Latest / Cash Confident with Brie Sodano / Transforming Your Finances With Profitable Side Hustles

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Transforming Your Finances With Profitable Side Hustles · Cash Confident with Brie Sodano

• 0:01
  Speaker 1: Welcome to the Cash Confident podcast.
• 0:03
  Speaker 1: I'm Brie Sedano, your fearless host, personal finance expert and the visionary behind the revolutionary Cash Confident community.
• 0:10
  Speaker 1: Get ready to embark on an electrifying journey where we redefine the rules of money and empower women to harness the immense power to craft a life they truly, truly desire.
• 0:22
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• 0:32
  Speaker 1: We leave no stone unturned as we delve into the depths of money management, mindset mastery and the undeniable influence of emotions on your financial decisions.
• 0:43
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• 0:55
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• 1:02
  Speaker 1: So buckle up, my fierce and ambitious friends, as we embark on this transformative journey to becoming Cash Confident together.
• 1:10
  Speaker 1: Hello, hello everyone.
• 1:13
  Speaker 1: Brie Sedano here with you for the Cash Confident podcast, and today we are talking about side hustles, and there are four main things that I really want to discuss with you when you're thinking about starting a side hustle, and I'm going to be talking about side hustles for people who maybe eventually want to actually leave their nine to five job, and so this is kind of the place to get started right, and I'm going to talk about just making a little extra money in the context of side hustles and why.
• 1:47
  Speaker 1: Making a little extra money via like working overtime or picking up a second temporary job is fine there's nothing wrong with it, but it's also not it's it's not really a side hustle and it's a.
• 1:59
  Speaker 1: We're a little talk in semantics here, so just bear with me.
• 2:02
  Speaker 1: All right, so when is it time to get a side hustle?
• 2:08
  Speaker 1: So side hustles are great if you're looking at your paychecks and you're like I cannot live the life that I want to live.
• 2:15
  Speaker 1: You know, I cannot save the kind of money I want to save, spend the money I want to spend on this, and so therefore, I would need to work a second job or I would need to work a ton of overtime To be able to live that life, and those are fine options.
• 2:28
  Speaker 1: They're just not really long term solutions.
• 2:31
  Speaker 1: If you have to work a lot of overtime to be able to live your life, it just takes a toll on your body, it takes a toll on your mental well-being and, honestly, people who what I see in people's transactions is people who work a ton of overtime or have multiple jobs typically will overspend in a lot of ways just because they're so exhausted.
• 2:54
  Speaker 1: So if that's the boat that you're in, you're going to love this podcast.
• 2:58
  Speaker 1: We're going to be talking about, like you know, some things to just consider as you're making a side hustle, all right.
• 3:05
  Speaker 1: So one of the first things that I suggest with side hustles is that the business is yours, right, and so oftentimes people will pick up a side hustle and they'll go the road of, like you know, instacart or Uber driving or doing sales for a different kind of company maybe maybe an MLM, or maybe just doing sales, you know, for something like that and those things can be fine for extra income, but they're generally not going to be very long term solutions or strategies.
• 3:34
  Speaker 1: So if they're looking to eventually maybe have a full time business, I would certainly say start a business that is yours.
• 3:42
  Speaker 1: You're going to make the most money, have the most control, be able to deduct what's, you know what's appropriate, increase your time potency and essentially have unlimited potential with your own business, where, when we're doing some of those other things, those options are not so much All right, so that's the thing that I would suggest.
• 4:03
  Speaker 1: Now, that comes with a lot of baggage, right, you're going to need an idea, you're going to need to set up systems, you're going to need to learn sales and marketing and deliverables and all of that, and that's actually not what we're going to talk about today.
• 4:16
  Speaker 1: We're going to talk a little higher level than those things.
• 4:19
  Speaker 1: But most of us have a business idea that's buried within us.
• 4:22
  Speaker 1: Most of us, most people that I've ever talked to, have something that's on their mind or on their heart or they really, really want to do.
• 4:30
  Speaker 1: And the places that and I will say this too it's always easiest to make the most money when you're doing something you really love doing, when you're doing something that you're glad that you are doing, and because it's just easier, the enthusiasm takes away a lot of the obstacles.
• 4:51
  Speaker 1: And so what one?
• 4:54
  Speaker 1: And I'll call it a mistake, even though I don't know that that's the right word but one place that we can start to get off off topic with our with starting a business is doing the thing that we think will make the most money, or make the most money the fastest, but it's really not the truth of what we want to do.
• 5:11
  Speaker 1: So if you're going to get started, I would really consider asking yourself what is the truth of what I really really want here and then, and then figure out how that thing could potentially make money, all right.
• 5:25
  Speaker 1: The second thing that you want to be looking for in terms of side hustles is that that we want your side hustle money, your income from your side hustle, to be better, bigger, more powerful than the income that you would get from your job.
• 5:42
  Speaker 1: So, time potency.
• 5:44
  Speaker 1: I'm going to give you two quick little stories to demonstrate the point that I'm talking about.
