It’s true, extra side income is more than you think, let me explain…
My friends underestimate the wealth accumulation advantages of side income. They think that since they already work a full-time job, that’s plenty if not too much work already. So for the most part they go home and then what do they do? Mostly they watch reality TV?!? They sit glued to the TV and before you know it, it’s time for bed. Now granted they are usually watching with their significant other, but still the net gain from a financial or educational perspective is pretty close to nil.
What if instead they went and decided to pick up a side job where they interacted with people and got away from both their dwelling and the TV set? The win would be twofold, first they increase the amount of money they gain, and secondly, they interact with people, which is usually a positive experience and if not that, then at least interesting.
Why extra side income is more:
Side income has the potential of really adding up since your basic expenses are already covered. The key is that any additional income you gain above expenses can be used to purchase assets (which in my case are investments in the financial markets, but mainly stocks). The spread between your income and expenses is called the savings delta and this spread can really make a huge difference in wealth accumulation
The thing is that an additional savings doesn’t have to be capital-intensive. You don’t have to create a manufacturing business to generate a side income. It can be gig as easy as selling on eBay, or perhaps blogging, or even mowing lawns. The key is that since that money isn’t required to fulfill an expense requirement, it unallocated money that can be used to buy assets (yay).
This is why I claim that extra side income is more than you think. Since the extra income can be invested, it can grow into a wealth snowball that has endless possibilities.
Anyway, these are the ways that I see side income being worth more from a wealth perspective than income that is already accounted for.