Job search or side hustle?
Deciding whether to focus on a job search or channel your funds into a side hustle comes down to balancing security with opportunity.
A new job can provide long-term stability and financial predictability, but it requires patience and persistence. A side hustle might offer increased cash flow down the line and entrepreneurial potential, but comes with risks that could leave you worse off if things don’t go as planned.
Many other Reddit users cautioned against starting a new venture without a stable income.
“The time to experiment with new businesses and investments is when you have stable employment to fall back on,” one person advised.
Even for successful side hustles, income isn’t always substantial. The median U.S. side hustle brings in just $250 per month, according to Bankrate senior industry analyst Ted Rossman. That amount is by no means enough to live on, but can help a person get out of debt or save up for a large expense.
“It’s become a bit of a treading-water situation,” he told CNBC’s Make It. “I wish more people were getting ahead, pursuing that passion project or maybe saving and investing more.”
The author of the Reddit thread didn’t provide any solid figures about their financials, but they also don’t seem to be in a situation where they need cash immediately. If nothing else, they now have the time to research starting a small business, or even gain skills and knowledge that can improve their income potential.
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Explore better ratesImportance of an emergency fund
Emergency funds can be a financial lifeline for anybody who suddenly experiences a loss in income. Many experts suggest having three to six months’ worth of expenses stashed away. Some recommend saving as much as 12 months of expenses.
According to research by Fidelity Investments, a lack of emergency savings is a major source of stress for many Americans, with 8-in-10 Fidelity participants saying that inflation and the cost of living are causing them stress.
“That money is going to keep you off the streets and from going hungry,” another Reddit user noted.
Having six to eight months’ worth of emergency savings might sound substantial, but there’s really no telling how long a job search will last. Even if you’re in a good spot, it’s essential to spend your savings wisely in order to maintain long-term financial security.
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