In a country like Nigeria, where economic volatility, unemployment rates, and inflation continues to skyrocket, relying solely on a traditional job for income may be risky business.
This era of uncertainty has made it clear that building a financial safety net is more crucial than ever. One of the most effective ways to do this is by creating wealth through side hustles.
With the country’s unemployment rate around 33% according to the National Bureau of Statistics (NBS), many more Nigerians are seeking alternative income sources.
Thankfully, the rise of digital platforms and the trend of the gig economy provides an avenue for those looking to make extra income and build financial resilience.
According to a report by PwC Nigeria, the gig economy could contribute about $455 billion to Nigeria’s GDP by 2025. This is fueled by an increasing number of Nigerians turning to freelance work, online businesses, and other side hustles to boost their income.
Building A Financial Safety Net
A financial safety net basically serves as a buffer that protects you from unexpected financial shocks, such as job loss, medical emergencies, or economic downturns.
Your safety net may consist of savings, investments, or insurance. However, adding a side hustle to the mix is a dynamic way to enhance your safety net, offering both immediate cash flow and the potential for long-term wealth creation.
Immediate Income Relief
According to the National Bureau for Statistics – NBS, inflation hit 24.08% in 2023 and this has made the cost of living higher than usual.
With salaries often stagnant or even declining in real terms, many Nigerians now see side hustles as immediate relief to cover daily expenses, pay off debts, or support family members.
A recent survey by Jobberman found that 50% of Nigerian workers engage in side hustles primarily to cope with economic pressures.
This further explains the important role side hustles play in providing financial relief.
Diversification of Income
In an economy like Nigeria’s, where job security is often uncertain, having multiple streams of income is important.
With a profitable side hustle, you are able to easily diversify your income streams, reducing reliance on a single source of income.
This diversification can be your cushion against job loss, economic downturns, or other financial shocks.
Long-Term Wealth Creation
While side hustles provide immediate financial benefits, they also have the potential to help you build long-term wealth.
Many Nigerians have successfully turned their side hustles into full-fledged businesses, generating significant income and even creating jobs for others.
According to a International Labour Organization – ILO report, small and medium-sized enterprises (SMEs) account for 96% of businesses in Nigeria and contribute 48% of the national GDP.
Many of these businesses started as side hustles, highlighting the potential for your side gig to become your major wealth-generating venture.
Extra Cash Flow for Investments
- One of the most important benefits of a side hustle is the additional income it generates.
That extra cash you make can be put to work by investing in stocks, real estate, retirement accounts or rewarding plans like REAP, RTN or RWIN.
The earlier you start investing, the more time your money has to grow and a side hustle provides the funds you need to get started or increase your investment contributions, accelerating your wealth-building journey.
Skill Development and Career Growth
Many side hustles offer the opportunity to develop new skills that can be leveraged in your primary job or future business ventures.
Some of them include marketing, networking, social media management, and customer service.
These skills not only boost your resume but also open doors to higher-paying opportunities, in your main career and in potential future side businesses.
Financial Flexibility and Security
Having multiple income sources gives you more financial flexibility, allowing you to make choices that aren’t solely driven by necessity or financial pressure.
Whether it’s going on a vacation, starting a new business, expanding an existing business, investing in further education, or simply saving for a rainy day or retirement , the extra income from a side hustle gives you more options than you would have normally.
The beauty of side hustles lies in their diversity; there’s something for everyone, regardless of skill level or initial capital.
You can choose to go into freelance writing, drop shipping, online tutoring, content creation, or even ride hailing/delivery services, however, not all side hustles are created equally .
There are side hustles and there is the Rosabon brokerage program! Do you know that you can start earning extra income simply because you know people? Yes you read right!
As a Rosabon Broker, all you need to do is to connect us with people within your network in need of our financial products and services and we’ll do the rest!
Once we finalize things with them, you get your mouth watering commission ASAP without leaving the comfort of your home, office or business.
Are you ready to forge your path to financial freedom and secure your future? Sign up as a Rosabon Broker here today!
