ultimate guide to side hustles
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The Ultimate Side Hustle Guide (What You Need to Know Before Starting)

The Ultimate Guide To Side Hustles

ultimate guide to side hustles

What is a side hustle or side gig?

A side hustle or side gig is one that you have while you maintain your day job. It is a way to earn some extra money on the side by doing something you’re passionate about, or something that utilizes your skills, talents, and hobbies. The ultimate guide to starting a side hustle provides a step-by-step outline for all the key things you need to consider when starting a side hustle as a way to generate income.

In an economy where everything seems to be expensive, having an extra source of income is becoming more of a necessity. By beginning a side hustle, you can make extra money that can go towards paying off bills, buying that latest gadget, or even saving money for that next vacation.

I have over 25 years of making money with side hustling. I have explored side hustles while working full-time and parenting 3 kids and I have dabbled in almost every type of side hustle, from real estate to blogging to investing. Heck, I had a serious side hustle when I was 5 years old selling lemonade! I’d love to share what I’ve learned.

What type of people are side hustles for and why bother side hustling?

According to a Bankrate survey, nearly two in five (39 percent) U.S. adults have a side hustle, and half of millennials and more than half of Gen Z-ers have a side hustle in 2023.

Side hustles are perfect for entrepreneurs with grit and guts who wants to take control of their financial future. Motivated individuals with a goal-oriented attitude who understand the value of a side hustle. It’s a way to create an additional stream of income that can eventually replace their primary source of income. Side hustles provide an opportunity to explore passions and achieve a sense of fulfillment while earning extra money. It’s also an opportunity to learn new skills, gain independence, and build wealth from the ground up.

Side hustles are particularly beneficial for those who want to test the waters of entrepreneurship but aren’t ready to quit their day job. You can test your product, your idea, or your service before investing all of your time and money into it. Side hustling is an incredibly valuable experience that teaches essential skills such as time management, marketing, and customer service.

Plus, it’s an excellent way to diversify your income stream, reduce risk and future-proof your financial life. With determination and effort, it can lead to a wealthier and more fulfilling life.

How to start a side hustle as a business

ultimate guide to side hustles

Starting a side hustle can be a great way to start a business. A side hustle is essentially a part-time job that you do in addition to your regular job or other responsibilities. It’s a way to earn some extra money while pursuing your other interests and passions. You first need to decide what you want to do. You could consider turning a hobby into a small business or providing a service that people are willing to pay for.

Freelancers can also start their own businesses by offering their services online. Once you have an idea, you need to create a plan to help you get started. This can include creating a business plan, setting up a website, creating marketing materials, and more. There are many resources available to help you start a new business, including online guides and courses that can help you learn the skills you need to succeed (see below resource section). Beginning a side hustle requires a lot of hard work and dedication, but it can also go a long way toward achieving financial stability and independence. A great side hustle awaits the eager entrepreneur!

Questions to ask when considering side hustle ideas

FAQ

When embarking on a side hustle, it’s crucial to ask yourself a series of questions to ensure a successful venture. Firstly, consider the resources you need to get started and whether you have access to them. Secondly, brainstorm ways to stand out in your particular niche, whether offering unique products or providing exceptional customer service. Additionally, don’t underestimate the power of customer reviews; they can make or break your reputation. As you plan, factor in the cost of living and determine how much extra cash this year you need to generate. Delve into market research to identify potential new clients and understand their needs and preferences. If you’re considering digital products like logo design or e-commerce, ensure you clearly understand the product details and market demand. Finally, analyze successful influencers and their strategies to learn from their experiences and apply those insights to attract new clients and start making money.

Pros and cons of side hustles

Side hustles, also known as gigs or freelance work, are increasing in popularity among individuals looking to earn extra income beyond their full-time jobs or businesses. The benefits of a side hustle include the ability to earn extra income, which can be a great way to supplement one’s earnings and save money for the future. Additionally, side hustles can provide individuals with the opportunity to explore other passions, improve skills, and expand their networks. However, side hustles also come with their own set of cons. They require additional time and effort on top of regular work or personal commitments, which can lead to burnout. Moreover, the cost of certain side hustles, whether it be purchasing equipment or developing a website can be expensive. The economy and demand for certain gigs can also fluctuate, making consistent and reliable earnings a challenge.

