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According to a recent MyPerfectResume survey—because who doesn’t love a little existential dread?—72% of American workers are now juggling side hustles like circus performers just to make ends meet. The best part? The top contenders for these supplemental incomes are the glamorous worlds of freelance gig work and investments (yes, crypto and stocks, so you can feel like you’ve entered the Hunger Games of finance).
The Great Side Gig vs. Investment Showdown
So, which is better: side gigs or investments? According to GOBankingRates, choosing a side gig is akin to choosing a lifeboat on the Titanic. The income you pull from a side gig is entirely dependent on how much time you’re willing to part with—while praying it doesn’t drive you into existential despair. They calculated that with an hourly wage between $15 and $30, you might make a dazzling $600 to $1,200 monthly. Run the numbers, and in a year, you could be looking at around $7,200 to $14,400 to fund your emotional therapy sessions—err, we mean, your future.
Now, investing in the stock market promises around a 10% return per year, according to Cody Schuiteboer, a financial expert and the self-proclaimed king of cautious optimism. That means if you throw $50,000 into the magic of stocks, you might pull out around $5,000 in profit. Or you could cut your losses and buy yourself a large cheese pizza. Either way, your budget will be just as satisfied.
The Verdict: Side Gigs Rule (Kind Of)
Here’s a hot take from Sain Rhodes, a real estate expert, who boldly claims that for most folks, side jobs will likely outshine investments during those glorious 12 months. Why, you ask? Because not everyone can afford a $10,000 investment to see a measly $1,000 profit from stocks. If you slap on a rideshare badge and hit the road, you could rake in that same grand in a matter of weeks—while maintaining the delightful stress of dealing with strangers who think they can sing.
For those starting with little capital and massive dreams, the side gig is your best bet. Just remember: you’re trading your time for money—so maybe consider selling your voice in a karaoke contest while you’re at it.
Things to Ponder
Before you throw caution to the wind and dive into a side gig, here’s a dose of reality. Schuiteboer highlights that your side gig pay can occasionally drift into “underwhelming” territory. Plus, let’s not forget the bonus of added stress and the death of free time. Meanwhile, investing can feel much like watching paint dry—once you stash your cash away, the waiting game begins.
Deciding Your Financial Fate
So, what’s the grand plan, you ask? According to Rhodes, the strategy is to dive headfirst into those side gigs for 12 to 36 months, racking up $15,000 to $25,000. Then, sprinkle a little of that cash into the stock market or, for a delightful twist, buy yourself a piece of real estate. You know, as one does. It’s about parlaying that side income into a portfolio that can one day let you retire—hopefully long before you’re forced to become the world’s oldest Uber driver.
In conclusion, if you can survive the side gig hustle without losing your sanity, it may just pay off in the long run—provided you’re savvy enough to invest that extra cash when you have it. And as always, consult a financial advisor to make sense of it all, because diving into investments without guidance is like jumping into the deep end without knowing how to swim.
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This article originally appeared on GOBankingRates.com: Side Gig vs. Investing: Which Makes Americans More Money Over 12 Months?
