This One Side Hustle Strategy Can Speed Up Debt Payoff in the Next 12 Months
Use that extra income to get out of the hole. These days, many people carry debt — and more often than not, they also have a side hustle. Why not use that extra work to pay off debt and do it within a year?
According to Roxana Colorado, CEO of Business Transformation and international business strategist at Kandula International, the most effective side hustle strategy starts with abandoning the idea of simply chasing “extra income” and instead calculating whether an opportunity can actually generate usable money.
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Understand Your Side Hustle
“A side hustle can absolutely help someone pay off debt over 12 months, but only when the person understands the full cost of the hustle,” Colorado said.
That includes accounting for supplies, transportation, time, childcare, marketing, tools, fees, taxes, delivery, storage — and the number of hours it actually takes to earn the money.
“A lot of people start with, ‘What can I sell?’” Colorado said. “I think the better question is, ‘What can I earn profitably with the time, energy and responsibilities I actually have?’”
Stick With What You Know
“Do not assume the best side hustle is something new,” Colorado said. “The fastest path may be the skill, career or network you already have, used with more intention.”
To make the approach work over 12 months, Colorado suggested starting with a clear debt payoff goal.
“If you want to pay off $6,000 in credit card debt in one year, you need $500 a month beyond your minimum obligations,” she said. “If the number is $12,000, you need $1,000 a month. Be specific.”
From there, she advised calculating a realistic hourly income target. “Someone who needs $1,000 a month and only has 20 available hours needs to clear $50 an hour after costs,” Colorado said. “If the hustle only nets $12 an hour after expenses, the math will create burnout long before it creates freedom.”
Choose Gigs That Fit Your Life
“A parent with limited evening availability, someone with transportation limits, or someone already working long shifts should not copy a hustle that requires constant delivery, inventory or unpredictable hours,” Colorado said.
Instead, she recommended creating a simple operating plan.
“Know what it costs to start, how many hours you can realistically work, the profit per sale or client, how many sales are needed each month, where customers will come from, and what you will stop doing if the side hustle takes off,” she said.
Don’t Let a Side Hustle Add To Your Debt
Colorado’s biggest insight: A side hustle should not become another financial leak.
“If you do not know your numbers, you can work harder and still make very little progress. Once you know your numbers, you can choose the path that produces the most income with the least unnecessary strain,” Colorado said. “Before you ask what you can sell, ask what you can earn profitably with the time and responsibilities you actually have."
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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