In summary, while side hustles can be a great way to earn extra income and diversify one’s skills, it is important to weigh the costs and potential burnout before beginning a new side hustle.

Finding the perfect side hustles for you

The key is to find the side hustle that fits your interests and skills and allows you to make good money. That being said, if you’re looking for small business ideas or ways to make extra money online, there are numerous options available these days.

There are endless possibilities when it comes to side hustles – from freelancing to starting an online store. Consider what skills you have and what you enjoy doing. If you’re great at graphic design, starting a freelance design business or selling your designs online could be a good option. If you love dogs, starting a pet-sitting service could be your perfect side hustle.

There are plenty of online and offline opportunities for side income, from freelance writing and graphic design to running your own small business. Research small business ideas that align with your interests and skills, and consider the potential for making good money. Another important factor to consider is your schedule and availability.

Getting set up

After you find the right hustle, getting set up can be a daunting task. It’s important to consider the cost of keeping your side hustle up and determine a clear business plan. It’s also important to determine the best location for the business, whether it be in a physical storefront or online. Once the business is set up and when you’re ready, it’s crucial to keep track of expenses and income to ensure profitability. For freelancers, setting up a dedicated home office space can help improve productivity and distinguish work from personal life.

How much do you need to start?

Starting a side hustle can be an excellent way to generate extra income, but how much do you need to start? The good news is that the cost of starting a side hustle can be very low. In fact, some side hustles can be started with just a few hundred dollars or less. However, it’s important to remember that your earnings will also depend on the effort and time you put into your side hustle. If you’re just looking to make a few extra bucks here and there, you might not need to invest much at all. On the other hand, if you’re serious about turning your side hustle into a full-time job, there may be more upfront costs involved. This can be especially true from some side hustles like real estate, for example, where you need to find money for a down deposit.

Side Hustle Ideas

Thanks to the internet, there are many online side hustles you can start with little to no cost. One of these side hustles is becoming a social media manager. If you have a knack for creating engaging posts and know how to engage with your audience, you can help small businesses manage their online presence. Another option is to start blogging. You can monetize your blog by using advertising, sponsored posts, and even affiliate marketing. With a side hustle, you can earn extra money while still keeping your day job. It’s a fantastic opportunity to hustle your way up to financial freedom. So, go ahead and start a side hustle and see how it transforms your finances in no time.

Online side hustles

In today’s fast-paced world, it’s becoming more and more common for people to find ways to make money on the side. One of the best ways to do this is through an online side hustle. Online side hustles offer a wide range of opportunities for people to earn extra income, from selling goods and services online to freelancing to participating in surveys. One of the best things about an online side hustle is the flexibility it provides. You can work on your side hustle from anywhere, at any time, and you can fit it in around your other obligations.

This freedom is especially valuable for people who have full-time jobs, families, or other important commitments. Like any hustle, online side hustles require hard work and dedication, but the rewards can be well worth it.

Freelance Writing

Freelance writing is a popular career option for those with a passion for storytelling and a knack for the written word. With the rise of the internet, freelance writing has become more accessible than ever before, making it possible for writers to work from anywhere in the world. There are many different types of freelance writing jobs available, from writing for websites and blogs to creating content for social media and marketing materials.

One of the most popular forms of freelance writing today is blogging. Many bloggers earn a living by creating content for their own websites or by writing guest blog posts for other sites. To be a successful freelance writer, it’s essential to have strong writing skills as well as knowledge of the current trends and topics in your chosen niche. Freelance writing can be a challenging and rewarding career choice, offering the freedom to work on your own schedule and pursue your passion for writing. However, it’s important to be persistent and stay up-to-date with industry changes and best practices to stay competitive in this fast-paced field.

Start a blog

How to make $2,000 a month with your side hustle blog.

Starting a blog is a great way to earn some extra income and even create a lucrative side hustle. With the rise of the online world, it has become easier than ever to start an online business, and blogging is a perfect way to do that. There are numerous ways to make money through your blog such as affiliate marketing, paid sponsorships, and displaying ads.

