Creating a small side hustle doesn't necessarily require much investment capital to get it going. It often begins at a grassroots level and grows from there.
The difficult part financially is when a side hustle is growing quickly and begins to need more working capital than is currently available. Sure, you can take part of the paycheck from your full-time job to cover it, but that could leave you short. If you need to siphon personal money off between paychecks to keep your side hustle expanding into something bigger, it may leave you in a tricky position when covering personal expenses.
What are your options when you have personal expenses to cover and you're short? If you already have bad credit in your past, do you have fewer choices available? Let's find out.
Skip or Reduce Some Expenses
The first approach is to dial back on your spending for the time until your next paycheck arrives from your job.
It might help a little bit but often, commitments for rent or a mortgage, health insurance, and other fixed costs get paid out early. So, it's down to more personal expenditures where cuts in spending may lead to detrimental lifestyle changes. However, if it's only for a couple of weeks, that might be acceptable.
For example, skip the planned bar crawl with your buddies or Netflix 'n' Chill rather than going to a movie theater, etc.
Ask to Defer a Mortgage Payment
If you have a mortgage, you could ask to defer the payment for a month. However, this only makes life tougher the following month to get current again. It only takes falling behind four months before banks will often begin foreclosure proceedings.
It's a slippery slope. Therefore, it's usually not a good idea to defer the mortgage payment and try to catch up later. If you own your home, try to keep it separate from everything else.
Apply for a Payday Loan
Another way to bridge the gap in available funds is payday loans. These are usually relatively small sums required for a limited period. A few hundred bucks or something similar isn't too much to ask. Payday lenders look at your income to see whether you can afford the repayments. Your credit history won't matter, so if you have bad credit, look for online payday loans for bad credit on a site like personalmoneynetwork.com/payday-loans/ A site like this can help you compare reputable lenders to get a quick decision.
Slow Down Your Side Hustle Investment
If you have no other choice, then one way to prevent the cash crunch is to deliberately slow down the pace of growth in your side hustle. How can you do this? Increasing the prices substantially usually reduces the growth level because some customers will go elsewhere. The profitability may be the same though because the profit per sale will be higher with lower volume. There are several different ways to handle investing in your side hustle. As long as it doesn't get too expensive, they're all quite manageable.
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