The Art of the Side Hustle
A side hustle is a great way to increase your earning potential. What is a side hustle? It’s a way to make extra money outside of your full-time job. With so many American’s living paycheck to paycheck, a side gig can help you to earn enough to reach your financial goals faster, from paying off debt to saving for a new home or for retirement. It may also be a great launching pad for your own business.
The benefits of a side hustle
Side hustles come with many benefits. First and foremost, as we mentioned above, they enable you to improve your cash flow. Many side hustles also provide the flexibility to meet busy schedules, enabling you to work and earn when it’s most convenient for you.
5 questions to ask yourself when considering a side gig
1. What are my interests and skills?
Your interests and likes may help determine the best side hustle for you. If you enjoy it and are experienced at it, you’re more apt to stick with it. Are you an amateur photographer who loves taking pictures? Do you love to shop? Make a list of all of your interests.
2. Can any of my interests or hobbies be turned into a moneymaker?
Do you play a musical instrument? Are you a pro at developing apps? Are you a fitness fanatic? Are you crafty? Any of these interests might translate into a lucrative side job.
3. How much time is available in my schedule for a side hustle?
The amount of free time you have will be another determining factor as to what type of side hustle will best fit into your life. Is your current job 9 to 5, leaving your nights and weekends free? Do you work swing shifts with a crazy schedule? Don’t worry, there are many options for you to earn some extra cash.
4. How much do I want to earn?
What’s your goal? Are you looking to pay off a large debt, save for a wedding, or just stash some extra cash? If you’re just looking for some extra mad money every week, you may not be as determined as someone who is looking to purchase a new home and needs to make some significant cash. Some side gigs have the potential to earn a lot more than others.
5. What will it cost me to get my side hustle going?
Certain side hustles take a large investment on your part, while others may cost you nothing. For instance, if you become a freelance writer, it may cost you very little, while starting your own online store may mean a heftier investment. Depending on what you are doing, you may need to develop a business plan, form an LCC, invest in a website and marketing materials, or purchase software or inventory. Your start-up budget can help determine your side hustle options.
Consider the tax consequences
Depending on your tax bracket, your tax liability may increase significantly with a side hustle. If this is a concern for you, we suggest you speak to your accountant or tax advisor to see how a side job may affect your taxes. It may be more complicated than you think. Or, perhaps it’s not as complicated as you think. Depending on the type of side hustle you choose, you may need to make estimated tax payments. Be sure to keep records of everything you spend related to your new side business. A tax advisor will also be able to tell you if you need to form a business entity for your side gig. For some you may need to, for others, you won’t. If it’s more of a side business, you may also need to set up separate bank accounts. There’s a lot to consider and it all depends on the type of side hustle you choose.
Profitable side hustles
Start your own eCommerce Business
If you have a product you think would be a hit with consumers, you may be considering starting your own online store. If you’re just testing the waters, an easier way to sell your product may be through Etsy, eBay, or Facebook Marketplace. Another option is Amazon. You may have thought it was only for larger product manufacturers, but it’s not. Tap to learn more about selling on Amazon. If you’re looking more to start your own online marketplace, Squarespace and Shopify are two great resources. Squarespace even offers webinars geared at getting started and launching your own online store. Shopify also provides tips on building your brand and your store. Chances are, one of these eCommerce options will fit your needs.
Retail Arbitrage Flipping
This idea is simple. You find a discount item at a big box retailer such as TJ Maxx, Marshalls, or Walmart and find out what the item sells for online. You can do this by simply performing a search for the product on sites like Amazon or eBay. You’ll see data on current listings, sold items, or both depending on the site you’re using. There are even cell phone scanners that can be bought and used in-store to show how much particular items are selling for online. Once you find an item with a large enough price difference, buy it and flip. It’s that easy. Click here to learn more about flipping from Gary Vaynerchuk.
