- Your side hustle can do more than provide additional income.
- If you have a side hustle, you become eligible to establish the Solo 401k.
- A Solo 401k is a robust retirement plan and the most popular among the self-employed.
In 2024 more people than ever will be looking for a side hustle that can provide additional income. Whether it’s blogging, driving for DoorDash, reviewing products on YouTube, or hosting for Airbnb, the options are really endless.
Working for oneself has a number of benefits, including the opportunity to establish a Solo 401k. With the Solo 401k, monies earned outside of working for someone else, i.e. income from your side hustles, can be invested as desired within the limits of the law. A Solo 401k allows investors to make personalized decisions on what to invest in.
Types of Side Hustles
Getting a side hustle to profit can be quick and easy, with a little forethought and planning. Driving for a car service like Lyft or Uber during bad weather may mean additional opportunities to earn money. In the same way people are always looking for a taxi in bad weather, they may also be looking for a driver during events – New Year’s Eve or Saint Patrick’s Day can be good opportunities to earn some extra money that can be invested in the future with a Solo 401k.
Delivering food for Door Dash and Uber Eats is also an opportunity to earn some additional cash. During big games and live events, or whenever people don’t want to leave where they are, food delivery services can have a booming business.
Become an Airbnb Host
Making big money from a side hustle can often be achieved by being an Airbnb host. You may know that you can invest in an Airbnb with a Solo 401k, but you can also become an Airbnb host to satisfy one of the two Solo 401k requirements: generating self-employment income.
When it comes to this side hustle, consider the physical location of the home you’re offering. Is it near a college football stadium? Near a professional baseball park? Close to an area where celebrations take place, like Times Square in New York City?
The location of the real estate makes the biggest difference here, but thinking outside the box can help, too. Maybe the home is a large one, with recreational facilities nearby. That could make it a perfect place for family reunions in the summer, or ski vacations in the winter. Even if a location is not right next door to an attraction, it may be close enough for vacationing families who are looking to spend less than on a theme park hotel, and are willing to drive to a site.
Earning $5.00 a day from a side hustle x 365 days per year, equals $1,825 extra dollars per year. An extra $10.00 per day yields $3,650 in one year. This can mean some serious money from something not even being done full-time, and hardly being done part time, depending on the job being done. As with all decisions, it is important to consider any initial investment of funds required, time spent doing a job vs. return on time, and any risks that may be inherent in a job.
Explore Outside the Box
Explore outside the box of your typical side hustle and take on more creative ventures. Airbnb and Uber are not the only opportunities available – and unfortunately, Uber may not be an option at all, depending on where you live. Think creatively when looking for a side hustle. For example, in snow there’s the chance to shovel and earn some money that way. Bicycle courier, greeting card arranger, mover… there are lots of ways to increase income. Renting out a car is a new opportunity that wasn’t available even a few years ago. Traditional options include dog walking and babysitting.
And the side hustle money collected can go right into a Solo 401k, to be directed to the investment of choice. Solo 401ks can be used to invest in every option traditional 401ks have, as well as additional areas of interest traditional 401ks usually will not venture into. Solo 401k investors have used their funds for cryptocurrency, real estate, and traditional value investments.
