In light of watching Warren Buffett speak yesterday at the Berkshire meeting, I can’t help but wonder if side hustles are as effective as they’re cracked up to be. Warren Buffett and Bill Gates have described focus as their number one criteria for success. Inherent to focus means we should question whether side hustles are practical or a distraction.
In the long run, I’m optimistic people will turn their side hustles into a large benefit for themselves and their communities. The Millennial Retirement Manifesto from the HuffPo covers this topic in more detail.
This article will tackle the pros and cons of spending time on a side hustle. For more on my take from the Berkshire meeting this weekend, check back in next Sunday or subscribe to receive that post directly in your inbox!
What are Side Hustles?
Nowadays we call them side hustles. Ten years ago it may have just been a second job or freelancing.
Each represents a new source of income.
So we naturally should expect a high ROI on our time which requires focus.
We each likely have an example of a person that comes to mind when we think of the word, “Focus.”
For me recently, my example is Bill Gates who says he never took a day off of work in his 20’s.
The ability to channel all our energy into one task without any distractions for such a long period is difficult, but is something we can all do.
Developing a life strategy feels more like a verb to me than a noun. In other words, focus follows a path most resembling that of a verb than a noun. We each can practice focus on a daily basis more often than we currently do.
I know I can and I will because it directly benefits my personal finances.
Investing is a way of focusing on compounding interest. The upside is we don’t need to exert any effort in year 5 or year 30. Our Q1 investment, if left on its own, may end up covering half a decade of our retirement.
Another cool quote from Inc:
“Twice a year, during the busiest and most frenetic time in the company’s history, he still created time and space to seclude himself for a week and do nothing but read articles (his record is 112) and books, study technology, and think about the bigger picture, “
Taking the time to sharpen the saw helps us return to work more productive.
For now, in my 20’s, I naturally feel in my Bill Gates phase of working.
I just need to give it all I’ve got and then periodically break it up with longer vacations, if possible. Ideally, we take up Bill’s advice and apply it before our 30’s! 😉
The practical result of this mindset for me is carving out 3 hours a day to work on creating content for Distilled Dollar.
“Is Pursuing a Side Hustle Practical?”
During the early days of the blog, I would constantly ask myself, “Is this practical?”
To date, I have not received a high financial ROI direction, but indirectly, I’ve benefited tremendously.
If you start a side hustle with an expectation of an immediate ROI, then you’ll likely fail. My experience has taught me these things take time. Even a fast start takes time.
Financially, I’m always improving. Discussing new saving strategies has helped our bottom line and so has another layer of understanding efficient vs effective.
As highlighted in our first HuffPo feature, we benefit significantly by being on same page.
I’m glad I’m focusing my time on the site;it’s been a privilege to be on this path to pursuing financial independence.
These represent an example of the many reasons I can provide for why my side hustles have been effective. If we further expand side hustles to include second jobs, freelancing, and even hobbies, then we should demand a high ROI of our time. By expanding ROI to include the big picture, we can take effective breaks and hone in on future growth.
Are Side Hustles Practical?
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