The vast majority of Americans are woefully unprepared for retirement, forcing many to continue working past retirement age. Even when people start saving and investing early, they still find that they don’t have enough wealth to fund their retirement years fully. Fortunately, you can avoid this eventuality if you take steps to change your financial situation now. Starting a side hustle today can help you better prepare yourself for retirement in the future.
Improve Your Monthly Finances
A side hustle is something you can do part-time in your spare time, such as freelancing or doing odd jobs. While this won’t provide as much income as your primary job, it will give you a little extra each month. The additional income may be enough to help you pay off your debts and add to your savings. Once you get caught up on your debts, you can use the extra money to grow more retirement wealth in a shorter period.
Keep Your Skills Sharp
Working a side hustle doesn’t have to feel like work. If you find something you enjoy doing, you can pursue it part-time until you develop the additional expertise you’ll need for success. Over time, you’ll hone those skills, and you may even decide to turn this side hustle into a more lucrative full-time job. By the time you retire, you may have a broader range of skills that you have used consistently throughout your life.
Prepare For Unexpected Retirement Hiccups
If you find that you’re unable to stop working at retirement age, you may not have to start a job search for something different. If you have been working a side hustle consistently, you can continue doing that through your retirement. Combined with your Social Security benefits and retirement wealth, your side hustle can be enough to help you live comfortably throughout your retirement. In some cases, it’s possible to earn enough by working just a few hours a week, so doing your side hustle might not adversely affect your retirement at all.
In addition to saving more for your future, you should take the time to learn about investing. Many people choose to work with an investment advisor until they learn the basics of investing. This can help you avoid making costly mistakes that would otherwise inhibit your ability to grow retirement wealth.