Side Hustle, What?!

When I was younger if you had a second job, it was just that – a job. It wasn’t anything to celebrate, because often you were working to help pay your bills. I’m not sure what’s changed, and I fully admit I’m not 100% in touch with current lingo – but as I understand what I’ve been hearing, a “side hustle” is something people SHOULD have.

I can think of many instances when this is a good idea; for example if you have a hobby  you’re trying to become better at, in the hopes you can make it into a career (i.e. wood carver). After all, assuming the following:

1) Malcolm Gladwell’s theory it takes 10,000 hours to master a skill is accurate

2) We work and sleep on average (8) hours per day

3) We can spend (4) hours of each day (Monday – Sunday) working on our skill

It would still take us almost (7) years to become a “master” (6.85 years). That’s a long time to work on something for no reward (other than the satisfaction of becoming better). So getting paid to practice could be a great way to both stay motivated to learning and put a little extra cash in your pocket.

However, I question if this is why most people have a side hustle – I think for many it’s a way to increase their income. Nothing wrong with this, if you’re honest with yourself and you know what you want the money for. If it’s being used to cover monthly expenses, then I encourage you to revisit your spending habits. On the other hand, if you’re using it to save for a specific goal; just to have some extra cash; or as I postulated above, to get better at a skill more power to you!

Here’s where I become an old fuddy duddy (as proven by using the words “fuddy duddy”). When you consider a side hustle, and are determining how much money you’re going to make – please consider the associated expenses. This means if you’re driving for one of the ride share apps consider the increased frequency of required maintenance (oil changes, detailing, brakes, etc); the same goes if you’re renting a room or your house – typically there are additional expenses, including insurance, that often go overlooked.

If you’re “earning” $500 per month, but spending an extra $300/mth doing so evaluate if it’s really worth it. Many of the side hustles I’ve seen people do have the potential to be very lucrative; but like anything if you don’t know what it’s costing you you cannot be sure you’re really making a profit.

If you’re not sure how much you’re really making, track your cash flow. This is nothing more than the money coming in vs the money going out. You can set up a tracker in basic tracker in excel or talk to a financial advisor.  I like to see my clients saving at least 20% of money coming in for goals (not just retirement, things like trips to Disney & new cars as well). If you can’t, even with the side hustle, I would encourage you to evaluate where your money is going – and not just take on something else. And remember, although I’ve only talked about money; there’s another cost to be considered – time. Use it wisely, I don’t know of anyone who died wishing they’d spent more time working.

Charity Connect

Charity Connect was founded by Cristin Caine to “create lifelong volunteers by personally matching clients with their right fit volunteer opportunity and by providing community service education.” They take the time to really connect with the individuals, youth and adults, who want to volunteer; taking the time to understand what their true passion is and making connections with the appropriate non-profits – setting the stage for a long and enriching relationship for all involved parties!

Who They Are 

Charity Connect currently is just serving Montgomery County, Maryland; building relationships with schools, neighborhoods and non-profits. They are an organization whose core belief is you don’t have to be wealthy to be philanthropic. Charity Connect’s premise is most people want to contribute, but they don’t know how; or they’ve tried and had negative experiences. Their focus is on ensuring everybody has the best opportunity to have a positive and memorable experience possible.

What They Do 

 

Charity Connect takes the time to understand what each prospective volunteer is looking for – not just the type of organization they want to volunteer with; but also what the volunteer’s strengths and passions are – because when these are tapped into it’s more likely the volunteer will enjoy his/her time with the non-profit, and the non-profit will see the best of the volunteer.

Charity Connect works with students, from preschool to college, generating excitement around volunteering and making it more than just being about ensuring you have enough student service learning (SSL) hours. However, it’s not just for youth – adults of all ages are more than welcome to connect and volunteer.

Cristin’s team works with the client (potential volunteer) to “develop and facilitate a comprehensive project including volunteer service, fundraising, and advocacy for special occasion and other in-depth service projects.” This really appeals to me, because too often I’ve seen people volunteer with a non-profit that didn’t really have a clear plan of what to do with them. This led to a less than enjoyable experience for the volunteer, and the non-profit loses a potential resource. Not only that, there’s a chance the individual shares his negative experience, because it’s an unfortunate truth people are more willing to share these than they are to share a positive experience.

