to start out low and increase over time with the idea that your income will increase over time.

When I graduated, I didn’t know what my income was going to be so I decided to use this repayment plan. Every two years the minimum payment increases by a little.

The great thing about this option is that you can stick to a lower payment term of 10 years.

Refinance Your Loans

 
If you have private student loans and your payment is too high, refinancing them can potentially lower your interest rate and in turn, save you money. You will need a good credit score to be eligible for refinance.

If you’re interested in refinancing or even curious about how much you could save, you can get a free rate quote at SoFi.

Sign Up For Autopay

 
One of the simplest ways to lower how much you end up paying on your student loans is to sign up for autopay to reduce your interest rate.

I also did this with my federal loans and it reduced my interest rate by .25%. I’m not sure if private lenders do this as well, but you ask your lender for an interest rate discount for signing up for autopay.

Putting your student loans on autopay is great to do anyway because it helps ensure you never miss a payment or make a late payment and missing a payment can cause your student loans to go into default.

Also, by lowering your interest through this option, your payment amount may remain around the same, but you’ll reduce how much you spend on interest over time.

What to Keep In Mind When Lowering Your Student Loan Payment

 
Lowering your student loan payment can be beneficial to your finances now and make your debt more manageable, but you also have to keep in mind how some of these options may affect you in the future.

If a reduced student loan payment allows you to extend your repayment term, you’ll be paying less now but paying more overall. For example, going from a 10-year repayment term to a 20-year term will lighten your burden now, but you could be paying tens of thousands of extra dollars on your loans for the next two decades as a result.

Hence why it’s also best to consider all your options and the possible long-term effects of the decision you make.

However, if you’re struggling to meet your basic payment requirements, lowering your payment is a solid option to help you avoid not being able to pay on your loans at all which would put you in an even worse situation.

If you’re going through a financial hardship right now, it makes sense to attempt to lower your student loan payment then make additional payments to catch up when you get back on your feet financially.

My only caution is to realize that you could be spending more money to pay off your loans in the long run and to only consider lowering your payment if it is unaffordable and not allowing you to live comfortably.

 
 
Have you ever considered lowering your student loan payment before? Would you ever consider refinancing your student loans to save money now and in the future?
 
 

If you love the work you do for your side hustle, why not turn it into your full-time job and start working for yourself?

Growing your side hustle as you work a full-time job is one of the safest ways to prepare to turn it into a full-time business. However, your work doesn’t stop there.

If you’re looking to turn your side hustle into a profitable business that will be sustainable long-term, here are 5 things you need to do.

1) Choose Something Scalable

 
Not all side hustles are great as a full-time business. You must choose something you are good at, enjoy doing, but is also scalable so you can grow your business and earnings as needed.

In DC’s book Hustle Away Debt, he divides up the side hustle options he mentions into self-employed vs. business side hustles. Ideally, your business-minded side hustle shouldn’t be the number of hours you can put in. For example, you may need to outsource certain tasks and hire a team to help you.

Running a business takes a lot of work and if you don’t have the time and all the skills necessary to manage every aspect of your business, you should be able to hire help should you need to expand.

2) Consider Diversifying

 
Diversifying your income provides many benefits but for small business owners, it’s a must. Even as a side hustle, you don’t want to depend solely on a single source of income so while you can have your primary products or service offerings, you can also develop other streams of income too.

For me, my main service is freelance writing, but I also do light virtual assistant work and run a blog and earn income from that. If my freelance writing income suddenly drops, I have other sources of income to rely on so I’m not freaking out and looking for another job.

Diversifying your income can keep your business more stable long-term.

3) Do What You Love, Outsource What You Don’t

 
Once you start earning some money from your side hustle, you may have to invest some of your earnings back into it by outsourcing. If there’s a task that you really don’t like to do or just aren’t good at, choose someone who you can hire to take on that burden for you.

That way, you can focus on the bigger picture and help move your side hustle along. Sometimes it’s hard to give up control or part with your money, but when done correctly, outsourcing can help you grow your side hustle and make a smoother transition to a full-time business.

You don’t have to spend a ton of money at first either. I think I spent about $30-75 per month outsourcing tasks after 6 months of side hustling all on my own.

DC here, one quick thing I wanted to interject is that the beauty of side hustles is that it forces you to work with a limited amount of time and, in turn, outsource!

I’ve had contributors on the blog for years now as I learned quickly that the only way to use my time wisely was to bring others on board. I think you’ll find the same is true with your side hustle, especially when you look to scale it.

4) Track Your Earnings

 
Money is one of the biggest factors that stops people from turning their side hustle into a business. It’s difficult to cope with the idea of leaving a cushy stable job and stepping out into the unknown. If you think your side hustle is not earning you enough income to stand its own, you need to determine how much income you need to be making in order to feel comfortable.

Determine how much money you need to be making consistently, then start tracking your income each month and setting goals. Setting a clear goal of how much you wish to earn can help motivate you to start implementing strategies that will increase your profit.

As you track and increase your earnings, you also want to make sure you’re saving a reasonable amount as well. Your business income may vary quite a bit from month-to-month so you want to save up a large emergency fund and checking account buffer that you can rely on during the slower months.

5) Get a Mentor or Coach

 
If you feel stuck with your side hustle and want to take it to the next level but don’t know how, working with a coach or mentor might help.

A coach or mentor can help you set realistic goals and hold you accountable to them. It’s best to choose a coach or mentor in your desired niche because they may be able to offer valuable personal insight regarding your struggles and vision for your business.

I hired a coach when I first started side hustling because I knew I wanted to make my side hustle a business in the future and I didn’t want to waste time making rookie mistakes.

I wanted to make progress quickly and learn about all the best strategies to implement and how to structure everything accordingly.

