Side Hustles: Are They Worth It?

With many people feeling the pressure of the increased cost of living, starting a side hustle is becoming more and more tempting. However, side hustles aren’t something to be entered into without careful consideration first.  If you’re considering starting a side hustle, here are some key things to consider.  

What is a ‘side hustle’?

We’d be surprised if you haven’t heard the term ‘side hustle’ floating around - especially during the pandemic. Essentially, a side hustle is an additional job that provides supplemental income and flexibility for the individual.  While some people set up these businesses to make extra money, others aim to one day turn them into full-time work. A recent survey found that almost half (48 per cent) of Australians had or were planning to start a side hustle. 

Types of side hustles 

When it comes to secondary sources of income, there are a few things you can consider. These include: 

Rideshare or delivery driving

With Uber bursting onto the scene a few years ago, the increase in rideshare and delivery driver side hustles was substantial. This way to earn some extra money is great as you can choose your own hours and have a bigger company take care of all the business side of things. 

Pet, house or babysitting

Another one that’s great if you need flexibility is pet, house or babysitting. If you have experience in childcare or vet nursing, you may find you can charge slightly extra based on your skill set. 

Freelancing 

Freelancing is a great way to capitalise on your existing talents and make a profit off them. Whether it’s blog writing or bookkeeping, freelancing allows you to choose the jobs you take on and do what you know. 

Chores or errands 

Another platform that’s risen in popularity is Airtasker or Fiverr. While these apps have people posting jobs for just about anything, there are plenty of opportunities to do errands or chores like mowing lawns and walking dogs. Although these little jobs may not pay the big bucks up front, these little jobs can add up. 

Selling product 

This one has a couple of elements to it. Firstly, the selling of products can relate to a new product you create, such as candle making, picture painting, etc. Secondly, selling second-hand clothes, furniture and homewares that you no longer use can be a handy way to make some extra money. 

Pros and cons of side hustles 

As with any decision, there are pros and cons of starting a side hustle. 

Pros

More money - when starting a side hustle, there’s the chance to make extra money. With the cost of living at an all-time high, we could all use a bit of extra cash!  More experience - especially for those freelancing, there’s the opportunity to gain more experience in your field when undertaking a side hustle.  Variation - if you’re undertaking a side hustle that’s different from your regular job, you’ve got the opportunity to have a bit more variety in your life.  Flexibility - a side hustle means you can choose the jobs and hours you want to work. This includes taking time off when you need a break and having the flexibility to work around things like school hours and other commitments.  Potential to turn it into your full-time job - if you really love your side hustle and it’s turning a profit, there may be the chance to turn it into your full-time job. Before doing so, it’s important to talk to a financial advisor. 

Cons

Less time for yourself - whilst side hustles are flexible, they’re still a lot of work. Having a second job - especially when you’re already working full-time - means you’ll have less time to do the things you love.  Start-up costs - depending on the job, starting up a business may require setup fees to get you started. While you can look into business loans, some of these funds may need to come from your own pocket.  You might not enjoy it - the thought of doing something you love as a job can be exciting, but often, when you do it all day, it loses a bit of its novelty. It’s common for people to start up businesses and have them turn into something they don’t enjoy.  Extra stress - lastly, running your own business is stressful. Whether it’s dealing with customers, finding the time, or managing money, it’s certainly not easy and can bring a whole host of stressors to your life. 

Should I start a side hustle? 

Before starting a side hustle, here are some important things to consider. 

Find your ‘why’ 

Firstly, have a think about why you’re starting a side hustle. Is it to increase your income? Pay off debt? Start an emergency fund? Even when you’ve set up your business, make sure you keep your ‘why’ at the top of your mind and always come back to it - especially when things get tough.  

Define your skills and interests 

When choosing what your side hustle will be, figure out your skills and where your interests lie. Ask questions like:

• What am I good at?
• What do I have experience with? 
• What am I interested in? 

These will help you pinpoint your passion and find your niche. 

Do your research 

Research is crucial when setting up a side hustle. You need to consider the cost of the minimum resources it will take to get started and test out your idea, as well as who your target audience is and what problem your product or service can solve for them. 

Start small 

You don’t need to invest a significant amount of money to fund a side hustle. You can easily dip your toe in by starting small, testing out your idea and finding what works. 

Be patient 

Lastly, patience is key. The first side hustle that you try might not be the one that works. It may also not be something you enjoy and that’s ok - it doesn’t hurt to experiment. It’s also crucial to understand that you may not turn a profit straight away. For start up businesses, it can often take two to three years to become profitable.   

My side hustle is going well - should I make it my full-time job?

Before you quit your day job and make your side hustle your full-time gig, talk to a financial advisor at Inovayt. Our team will help you set personal and professional financial goals before you take the leap to help you stay on track.

Can an Inovayt finance professional help me with my side hustle?

If you’re looking to start a side hustle, it’s important to understand why you’re doing so. If done correctly, side hustles can be incredibly beneficial in helping you to achieve your personal and financial goals. Chat with an Inovayt professional today to help make your side hustle dreams a reality.