What Else Should I Know

Charity Connect can be of service to anybody and everybody, in my humble opinion. If you own a company and you’re looking to build corporate goodwill, Cristin can work with you to match a non-profit with your company’s mission and corporate culture. I think I’ve already shown the benefit available to youth and adults. Non-profits struggle with finding the right types of volunteers, working with Charity Connect could provide a ready, on demand resource. Finally, I think parents and students are burned out on the same old same old when it comes to options to fulfill their SSL requirements. Cristin can offer a fresh perspective, and potentially opportunities you never would’ve considered.

Disclaimer

I am not an employee of Charity Connect and any errors noted are my own. If I have misrepresented, or misstated anything please provide constructive feedback so I may make the appropriate change(s). All opinions and views are my own.

College – It’s not for everyone (and that’s OK!)

If there is one theme I feel very confident in saying I run into in almost every planning encounter I do for families with young children, it’s college planning. Yet the research I’ve done, using Pew Research Center, indicates only “56% of students earn degrees within 6 years”. Combine this with an average student loan debt amount of almost $29,000 per borrower ($28,950, Institute for College Access & Success, 2015) and you have a recipe for financial disaster. Because if these students are not finishing their degrees, are they finding jobs paying enough  to cover the loans, or did they fall victim to a feeling of failure and take unskilled labor positions.

Not too long ago a college degree was not the only answer, individuals were proud to be craftsman and take up trades like plumbing, HVAC, electrical, etc. I joined the Navy as a Junior in High School using the Delayed Entry Program because at the time not only did I not have any interest in pursuing further education, I wasn’t really sure what I wanted to do with my life. And in 20+ years since then I’ve had several transitions – from completing my Journeyman’s as an Electrician, to a Six Sigma Green Belt and finally as a Financial Planner. Admittedly I’ve since gone back to school, and I’ll have my second Masters (MBA) later this year – but I’m doing so without taking on any debt.

I applaud parents for thinking ahead and saving for college for their children, but not at the expense of their own retirements (as so often seems to happen). But I want to raise awareness of other avenues available, especially for those (like me) who are not necessarily inclined to pursue yet more book learning after High School, and/or just don’t know what they want to be when they grow up. Less than 1% of the U.S. population serves in the military (309 million in 2010, NPR); and given the fact we’ve been involved in armed conflicts for as long as I can remember it’s not going to be the best option.

Mike Rowe, the host of Dirty Jobs and much, much more, started a Foundation to help those interested in pursuing a blue collar career. His Foundation, mikeroweWORKS, offers scholarships to help individuals learn a trade – from welding to agriculture. And let’s be real, no matter how advanced our technology gets we’re going to need people who can keep our lights on and water running. This isn’t about unskilled labor getting minimum wage, it’s about learning valuable skills that, although may evolve, will never (in my opinion) not be needed.

I’ll admit my position may be a bit unorthodox and unpopular, but I stand by my assertion those who take the time to learn trades can become very successful. Accumulating wealth isn’t about which school you attended (and are now indebted to), it’s about how much you can save and how well you can live within your means. Next time you sit down at your desk and start your computer, think about those who wired the building your in, or are producing the electricity you’re using – and what you would be doing without them. Success is a destination with multiple paths, don’t feel trapped into pursuing just one because it’s what is getting the most air time.

And finally, this is NOT a dig against college – if you know what you want to do, and you need a degree to do it, then go for it. This is an attempt to raise awareness of other options, and negate some of the negativity associated with blue collar jobs that I perceive. I refuse to believe we all know what we want to do as soon as we leave High School, and although college can help you “find yourself”, do you want to pay over $16,000 per year to do so (National Center for Education Statistics)?

If your child has a 529 plan – don’t despair, according to IRS rules these funds CAN be used for vocational training. “An eligible educational institution is generally any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education” IRS.Gov. Talk to your Advisor/Planner to get more information about options available for you, and don’t hesitate to think outside the box.