Business Innovators Radio - Episode #48 – Side Hustles – The 15 Minute Financial Feast Podcast-With Mark Triplett & Troy Westendorf

Episode Date: August 16, 2023

We believe that every dollar has a purpose and a timeline. When and how your retirement assets will be used should be understood before making important financial decisions.The Triplett-Westendorf Purpose and Timeline 5 Step Planning Process (PT5) begins with Discovery.Understanding where you are now, and then defining where you want to go (Your Purpose) and when you want to get there (Your Timeline), programs your financial GPS. Our Purpose and Timeline 5-step process (PT5) programs your financial GPS.Learn more: http://triplett-westendorf.com/ | https://mypt5.com/The 15 Minute Financial Feast Podcasthttps://businessinnovatorsradio.com/the-15-minute-financial-feast-podcast/Source: https://businessinnovatorsradio.com/episode-48-side-hustles-the-15-minute-financial-feast-podcast-with-mark-triplett-troy-westendorf

Welcome to the 15-minute financial feast podcast, bringing you 15-minute segments to help you retire with purpose on time. We're serving up food for thought and bread for the head. Are you hungry to learn? Here are your hosts, Mark Triplett and Troy Westendorf. Welcome to another episode of the 15-minute financial feast. Today, you are listening to the audio from a live television interview where one of our favorite local news station anchors asked us questions about a financial topic on the minds of many hardworking folks in our community who are trying to make good decisions and get ahead.

Let's talk gig economy. More people are taking up side hustles to earn extra income, right? Mark Tripla joins me now with Tripit Westendorf Financial Group. So Mark, I was just having this conversation with my brother in Colorado. He turned his place into an Airbnb, and now he's renting out his car occasionally. So that's some serious side hustle there. What, you know, people are go on any way they can to make extra money. Why are more people taking up the side hustles? Well, many folks are funny ways to turn things that are their passionate about or their hobbies into ways to make income. Some of it's just because they enjoy doing it, but others are doing it out of necessity. In fact, one survey I ran across indicated that 33% of folks have a side hustle

are actually relying on that income to cover their monthly expenses. And even though inflation's kind of rolled over, we're still seeing inflation at the rate of about 3%. year over year. So things just cost more. There are other reasons for having a side hustle too. Do you want to generate extra spending cash, for example, or you have savings goals for the futures that you want to meet or you just want to pay down debt? But folks are really finding ways to use some of their extra time away from their primary place of employment to make extra income. There's definitely risks to it, though. What do people need to know about the tax implications of a side hustle? You could find yourself in trouble if you're not.

knowing what to do with game plan. Yeah, for sure. So most of the work we're talking about is considered gig work by the IRS. And gig work is often transacted through different types of mobile apps and things of that nature. This includes things like selling handcrafted items or like you mentioned, you know, renting out your place or your car. If you're making more than $400 a year doing that type of gig work, you do have to report that as income. It is considered taxable income. And next year, new rules that apply to payment apps such as Venmo or PayPal are going to require

that if you are generating over $600 per year in that type of work, you're going to actually get a $1099K from those companies, and you need to file that in your taxes. Yeah, you've got to be sure to do things right because it is, you're right. The taxing, I think, is what gets people. So do you just put money away as you go and pretty much calculate a percentage to save so you're ready to pay those taxes? absolutely so as you're generating this income it's important to i would say do three things one you'll use it to build an emergency fund if you don't have one putting away dollars that you're going to be there in case if something happens to you that you've got six months worth of expenses to cover that'd be great

paying down debts another way to use that money wisely and then also don't forget to treat yourself if you're putting the extra effort maybe indulge on yourself or with your loved ones, but do set aside a percentage, you know, probably somewhere in the neighborhood of 20 to 25% of that to account for having to pay taxes later. And I also mentioned that a lot of, I mentioned this earlier before we started, that a lot of our clients, we're seeing them kind of find ways to use their expertise from their pre-working or pre-retirement years to actually get consulting gigs after they transition to retirement. With cognitive ability, you use it or lose it, it seems like.

So when you can find something that gets you up in the morning, gets you excited, and you can use your skills that you accumulated over those years of working, and be able to turn that into a consulting gig or continue to use that in retirement, it keeps them busy, keeps them sharp, and it makes some extra income doing so. My first side gigs was babysitting, family of eight. I was born into that job, and cleaning houses. Unfortunately, I don't get paid to clean my own house now, but great advice. you so much for being with us today. Really interesting stuff. So many people doing that a side hustle.

Thank you, Mark. Thank you for having me. You've been listening to the 15-minute financial fees podcast. Remember, every dollar has a purpose and every dollar has a timeline. If you have questions about today's topic, schedule a call with a team member. Visit www.com.com. Until next time, be sure you're taking steps to retire with purpose on time. Mark Triplett is an investment advisor representative of and advisory services offered through Royal Fund Management LLC, an SEC registered investment advisor. Nothing contained in this program should be considered an offer to buy or sell securities. Different investments have different risks associated with them, and not all investments are appropriate for all investors.