Nov 14, 2019  | Tags: money management, freelancer

Our insights

A side hustle might sometimes be referred to as a freelance gig or side-job. It’s essentially anything you do to earn some extra cash in your spare hours outside of your regular job. You might even pick up a side hustle just because it allows you to do something you enjoy.

So what’s so great about having a side hustle?

Having a flexible and supplemental income stream can provide you with a temporary cash boost to help you reach financial goals.

If you have a hobby or something you’re passionate about, you can turn it into a side hustle in order to monetise your spare time. Why not get paid to do what you love?

Some people start a part-time job as a side hustle just so that they can explore a new industry. You might also consider doing this if you’re curious about a certain line of work but would like some more experience before diving into an employed position.

Many side hustles eventually grow into independent and full-time small businesses. So if you’d like to start a business of your own and grow it slowly without quitting your full-time job, starting out with a small side hustle is a good idea.

Whatever your motivation to start a side hustle may be, having one is a great way to use your spare time productively and add a little variety to your life.

Some popular side hustles include:

- Creating and selling products like crafts, art, baked goods or clothing
- Freelancing online in editorial, digital design or digital marketing
- Working as a temporary or fill-in employee
- Writing a book
- Coaching or teaching online
- Refurbishing old furniture or toys or clothing items and selling them for a profit
- Reselling items online for others for a small commission
- Photography
- Maintaining a blog
- Babysitting
- Designing mobile apps
- Mystery shopping 

As much fun as it may seem, having a side hustle isn’t necessarily easy. It requires time management skills and a good attitude. 

Let’s talk about how you can get the most out of a side hustle. 

Be smart with your time. 

You might spend long hours at the office several days a week. That doesn’t leave you with very much time for household chores, grocery shopping, exercise, recreation and spending time with your family. But if you use most of your few spare hours to earn money with a side hustle, then you’ll have even less time for those other important activities.

Step back once in awhile to assess the way you use your time. Ask your partner or family if they feel that you’re not giving them enough time. As long as everyone in your household is supportive of your side hustle, you can successfully pursue it in your spare time. 

Know the tax implications.

Your side hustle earnings still count as income. Make sure you work with an experienced accountant to understand the implications, and put a plan in place to ensure you're not caught short.   

Since a side hustle means working for yourself, you may have some business expenses associated. Those costs are usually tax-deductible so keep track of what it costs you to keep your side hustle going.

Get the right business structure.

If you’re trying to build an entire business on the side, then you’ll need to make sure you’re starting out on the right foot with the correct business structure. It can be hard to change your structure later on, so do your due diligence and make sure you have the right one while your business is still a small side hustle. Again, talk to your accountant about this.

Get a wealth plan.

If you're earning extra income, and you have things you want to achieve from a wealth perspective, it is important to put in a plan that should include, at the very least, a good budget and ideally a plan for investment and growth. 

Take care of yourself.

Working a side hustle can be a lot of fun, especially if it means doing something you love. But remember to take some time to take care of yourself and avoid burnout. You don’t want your semi-profitable side job to eat into your ability to perform well at your main money-earning day job. And you don’t want your side hustle to become something you hate doing!

If you’re starting to feel burned out from pursuing your side hustle or if you’re losing sleep or if it’s costing you more to run it than you’re earning from it, then you may have to put your gig on hold for a while.

Get advice

Calder Wealth Management will put you on the pathway to achieve your financial goals.

Talk to the team at Calder Wealth Management. Call us on (08) 8373 3333 to schedule your free initial appointment. 

Written by Stefan Miraglia at Calder Wealth Management.