Michelle has been doing a fantastic job with her extra income recently. Her blog is really taking off, and it’s helping her make a lot of additional money every month. Because of this, she’s been getting tons of emails about blogging for extra income and has even written some great posts on how to make money through blogging. Hopefully, her readers are finding her tips helpful and are starting to make money from their own blogs.
One thing she hasn’t talked about yet is what to do with all that extra income. One of the best things about extra income is that it’s not part of your regular budget, so you can use it however you like. However, it might not be the best idea to spend it all on shopping. So, what should you do with your extra income?
Use Your Side Hustle Income to Pay Off Debt
This is probably my top recommendation for extra income. I earn a bit of money every month through writing and my own blog, My Alternate Life. Up until recently, I’ve been putting everything I earn towards my debt. This has been incredibly helpful because it’s shortened the time it will take me to pay off my debt. When I first started trying to pay off the $38,000 of debt I had from school, my best estimate was that it would take me five years.
Now, it looks like I’ll be debt-free before the two-year mark of my Operation Pay Off Debt. This is partly because I’ve been putting all my extra income towards my debt. Michelle is using the same strategy to pay off her $38,000 in student loans, and she’s making amazing progress.
Use Your Extra Income to Build Up an Emergency Fund
Using extra income to build an emergency fund is another great idea. Most experts suggest having an emergency fund that covers 3-6 months of expenses, but very few people actually have this (including me, until I pay off my debt). Using extra income to build your emergency fund is a great way to increase your financial security without having to adjust your regular budget.
Start a “Fun” Fund with Your Extra Income
This is one of my future goals once my debt is paid off and my emergency fund is fully stocked. After that, I plan to put all my extra income into a “Fun” Fund. I’ll probably use it for travel and to properly furnish our 400 sq. ft. house. I’m really looking forward to it! The best part is that I can enjoy myself without affecting my other goals, like saving for a house and funding my retirement.
Side Income is Extremely Useful
Extra income is a fantastic way to achieve your goals faster than you might have thought possible. My side income has helped me pay off a significant amount of debt in a short period, which has kept me motivated and focused on my goals. Your extra income could have the same positive impact on your financial situation if you use it wisely.
What do you do with your side income?