Side Hustle
Financial term in the Budgeting category
Definition
A job or income-generating activity performed in addition to a primary job. Common side hustles include freelancing, rideshare driving, tutoring, and selling goods online. Extra income can accelerate debt payoff or savings goals.
Related Terms
Passive Income
Earnings that require minimal ongoing effort to maintain, such as rental income, dividend payments, interest, royalties, or income from automated online businesses. Building passive income streams is a common strategy for achieving financial independence.
Gross Income (Budgeting)
The total amount of money earned before any taxes or deductions are taken out. Understanding your gross income is the starting point for budgeting, but net income is what you actually have available to spend and save.
Savings Rate
The percentage of income that is saved or invested rather than spent. Calculated by dividing total savings by total income. A higher savings rate accelerates progress toward financial goals and financial independence.
Frequently Asked Questions
What is Side Hustle?
A job or income-generating activity performed in addition to a primary job. Common side hustles include freelancing, rideshare driving, tutoring, and selling goods online. Extra income can accelerate debt payoff or savings goals.
Why is Side Hustle important in personal finance?
Side Hustle is an important budgeting concept that helps individuals make better financial decisions. Understanding Side Hustle can improve your financial planning and help you achieve your money goals.
How does Side Hustle relate to Passive Income?
Side Hustle and Passive Income are related financial concepts. Earnings that require minimal ongoing effort to maintain, such as rental income, dividend payments, interest, royalties, or income from automated online businesses. Building passive income streams is a common strategy for achieving financial independence.
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