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Can a Side Hustle Help You Save for Retirement?

Retirement Solutions available through CFS*Looking for ways to put some extra cash in your pocket without leaving your day job? A side hustle could be for you!

Side hustles, or anything you do outside of your main job to earn money, are growing in popularity. A new survey from Bankrate found that nearly 4 in 10 Americans have a side hustle, and they're making $686 per month on average. Within a year, it's possible to earn more than $8,200, Bankrate states.

If you're willing to put your spare time and energy into it, a side hustle can help you reach your money goals faster. The key is to put your earnings toward a specific purpose, like saving for your retirement years.

Hustle your way to a happy retirement

Earning extra cash can give you more flexibility in your budget to start or grow your retirement savings. Here are a few ways to put your side hustle income to good use:

Give your 401(k) a boost

If your main job offers a 401(k) plan, but you're not participating or contributing enough to receive the full company match, use your side hustle income to increase your contribution. A 401(k) employer match is essentially free money for retirement, so be sure you're taking advantage of this opportunity to save!

Open an IRA

If your job doesn't offer a retirement savings plan, consider setting aside your funds in an Individual Retirement Account (IRA). Much like a 401(k), an IRA allows you to save for retirement in a tax-advantaged way.

It's never too early to start putting away money for your future. That's because the sooner you start saving for retirement, the longer your money will have to grow. If getting a side hustle helps you increase your retirement savings, even by a small amount, it can make a big difference in your account balance when you retire.

Side hustle ideas

In today's digital world, it's easier than ever to make money outside of your 9-to-5 job. Here are some side hustle ideas worth exploring:

  • Pet/house sitting
  • Babysitting
  • Tutoring
  • Food delivery
  • Selling used or handmade goods online
  • Serving at a coffee shop or restaurant
  • Driving for a ride-sharing service
  • Landscaping
  • Freelance writing, photography, or website design

Successful side hustling is all about finding something you like to do. Follow your interests and use the skills you already have. When you enjoy your work, it will make the extra income all the more rewarding! 

For helpful retirement resources, check out Wright-Patt Credit Union's financial calculators, interactive learning modules and upcoming financial education seminars.

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS"), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. WPCU has contracted with CFS to make non-deposit investment products and services available to credit union members. For specific tax advice please consult a qualified tax professional.