Do I really need a side hustle?
If you’re at all entrepreneurial, you’ve probably considered this question.
Double hustling and the side gig economy is hot, and why shouldn’t you get some of that cash to do something that other people don’t have the know-how or time to do?
And there’s no end to the satisfaction of confronting a new problem, figuring out a solution, and walking away with the thanks of your customers. Humans are built to solve problems, yet some people never get the opportunity to solve much of anything in their jobs.
Problem-solving keeps you sharp and challenges your mind. It challenges your body, too, when you have to figure out how to install software you’re unfamiliar with.
And you will figure it out; it comes with the territory of running your own business.
The hundreds of successful side hustlers who came before you have been there. They feel your pain. They know the uncertainty of traveling a path that’s barely been blazed.
That’s why as my business has developed, I have listened to and tracked 11 good reasons people need a side hustle.
Once you’ve started a side hustle of your own, you will want to keep your ears open as well so you can craft your business to meet the needs of the customers you serve.
1// PAY DOWN DEBT
If career moves, salary negotiations, or raises are not in the cards for you to earn more money and pay down debt, you might need a side hustle.
When you’ve racked up debt across multiple loans, being free from it all seems like a distant dream.
But, it is possible to kick your debt to the curb!
You can use your side hustle to bounce back from a debt load that you feel like you can’t shake off.
For example, if you only pay the minimum due on your credit cards, the money from your side hustle will make room for you to double the payment on the debt with the highest interest rate.
I can’t talk about debt without identifying debt problem causers. Identify some of your problem-causers and understand the role they may play in your spending.
Some common debt problem-causers include:
- Eating Meals Out: Breakfast, Lunches, Snacks, Dinners, Happy Hours
- Habits: Coffee, Alcohol, Massages, Clothing
- Impulse Purchases: New iPhone is out? Boom! Purchased. Look at those boots. Added to the wardrobe! Set a limit on impulse buying.
- Hobbies: Pilates classes, Yoga, Crafts, Brewing Beer, Movies
These items add up, and they can cause the most harm to your finances.
If you struggle with giving up some of the things you enjoy, instead of depriving yourself, try setting a monthly cap or spending limit that you agree not to go over.
A couple of great tools that I always recommend are the SimplePlanning spreadsheet and my Time To Hustle planner. You enter your expenses and track your spending.
If you want more details around what you can cut from your budget to start saving today, head over to my blog post: How To Budget And Save Your Side Hustle Earnings.
2// EARN EXTRA INCOME
A side business gives you the opportunity to earn extra income that can go towards your unique wants and needs.
If the chances of you earning more at your current position are slim, and you’re in a place of wanting some extra money, this may be a reason you need a side hustle.
3// TURN YOUR HOBBY INTO A BUSINESS
Can you turn your hobby into a business?
Absolutely!
Most people pick up a hobby purely as something to do in their spare time, sometimes it’s hard to think about our passion as a business.
But if you want to be taken seriously—and you do if you want to get paid—you have to figure out what direction your business should take by meditating on your motivations and expectations.
So what drives your cross over from hobbyist to side hustler?
What’s the motivation to start a side hustle?
Everyone’s motivation to start a side hustle is different.
For example, I think the most awesome thing about getting a side hustle started is the fact that you’re your own boss and get to decide what’s important to you.
What are your side hustle expectations?
Let’s think about your side hustle expectations.
Think about what you’d like your business to look like and if you can really make it happen.
Let’s use an example to explain this.
If you’re a crafter and you want to take your crafting to a new, entrepreneurial level, do you have the cash to beef up your output?
Buying paper clips, pens, and pencils might not be so bad, but what if you need a heavy-duty embroidery machine, a large printer, or an industrial-sized loom?
These are the things to consider when you’re getting a side hustle started.
If you’re serious about growing your business, a loan might be something to consider. Or it might mean dipping into savings or reworking your household budget.
If you have no pennies to pinch, it’s time to get creative in your approach to production. Look into renting equipment or buying second hand, or reconsider the way you make things. Do you really need virgin wool or can you use thrift store sweaters?
4// TAX REDUCTIONS
If your side hustle takes up more than five hundred hours per year, you may qualify for some tax deductions.
To determine if your business qualifies, the IRS might ask:
- Do you have a business with income?
- Have you taken classes to help you in developing your expertise?
- Is it reasonable to expect a profit?
Once you meet the criteria for a business, you qualify for the right to deduct ordinary and necessary expenses for a self-employed business person, such as meals, telephone bills, office supplies, and membership fees.
Keep detailed records of your work-related expenses. Good recordkeeping leads to easier tax filing.
