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It seems like so many people these days are talking about side hustles! They are an incredible way to make some extra money so you can have some extra pocket change or even work to reach your long-term financial goals. You may have heard a lot about side hustles but have no clue about some of the ins and outs that come along with a money-making side hustle. Here are some things you should know about side hustles based on my #creditchat on Twitter with Experian!
The Chat and The Questions
Question 1: How can you identify skillsets and interests that you could use to build a side hustle?
Answer: You can make a list of things you enjoy doing in your time off of work. The best side hustles are created by making money off of the things you enjoy doing. Then, make a list of the different aspects you like from your 9-5 so you can figure out what aspects of your work you may like to continue doing in your side hustle.
Question 2: Where can you find inspiration for your side hustle ideas?
Answer: Once you know the types of activities and work you enjoy doing, determine what groups or individuals may need what you have to offer. Be the solution to their problems. You can read more tips about this here!
Question 3: How can you figure out what there is a market for in your area?
Answer: Do your research! Determine who your ideal customer is. Check out Facebook groups and networking events. Test the waters and see if people are needing what you have to offer or what products are already out there that are similar. Be aware of your potential audience.
Question 4: What are inexpensive ways to advertise your side hustle?
Answer: Social media is an amazing and cheap way to get the word out and there are so many platforms to take advantage of. Get on Twitter, Facebook, Pinterest, LinkedIn, Instagram, Youtube, and wherever else you can put yourself out there for free!
When it comes to advertising, a good graphic can go a long for helping you get your product out into the world.
Canva Pro has so many amazing options for templates and other features to help you put together a professional social profile or share a detailed infograph. Check out Canva Pro here.
Also, be sure to take advantage of word of mouth. Get to networking events where your idea may be a good fit. Create an email newsletter if you already have an audience of people who may be a good fit. Talk to family and friends — you never know what may work for you!
Question 5: What are the tax implications to consider when taking on a side hustle?
Answer: This would be a good area to consult a tax professional. Make sure you are keeping the income and expenses that are attached to your side hustle organized, and better yet, separate from your personal income and expenses and properly identified. This will help you stay organized and file taxes properly.
Question 6: How can you identify the legal or regulatory requirements for your side hustle?
Answer: Laws vary by each state. I would encourage you to connect with legal support. There are many different resources like your local government and also online affordable legal support such as Legal Shield.
A great resource to get some legal help for more complex financial matters like wills and estate planning is LegalShield. LegalShield is a great way to get expert legal advice for a more affordable cost. They can help you manage money issues for things like wills and other financial issues. Check out LegalShield here.
Question 7: What are some signs that an advertised side hustle may be a scam?
Answer: Listen to your gut. If something doesn’t feel right, it most likely is not. Do some research on it to see what other people have to say. Also, ask other people if they are familiar with it. Someone may have experience with it or the lack of other people who are aware of it may let you know it’s not legit. Every dollar is not the best dollar.
Question 8: How do you balance your full-time work, personal life, and side hustle?
Answer: Time management is very important when it comes to having a job, a side hustle, and a personal life. Remembering why you do it can help you to focus on what’s important. Be sure to have boundaries with each one.
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Question 9: What should you consider if you plan to transition your side hustle to your main source of income?
Answer: Have a plan. You don’t want to just jump into it without any idea of what could happen. Make sure you have a plan for your finances, insurance, and a good understanding of how your income can fluctuate. Be prepared for that with a good budget. I have a free and easy to use budget tracker on my resource page. Also, have a plan to pivot if you need to!
Question 10: How do you set goals for your side hustle income?
Answer: This should be a part of your plan. What are you trying to accomplish in the long run? Are you looking to pay off debt? Do you want to go on vacation? Or are you just trying to earn more income? Find your why and this will help to drive your goals!
Side hustles are an amazing way to get more money in your pocket. But they can also take a lot of work and there are many variables to consider! Hopefully this blog post will answer some of your questions and guide your plan!