Are you wondering how to combat inflation? Does it keep you up at night? Are you on a fixed income? You seem to be making less money, and everything seems to have gotten more expensive. You are not alone with these thoughts.
Inflation raises costs. As expenditures rise, you must boost income, and you’re limited. Working is the greatest strategy to battle inflation.
Nick Loper, founder of SideHustleNation.com in Sammamish, Washington, thinks one way to combat inflation is to earn more. If you can’t get an inflation-matching increase at work, starting a side business is logical.
What if you’re retired? Working or retired, the answer may be the same. The percentage of 55-64-year-olds starting new businesses climbed from 14.4% in 1996 to 25.8% in 2018. These statistics aren’t surprising, considering how simple it is for recent retirees to become independent contractors.
Dr. Aleksandar (Sasha) Tomic, Economist and Associate Dean for Strategy, Innovation, and Technology at Boston College in Chestnut Hill, Massachusetts, states as labor has evolved toward knowledge work; retirees may return as consultants. This will allow them to continue to earn while not working full-time. As such, they’re valuable to firms since they bring expertise and experience and aren’t searching for a full-time career. People live longer and healthier, so they’re more inclined to start a company in retirement.
Charles Catania, principal of Branding with Chuck in Vernon, Connecticut, has seen more customers use side hustles in the previous 18-24 months than in the preceding decade. “The extra money helps many get by.” Inflation persists, and side jobs make things easier.
Prices may be lowered easily. Near double-digit inflation is exceptional and may not be sustainable. Inflation reached 8.3% last year, reports TaxCure.com’s Kari Brummond in Trumbull, Connecticut. This implies they spend 8.3% more on average than a year earlier. If you make enough from your side gig, you can pay the additional cost of living.
Embracing your inner entrepreneur may make the figures more bearable in the near term. John Bergquist, the managing member of Lift Financial in South Jordan, Utah, says, Starting a modest home-based company can help you fight inflation, even if you just generate a tiny profit. If grocery costs rose 10% and your budget was $1,000 per month, your overall costs only rose $100 per month. If your side business ‘only’ made $100, you’ve paid that expenditure. Gas bills are similar and might cover household bills even if you simply made a few hundred dollars extra a month. It’s worth it, even though it may not seem like much.
With enough effort, you can be an “Entrepreneurial MVP.” To establish a side business, you must understand “MVP.” Here are three things to consider when starting a home-based side business to fight inflation.
Money = Stress Relief
In conclusion: No matter how little, your employment must provide cash flow. Corina Layton, a Registered Dental Hygienist in Philadelphia who is also an Influencer, thinks a side gig helps fight inflationary pressures. With an additional source of income, she doesn’t have to worry about price hikes as much. Knowing she has other income streams relieves strain on my main work.
The money situation is worse for retirees living on a fixed income. Any activity that boosts your pocketbook helps prevent inflation. Tomic thinks inflation “eats” money. If someone is on a fixed income, their income may not rise quickly enough to keep up with inflation. A side gig can assist because the price of products or services will likely rise with inflation.
V- Void. Do what you are doing.
Money is one issue. Find the void. This is going against the crowd. That is where the opportunity is. Dr. Travis Fox, co-founder of AllRealms in St. George, Utah, believes launching a business during a recession is dangerous. Inflation makes people less willing to act on business ideas, allowing you to thrive (and make more money) with less competition.
Use what you currently do to locate the void. This boosts the skill’s worth.
Kelly Mosser, Consultant and Coach for Entrepreneurs at Kelly Mosser Consulting in New York City believes side hustles and home-based companies provide huge income opportunities amid difficult economic times. Start a business with cheap overhead and talents you already have to raise your income without adding stress. Owning a business can provide you empowerment, independence, and stability that your work may not. Diversifying your income with a low-stress side gig can help you weather inflation or a recession.
When things don’t go right, know how to pivot. Things aren’t always as they appear. When the first attempt fails, make adjustments or turn your failure into lemonade.
Your side hustle may rotate products and services, but there are perks that come with owning a business. While growing sales, you may also reduce expenditures. Home-based enterprises are a simple method to cut personal expenditures, says Optimized Waste Removal’s Micah Stateson. “Tax savings alone can fight inflation.” Expenses like phone, internet, home office, petrol, etc. help your small business. You should ask your tax professional how this affects you.
Side Hustles are great, but they require work too.
A tiny assignment might cost you money and effort if you’re not careful.
A side business is a business, argues Guidewise’s Ted Wolf. If you can’t commit to a business, retain your day job. While starting a side business, there are many things to learn and things that could go wrong. If your finances are unstable, investigate alternative possibilities. By working a full-time job plus a side gig, you might become intellectually, emotionally, and financially overextended, affecting your day job, earning potential, and family time. A side gig or home-based company may work in certain circumstances, but you must consider the risks and advantages.
If you’re retired, this isn’t an issue. Whether you’re working or retired, side jobs are similar.
Mosser said he imagines retirees are concerned. Strategic recommendations for seniors wishing to diversify: Leverage the talents you’ve gained in your profession to freelance remotely. If you were compensated for talent, it’s in demand now. Start a profile on UpWork or Fiverr to obtain freelance employment, or try renting out your house on Airbnb or Vrbo when visiting relatives. A perfect side business for a retiree fits into your routine and uses your experience.
Not all retirees’ side hustles are risk-free.
If you’re doing a retirement side hustle out of passion and desire, he is behind it, adds Loper. It keeps your mind fresh and lets you feel progress toward something worthwhile, a key to long-term pleasure. What’s the disadvantage? The desire for more risks hurts your relationships and retirement enjoyment.