first. The easiest and least painful way to stop wasting money is to never see it in the first place. If you work for a company, sign up for a 401(k) immediately, and make sure you have enough taken out of your paycheck to qualify for any company match. The savings contributions will be taken out of your paycheck, and you won’t miss what you never thought you had.If you don’t work for a company and are self-employed, you have many options, too. I cover those in more detail in Chapter 6.
Scrutinize subscriptions. Are you really using three music streaming services, or did you just forget that you’re paying for them? Also determine whether you're spending more to subscribe than you would if you bought or rented the object. For example, if you’re watching only one movie a month, you’re better off just renting than paying a monthly fee.
Consider the total cost. This tip is related to subscriptions. Companies know big costs look smaller when you pay for them monthly.
Know that few objects you buy will make you happy. Studies show that buying things rarely makes you happy. Billionaire investor Warren Buffett lives in a home in Omaha, Nebraska that he bought in 1958 for $31,000. Experiences and anticipation of good things in the future bring more lasting joy for most people than any material goods.
Boosting your income with a side gig
Retirement planning is partly about wasting less money so that more is left for you to invest. Another powerful way to boost your retirement it to drive your income higher.
Along with the “saving more” guilt trip, another personal finance saw is to “make more money.” But let’s face it, not all of us can or are willing to switch jobs or careers just to boost our pay. However, if you’re looking for something less disruptive to your life, a side gig can be a powerful way to increase the amount you can save. A side gig is typically
A task you do on the side, preferably something you enjoy: For example, you might make Halloween costumes and sell them on Etsy or eBay. Or perhaps you take photos that others can purchase to use on websites.
A way to take advantage of an underutilized asset: Have a beach home? Consider renting it when you’re not there. Or why not rent your car when you’re not using it? Check out Getaround (www.getaround.com), which handles the insurance details when renting your car.
Side gigs come in many forms, and finding this type of work is easy. Although none of these side hustles will make you rich, added income can turbo-charge your retirement plan. (In Chapter 4, I cover how SEP-IRAs and other retirement plans can help you turn side gigs into a bigger retirement nest egg.)
While you’re still working, a side gig enables you to earn more money to pad your nest egg. And your side gig might turn into a profitable activity you can keep doing in your 60s and 70s. According to a 2018 report from the Federal Reserve (www.federalreserve.gov/publications/2018-economic-well-being-of-us-households-in-2017-employment.htm), 31 percent of adults were engaged in some type of side gig, which accounted for 10 percent or less of family income for three-quarters of them.
Next up, advice on finding a side gig.
Freelance pairing sites
For temporary work, dedicated sites that match people with skills are booming. Upwork.com (www.upwork.com), shown in Figure 2-7, and Fiverr.com (www.fiverr.com) are two leading sites that help you find a way to make some extra money.
FIGURE 2-7: Upwork will help you find a side hustle.
Side gig blogs
Given the rising interest in earning a little extra cash, blogs are cropping up to separate the good side gig opportunities from the bad. One notable source is Sidehusl (https://sidehusl.com/), run by former Kiplinger’s columnist Kathy Kristof. This site helps you find work based on your skill set, ranging from accounting to tutoring. The site also ranks the opportunities based on pay and how well contributors are treated.
The usual places
Companies such as driving services Uber and Lyft, delivery services such as Shipt, and food courier DoorDash rely on side hustlers to get the job done. If you want something fast, these might work. But if you have specialized skills or interests, you can do better.
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