Side hustles – what people are doing to increase their earning power

An often-overlooked way to increase your savings is by increasing your income through a “side hustle,” a part-time gig that lands you more cash.

Save with SPP took a look around to see what some of the top side hustles are these days.

According to BlogTO, side hustles are growing in popularity.

“Inflation, economic uncertainty, and stagnant wages have made it expensive to live in Canada, so finding side hustles is one way to earn extra income,” the blog begins. As well, the blog continues, Canadians are saving just seven per cent of their earnings, “rather than the 20 per cent rule of thumb.”

That’s why, the article notes, “nine million (28 per cent) of Canadians reported being part of the gig economy,” according to recent research from Leger.

“Nearly half of Canadians, including those earning over $100,000 in their primary jobs, said they’d be financially stressed without their side hustle. A total of 55 per cent said that income from their side hustles goes towards non-negotiable needs, and 59 per cent put their extra earnings towards savings,” the article adds.

OK – so exactly what kind of gigs are people doing?

Freelance work exists for those with graphic design skills, and “if you can fact-check, research, edit and understand Search Engine Optimization (SEO), you might want to consider remote writing or editing jobs,” the blog tells us.

Another category, the blog continues, is e-commerce, or selling things online.

“Whether you enjoy making jewellery or candles, you can turn your hobby into a passive source of income by selling your creations online. If you’re not that crafty, you could declutter your home by selling items you no longer use,” the blog reports.

Other ideas: delivery jobs, dog walking, or teaching others a skill – such as music lessons, the blog adds.

The Made in CA blog provides us with a few more ideas.

Renting out extra space, the blog explains, can be a great way to make more money.

“If you have unused space, this is a great way to make extra money in Canada. You can rent out spare rooms for short or long-term lets, basements and attics for storage, or even parking spots, especially in busy urban neighbourhoods where parking is expensive and in high demand,” the blog tells us.

Another possibility is “social media management.”

“If you enjoy creating content for social media, you might try your hand at offering your services as social media manager. Many small businesses need help with posting content and ad campaigns on social media platforms to increase brand visibility and recognition. Social media managers generally offer services such as brand strategy development, post scheduling, and analytics tracking to support businesses in growing their online presence,” the blog explains.

We already heard about dog walking as a side hustle, Made in CA also suggests pet-sitting as a way to make some extra cash.

Some final ideas from the Thrive North blog include being a “virtual assistant,” hired to work from home on helping with “scheduling, research, email and bookkeeping.”

Another idea that it is demand these days is snow removal, the blog continues. Along with junk removal or seasonal work (lawn cutting), such gigs are frequently available, the blog points out.

“The best side hustle for you will depend on your skills, available time, and income goals. Start small, stay consistent, and watch your side hustle grow into a sustainable source of financial freedom,” the blog concludes.

If you are hoping your side hustle will create more money to save long-term, you may want to consider opening a Saskatchewan Pension Plan account.

SPP is ideally suited for bits and pieces of savings. There is no fixed contribution rate, so you contribute any amount you like to grow your retirement nest egg. You can also transfer in money from registered retirement savings plans (RRSPs) you might have.

SPP will then carry out the job of investing those hard-earned dollars in our professionally managed, low-cost, pooled fund. When it’s time to turn savings into income, SPP options include the security of a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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Nearly one third of Canadians have no retirement savings

A fact-filled article by Nicole Blair for the Made in CA blog reveals some statistics – some positive, others a bit grim – about the retirement savings and income habits of Canadians.

She starts by posing this classic question – “have I saved enough money to retire comfortably?”

It’s a hard one to answer, but let’s dive into this well-researched piece.

Last year, she writes, 6.2 million Canadians received Canada Pension Plan payments. The average amount received, including Old Age Security, was $15,159, she continues.

She then looks at the main retirement savings vehicle in this country, the registered retirement savings plan (RRSP).

“Canadians,” she writes, “should save between $700,000 and $1 million for their retirement.” She later adds that you should save enough to replace 80 per cent of your “current spending… to maintain your current lifestyle once retired.”

To that end, 69 per cent of us have opened RRSP accounts. As well, she notes, “in 2019 there were over 6.4 million registered pension plans.. in Canada.”

However, not everyone has an RRSP or belongs to a workplace pension plan, and not all of us have savings, Blair notes.

“Almost a third of Canadians have not saved or thought about retirement,” she writes. “People living alone find saving for retirement harder than the average,” she continues. A total of “62 per cent of Canadians under 35 are saving for their retirement, but only one-fifth think they are on the right path to meet their goals,” she adds.

A slim “12 per cent of Generation X Canadians feel confident they will achieve their retirement saving goals,” Blair explains.

While the average amount Canadians have saved in an RRSP is an encouraging $111,922, Blair says, that figure falls short of the required amount.

“The opinion on how much you should save for your retirement varies. The average amount is around $700,000. However, some financial advisors would say $1 million is needed to retire comfortably in Canada. Of course, the amount you will need depends on where in Canada you plan to retire,” she notes.

“When calculating how much you will need, you need to consider all fixed costs as well as other expenses. Fifty-nine per cent of Canadians cannot estimate how much they would need to retire comfortably, while 50 per cent hope they will have cleared all their household debt by the time they retire,” she continues.

“A way to calculate how much you need is to take 70 per cent of your salary and multiply it by 25. The 25 represents living for 25 years after retirement. Using this formula, a person on a $60,000 yearly salary will need to save $1.05 million (70 per cent of $60,000 is $42,000, multiplied by 25 equals $1.05 million).”

This is a revealing article. The clear message that comes through is that without income from either a workplace pension plan or your personal savings, you’ll be living on a rather spartan $15,159 per year.

If you are eligible to join any kind of retirement program at your workplace, be sure to sign up and contribute at the maximum rates. If your organization doesn’t offer a pension program, consider using the Saskatchewan Pension Plan as your company’s program. SPP is open to individual members, but also organizations. Find out how SPP can help you build a strong retirement future!

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