Affiliate marketing is one of the best and most popular ways to generate passive income through your blog. All you need to do is promote products and services by including affiliate links in your blog posts or through banners on your website. Whenever someone makes a purchase through your link, you’ll earn a commission. It takes time, effort, and some investment to build a successful blog, but once it’s up and running, the potential for extra income is endless. Blogging can be an excellent outlet for creative expression, and with some consistency and patience, it could turn into a full-time business. So, if you’re looking for a hustle that can earn you some extra income, starting a blog could be the perfect solution.

Freelancing Opportunities

According to Indeed.com, freelancing is a popular side hustle that can be very profitable. Freelancers can work in a variety of fields, such as writing, graphic design, web development, and more. Freelancers can set their own rates and work on their own schedule, making it a flexible and lucrative option. Freelancing is one of the best ways to make money online.

As a freelancer, you have the opportunity to work from the comfort of your home office, set your own hours, and earn a decent income. There are countless freelance opportunities available online, ranging from graphic design and writing to programming and virtual assisting.

As a freelancer, you can use online marketplaces to find potential clients, or even utilize your own social media accounts to showcase your skills and promote your services. With the right ideas and tips, you can build a thriving freelance business that generates a steady stream of earnings. However, it’s also important to understand the cost and tax implications of being a freelancer. It’s important to set up your business and keep meticulous records to ensure that you’re able to maximize your earnings and minimize your tax bill.

Investing in a Business As a Side Hustle

Investing in a business as a side hustle can be a great way to increase your income and secure your financial future. One option is to buy a gas station or carwash, an industry that has consistently shown growth over the years. With the increasing demand for environmentally friendly vehicles, investing in a charging station can also be lucrative. Another option is to buy a laundromat, as this is a stable and recession-proof industry. This business requires low overhead costs and requires minimal staffing. If you prefer a hands-off approach, vending machine businesses can generate passive income. With a variety of vending machines available, you can choose the type that aligns with your personal interests and values.

Furthermore, investing in an online company offers the flexibility to work from anywhere and can allow you to tap into a global market. Before investing, it’s important to research the industry, analyze competitors, and consider factors such as location and customer demographics. With the right due diligence, investing in a business as a side hustle can result in financial gain and personal fulfillment.

Go deeper: Check out the article I wrote on buying online businesses here:

Real Estate Side Hustles

making money with real estate as a scalable side hustle

Real estate can be a lucrative side hustle. One option is to invest in residential real estate, either by purchasing and renting out a property or by flipping homes. Purchasing a rental property can generate consistent passive income while flipping homes involves conducting renovations or upgrades to sell for a profit. Both require an upfront investment but can provide long-term financial gains.

Another option is to invest in Real Estate Investment Trusts (REITs). REITs are companies that own and manage income-producing real estate properties. By purchasing shares in a REIT, individuals can earn dividends from the rental income generated by the properties in the portfolio. REITs offer a way to invest in real estate without the hassle of managing properties themselves. However, they can also be subject to market fluctuations and can have high fees associated with them.

Overall, real estate can be a rewarding side hustle that offers passive income but requires reading valuable books on real estate, determination, and careful consideration of the investment options available.

Scaling Your Side Hustle

scaling side hustle graph up

If you have a side hustle, you may have started it to earn extra money or because you enjoy the hustle. Whatever the reason, you can scale your side hustle into a business with potential for growth. You need to start with everything you need to know about your hustle, including your target audience, competition, and pricing strategy.

Once you have that information, you can start developing a plan to scale up. This could involve expanding your offerings, marketing to a larger audience, or hiring employees or contractors to help. You’ll want to make sure you have everything you need to manage the added workload, from systems to manage orders and finances to strategies to manage your time. Scaling a side hustle takes time and effort but can be worth it if you want to turn your hustle into a full-fledged business. Don’t be afraid to reach out for help or advice from other entrepreneurs who have successfully scaled their side hustles. Join networking groups and clubs to gain insight and advice.