*Bonus Tip: Grow Your Network*

 
Another step you can take to turn your side hustle into a full-time business is to grow your network. Your business will cease to exist if you don’t have clients/customers paying you. You want to have an ongoing relationship with them along with a solid network of people who can help you get referrals to grow your business or partner together for a project.

There are many different ways you can network and meet others in your industry. You can attend conferences and presentations, subscribe to webinars, go to local meetups, and even connect with people on social media or Facebook groups.

Having a network has really helped me grow my business over time. Plus, it’s great to have people to connect with who understand the type of work I’m doing.

 
 
Do you have a side hustle? Have you ever thought about turning it into a business?
 
 

We all know that investing in retirement and getting started early is important if you ever want to be able to stop working for good when you get older. But the cost of college is already ridiculously high now and is expected to steadily increase each year.

For the 2016-2017 school year, the College Board reported that a moderate college budget for an in-state public college averaged $24,610 per year while moderate budget at a private college averaged $49,320 per year.

In other words, most college graduates will have a six-figure education.

Given the rising costs of college and the fact that I want my son to pursue higher education after high school, I am still choosing to let college savings sit on the back burner while I prioritize investing in my retirement. Here’s why.

Currently, It’s Hard To Do Both

 
For many people, it’s difficult (but not impossible) to afford to save for your child’s college and start investing in your retirement.

A while ago, I heard some great advice that you should start saving for retirement as soon as you get your first job and start saving for college as soon as your first child was born. In a perfect world, that would work for most people but American families are saddled with debt and other living expenses that need to be taken care of now.

I became a parent younger than most people which is why my timeline for saving for college has seemed to be moving rather quickly. Given the fact that I also have to spend money to raise my child now and currently have debt to pay off myself, it’s difficult to squeeze college savings into my budget.

Paying off my student loan debt by the end of this year is a major focus before I can even think about contributing to my son’s college fund. By seeing the projected costs of college by the year 2028, it seems as if I would already be off to a super late start and not be able to fund his entire education.

I Want to Retire Earlier Than the Traditional Age

 
Another reason why I’m prioritizing investing in retirement over college savings is because I don’t want to work forever. I don’t even want to work until I’m 65. I’m planning on retiring in my mid to late 40s actually which is why investing is such a huge priority for me right now.

My Son Can Work During College

 
Most students work during college. I worked and so did everyone I knew and I still got good grades and graduated in 4 years. Even if just for the first 2 years, I’m certain my son can get a part-time job and earn some money during college to help supplement the costs of his education and/or living expenses.

College students don’t tend to earn a ton of money, but working during college can teach students a lot about money management and responsibility.

I don’t have any cold hard facts to support this, but from my experience, the students who worked during college and paid for some of their expenses were more likely to take their education more seriously and show up to class. I used to cringe when I’d see other students drop college classes after the refund date had passed which meant they wasted a ton of money on credits they would not earn.

We Can Discuss Options Ahead of Time

 
I plan to openly discuss our situation and my son’s options for funding college with him way before he graduates high school. This will allow us to come up with a game plan and explore solutions like applying for scholarships, grants, and other funding.

Kristina Ellis, a college finance author and speaker, realized that her family wouldn’t be able to afford her college education when her mom sat her down and revealed the news to her during her first year of high school.

Kristina then devised a plan to find college and scholarship success despite average grades and limited athletic ability. Her hard work and efforts allowed her to earn $500,000 in scholarships for college allowing her to attend her dream school, Vanderbilt University, for free.

Her story is really inspiring and has let me know that there are other options to consider if parents can’t afford college for their child.

It’s important to sit down ahead of time and discuss those options along with a strategy to implement moving forward.

I Will Try to Provide Some Financial Support During College Years

 
If my son chooses to go to a pricier college, I know my husband and I will try to provide some financial support if it helps with his living expenses or even just letting him stay home for free if he chooses to stay local.

I’ll introduce the option of starting with community college and living at home which is what I did for the first two years to save thousands of dollars.

We Hope to Invest in Real Estate Within 5 Years

 
Investing in real estate has always been a part of my financial plan. My husband and I have been planning to buy our first rental property within the next 5 years and our hope is that it will become an extra stream of income for us.

By the time our son goes to college, the extra income could help fund some of his education.

There’s No Promise He Will Attend College

 
While many parents want their kids to attend college, I have to face the fact that I don’t know what my son will want in the future.

Setting money aside in a 529 account sounds like a great idea for parents to prepare for their child’s college costs, but what do they do with that money if their child decides not to go to college?

My son might want to take a gap year or continue his education outside of a university for all I know. I will definitely encourage college if he knows what he wants to study, but I can’t say I’m 100% sure that he will choose to go.

On the other hand, I’m 100% sure that my husband and I want to retire by a certain age and I don’t want to depend on my son to support us when he gets older.

Final Word

 
Prioritizing retirement over saving for college does not mean that I love my son any less. It also doesn’t mean that I’m not going to set anything aside for him even if it’s just a small amount. To come to my conclusion, I carefully looked at my situation and weighed out all my options.

When it comes to paying for college, there are so many options to consider aside from going the traditional route and saving up money in a 529 account for 18 years.

In terms of investing in retirement, there is only one solution – start saving money now and let interest compound over time. No one is going to fund my retirement account for me and there are no cheaper alternatives to saving for retirement either.

If and when my son decides to attend college, my hope is that by not handing him a ton of money, he will learn to be resourceful, hardworking, and focused on success despite the odds.

 
 
Have you ever found it troublesome to balance college savings and retirement savings? If you don’t have kids yet but plan to some time in the future, have you thought about whether you’d like to save for their college expenses or not?