Now, I’m no tax advisor, so please consult a CPA, or at least check out the offerings for entrepreneurs in your area—local colleges, chambers of commerce, or libraries often offer small business classes for free or very cheap.
5// LEARN NEW SKILLS
If you want to learn new skills, then you need to side hustle and see if you find something you love.
After you’ve identified some side hustle ideas, and have done your research about each choice, the next step is to assess those options for “fit” by trying them out.
Evaluating each option against your unique skills, interests, experience, and values will help you answer the question, “Is this a good fit?”
Lots of potential ideas will sound exciting when you read about them however, you won’t really know whether they are a good choice until you’ve had a chance to actually test them out.
Fortunately, a side hustle or freelance job are ways to do that.
It makes sense to take on a side hustle or freelance job as a way to learn about a new industry.
For example, if you’re thinking of getting a certificate in health coaching, you might want to side hustle as a meeting leader with Weight Watchers to determine whether you like working in that industry.
Or, if you’re interested in selling your prized brownies online, but you have no real experience in the food industry, you might want to work for a local bakery to get a taste of life in the baking world.
Sometimes working in a lower-level job may require a bit of an ego adjustment, you will enjoy them more if you think of them as an apprenticeship and research opportunity.
6// FURTHER THE SKILLS YOU ALREADY HAVE
You might not realize it, but a side hustle gives you the opportunity to further the skills you already have while also doing something you enjoy.
Let’s say you’re a financial planner and it’s something you enjoy doing, you can seek opportunities that pay you to speak, write, and educate about money, in addition to the financial work you already do.
7// ENJOY A FLEXIBLE SCHEDULE
A side hustle can realistically be done on a flexible schedule. You decide your own hours and work on a part-time or full-time basis.
Working long hours in any job or occupation can take its toll on you and your family.
With a side hustle, you’ll have the flexibility to work around your kids’ schedules and birthday parties and recitals.
8// QUIT YOUR DAY JOB
If you want to quit your day job right away, find the time to side hustle.
Whether it’s before day in the morning or late at night after everyone is sleeping, find a time when you can be your most productive.
Then stick to it.
Plan to turn in your notice after you’re getting a good response to the work from your side hustle.
For those who must supervise themselves and thrive on the risks and rewards, self-employment is the only way to go.
You will never be happy or fulfilled without at least trying it.
9// REACH GOALS FASTER
You need a side hustle when you want to reach your goals faster.
Stop for a minute, and think about your goals.
Some of your goals may be things that you want to do in the not-so-distant future, like a vacation or like buying a new car, while others may be more distant, such as buying a new home.
You might want to take a fun trip, plan for one fancy date night, or travel to visit friends or family members you haven’t seen in a while.
Neither one of these situations is “better” than the other, but financially speaking, they look really different.
A side hustle can help you make progress on your goals and allow you to splurge.
Yes— you can splurge!
You can use the money from your side hustle to accelerate whatever it is you’re looking to do.
Not only can you build security and stability with the money from a side hustle, but you can buy some happiness and give yourself a treat when you put it to good use.
10// PROTECT YOUR ASSETS
To protect your assets and limit your liability, you’re going to need an incorporated side business because we live in a society with unscrupulous people.
You can be sued for just about anything.
And, if you’re sued and don’t have insurance, there will be no end to your financial troubles, because a plaintiff will go after your personal assets.
Therefore, protect yourself and your business by getting proper insurance coverage.
There are various options to help you with any part of the start-up, but I’ve found that The Contract Shop can provide you with all the legal paperwork you need to run your side hustle.
11// BUILD EMERGENCY FUND
If you’re one of the many Americans who doesn’t have enough cash to handle unexpected expenses, then you need a side hustle to build your emergency fund.
A small emergency fund can help you get through unexpected situations without pushing you further into debt.
Ideally, you should aim to save three to six months’ worth of “must have” expenses.
Keep this cash in a liquid account so you can access it when you need it.
Set a goal of getting your first $1000 stashed away and increase your savings from there.
There you go!
Here are 11 reasons that you might need a side hustle!
Ultimately, the best reason to start a side business will depend on your unique wants and needs.
The goal is not to burn you out but to give you the opportunity to earn extra income that can go towards your individual needs and goals while doing something you enjoy.
What Now?
Building a business as a side hustle and keeping it growing starts with financing. Check out my newest title, Entrepreneur’s Business Financing: Guide to Access Financing to Start Buy or Expand Your Business.
Do you have the support, training, and resources you need to succeed with a side hustle? Let me know in the comments below.
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