Do you live with the stress and anxiety of having an uncomfortable amount of debt? Are you frustrated that you seem to be living paycheck to paycheck and you cannot find a way to get ahead, to save and to start investing in your future? Now more than any time in the history of the world has it been easier to earn additional income without getting a formal second job. If you are serious about changing your situation and have the time and determination to put in some work, it can dramatically improve your finances in many ways.
Paying off $3,000 in Consumer Debt:
Total Debt: $3,000
Interest Rate: 18%
Minimum Payment: $90
Amount you are paying each month: $120
If this person would stop using their card today and make $120 payments to this debt each month it will take them 32 months to pay off this debt. You will end up paying a total of $3,840 to pay this debt off so to change this we need to either spend less or earn more and use that money to pay down this debt quicker.
If you are motivated and driven and remember why you are hustling out there to bring in an extra $500 per month you can flip this scenario around pretty quickly. The $500 would bring your total monthly payment up to $620 per month which would mean that you would be debt free in 6 months and would have only paid $3140 to pay off this debt.
Net Result: Bringing in an additional $500 each month would get you out of debt 26 months quicker and save you $700 in interest.
Creating A 3 Month Emergency Fund:
Current Monthly Expenses (non-discretionary): $3,500
Currently saving per month: $100
Current Savings Account Balance: $500
3 Month Emergency Fund Total: $10,500
Building up an emergency fund of 3 months is something that not many are able to do and it will provide you with tremendous benefits in many areas of your life. You will feel a tremendous amount of confidence, security, and an increase sense of freedom so the work and dedication will for sure be worth it and you will thank yourself once you get there. In this scenario, we are pretty much living paycheck to paycheck and only having $100 left over each month to put into our savings account. It would take you 100 MONTHS which is just over 8 years to achieve this goal.
If you committed to a side hustle and brought in $500 per moth in additional income and put it in savings, you would reach $10,600 in 17 months so just under a year and a half. You need to really think about this and think about what you want and where you want to be. Are you willing to really get after it for the next year and a half, is it worth it for the benefits you and your family will receive?
Is it worth it? – You Decide
If you don’t make changes in your life then you cannot expect much to change and all you will if is wishes and dreams of a better financial life. If you do decide to start a side hustle and you are able to achieve your goal who knows, you may end up loving your new life and keep hustling and at that point you can start focusing on really getting your long term investments going. $500 in additional income each month can be life changing for many – Click on the post below to learn about 3 Side Hustles that you can start earning money from in 1-3 weeks.
Your comments are appreciated – let us know what side hustles are working for you and please share your success stories!