Retire? Not Me!
Getting Serious About Money Before You Retire

On the Side

OnYourOwn Women-4013872_1920There's an interesting work option for the Boomer who has a full-time job but knows it's only a matter of time before that position ends, either by circumstance or by choice. That option is working on the side. In days gone by, it was called "moonlighting," but these days, you hear it referred to in terms such as a "side hustle" or "part-time gig." Whatever you choose to call it, the idea is an intriguing one.

Here's how it works: While remaining employed in another position, you use your own time to research, experiment, and potentially accept work on the side. It goes without saying that the work you take on must not conflict with your regular employment in any way. Especially tricky is the situation in which you may have to communicate with side hustle customers during the work day or, worse, if those customers have any chance of conflicting with your employer's customers. These are two of the larger sticky issues related to side hustles.

But that doesn't mean it isn't possible, and even desirable, to begin working on the side if you're a Boomer. Leslie Hunter-Gadsden, writing about the topic for NextAvenue.org, spoke to some professors who endorsed the idea for those Boomers who are looking to potentially start their own businesses. Professor Phillip Phan of the Johns Hopkins Carey Business School told Hunter-Gadsden, “It’s great to see if there is a market for your business while not depending on it for an income.” Professor David Deeds at the University of St. Thomas said, “You need to really take the time to do your research getting feedback from potential customers.” Northeastern University professor Kimberly A. Eddleston added, "By starting a business before you stop working, you can see what your time commitment will actually be. It will help you to understand what your actual day would look like once you are doing it full-time.”

Another related phenomenon is something called "sidepreneurship." Particularly popular with retirees, this method of side hustling defines those who work fewer than 20 hours per week in their own businesses. A 2019 report by American Express on women-owned businesses, cited by Kerry Hannon in her article about sidepreneurship for NextAvenue.org, indicated that the five-year growth rate for sidepreneurs was more than triple all businesses (32 percent vs. 9 percent). The growth rate for sidepreneur women was especially impressive; for example, among African-American women, sidepreneurs vs. all businesses was 99 percent vs. 50 percent. Professor Eddleston told Hannon, “What likely attracts women to these sidepreneur opportunities is their lack of risk...women...test the waters and see if they like the business before taking the plunge and going full time. ... That means, an older woman who is not ready to fully retire can keep working as a sidepreneur."

Starting a business is not the only reason to engage in side hustles. In fact, it is not uncommon nowadays for workers to take on freelance or contract work outside of the constraints of their daily job simply to earn extra income. ZenBusiness reports, "A recent study from Payoneer revealed that the average hourly rate of gig workers is $19 an hour–more than double the national minimum wage in the U.S.–making a side hustle a helpful choice for those in a financial bind." ZenBusiness goes on to discuss both the side hustler who works on the side while employed elsewhere, and the "serial side hustler," who hustles full-time. Check out their helpful guide for serial side hustlers here: https://www.zenbusiness.com/blog/serial-side-hustler/

Full-time employment may be the best option for you. Still, you may find that working on the side can pay off in many ways, especially as you age.

HappilyRewired.com is a Top 75 Baby Boomer Blog.

Image: Pixabay.com

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