- A side hustle can be a great way to make more money.
- It comes with many benefits including diversifying your income, developing new skills and growing your network.
- However, you need to pick the right hustle that is worth your time, and to be prepared for more stress and less downtime to relax as you work on your side hustle.
Have you thought about starting a side hustle?
A side hustle is increasingly popular, particularly among young people. Research from Henley Business School found that of UK workers surveyed, 25% had a side hustle and earned 20% of their total income comes from their side hustle.
However, a side hustle isn’t easy money.
Side hustle that make money take time to build up, financial input to get started and resilience to keep them going. That’s what separate a side hustle from a hobby you like doing in your spare time but that doesn’t make money. The time and effort of a side hustle needs to be weighed up with the benefits it delivers.
Here are the pros and cons of starting a money making side hustle:
1. PRO: Extra money in your budget
The benefit of the side hustle is that it tops us the income earned derived from your day job. That means you have more money in your budget to put towards your goals.
2. PRO: More than one income stream
The income from a side hustle can provide added security if your day job isn’t what you want to do for the rest of your life. It can also provide a cushion for financial emergencies such as if you lose you job without warning.
3. PRO: Develop new skills
A side hustle will challenge you to improve your existing skills and can be an opportunity to learn new skills. You can also learn new ways of thinking and problem solving, which you’ll bring to you day job, making you a more valuable employee.
4. PRO: Grow your network
When starting a new side hustle, you’ll meet new contacts to grow your business. This connects you to a new community of people, growing your network to people outside your immediate industry.
5. PRO: Take calculated risks
Your day job may not provide an avenue for you to express your creativity. A side hustle enables you to take risks, providing a creative outlet for you to explore different opportunities to learn and test new skills, without having to sacrifice the financial security provided by your day job.
But a side hustle isn’t right for everyone…
6. CON: Not every side hustle is made equal
A good side hustle should enable you to make money without compromising your values. You avoid get rich quick schemes like multilevel marketing, which often take your money without providing guaranteed income. Make sure you find a side hustle you actually get value from.
7. CON: Say goodbye to your downtime
You can feel pressure to work on your side hustle to the extent it takes away from your time out of the office. Keep this in mind and ensure you also continue to invest time in the hobbies and relationships that are important to you.
8. CON: You might be better off focusing on your day job
If you’re in a highly paid lucrative career, you need to think about why you’re considering a side hustle. If your motivation is to retire early, you might be better off putting in more time at your day job to maximise your current income, rather than distracting yourself with a side hustle.
9. CON: A business can be stressful to manage
Starting a business from scratch involves registering a business, managing clients and making sure you get paid alongside the everyday business admin. The stress of chasing clients to pay their bills to meet you side hustle expenses can be overwhelming.
10. CON: It can be difficult to prioritise self-care
Part of the problem of managing your day job and a side hustle is that your laptop and phone notifications are constant. This can feel overwhelming and it can be difficult to know when you should switch off. Make sure you put yourself first and set time aside for self-care, whatever that looks like for you.
It’s important that you carefully consider the pros and cons of a side hustle before jumping in.
While everyone seems to be taking on a side hustle, it needs to be the right business and role for you that outweighs the downsides we’ve outlined. You know your life better than anyone else so make sure it’s worth it for you to devote your energy, time and money to a side hustle.