With everything that’s been going on in the world, being able to generate income on your own terms is probably more important now than ever. Over the past few years, that’s pretty much been my goal – generate income in whatever manner I can using nothing but my own wits. I do that via this blog. And I do that via all of the gig economy side hustles that I’ve incorporated into my day-to-day life.
A few months ago, however, I saw my side hustle income take a steep dive due to the current worldwide crisis. In the past, I’ve regularly made between $1,000 and $3,000 per month with all of my various side hustles, with the bulk of that coming from fairly passive side hustle sources such as Airbnb. The pandemic changed things quite a bit. Airbnb income dropped to zero since I stopped hosting. Rover and Wag also dropped to zero since people were working from home and weren’t traveling.
Luckily, because I have so many different side hustles, I have a sort of natural diversification with my side hustle income sources and as a result of changing demands, some of my other gigs were able to pick up the slack. The delivery game, in particular, saw huge increases in demand and income over the past few months, with my hourly income on those apps consistently averaging in the $40 to $50 per hour range.
After those good delivery days, I came up with a new goal for the year – make $1,000 per month from side hustling. And make that $1,000 per month without any Airbnb income.
For some people, $1,000 per month of extra income might not seem like a very big deal. For others, it’s something that doesn’t seem realistic.
I want to challenge those of you who don’t think it’s realistic because, the truth is, I think an extra $1,000 per month is within reach for almost everyone. Hence, why I decided to do this $1,000 per month challenge in 2020.
Here’s why I think you can do it too.
The Math Behind $1,000 Per Month
My initial thought when doing this $1,000 per month challenge was to break it down into smaller chunks. Specifically, $1,000 per month comes out to $12,000 per year. That means we need to make between $32 and $33 per day in order to average $1,000 per month (technically, $12,000 divided by 365 days equals $32.87 per day).
When you break up what it takes to make $1,000 per month into smaller chunks, suddenly, $1,000 per month from side hustling seems much more attainable. Making $32 or $33 per day really doesn’t seem that hard. If you break it down into hourly chunks, it only requires you to do the following:
- Work 1 hour per day and make $32-33 per hour.
- Work 2 hours per day and make $16-17 per hour
$16 to $17 per hour is disappointingly low, in my opinion, and my guess is that most people reading this blog are the type that can likely figure out ways to make more than that on an hourly basis. What this means then is that the vast majority of people reading this can likely reach $1,000 per month of side hustle income simply by doing something for between 1 or 2 hours per day.
As busy as most of us say we are, the truth is, we all definitely have an hour or so per day that we really don’t use. I seriously cannot think of a single person that doesn’t spend a significant amount of time texting people, binging Netflix, browsing Facebook or Twitter, or doing whatever else we claim we don’t have time to do.
Even if you have no time at all (which I think is doubtful), reaching this $1,000 per month goal is made even easier if you can monetize your life – that is, figure out ways to monetize the things you’re already doing. One of my big things has always been to monetize my commute. If I’m going somewhere, I’m always looking for ways that I can deliver food on my way there (I call it “delivering” my way to my destination). You can probably do the same thing too.
What Can You Do With An Extra $1,000 Per Month?
$1,000 per month of extra income might not seem that significant, but when you think about what it can do, it’s actually pretty astounding. Right off the bat, if you can make $1,000 per month of extra income, you’ve already got enough to fully max out two Roth IRAs (as of 2020, the current maximum Roth IRA contribution limit is $6,000 per person). Think about that – you can fully fund two tax-advantaged retirement accounts from the extra money that you make on the side.
It gets more interesting when you think about the impact of compounding and what it can mean for your future. When I think about long-term growth, I typically assume a 7% rate of return over the long run. If you invest all of your $1,000 per month side hustle income (ideally into passive, broad-market index funds), then you’re looking at the following amounts:
- $177,000 after 10 years.
- $526,000 after 20 years.
- $1,212,000 after 30 years.
You can literally be a millionaire from working an hour or so per day. Obviously, there’s no guarantee as to what rates of return will look like in the future, so you can adjust the numbers based on what you think is realistic. What really matters here is that a $1,000 per month challenge really does mean something.
When it comes to side hustling, the elephant in the room is taxes. Depending on your overall yearly income, making $12,000 of extra income means you’ll likely pay close to one-third of it towards taxes. I don’t buy the argument that people actually choose to make less money because they have to pay taxes, but it’s still something to think about.
What I do is think of my taxes as just another added expense in my yearly budget. I plan for it just like any other expense and I set that money aside in separate bank accounts – you can choose to set it aside however you want. I’ve been using Catch to automatically set aside money for taxes. You could also use free fintech business bank accounts like Lili or Indi, which can all automatically track the income you make and set aside money for taxes.
Then, I always pay my taxes using a credit card with a signup bonus, which then allows me to rack up points and miles or cashback. Essentially, I get a rebate on my taxes, which lowers the effective taxes that I actually have to pay since I get some of it back via credit card signup bonuses.
Can You Do It?
So how am I hitting my $1,000 per month goal? Well, right now I’ve been crushing it way more than I imagined.
For me, the delivery game has been crazy lucrative, with my hourly earnings averaging in the $40 to $50 per hour range. For the past three months, in less than an hour of side hustling per day, I’ve been able to hit my daily goal of $33. To get a sense of how efficient my delivery game has been, the other day I had a delivery run in which I only made $38 in an hour – and I called that a bad run.