• 5:48
  Speaker 1: So at one point I had a client who in his in his full time regular business was was good to be banking.
• 5:55
  Speaker 1: He was in a sales position, so anywhere between like $100 and $200 an hour, all right, but he was having some tough time.
• 6:02
  Speaker 1: Sales positions are notoriously roller coaster, ask right.
• 6:06
  Speaker 1: So he was having a dry spell in his business, which sometimes happens in sales position and or in a you know when you, when you're in charge of your own sales and so he took a side hustle doing driving for Uber or Lyft in the mornings and he would spend about five hours a day, you know, early, early in the morning, before the kids were early and before his kids were awake before his clients meeting started.
• 6:30
  Speaker 1: And this was a decrease in time potency because the hours that he was spending doing those kinds of tasks he was making, you know, let's call it $20, $25 an hour doing doing the Uber rides, and so it overall decreased his income because by the time that he was the middle of the afternoon he was exhausted, he was, you know, he was tired.
• 6:58
  Speaker 1: He'd already worked a full, full day.
• 7:00
  Speaker 1: So the things that we're not getting done were the things that we're going to bring in that $100 to $200 an hour levels of income as opposed to you know the steadiness of it.
• 7:13
  Speaker 1: So he is essentially, he essentially decreased his overall financial income because he he took that extra side gig.
• 7:25
  Speaker 1: Even though the side gig was, it looked like it was helpful.
• 7:29
  Speaker 1: It looked like it was helpful because it was bringing in steady income where his other income wasn't steady, but because the wages were so much lower and he was expending that energy, he didn't have that to give in his real business.
• 7:46
  Speaker 1: And so this is where I'm talking about time potency and I'm going to tell you a story about somebody else who had actually a very similar job to the one that I was just talking about and, instead of when her business was, you know, just a little like revenue bumpy right Like when she was getting started, a little revenue bumpy and she started offering a very particular planning service that she would bill $250 an hour for, which was more than what she was typically working with, you know, in just her regular sales position.
• 8:18
  Speaker 1: So she was able to offer that service and that decreased the amount of time she had to work to make, like you know, make everything flow in her life, and it ended up increasing her overall income because it was an increase in time potency.
• 8:35
  Speaker 1: So when you're looking for your side hustles, you want to be asking yourself, like, how do I sell my time, my services, in a way that makes the most, like like the highest level of service that I could possibly give?
• 8:52
  Speaker 1: So that way I could do it in the least amount of time, you know.
• 8:55
  Speaker 1: So that's time potency.
• 8:56
  Speaker 1: So your side hustle if you especially if this is something that you eventually want to take full time you really want to make sure that we're increasing our time potency, you will not be able to very likely quit a job on a side hustle.
• 9:11
  Speaker 1: That's less than your current level of income, unless you have some extenuating circumstances, like unless you're super miserable and you're willing to take a decrease in pay.
• 9:21
  Speaker 1: But for most people that's a very, very difficult place to be in.
• 9:26
  Speaker 1: So increasing your time policy.
• 9:29
  Speaker 1: Now, the third thing about the side hustle where I talk to people and they do not do this and it baffles me is really around the tax situation and they don't take all their deductions.
• 9:41
  Speaker 1: So listen, if you're going to start a side business, you need to read a book or two about about tax deductions and figure that out, because that makes a huge, huge difference.
• 9:57
  Speaker 1: So, being so, one of my favorite books actually let me recommend the book and then I'll talk more about this is called Lower your Taxes Big Time by Sandy Botkin.
• 10:05
  Speaker 1: That is one of my you know it's a book about taxes.
• 10:10
  Speaker 1: I mean, it's a book about tax deductions, but as far as it goes it's tolerable and it's mildly humorous and you're you know I love tax deduction.
• 10:20
  Speaker 1: So I actually read it like it was 50 Shades of Grey, like I took that thing to the beach.
• 10:24
  Speaker 1: But I recognize that other people do not love tax deductions as much as I love tax deductions.
• 10:31
  Speaker 1: So you could you could talk to your accountant.
• 10:33
  Speaker 1: The thing that's going to be really important is that you have this conversation early, when you're getting started, so that way you know how to set up your systems, you know what's deductible, what's not deductible, so that way you could keep track of it.
• 10:45
  Speaker 1: If you have to go back throughout your year fishing through all of your expenses for deductions, it becomes incredibly cumbersome and you will potentially hate your life and you know the joy of getting the deductions is going to really be weighed down by bad but you know bad record keeping.
• 11:04
  Speaker 1: So the thing about the deductions that's so important, especially as you get started, is that most of us, when we first start a business, are not rolling in doges yet.
• 11:13
  Speaker 1: I mean, it's possible and you can totally be somebody who, like, hits the ground totally running and makes a ton of money.
• 11:19
  Speaker 1: But oftentimes we're going to have a little bit of a bumpy start or maybe we're going to be investing in courses or investing in learning how to do it or investing in our materials, and that means that even if we're making money in our business, we may not be taking that money home right away, and so the deductions really help to show you know it just helps.