Deliver food or groceries
Everyone needs to eat, right? That’s why food delivery apps and grocery delivery services have become so popular. It’s a fast-growing trend and great side hustle that costs little to get started. You typically just need to be above a certain age with a valid driver’s license, have a dependable vehicle with certain specifications, have valid insurance, driving experience, and a good driving record. You’ll also need a smartphone to access the app for assignments and pass a background check. Tap to learn more about delivering for UberEats, DoorDash, Grubhub, or shopping and delivering for Instacart. A great perk of these delivery jobs is the flexibility of when you work. Some people choose to work for multiple delivery services. The cost of gas and vehicle upkeep should be a consideration when thinking about a delivery side hustle.
Ridesharing
The ultimate side hustle, driving for Uber or Lyft, provides you with the flexibility of working when and where you want. Requirements are a little stricter than the food delivery services, with more specifications regarding vehicles, experience, insurance, proof of residency, and screening. An extra cost you may incur when driving for a rideshare company is adding a rideshare endorsement to your auto insurance policy. Other costs include gas, vehicle maintenance, and keeping your vehicle clean. You will also have wear and tear on your vehicle from use.
Writing
Freelance writing, starting a blog, or writing an informational or fiction book can all be great ways to earn some extra dough. This can be a great side gig for experienced writers, as well as those who just enjoy creative writing. In addition to traditional writing services, there is an opportunity for grant writing, copywriting, and even proofreading. If you’re interested in starting a blog, you’ll need to select a niche, a catchy name, and choose a blogging platform to start. Keeping your content fresh, unique, and interesting can help you turn your love writing into a successful blog. Bluehost provides some tips on starting your own blog and also provides hosting services.
Tutoring
With the recent pandemic affecting so many school children, many have fallen behind in their studies. If you can develop a niche, tutoring can turn into a big moneymaker. Think test prep tutor, language or ESL tutor, or math tutor. Stay current with your syllabus. You can offer online or in-person tutoring, whatever best fits your needs and your schedule, and that of your clients. Identify your target client. Is it a specific age or grade range? Use your existing contacts to get the words out about your tutoring business. Word of mouth is a great way to secure your first clients. You may also want to contact local schools and early learning centers about your tutoring business and offer discounts. There’s no better time to start a tutoring side gig.
Handyman or woman
Are you handy around the house or garden? Can you make minor repairs, paint, build a fence, landscape, or mow lawns? This might be the ideal side gig for you. A good handy person is hard to find and a valuable asset to many. Because handy people are in such high demand, getting started may be a simple as a few posts on social media offering your services and passing out some flyers in your neighborhood.
Babysitting, Senior Sitting, or Dog sitting
If you love kids or dogs, this is a great way to spend your spare time earning money. In addition to getting the word out to friends, neighbors, and other contacts, there are two sites that can help. Rover is a marketplace for those looking for boarding, housesitting, drop-in visits, doggy daycare, and dog walking services. Urban sitter is a site to apply for jobs as a babysitter or nanny, tutor, senior care, or pet care. Care.com is a site that advertises for trusted caregivers for childcare, senior care, or pet care. There’s a section to apply to jobs.
Social media management
If you’re in the know when it comes to trends in social media, this may be a great option. Managing the social media accounts for a local business can help increase your earnings. Many small business owners don’t have time or know-how to keep up with regular postings on Facebook, Instagram, and Twitter. In just a few hours a week, you may be able to manage multiple accounts. If you have some creative talent as well, you may want to create Facebook ads. If you’re really good at social media management, you may be able to train small business owners to manage their own. Social media is here to stay, and this is a skill that should net you a nice hourly rate.
Interior decorating
If you’re gifted at pulling together a beautiful room, your skills might earn you some big bucks with an interior decorating side gig. This is a specialized field that can be fun for someone who truly enjoys it. Incorporate home and room organizing services to build an even larger client base. This is a service that many people need.
Get cracking and launch your new side hustle soon
Hopefully, our side hustle ideas give you some good insight into what might work best for your needs and available time. You don’t have to quit your day job to get started on the road to entrepreneurship. You can start with a side hustle and grow from there.
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