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US Bureau of Labor Statistics Reported inflation continues to rise, With prices rising at an 8.3% annual rate, it makes sense to examine what strategies you can adopt to counter this trend.
What is the best way to beat inflation?
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Inflation means the cost of living rises. As your expenses increase, you need solutions to increase your revenue. You don’t have many options. If you’re working, your company’s raise represents the best way to fight inflation. But is a growth of 8.3% realistic?
“With inflation reducing the value of your savings and earnings, one immediate action you can take is to earn more,” says Nick Loper, founder of SideHustleNation.com in Sammish, Washington. “If inflation-matching growth isn’t possible at your work, it’s natural to turn to a side hustle or a home-based business.”
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And what if you are no longer working or nearing retirement? It turns out, the answer may be the same whether you’re working or retired. AARP cited recent research This shows that the percentage of new business start-ups in the 55-64 age group increased from 14.4% in 1996 to 25.8% in 2018. If you consider how easy it is for recent retirees to pick up where they left off as independent contractors, you won’t be surprised by these numbers.
“As the nature of work has shifted towards knowledge work, people retiring from such work can more easily return to mentorship and continue earning while not working full time,” said Dr. Sasha) Tomic, economist and associate dean for strategy, innovation and technology at Boston College in Chestnut Hill, Massachusetts. “As such, they are attractive to companies because they bring in knowledge and experience and are not looking for a full-time position with all the additional costs that can bring. At the same time, people are living healthier and living longer. So they are more likely to start their own business in retirement.”
How do people survive high inflation?
While not new, the trend towards the gig economy has grown rapidly. This trend probably underlies inflation-induced financial stress.
“Over the years, I’ve had many clients looking to bring in extra cash, but I’ve never seen as much as I’ve seen in the last 18-24 months,” says Charles Catania, principal of branding with Chuck at Vernon. Connecticut. “For many people, additional income helps meet needs. The burden of inflation still remains. Side hustle just makes life more manageable. ,
It doesn’t take long to ease the pressure of higher prices. A nearly double-digit inflation rate represents a historical peak and may not indicate well if it persists.
“Inflation was 8.3% over the previous year,” says Kari Bramond, accountant and materials manager at TaxCure.com in Trumbull, Connecticut. “That means most people spend an average of 8.3% more for the same purchases than they did a year ago. Many people have to dip into savings or turn to credit cards, but if you’re on your side Earn enough, you can use that money to cover the increased cost of living.”
However, the numbers can be more manageable than you may fear for the near future, especially if you embrace your inner entrepreneur.
“By starting a small home-based business, you can help beat inflation, even if you only make a small profit,” says John Bergquist, managing member of Lyft Financial in South Jordan, Utah. “For example, if grocery spending increased 10%, and let’s say your grocery budget was $1,000 per month, your total spending in that category only increased by $100 per month. Whereas each time It’s frustrating when you go to the store, if your side business makes a profit of ‘only’ $100, you’ve effectively covered that cost. The same is the case with the monthly gas bill. So even if you did Making only a few hundred dollars extra a month could cover the extra costs of your home. It may not sound like a lot of money, but as you can see, it’s well worth it, even if it’s a huge amount. Don’t be.”
In fact, you can be an “Entrepreneur MVP” with a modest amount of elbow grease. To accomplish this, you must appreciate the representation of “MVP” for starting a side hustle. Here is a brief summary of three factors to consider when building a home-based side hustle that will help you address today’s inflation concerns.
“M = money” – more cash means less stress
This represents the bottom line. You have to choose a gig that generates positive cash flow, no matter how small.
“Having a side hustle helps combat inflationary pressures by bringing in another source of income,” says Corina Layton, a registered dental hygienist in Philadelphia. “With more income on my side, I don’t have to stress too much about price hikes to take my full paycheck. I know I have more than one way to make money, so it’s my main job.” Reduces work pressure.
The money problem is especially acute if you are retired and living on an irreversible stream of revenue. Any activity that adds a few more dollars to your wallet goes a long way in fighting inflation.
“The biggest problem with inflation is that it eats up money, so to speak,” says Tomic. “Therefore, if someone is on a relatively fixed income, their income will not adjust fast enough to catch inflation and may not even adjust well enough. This is where a side hustle can help. Because the price of the goods or services provided will more closely adjust than move with inflation.
Would you like to know more about “Finding Money”? Read this article to take a deeper dive into the process discovery.
“V = zero”—do what you’re already doing
Finding money is one thing. The key is to find the zero. It’s learning to zig when everyone else is zagging. This is usually the occasion.
“Many people think it’s risky to start a business in light of a recession,” says Dr. Travis Fox, co-founder of AllRealms in St. George Utah. “With inflation rising, those with business ideas are less likely to act, opening the door for you to succeed (and make more money) with less competition.”
To find the zero, take what you already have and see where it’s needed the most. This forces you to multiply the value of that skill (see “money” above).
“The earning opportunities that exist during uncertain economic times are side hustle and home-based businesses abound; “It requires you to think outside the box and adopt a new way of earning,” says Kelly Moser, consultant and coach for entrepreneurs at Kelly Moser Consulting in New York City. “The key to a side business that increases your income without adding extra stress to your day to day is to start a business that has low overhead and takes advantage of the skills you already have. Owning your own business can help foster a sense of personal empowerment, independence and security that your daily job may not provide you. Diversifying your income by offering a less-stress side is a great way to strengthen your financial position against inflation or a potential recession. ,
Would you like to know more about “filling the void”? Read this article to take a deeper dive into the process discovery.
“P = Pivot” – Tax Savings
Finally, realize that things are not always what they seem. Sometimes your first attempt fails. That’s when you pivot the lemon to turn it into lemonade.
But Pivot isn’t limited to your product or service. This can also apply to the types of benefits that you accrue from your side hustle. In fact, when you focus on increasing revenue, you may find that you are cutting expenses as well.
“A home-based business is a quick way to reduce your personal expenses,” says Micah Stetson, president and founder of Optimized Waste Removal in Fort Worth, Texas. “Only tax savings can beat inflationary pressures. Spending your phone, internet, home office, gas, etc., are all great ways to leverage your small business to your advantage.”
Of course, you’ll need to double check with your tax advisor to find out how this applies to you.
Would you like to know more about “The Power Pivot”? Read this article to take a deeper dive into the process discovery.
Pros vs. Cons: What are some side hustle ideas?
However, be aware that a small gig can turn into a pit of money and time if you are not careful.
“A side business is a business,” says Ted Wolf, co-founder and CEO of GuideWise in Lancaster, Pennsylvania. “If you are not fully committed to starting and running a business, I encourage you to keep your day job. Remember, there are so many things to learn when you start a side hustle. And things can go wrong. So if your financial situation is fluctuating, it might be wise to consider other options. By having a full-time job and a side hustle, you can protect yourself mentally, emotionally and financially. are creating a ripe situation for over-expansion, which can take away from your day job, potential earnings and family time. In some cases a side hustle or a work home-based business, But you really have to weigh the risks versus the benefits and the longevity of your decision.”
This can be a concern if you have a full-time job, but it can be a concern if you are not retired. Nevertheless, the available side hustle options remain the same whether you are working or living in retirement.
“I would certainly imagine that this is top of mind for the retired population,” Moser says. “Here’s some strategic advice for seniors who want to diversify with a side hustle: Lean into the skills you already have, especially those you mastered over the course of your career, and explore freelance opportunities remotely. find out. If an employer paid you for a skill, there’s now a market for it too. Start a profile on a platform like UpWork or Fiverr and instantly find quality freelancing gigs, shop your skills among…