The Freelancers' Blog

4 Ways to Use Your Stimulus Payment to Grow Your Side Hustle

Mar 18, 2021 7:06:33 PM / by SoleVenture

Canva Design DAEZJrSFowgLast week, President Biden signed the $1.9 trillion American Rescue Plan into law. The Plan has several benefits that can help freelancers. One of the biggest benefits is the payment of an additional cash stimulus to qualified individuals and families. If you reported less than $75,000 ($150,000 if you filed jointly) on your last tax return, you’ll receive a $1,400 stimulus payment per person, including children and dependents. This means an eligible family of 4 would receive $5,600 – this is a lot of money! (Use the IRS’ Get My Payment Tool to see when and how you will receive your payment if you haven’t already.)

At SoleVenture, we understand that it might be tempting to use your stimulus to pay down debt, build up cash reserves, or even make a feel-good purchase after a difficult year. However, you will be making a significant investment in your future and in your financial security if you use part of the stimulus payment to help grow your side hustle – or even turn your hustle into a full-time freelancing career. Here are a few ways to use your stimulus payment to help grow your business and secure your financial future:

1. Incorporate Your Business & Grow Your Bottom Line

If you have a side hustle or you are considering freelancing, one of the best investments you can make dollar-for-dollar is to incorporate your business. Incorporating is easy and inexpensive, and it allows you to take advantage of lucrative tax benefits that help keep your money in your pocket. In addition, incorporating your business can help shield you from certain legal and financial liabilities since it is the entity itself and not the individual that is generally responsible for these things. Transforming yourself into an “official” business yields an excellent ROI that can result in more money in your bank account and more financial security for your future.

2. Secure Affordable Health Insurance

One of the main reasons we built SoleVenture was because accessing affordable, quality health insurance can be challenging when you are a freelancer or considering transitioning from traditional employment to self-employment. Employer-sponsored plans are not an option, and individual plans often seem too expensive. The good news is that buying health insurance doesn’t need to be difficult. And it doesn’t need to be cost-prohibitive! Thanks, in part, to the American Rescue Plan, open enrollment for major medical plans was extended and potentially made more affordable. In addition, at SoleVenture, we provide you with access to both major medical plans and inexpensive, high-quality alternatives.

3. Take a Course or Get a New Certification

Depending on your chosen or desired profession, now might be the perfect time to invest part of your stimulus payment into obtaining a new job-related certification or taking a course or class to enhance your skills. This can help you increase your billable rates and deliver a better product or service, leading to significantly more money over time. There are a number of resources out there to help you get started, including sites like Coursera or edX. In addition, local collages and online schools can also provide you with some great options.

4. Purchase Life Insurance

Life Insurance is a comparatively inexpensive way to take care of your loved ones and offset costs and expenses associated with your death and related loss of income. Certain types of life insurance policies can also be used to supplement your retirement savings. Check out this easy-to-use tool to shop for different life insurance policies and ensure you protect your assets and your loved ones.

 

The stimulus payments made under the American Rescue Plan are an ideal way to make your side hustle more lucrative and invest in your professional future. In each example above, the relatively small investment made now will increase your financial security and well-being in the long run.

Tags: Health Insurance, Freelancer, Taxes, Incorporate, Form Your Business, Business of One, Side Hustle, American Rescue Plan, Stimulus

SoleVenture

Written by SoleVenture