Lesson #5: What Are Your Potential Earnings?
Phew, yesterday's lesson was a bit of big one - how are you feeling? Did you find at least a few of your skills were viable?
If you DIDN'T find any of your top 3 skills (the ones you identified back in Lesson 3) were viable, go back to Lesson 2 and run ALL of them through yesterday's exercise.
If you did find viable ones, then you're ready for today's exercise!
Using the viable skills you identified yesterday, I want you to now look at what your potential earnings would be for each of those skills, based on the following formula:
Average Hours Worked per Month (x your current wage + 10%) + Monthly Overheads/Average Hours Worked = Hourly Rate
Once you've got your hourly rate, go ahead and run some numbers based on different hours you might work.
On average, most people who are working a full-time job can dedicate 10-20 hours per month to a side hustle.
Let's look at a couple of examples. First, let's work out our hourly rate based on average hours worked per month being 20.
▪ Your current wage = $30 + 10% = $33
▪ Average Hours worked per month = 20
▪ Monthly Overheads = $110
$660 + $110 / 20 = $38.50 is your hourly rate
Remember, you’ll need to factor in tax here as well. This is not included in the example above.
Let's say you want to earn an extra $1000 per month. Based on an hourly rate of $38.50, you'd need to work approx. 26 hours each month in your side hustle.
You can play around with the figures to see what your potential extra earnings will be. Don't forget to factor in tax.
You should seek the expertise of a qualified accountant with regards to tax if you're not sure of your requirements.
Jump to it!
This part of the process is exciting — because it gives you an opportunity to see exactly what you could earn outside of your J.O.B...