6 Side Gigs That Can Help You Retire Early

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Looking to say goodbye to the 9-to-5 grind early and embrace the freedom of early retirement? While diligently putting money away from your primary job is crucial, relying on your day job alone for an early retirement likely won’t be enough to build the hefty nest egg required for an early exit from the workforce.

Early retirement also poses unique challenges because you won’t have access to social security benefits until age 59 ½, so, if you plan to retire a decade or two before then, you’ll need quite a bit more saved. That’s where a side gig comes in handy. With the right side gig and some strategic financial planning, you can fund your early-bird retirement dreams and retire on your terms.

Freelance Writing 

• Average Pay Per Hour: $26 

If you have a flair for words and are looking for a side gig that allows you to work as much or as little as you want, from anywhere you want, consider taking up freelance writing as a side hustle.

“Freelance writing or content creation is a highly paid profession for experts in this field,” said Erika Kullberg, personal finance expert and founder of Erika.com. “In general, one can earn anything between $20 and $100 plus per hour. The main requirement in this ‘gig’ is writing skills, creativity and attention to detail, working anytime, and from anywhere, except where work is not permitted.”

Virtual Assitance

• Average Pay Per Hour: $25

Do you thrive on keeping things organized and possess strong communication skills? Why not leverage the skills you already have to earn extra income by becoming a virtual assistant? From managing emails and schedules to providing customer support, your day is likely to be filled with diverse tasks sure to keep you on your toes. 

“Another option with good earning potential is virtual assistance, hourly pay [is] $15-$50,” Kullberg said. “Good skills for this include being good at organization, excellent time management and solid office software experience. This job type allows you to support someone’s business or work as an entrepreneur, where you operate remotely, but still earn money.”

Online Tutoring 

• Average Pay Per Hour: $24

In today’s digital age, knowledge isn’t just power, it’s valuable currency. If you possess expertise in subjects such as English, math, or chemistry, you can leverage your skills to provide online tutoring services on platforms like VIPKid and Chegg Tutors. And the best part? You can do it all from the comfort of your pajamas, right in your home. 

“With average benefits starting from $20 to $50 per hour, online tutoring or teaching is now on the rise,” Kullberg said. “The key factors for this are your unique expertise concerning any specific subject and patience and communication skills. In the age of distance learning, online education is the fastest-growing sector of the education industry, making it one of the most promising career options.”

Investing in Real Estate

When it comes to side hustles, it’s impossible to beat the allure of passive income. Real estate investment, particularly renting out properties, is the side hustle and is the dream for those already juggling a full-time job due to the minimal effort it takes to maintain. 

“Renting out property allows you to take advantage of property management software that can do most of the work for you by automating processes such as listings, tenant screening, lease signing, rent collection, maintenance management and accounting, being a landlord is even less work,” said Ryan Barone, CEO at RentRedi. “When you can manage rental properties from anywhere with a few clicks on your mobile phone, that’s about as retirement-friendly as you can get.”

Editing

• Average Pay Per Hour: $31

Looking for a side hustle that offers plenty of reading and flexibility? Consider becoming an editor. With its low operational costs and the freedom to work remotely, editing is an enticing option for those with a knack for research and writing. 

“To pursue an editorial side gig, it’s necessary to know how to edit the content on a professional level,” said Phon Baille, founder at Edit Republic, an online editorial career training company. ” It’s also important to have good time and project management skills since editors work independently and need to meet deadlines. The independent nature of the job suits people who can work alone or are introverts. The pay varies depending on the niche you are in or what projects you take on. Editors can earn $45 – $75 an hour and up, depending on the niche. Business, medical and legal editors command higher rates. Proofreaders can earn $35 an hour and up.”

Technical Writing

• Average Pay Per Hour: $38

If you have a background in IT or engineering, technical writing offers a lucrative side gig opportunity where you can leverage the skills you already have. However, don’t let the need for expertise deter you, many technical writers enter with basic knowledge and learn on the job. 

“This role involves creating manuals, guides and documentation for complex subjects, primarily in the tech industry,” said Esther Strauss, co-founder of Step By Step Business. “What makes technical writing an ideal side gig for those already employed full-time is its flexibility. Most technical writing tasks can be managed remotely, fitting perfectly into evenings or weekends. The average pay for technical writing is quite appealing. Freelance technical writers earn anywhere from $30 to $50 per hour, depending on the complexity of the work and their expertise.”

How To Best Use Your Side Gig Money for Early Retirement

Now that you’ve explored ways to harness your existing skills and save for retirement with flexibility and savvy, let’s look at some ways to effectively use your side gig income for early retirement. 

If you’re eager to fast-track your retirement goals, follow these tips to avoid financial mishaps along the way. 

Avoid Lifestyle Creep

It’s tempting to justify splurging on luxuries like a fancy pebbled ice machine when your bank account sees a boost from your side gig earnings. However, avoiding the temptation to give into lifestyle creep is crucial for early retirement. 

“Lifestyle cost creep is a real phenomenon,” said Bert Hofhuis, founder of Every Investor. “It happens once people begin earning more income, and suddenly realize that unlocks discretionary spending they previously kept to a minimum, such as dining out higher-end groceries and more vacations. No matter how tempting, you must maintain your exact current budget if you want early retirement plans to pay off.”

Invest In a Diversified Portfolio

If you want to maximize your side gig money for early retirement, you’ll want to invest in a diversified portfolio to unlock the best growth potential. 

“This means spreading your gig earnings across various asset classes, such as stocks, bonds and real estate, to minimize risk while potentially increasing returns,” Strauss said. “The key to successful diversification lies in understanding your risk tolerance and investment timeline. By allocating your gig money wisely, you’re actively growing your retirement fund.”

Control Expenses

Even if you have enough saved to retire early, you can’t withdraw from your individual retirement account (IRA) until age 59 ½. Whether you plan to retire before or after that point, financial planning is going to be key. Tracking your expenses and staying within your spending budget by prioritizing essentials and minimizing discretionary expenses is essential to pre-and-post retirement finances. Remember, during retirement, you’ll be living off fixed retirement funds, so it’s important to establish good financial habits early so you can enjoy a fulfilling and stress-free retirement.

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All annual pay rates have been compiled from Indeed.com (unless otherwise listed).