Launching a Side Hustle: Things to Keep in Mind
Between student loans, rent, utilities, groceries, and food—expenses can add up quickly. If your regular paycheck seems to disappear in a hurry every month, it may be time to find a side hustle to boost your income. According to a 2017 report , more than 44 million Americans have found a side hustle to boost their bottom line.
With most side hustles, you’re able to customize your schedule which can give you the flexibility you need when you’re already working a full-time gig. And with a bit of leg work, you can find a side hustle that falls in line with your passions and gives you a sense of pride and fulfillment that you may not be getting at your full-time job.
Nearly 28% of “young millennials” (ages 18 to 26) have a side hustle—and 44 million Americans use side hustles to supplement their income. That supplementary income can help give you a financial boost whether you’re prioritizing saving money to buy a home, paying off student loans, or getting out of credit card debt. Or your side hustle cash can simply be financial icing on the cake: paying for luxury vacations, a new car, or a bigger house.
If a flexible side hustle sounds like the ideal way to supplement your income, the first step will be to pick one that works with your skillset. With a little bit of elbow grease, your side hustle could open a world of possibilities for your future.
How to Find the Right Side Hustle for You
There are several factors to consider when you are deciding on a side hustle. From your personal interests to the amount of time you’re able to invest, you will need to decide what the best side hustles for you could be. There are tons of options out there, so it’s important to find one that adds value to your day-to-day. Here are some factors to consider as you pick a side hustle:
Focus on Your Passions
Pick something you’re passionate about. If you are invested in the project you’re more likely to follow through and there is less chance you’ll get bored. Start by making a list of your skills, hobbies, and other activities you enjoy.
Evaluate that list and see what could be parlayed into a money-making venture. The best side hustles are ones that you enjoy, this makes the work more pleasant and exciting, encouraging you to continue pursuing your side hustle.
Are you a talented knitter? Maybe open a crafting store online where you can sell baby blankets, hats, scarves, and more. Passionate web designer? Offer your skills for an hourly rate. Have a spare bedroom? Consider renting it out for short-term visitors or sublet the space for a couple months. Depending on your skills and resources, there are plenty of options to consider and choose from.
Understand How Much Time You Can Invest
Be realistic about how much time your chosen side hustle will take. You probably have a full-time job, and there’s a reason why it’s called a “side” hustle. It’s smart to pick a side hustle that will thrive with only part-time tending.
Take a realistic look at your time commitments to assess if you can accommodate your chosen side hustle. If not, go back to your list and make a more reasonable selection.
Take Advantage of Online Resources
From blogs and websites to books and podcasts, there are a wide variety of platforms that offer advice on starting a side hustle. You can even find tips on growing your part-time microbusiness into a full time-gig.
Take advantage of all of the information at your fingertips. From to-do lists to testimonials, there is a ton of information out there than can help you navigate starting your micro-business.
What Is the Estimated Earning Potential of a Side Hustle?
On average , a side hustle can earn you around $686 a month. But when it comes to estimating the income from your side hustle, how much you make is really up to you. Much of your earning potential will be determined by how much time you are able to commit to your side hustle and the type of side hustle you choose.
Be sure to factor in taxes as you save or spend the money from your side hustle. This money will be considered income by the IRS and will be taxed as such. So plan on saving a portion of your profits to pay for the taxes. Chat with your tax advisor to see what makes the most sense for you.
Using a Personal Loan to Cover Life’s Costs
If you’re considering a side hustle to pay down debt, selecting one with minimal-to-no start-up costs is likely your best option. Once you’re bringing in cash from your side hustle, you’ll probably want to pay off debt in the most effective way possible. One option to consider is paying down higher-interest debt with a lower-interest personal loan.
For example, if you consolidate your credit card debt with a personal loan, you can potentially qualify for a lower interest rate than the one on your credit cards.
Furthermore, with a personal loan, you can choose a fixed interest rate and a loan term that works for you. At SoFi, you may qualify for a low-interest personal loan with no origination fees or prepayment penalties. It could be a chance for you to put your side hustle money to good use by getting yourself out of credit card debt—with a lower interest rate.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SoFi does not render tax or legal advice. Individual circumstances are unique and we recommend that you consult with a qualified tax advisor for your specific needs.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.