Do you want to learn how to actually work at what you are passionate about instead of your daily drag job?
We’ve all been there and today we will share five insights into side hustles before you start so you succeed and you can earn an income doing what you love!
Admittedly, starting a side hustle can be both scary and exciting at the same time, but we are close to a new year and this is the perfect time to consider side hustles to earn some more money!
Whether you are using a second job as a side gig to pursue a favorite hobby and gain income or looking to see how you would do freelancing instead of being committed to your current career there are things you need to know.
A side hustle is exciting because it is a brilliant way to earn additional income and take control of your financial future and for those picking up a side gig doing what they love it is even better!
Moonlighting jobs (albeit not always night jobs) are truly something to be a bit apprehensive about because it means putting yourself out there, investing time and energy into something, and taking on more responsibility.
It is thought that around 45% of Americans have at least one side job that is not a companion job to their everyday job of gainful employment and that the jobs are polar opposites.
Starting a side hustle is a great way to use those skills that aren’t used in your day job and tap into things you’re passionate about while also learning new things along the way.
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What Exactly Is A Side Job Often Referred To As A Side Hustle?
A side job, referred to more recently as a side hustle, is where you look to earn income outside of your daily 9-5 mainstream income job using your skills to form a new way to earn income in addition to, what you are earning.
Side hustles take time and a bit of skill to set up. Still, once they are set up, they can help you earn a solid-based side income in addition to what you earn at your everyday employment and might eventually be a great segue into new self-employment that can outearn your current employment.
Do side hustles sound scary? They shouldn’t, and now we’ll share insights into side hustles before you start trying one!
1. Insights Into Side Hustles Before You Start: Find your niche
A niche is a specific area of interest or industry where you want to focus your business.
For example, you might decide to start a landscaping company, or you might decide to focus on selling products online related to gardening.
While it’s good to be flexible, it’s also essential to choose a niche that you have some knowledge of and that you’re passionate about, as it will be much easier to succeed if you’re genuinely enthusiastic about what you’re doing. You’re able to truly understand your potential customers.
Ask Yourself These Questions To Find Your Niche
- What are your hobbies
- what are you interested in outside of those hobbies?
- What skills do you already have that make you good at those things
- do you do something now that could translate into a side hustle?
2. Gain Insights Into Side Hustles Before You Start: Research The Market
Next, you’ll want to do some research on your chosen niche.
- Look at the current market for what is available and in demand for the second job you want to start
- What are the current trends for products and services in the side jobs you are considering
- Are there any developments in the niche you have decided on?
- What is the competition (if any) doing in the nice you are leaning towards for your side gigs
- What are the costs of any of the moonlighting jobs you are considering?
- Does your competition in the side gigs have any strengths or weaknesses you need to supersede?
There’s a lot of information out there, so you should start by doing a basic Google search or heading over to Reddit to see if there are any related subreddits you can benefit from.
3. Know your legal responsibilities For Your Second Job
Depending on the kind of side hustle you decide to start; you may have different legal responsibilities.
For example, if you create a landscaping business and use your own equipment, you may be responsible for workers’ compensation insurance.
You’ll want to research and understand your area’s requirements and ensure you follow them.
If you decide to start a business that uses any online marketplace (such as eCommerce), you’ll want to research potential guidelines from the Federal Trade Commission (FTC) and follow them.
This will help protect you and your customers from scammers.
Doing what you want, when you want, in a career that gives you fulfillment shouldn’t be too much to ask; however, it can feel like being self-employed is more hassle than it’s worth, especially when you start to consider that you may not have access to retirement plans or a 401K.
So what does it take to look after your financial future when you are self-employed? Here are some actionable tips.
4. Taxes + Insights Into Side Hustles Before You Start
Depending on what you decide to do for your side hustle and how it’s set up, you may be responsible for paying taxes on this income.
While you may want to avoid doing anything that could draw the attention of the IRS, you don’t want to ignore this responsibility completely.
The last thing you want is a notice in the mail or a phone call from the government telling you that you owe money on taxes you didn’t pay.
That’s why it’s essential to keep an eye on your finances and know if and when taxes become a factor.
You may seek the advice of a financial advisor or accountant to determine what you need to do to stay on the right side of the law.
Learn to Invest Your Side Gigs Now
You might think you don’t have enough money to put together most of the time.
But you have got to start thinking about what your limited funds can do for you.
You may need to change your lifestyle just to curtail your expenditure, but you must remember that the little things can add up.
Investing is a tool that can make more money from your side gigs over a longer period of time, and you have to give it at least a decade for your finances to compound to an effective level. But where should you begin with investing?
There’s a lot to bear in mind. There are exchange-traded funds, assets, real estate, stocks, shares, and the list goes on. Of course, there are cryptocurrencies in numerous forms, like bitcoin and dogecoin.
But there are plenty of resources to help you, such as How to Buy, Sell, and Trade Dogecoin: Helpful Tips.
The best thing for you to do if you are scared of investing is to remember that the best returns occur over decades.
It would help if you started by putting $5 of your daily earnings to one side. If you work 48 months out of the year, $5 put away, 5 days a week multiplied by 48 is $1,200, which is more than enough to get you started in investing.
You should never invest what you cannot afford to lose, which is why shaving off a minuscule amount of your earnings every day can get you started. Investing is an amazing tool and it should not feel complex, but is one of the best ways we can earn more, provided we start ASAP.
Account for Inflation
The best way to be savvy about your finances is to look at a phenomenon termed lifestyle inflation. One of the major problems we all have is if we have more money to spend, we will spend it. The people who became millionaires learned the value of investing 50% of their paychecks.
While this isn’t realistic, the next best thing would be for you to not spend everything that’s in your bank account and then have to build everything back up.
5. Insights Into Side Hustles Before You Start: Protect Your Privacy
Depending on what type of side hustle you decide to start, you may need to share a lot of information with the public, or you may be able to keep things private.
If you choose to start an online business, you’ll want to keep this in mind, so you don’t get scammed or hacked, and your information gets into the wrong hands.
The best way to do this is to ensure you’re protecting your online presence.
This includes privacy settings on social media, ensuring you have strong passwords on all your online accounts, using a physicaladdress to hide your actual address, and using encryption and other security features when possible.
Use Our Insights Into Side Hustles Before You Start
Starting a side hustle isn’t always easy and will require time, energy, and work.
However, the rewards can be great and side gigs can earn you big money.
Not only can you earn extra income, but you can tap into your creative side and discover new interests, skills, and passions that you didn’t know you had.
You can also gain a sense of pride and independence by taking control of your financial future. Go you! ~ Dana XO