• 11:44
  Speaker 1: You're going to spend less in taxes.
• 11:46
  Speaker 1: You'll have more to invest in your business.
• 11:47
  Speaker 1: You're going to spend less in taxes.
• 11:48
  Speaker 1: You're going to potentially have more to take home, and it's a skill that, if you're going to take this business full time, you really want to be on top of.
• 11:55
  Speaker 1: So that's the thing that, like, if you're going to go to the trouble of having a side hustle, like take the week or two and read the books and talk to your accountant and really make the most of, like, what's possible in the realm of tax evictions, it makes having a business much more sustainable.
• 12:15
  Speaker 1: Now, the last thing about side hustles that I particularly like to see when I'm talking with, like working with somebody who has a long term desire to take that side hustle, you know, full time is you kind of want the business to have unlimited potential.
• 12:31
  Speaker 1: Now, what that doesn't mean is that you would you know you would have to do all of the work to get it to unlimited potential.
• 12:39
  Speaker 1: You could hire people, you could outsource some things, but you just want to see that you know it's a business that does have unlimited potential, even if you don't have the desire to take it all that far at this current minute.
• 12:58
  Speaker 1: And the reason that that's going to be important is because otherwise you're just going to lock yourself into a different job where you're limited and there's really nothing wrong with it.
• 13:10
  Speaker 1: But most of the time people are starting side hustles to grow businesses that are eventually going to become passive, that are eventually going to become full time.
• 13:19
  Speaker 1: You know full time and much more passive revenue.
• 13:23
  Speaker 1: So if you can see that you do that, your business would really really have a cap.
• 13:30
  Speaker 1: You may need to look at it differently, see if there's a different way to offer your products or services, or just figure out.
• 13:36
  Speaker 1: You know you may need to Just figure out the way for it to be unlimited.
• 13:39
  Speaker 1: That's not a hard yes or no, but it's something.
• 13:44
  Speaker 1: It's something to really consider now.
• 13:46
  Speaker 1: So if you have a business that's yours that increases your time potency, you're on top of all of your deductions and making sure that you're really making the most of your Side hustle from the get-go and you have unlimited potential, those are going to be the places where you can Start to make some progress financially and you know you can work.
• 14:10
  Speaker 1: You know you can work a few hours a day or whatever, and, honestly, for most people, baby business this only really require a good couple hours a day of Working.
• 14:20
  Speaker 1: Now, if you're going to start a side business and end up with the intention of maybe eventually bring me it to place where it replaces, there's a couple things to really consider.
• 14:31
  Speaker 1: So we have three primary resources in our life our time, our money and our energy.
• 14:34
  Speaker 1: And so as you start a side hustle, you're going to be expending More time and more energy on this.
• 14:42
  Speaker 1: I'm making money, which is fine if it's a very temporary Thing to do, right, so it's fine if it's temporary.
• 14:51
  Speaker 1: It's the thing that we can ask our bodies to like really push through, for you know a few months, or you know a year or whatever.
• 14:58
  Speaker 1: What I would suggest is looking at the times that you are the most productive Like are you a morning person or night person, and giving your new baby business the thing that like is really yours the the time that you are at your best.
• 15:13
  Speaker 1: So, for example, I'm a morning person, the person who's I'm Significantly more productive in the morning.
• 15:19
  Speaker 1: I don't even really work at night, and so if I was starting a side hustle, I would want to wake up early and give my baby business All of my juiciest, best, most creative energy and then go to work.
• 15:33
  Speaker 1: So that's like you know, something to consider.
• 15:37
  Speaker 1: So the benefits of having your own business are so wide and so vast.
• 15:46
  Speaker 1: First, you do have that unlimited potential which opens itself up to so much personal growth, personal development, mindset shifts, you know, new friends, cool events, so there is all of that.
• 15:58
  Speaker 1: And then there's the money aspect.
• 16:00
  Speaker 1: Most of us like to spend more money.
• 16:02
  Speaker 1: We'd like to save more money, we like to make and have more money.
• 16:05
  Speaker 1: So there's that.
• 16:06
  Speaker 1: Then there's, like the challenge of it.
• 16:08
  Speaker 1: It's it's all really Wonderful and exciting and lovely.
• 16:13
  Speaker 1: So those are a couple things that, if you are really thinking, maybe I should get a side hustle or I would like to make some more money, I.
• 16:24
  Speaker 1: These are four things that you can just consider as you, as you roll around the ideas in your mind of what you would be doing, who you would be serving, how you would be helping and all of those things.
• 16:35
  Speaker 1: All right, I hope this was helpful for you.
• 16:37
  Speaker 1: I love you, I appreciate you and I will talk to you next week.
• 16:41
  Speaker 1: It was my pleasure and joy to talk with you today.
• 16:48
  Speaker 1: Thank you for listening.
• 16:49
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• 16:56
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• 17:01
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• 17:10
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• 17:13
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• 17:26
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• 17:35
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• 17:45
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