Having a hobby is great. Hobbies are an awesome way to enjoy something you love, meet other people, and learn new and interesting things. What can be even better is having a hobby that has the potential to actually MAKE money.
Some people only choose hobbies that have the potential to be profitable. They get to do something they enjoy with the added benefit of possibly making some extra cash on the side.
That extra cash can be put towards all kinds of financial goals. Paying down debt. Saving for retirement. Saving for a special vacation. Or just fun stuff in general.
Over the years I’ve had a number of hobbies that would make extra money. In total I’ve made over $50,000 from my personal hobbies. Some are more profitable than others. The important thing is that they’ve all been fun. This extra money has gone straight into investments where it can grow further thanks to the power of compounding.
There are some things I hate to save money on. Things like entertainment, food, hobbies are at the very bottom of my savings list. These are the last things I’ll cut if I need to save money.
BUT on the flip side there are some things that I love to save money on. These are things that no one ever sees. These are things that no one ever cares about. It’s things like investment fees, car insurance, or utilities. No one cares how much you spend on that stuff, absolutely no one, so it’s the perfect way to save money.
If you can lower your electric bill by $20 per month, you’ll save an extra $240 per year and no one will have a clue.
When was the last time you compared electric bills? Never.
When was the last time you noticed the number of lights in a person’s home? Likely never.
Our electricity bill is down to around 200 kwh’s per month. The money we save goes directly into investments each month. Saving money on electricity is the perfect way to build stealth wealth.
When first buying a home it’s hard to comprehend the sheer number of new expenses there are. There are mortgage payments, home insurance, property taxes, maintenance, water, sewer, electricity and gas, just to name a few.
When coming from a rental you may be blissfully unaware of all the new home expenses that you now need to budget for.
These extra expenses are tied directly to the size of your home. A larger home means larger expenses.
Before purchasing a new home consider all the expenses attached to your decision. Buying “just enough home” is a great way to save money. Buying “too much home” can cost thousands per year in extra expenses.
This is one of the main reasons my wife and I live with our two daughters in a small 1,000 sqft bungalow. Although we could afford a much larger home we chose to purchase something much smaller…
There are two ways to achieve your financial goals. One way is to make more money. Get a raise, promotion, bonus or side hustle and put that extra money towards your financial goals. Earning extra money isn’t always easy but it’s an effective way to achieve your goals.
The second way is even more powerful.
To achieve your financial goals, reducing your expenses and saving more money actually has 2x the benefit of making more money.
Every $1 saved is worth $2 earned!