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Are you looking at those side gigs advertised online, dreaming about a little more money?
You’re not alone — more than a quarter of Americans have secondary income streams. If you’re contemplating adding a job, here are the most important things to consider first so that you don’t get scammed and can walk away feeling successful.
Side Hustle Considerations
Money isn’t the only factor you need to consider when taking the leap into a side hustle. Here are several other components that need serious thought in your list of pros and cons.
Time Is Money?
The old saying is still true today, but maybe not in the way you think. When considering a side hustle, it’s crucial to consider how much time you’ll be spending away from other activities.
While making extra money is great, what else could you be doing with your time? Are those things important to your well-being? If you’re devoting time to a side gig, you must give something else up.
Losing Hobbies
Many people decide to monetize their hobbies for extra income — selling artwork, cooking for events, taking photos. But as soon as a hobby is part of your budgeting plan, it loses some of the relaxation it once held.
Having hobbies to de-stress is vital to maintaining good mental health and productive systemic regulation. For many people, this tradeoff is worth it, but don’t forget to assess this component.
Unexpected Costs
Adding an extra revenue stream isn’t free from new expenses. How much will you spend on extra miles driving, increased internet speed, or supplies? Don’t forget to consider even the smallest things, like extra money spent on food if you’re now staying up two hours later than usual every night.
Changed Relationships
Any time you take on a new role or job, your relationships will change. If you start selling your personal artwork, for example, your ability to give away items for free to friends might change. Added responsibilities during the week will shift the balance at home with your family.
Think about how your relationships might change and whether those changes are acceptable.
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Choosing a Promising Side Gig
With so many options for side gigs these days, it can be daunting to choose one that will work for you. Beyond the potential money, here are other elements you should consider.
Longevity
Supplemental jobs have vastly different staying power in both your own life and the greater world. Some jobs that become popular quickly do not last for more than a year, while others have been in demand for decades.
Decide how long you’d ideally like to hold this extra job and determine whether your ideas fit that timeline.
Hierarchy and Structure
Some side hustles are independent operations; you control all components of the work. Others still have more traditional administrations that include a boss and coworkers. Consider whether the chain of command is important to you (or not) and how that structure will impact the job’s flexibility and future options.
Legal Requirements
Just because your side gig doesn’t bring in steady cash doesn’t mean you won’t have legal and bureaucratic hoops to jump through. Even side jobs that don’t make much money count toward your IRS income, so make sure the paperwork is in order for your potential work.
Different states also have varying laws regarding using part of your home for business purposes, especially for food preparation. Investigate the “cottage laws” and “home office laws” for your location to ensure your plans comply with the requirements.
“Wait Time”
With certain positions, you can jump right in and make money the first week. With others, it can take a long time to reach profitability. Neither path is superior, but you need to understand the probable timeline for making money before you commit to a side gig.
Authentic Side Hustle Ideas
There are several primary categories of side jobs:
- Product sales
- Freelance work
- Part-time positions
- Self-employment/self-creation
All of these categories can be successful, but they can also all fail. Knowing how to spot the difference takes experience and time, but a few common red flags to look out for are:
- “Companies” that pay in cash only
- Job listings that have unrealistic requirements or salaries
- ·Jobs that require all of your personal information before providing any details themselves
- Opportunities that pop up in unsolicited text messages, emails, or social media ads
Some of the best options for side hustles that aren’t likely to be a scam:
- Taking jobs on Fiverr, Task Rabbit, or other verified apps
- Data entry positions, including medical coding and billing
- Shopping/delivering for local or national services
- Setting up an Etsy shop to sell homemade goods
- Selling creations at local craft fairs
- Upcycling/refurbishing items found at thrift shops or antique shows
With enough planning and forethought, you can find a side gig that fits into your life and brings in that extra income!