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- After getting out of debt, I focused on increasing my income. I started side hustling and earned over $100,000 in 2020.
- Now, I’m using my side-hustle income to build generational wealth and support my family in three ways.
- I’m accelerating my retirement savings so I have plenty of money to leave behind, I’m building a college fund for my niece, and I’m supporting my parents as they enter retirement.
- This article is part of “Money That Lasts,” an ongoing series about generational wealth from Personal Finance Insider.
- SmartAsset’s free tool can find a financial planner to help you take control of your money »
When it comes to building wealth and passing it along to future generations, many people think of investing in things like real estate or the stock market. But did you know that side hustles can be a part of building generational wealth?
Financial experts tend to place a lot of emphasis on debt payoff and saving money as the way to get ahead financially, and that makes sense if you’re living in a paycheck-to-paycheck cycle. But there is also a lot of power in increasing your income.
I believe that wealth is built by embracing an abundance mindset, not by focusing on scarcity and deprivation. So if you want to build wealth, you have to focus on increasing your income, not just paying off debt and saving money.
I don’t think side hustles get enough credit for the power they can give you to build wealth. In 2020, I earned over $100,000 in extra income with side hustles, and all that extra income is helping me build generational wealth for my entire family.
Side hustles have been an integral part of being able to pay off my student loans and fully fund my emergency fund. Now that I’m debt free, I’m using my side-hustle income in several ways to build generation wealth.
1. Accelerating my retirement savings
Before I started side hustling, I was only contributing 6% of my income towards retirement, not nearly enough to build a comfortable nest egg. I became debt free in 2020, and now I’m using my side-hustle income to help me maintain a comfortable standard of living while accelerating my investing and retirement goals.
I was able to max out my workplace 401(k), IRA, Solo 401(k), and HSA for the first time ever last year. I plan to continue to do this each year in order to take advantage of the power of the stock market and compound interest. …….