The Ultimate Guide to Side Hustle Resources

A side hustle is a great way to earn extra money while still being able to work your regular job. However, starting a side hustle can be a daunting task. That’s where the “Ultimate Guide of Side Hustle Resources” comes in!  Here are a few other great resources.

  1. Freelancer platforms like Fiverr for finding freelance gigs.
  2. Online marketplaces such as Etsy and eBay for selling handmade or vintage items.
  3. Blogging platforms like WordPress and Blogger for creating and monetizing a blog.
  4. E-commerce platforms such as Shopify and WooCommerce for setting up an online store.
  5. Crowdfunding platforms like Kickstarter and Indiegogo for funding your business idea.
  6. Online learning platforms such as Udemy and Coursera and Fiver Learn for acquiring new skills.
  7. Small Business Administration (SBA) for business planning and resources.
  8. SCORE (Service Corps of Retired Executives) for free business mentoring and workshops.
  9. Local business development centers for guidance and support in your area.
  10. Books and podcasts focused on entrepreneurship and side hustles, like “The $100 Startup” by Chris Guillebeau or “Side Hustle School” by Chris Guillebeau.

Understanding taxes and tracking money of side hustles

Understanding taxes and tracking the money from side hustles is critical for anyone making extra cash. Side hustles are becoming increasingly popular as people look for ways to increase their income, but it’s important to remember that any money earned is subject to taxation.

Before starting a side hustle, it’s vital to research the tax laws for that particular type of income, as they can vary widely depending on the industry and location. Tracking the money coming in and going out is also essential, as it allows for accurate reporting come tax time and helps to keep personal and business finances separate. It’s important to keep detailed records of all income earned from side hustles, including any expenses incurred in the process. This could include anything from transportation costs to equipment purchases. By being proactive and staying organized, individuals engaging in side hustles can ensure they are optimizing their earnings while staying compliant with tax regulations.

The legality of Side Hustles

Understanding taxes and tracking money from side hustles is essential to avoiding financial troubles and staying compliant with the law. As side jobs and self-employment become increasingly prevalent in the modern economy, it’s important to understand the tax implications of earning additional income. Depending on the type of work you’re doing and how much you’re earning, you may need to file quarterly estimated taxes, pay self-employment taxes, and track your expenses and deductions carefully.

One way to stay organized is to use financial tracking tools such as spreadsheets or financial management software. This can help you keep track of your income and expenses, monitor your cash flow, and prepare for tax season. It’s also important to keep your personal and business finances separate. Setting up a separate bank account and credit card for your side hustle can help you keep track of your finances and avoid mixing personal and business expenses.

In addition to tracking your finances, it’s important to understand the various deductions and credits that may be available to you as a self-employed individual. For example, you may be able to deduct expenses such as vehicle expenses, office supplies, and phone bills from your taxable income, which can help lower your tax bill. You may also be eligible for credits such as the Earned Income Tax Credit or the Child and Dependent Care Credit.

Overall, understanding taxes and tracking money from side hustles is an important part of managing your finances and avoiding legal issues. By staying organized and aware of your obligations, you can ensure that your side hustle remains a profitable and rewarding endeavor.

Do I have to pay taxes on a side hustle?

If you have a side hustle or gig that is bringing in earnings, it is considered a business and therefore subject to taxes. Whether you have a full-time job or are solely relying on your side hustle for income, you are still required to report and pay taxes on the money earned.

Starting in 2023, businesses that receive more than $600 in online transactions will have their earnings reported to the IRS, making it even more crucial to stay on top of your taxes. Ignoring your tax obligations could lead to penalties or even legal action, so make sure to consult with a tax professional if you have any questions or concerns.

Conclusion

In conclusion, there are many different types of side hustles that entrepreneurs can explore. We have discussed all different types from blogging, freelancing, real estate, and buying businesses but the truth is, side hustle opportunities are endless. A fantastic pro of side hustles is that they can allow you to tap into what you’re passionate about and be scaled. Almost always, profitable side hustles can be scaled and that is when the real fun starts!

For more information on side hustles and to join our community of entrepreneurs, visit The Financial Appetite today

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