So you’ve decided that you need some extra money and need to start a side hustle. You’re not by yourself. According to Self Financial, 45 percent of working Americans have a side hustle. However, side gigs require some planning to ensure they are as beneficial as possible.
Don’t try to do too much at first.
You might be surprised at how much money you can make if you work 20-30 hours per week at a second job and want to jump right in. The problem with this is that you will immediately overexert yourself. Your work quality may suffer as well, because you’re rushing from zero to 100 without taking the time to truly understand your new job.
Instead, start with a few hours per week to see how you can fit the new side gig into your schedule and how you feel about juggling both jobs. As you become more proficient at both jobs, you will be able to work more hours and thus earn more money.
Inquire as to why you want a side job.
A side gig is a lot of work, so it’s best to start with specific goals in mind. Are you attempting to pay off your debts? Want to save more money? Should you invest in stocks? Or are you attempting to launch a new career? Get paid to do something you’re interested in?
If you can’t pinpoint why you have a side gig, it will probably feel like more trouble than it’s worth. Even if you have a good reason, your side hustle can be exhausting at times. Consider why you’re doing this, and if you’re tired, consider whether the reason is still worth working longer hours.
Recognize Your Value
You may believe that because you are only doing a side job, you are not entitled to charge much, if anything at all. However, you are still devoting your valuable time to a task. That alone merits fair compensation. You don’t want to work a second job only to be underpaid for it. If the goal of taking on a side gig is to earn more money, being undervalued completely defeats the purpose. Investigate how much other workers in your field are paid, and don’t be afraid to say no if your employer cannot match it.
Plan for What You’ll Need
Perhaps you’re starting a new job that necessitates the acquisition of items you don’t already have. Find out how much those will cost before agreeing to a job to ensure the investment is worthwhile. Although some side hustles may not necessitate any new equipment or expenses, you should budget some money to advertise your services regardless of your hustle. This could include creating a website or signing up for a Yelp for Business account.
Prepare for Tax Season
When it comes to taxes, side jobs are typically a little complicated. You may have multiple tax forms from various clients, and depending on how profitable your side gig is, you may be required to pay quarterly taxes. You should also keep track of all of your business expenses so that you can deduct them.
It’s best to consult with an accountant about what you’ll need to keep track of or pay before you start working so you’re not caught off guard when it comes time to file your taxes.
You Shouldn’t Be Afraid to Fail
It’s critical to remember that when you start a side hustle, you’re effectively starting your own business. There is a lot to learn, and no one is expected to know everything when they first begin. You can do all the research and preparation you want, but the best way to learn is to do. You will make mistakes while working, but you will be able to learn from them. Customers may be disappointed, and taxes may be underestimated, but this is all part of the process. You’re doing it right if you’re getting what you need from your side hustle.