A key to achieving Financial Independence is to save and invest a big chunk of your paycheck. North of fifty percent has always been the advice. This makes complete sense because it reduces expenses, decreasing your FI number.
For most people, it is a struggle to trim down their life to the bare necessities. However, life is not just about surviving one day after the other. You want to enjoy certain luxuries, see different places or try that new restaurant down the block.
Aside from putting away a considerable portion of our paycheck, there is another lever we can pull to achieve Financial Independence. Allow various income streams to flow into your household by doing things you would love to do.
Side Hustles or Rackets need none to very little capital to start. It is mainly using your time and talents to earn money that could get you out of debt, send you on your next dream vacation or accelerate your journey to Financial Independence.
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We spoke to a fellow podcaster about how different side hustles let her enjoy a comfortable life with her family. A first-time mom and Certified Racketera, Ally Fadirugao was driven to the world of side hustles by her eagerness to get out of debt before getting married. Now intending to reach Financial Independence, she continues to pursue side hustles that she loves to do.
She confessed that she had a distorted view of personal finance before learning about Financial Independence. When she read the advice, “Save 20% for yourself every time you are paid,” she heard earmarking 20% of her paycheck for discretionary spending.
She went to town splurging on every discounted item, salon, and spa treatment that 20% of her paycheck could buy. She fell for buy now, pay later schemes on gadgets thinking that wasn’t debt. She had no budget to make her accountable for her spending decisions. It was a good life, but the advice did not work because she was not going anywhere when she saw her bank account.
Everything changed when she became aware of her financial situation. From then, she was awakened to the true meaning of saving for yourself: putting it away for the future. Tackling her debts became her priority, embracing the principle that she would not buy anything unless she could pay cash. She consumed personal finance books and surprised herself that she enjoyed reading these contents. Equipped with some financial know-how, she learned the importance of budgeting, even becoming addicted to it eventually.
Ally’s journey started in late 2018 when her finances had gone red from a bankrupt business. Not wanting to be a liability by bringing her debts into the marriage, she researched personal finance, landing into Dave Ramsey’s Baby Steps. She decided to eradicate her debt using the Snowball Method but struggled to make sufficient debt payments because she didn’t make enough money. Her goal eventually led her to the world of side hustles.
Mystery Shopping
Having guessed it wrong when Ally first mentioned it, she patiently explained that Mystery Shopping is a practice where brands and businesses acquire people to evaluate the quality of their products and customer service. Mystery Shoppers would go to a company to purchase, eat or inquire like a regular customer and then submit a comprehensive report based on their experience. Upon approval, they will receive cash reimbursement for the transactions made.
All it takes is to sign-up with your email and complete a profile online. Then, browse for available campaigns around you and apply. There may be some online tests during the application process, but once approved, you could go to the business within the agreed-upon timeframe.
There are assignments where you do not need cash up front, like inquiry-only visits, but more opportunities are available if you have money to spend. Depending on the report’s length, you will have up to 24 hours to submit it, and cash reimbursements run on a cycle of 30 to 60 days.
Ally said that it is sporadic and fun to do. On most date nights, they would sign-up to mystery shop a local restaurant to enjoy a romantic evening for free. She recommends the company Satisfind and Coyle to those who want to try mystery shopping. She did such excellent reports with Satisfind, and in fact, she now works for them full-time after doing mystery shopping assignments.
Party Food Trays
One thing Filipinos love to do (aside from karaoke) is eat! If you have hidden master chef talents, food trays could be a profitable side hustle. You could earn as much as 100% return on investment if done right. It helped a lot with their expenses, especially during the economic downturn of 2020.
Ally and her husband started preparing food trays with family members as their first customers. Their culinary skills and professionalism then spread to friends of friends by word of mouth. They gently encourage friends and co-workers to make an order by serving their specialty dishes on their birthdays or bringing them to work for lunch. The food tray side hustle usually peaks during the holiday season, but if you are top of mind for customers, you could be busy all year with birthdays and office parties here and there.
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Retail
The explosion of online selling platforms (Shoppee, Facebook Marketplace, eBay, etc.) has democratized retail, allowing people to open their little shops at a minimal cost. All that is required of you is to find a product that would sell like pancakes, and you are off to the races. Unlike Mystery Shopping and Party Food Trays, you could profit with little work.
Finding the perfect item to sell is tricky, but one of Ally’s strategies is buying more of the things she needs in the house. She lists the excess on the selling platforms, waits for an order, then ships them. She says buying a small inventory of what you enjoy is one way to start. This way, you are not bogged down with many things nobody wants.
Monetize Your Talents
When you think you don’t have time for a side hustle, you’ll be surprised to know you do! The internet is rich with opportunities to earn a little extra if you put your passion projects in front of others. For example, you could find freelance jobs on platforms like Upwork or spend time creating content on YouTube. When managing your time, just an hour of creativity could be very profitable.
One of the unique side hustles featured in their Satisfinder official podcast is live streaming to advertise pre-loved clothes for 8 hours for viewers to bid on them. That’s a ton of outfit changes! But, it turned out to be an effective racket because of the YouTube viewership she gets on top of the clothing she sells every show.
Visit Usapang Side Hustle for more tips and ideas for your next racket!
We asked Ally if she’ll always be a certified Raketera. She said that side hustles will always be a part of her life, but she also wants to set boundaries to have time with family. That is ultimately her Why of Fi. To make it easier to say “No” to extra side hustles and be with the people she loves. She sees them living a simple but contented life on a farmhouse where they can grow their food sustainably.
About Us
We are a Pinoy Physical Therapist duo living somewhat unconventional but intentional lives. In this podcast, we want to learn how Filipinos worldwide in different industries and walks of life earn, spend, save, and invest money to achieve Financial Independence.
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DISCLAIMER
We are NOT certified financial advisors, analysts, or CPAs. Investing strategies shared in this article and the website are not financial advice but our opinions for educational purposes only. We want you to treat our content as a preview to do your research so you can make smart financial decisions.
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