I don’t know if this is something that you can do everywhere, but the point is to think about what you can do where you are and in whatever station of life you are in. The things you can do will differ depending on where you live and where you are in life, but more likely than not, there is something out there that can make you $33 in a day.
Obviously, if you read this blog, you know that I’m extremely fond of the gig economy. In this current market, two gigs stand out to me in particular:
- Food deliveries with Postmates, DoorDash, Uber Eats, and Grubhub. As I mentioned, I’ve been making a really high hourly rate doing these gigs. Part of the reason I’ve been able to do this is because of my city and location. Part of it is because I’m much better than the average person at doing deliveries because I’ve been doing them for half-a-decade (yes, there is skill involved in the delivery game – it’s why I’m able to make more than others even though we live in the same place).
- Grocery deliveries with apps like Shipt and Instacart. I’m still not the best at using these apps, mainly because my grocery shopping skills aren’t great. I’m more in the $20 per hour range when doing these gigs, but I know that people who are more efficient can hit that $30 per hour or more mark. If you can combine these apps with your own grocery shopping, then it makes it even better.
For my $1,000 per month goal, the gig economy makes particular sense because you can earn this money in piecemeal chunks whenever it makes sense for you. This makes it much easier to hit the $32-$33 per day goal since you can fit these gigs around your schedule and do them little by little.
Do What You Can
If you can’t do $1,000 a month of side hustle income, then consider trying for something smaller. $500 per month for example.
If you break that down, you’ll only need to make $16 to $17 per day. That’s an amount so low that you almost have no excuse not to do it. Even $500 per month maxes out a Roth IRA at the end of the year and can be worth hundreds of thousands of dollars over the long term.
That’s my challenge for this year. Give it a shot and see what you can do. You might be surprised at what you can accomplish.
This post may contain affiliate links. Financial Panther has partnered with AwardWallet and CardRatings for our coverage of credit card products. Financial Panther, AwardWallet, and CardRatings may receive a commission from card issuers. Some or all of the card offers that appear on the website are from advertisers. Compensation may impact on how and where card products appear on the site. The site does not include all card companies, or all available card offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
More Recommended Ebike/Scooters
Check out these other ebikes and scooters I've reviewed:
- Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
- Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
- Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
- Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
- Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
- KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
- Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
- Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
- Hiboy S2 Scooter – The Hiboy S2 is an excellent entry-level commuter scooter that's perfect for someone looking to save some money in transportation costs and improve their commute. Check out my Hiboy S2 Review.
- Hiboy S2R Scooter – The Hiboy S2R is one of the more interesting electric scooters I’ve been able to test out. It’s not a high-powered scooter, but for an everyday transport option, it’s very useful, especially given some of the unique features that it has. Indeed, for the price, the Hiboy S2R might be the best value scooter I’ve used. Check out my Hiboy S2R Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($100) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
- SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with just $10 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
- Webull (20 free stock shares) – Webull's current promotion gives you 20 free shares valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free shares using Webull.
- Moomoo (15 free stocks) – Moomoo is a free investing app currently offering 2 different referral bonuses if you open an account using a referral link. Read my Moomoo referral bonus guide for more information.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
- Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Upgrade ($200) – Upgrade is a free checking account that’s currently offering a $200 referral bonus if you open an account and complete a direct deposit. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Here’s a post I wrote with more details: Upgrade $200 Referral Bonus – Step By Step Directions.
- Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
- Fairwinds Credit Union ($175) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
- Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- US Bank Business ($800) – This is a fairly easy bank bonus to earn, since there are no direct deposit requirements. In addition, you can open the Silver Business Checking account, which comes with no monthly fees. Check out how to earn this big bonus here.
- GO2Bank ($50) - GO2Bank is an easy bank bonus that I recommend people take advantage of if they have an easy way of meeting the direct deposit requirement. I like that it’s easy to open the account and that the bonus pays out quickly. Check out my step-by-step guide on how to earn your GO2Bank $50 referral bonus.
- Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link. Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
- Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
- Varo ($25) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $25 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
- 5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
- US Bank Business. US Bank is currently offering new business customers a $800 signup bonus after opening a new account and meeting certain requirements.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $100 for opening an account.
- Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
Sadly our rates are much lower here, guess that’s cause there’s too much cheap labour available. Uber rates are around $0.50 per mile and grocery deliveries are $3 per delivery. Not very lucrative when trying to grow net worth from $1m to $2m. In fact no side hustle that includes a labour component is worth it as a side gig.
Dang, that stinks. I think by definition, a side gig has to have a labor component. Otherwise, I call it investing.
On the positive side, it means I can have a domestic service for around $15/day!
Similarly if I were to get into home renovations, it would be pointless to do it ourselves as it makes no profit but would need to do a full development because it requires a team of labour.
Hi Kevin! Glad to know that you’ve been crushing your side hustle income goals. It’s always really inspiring to read your monthly side hustle income reports and I’m always looking forward to them 🙂 I’m currently making less than $1,000 a month with my tutoring side hustle tutoring, but I’m hoping to start cashing in on more opportunities soon. Here’s to becoming a millionaire on 1-2 hours per day!
Keep it up!