This transcript was generated from the episode audio and may contain minor errors.
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Welcome to a new month. It is the month of September, 2021, episode 1705. Of course, you could be listening at any time in the future. If so, that's awesome too, because I do my best to keep all of these episodes very relevant and evergreen long into the future. So welcome to a new month or welcome to this episode, whatever the case may be.
My name is Chris Guillebeau. How does a side hustle fit into your overall savings plan? That's what today's listener wants to know in response to some recent comments on different asset classes. Now, you know, when I talk about the importance of having more than one source of income, really I'm talking about security. I often mention it in that context of security.
What if something changes in your life? What if you lose your job? What if you wanna quit your job? What if you're tired of listening to somebody else tell you what to do? Or, you know, even if you're not in that situation, more security is always good.
So the other component, in addition to earning, the other component to having more money is savings and investments. So we are focused mostly on earning here. I don't wanna get sidetracked from our mission, but another way to have more security is through these additional forms of savings. So how might a side hustle fit into your overall savings plan? And what did we mean specifically about those different asset classes?
All right, that's the question, detailed question, and my answer is coming right up. Stay tuned. [Music]
Hey, Chris, this is Marshall, and I've been listening to the show for a while now. In the bonus episode you did with a bank executive, he mentioned something about the importance of saving in different asset classes. Can you explain that more?
Also, does it apply to earning in addition to saving? All the attention on meme stocks and high real estate prices has got me thinking I should be doing more to diversify my assets. But there's so much conflicting advice out there that I don't know where to start. Thanks, and looking forward to hearing your thoughts. [Music]
Marshall, what's up, man?
Thank you so much for being out there. So for those who don't recall that episode or just didn't listen to it, one of the things that bank executive mentioned, I had this conversation with a senior executive from US Bank, and one of the things he mentioned was that savings in all asset classes, or at least many different asset classes, is important. And he said that in response to my question of whether we should all invest all of our money in Dogecoin, which was mostly a joke. But I was actually curious what he thought about digital currency and how a traditional finance executive would answer that question. So I think he would say in response to this question, or at least if I understand his answer, he was saying you should be investing in stocks and equities and bonds, perhaps, like all the normal retirement stuff.
But it's also good to invest in real estate, at least for some people, there's an opportunity to leverage. And then, of course, there are other asset classes as well, including those digital currencies that I was asking about, perhaps not Dogecoin, but Bitcoin, Ethereum, et cetera, NFTs, all that kind of stuff. So just as you should diversify your earnings, which is what I talk about a lot, so too should you diversify your savings plans. Now, I've been learning a lot about this in the past couple of years. I actually think it was a mistake on my part to not take it more seriously sooner.
So it's been interesting to study up and learn more about the new economy or the new economy, I guess we should say. So savings is good to just kind of like bring it back to the question about side hustles. Savings is good, but so is earnings. And I tend to focus on earnings because if you have a low or medium salary or just a lower medium income, and you have no other money coming in, it's gonna be hard to get out of debt and save real money for the future. And that's why the right side hustle or side hustles can be so important.
If you have no money to invest, that's the problem you need to solve first. One way or another, the whole goal here is to build your own security. Build your own security through savings, through earnings, through diversification, really through investing in yourself, like investing in yourself, investing in your own expertise, believing that your competence, your skills, your knowledge, ultimately that is the most important asset, more than any savings plan, more than any job, more than anything. So hopefully that's helpful in tying things together, different asset classes, savings, earnings, et cetera. But listeners, if you have a question of your own or a comment, of course, come to sidehustleschool.com/questions.
I look forward to continuing this dialogue all throughout the rest of the year. So glad you're out there. You can subscribe or follow wherever you get your podcasts. My name is Chris Guillebeau. The program is Side Hustle School.
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From the Onward Project.
