Are Side Hustles Worth It? Navigating the Gig Economy

Are side hustles worth it? Starting a side gig seems appealing as a way of earning extra cash. 

However, you need to determine whether you're in a position to balance it with your full-time job and current obligations. Gigs requiring major time investment may not be feasible. 

Side gigs matching your interests and abilities can help you thrive without overburdening you. This article can help navigate the gig economy landscape and see if these side income opportunities are worth it.

Are Side Hustles Worth It? How You Can Determine It

Although making money from side hustles allows you to have an emergency fund and pay off your debts, not all of them are practical. 

Here are a few questions to ask yourself before choosing a side job:

How Much Time Investment Does It Need?

Side gigs are reserved for your spare time. Whether you want to build an online store or drive for Lyft, you can't do them anytime. You'll need to look at your schedule and determine how many hours you can commit to side jobs. 

Once you figure this out, start evaluating your alternatives. Ensure whichever job you settle for is a perfect match for your schedule. If it demands too much time with minimal returns, then it's a no. 

To excel in your side gig, you'll need to be consistent and adhere to a fixed schedule. You may consider placing reminder notes in your house and office to boost productivity. 

Why Do You Want a Side Job?

You can start a side hustle for many reasons:

• Increasing your earnings
• Finding extra cash for investment
• Boosting your savings account

Determining the motivation behind your decision will assist you in overcoming the daily obstacles of launching and maintaining the gig. 

It's also the best way to evaluate your alternatives and disqualify hustle ideas that don't appeal to you or align with your situation. 

If your objective is to make extra money for meeting short-term needs, for instance, side gigs such as rideshare driving and online surveys are the perfect choices. However, if you've built a product or have a sustainable solution to a problem, think of transforming your idea into a full-time business. 

What Is Your Passion?

An ideal side hustle aligns with your natural passions, talents, and interests outside your regular job. When you enjoy a gig's core activities, it will not feel like a drain on your time. Approach side jobs as an outlet for doing more of what you love. 

For example, if you have a good fashion sense, selling handmade clothing or accessories online could become a fulfilling side business for you. 

Doing side gigs you have no inherent interest in can lead to burnout. Look within yourself to determine the most engaging side hustle.  

What Does the Gig Involve?

After identifying several potential gigs, you should do your homework to ascertain whether they motivate you, solve a problem, or satisfy a need. You'll have an easy time starting out if you put in the work to study your hustle's basics. Verify that the side job benefits you and identify the necessary resources you need to start working.

For instance, if you're launching a podcast, you should establish what recording software, headphones, and microphone you'll need to record audio. Determine whether you want to own a website or write for other people if you are into blogging. 

You should also identify your audience and find creative ways to offer a superior customer experience compared to your competitors. Ask yourself these questions:

• What challenge is your audience facing?
• Can you create content, a service, or a product to solve the issue?

If you don't have answers to these questions, you may need to reconsider your options. Once you determine what you want to do and how it will benefit your audience, find ways to sell the idea. Identify the message captions and images you'll include in your adverts to appeal to prospective customers. Your idea may not yield results if customers don't know of its existence.

Does It Require Any Initial Investment?

Some side jobs demand a huge initial investment, while others don't require a penny. If you don't want to channel your savings into a side gig, disqualify hustle ideas that require you to invest before you can start earning money. 

For instance, if you're passionate about photography but don't own a good camera, you'll need to buy one to secure high-paying customers. However, if you're into Uber, you don't need money to start ferrying passengers and making deliveries with your vehicle or bike. 

If you want to build an online business, you'll incur costs paying for software or materials needed to create a product. Ensure you've plans to fund the upfront costs using your savings, as taking a loan may not be a good idea. 

What Are Your Skills?

Take stock of your strengths, talents, and skills that can translate into a side hustle. The self-assessment will help you identify lucrative side gig niches that align with what you already do best. For example, if you're good at playing guitar, you could offer music lessons. If you're a talented writer, you can create articles, blog posts, and website copies for money. 

Ensure to be honest with yourself about your expertise. It's better to hone existing skills for a side gig than attempt to self-teach new ones. Building on your strengths will set you up for fulfillment and success. However, if you're struggling with or don't enjoy your side job, you'll eventually ditch it. 

What Is the Income Potential?

Determine the amount you want to make and why you want to earn extra cash. That will help you establish which side hustle is worth your valuable time and effort. Some gigs, such as rideshare driving, have high earning potential in the right markets. But others, like selling handmade crafts, may be more limited. 

You should also consider a job's seasonality. For instance, a wedding photography side business may dwindle and flow at different times of the year. Ensure the gig's income potential aligns with your financial goals. 

Aim for hustle ideas that deliver steady, meaningful supplementary cash. Online surveys are everywhere and don't require any resources, but you'll need to commit many hours to earn a few hundred dollars. 

The easiest way to determine a hustle's income potential is to look at the hourly rate and multiply it by the hours you can spare. If you can have 6 hours weekly and the job pays $30 per hour, you can make an average of $130 weekly or $700 monthly.

Can You Wait Until Bigger Profits?

Side hustling often entails starting small and building your momentum over time. Beginning on a modest scale enables you to learn your gig's basics, work out any problems, and gain confidence.

Once you achieve small wins, you can incrementally expand your efforts and capacity in line with your growing experience. 

After accumulating some sales and positive reviews, restock your inventory with more items. Leverage this momentum to gradually scale up your product listings and production. 

Can You Be Patient? 

You won't achieve a full income from your side job overnight. There's always an adjustment period as you learn how to balance your gig with your day job and personal life. 

Set realistic expectations for your income and growth rate to avoid frustrations if rapid success doesn't happen. With consistency and gradual effort, you may even grow your side hustle income to six figures. 

It's also possible that your first hustling job won't help you accomplish your objectives. But you'll get to learn how things work and build connections that are valuable in launching your next gig. You should embrace your failures and see them as growth opportunities. 

The Advantages and Disadvantages of Side Hustles

Weighing the benefits and drawbacks of side hustles allows you to make an informed decision about whether starting one is right for your situation and objectives. Looking at just the positives could cause you to overlook serious downsides. 

Advantages

Here are the pros of having a side job:

Earning Extra Income

The obvious benefit that may push you to start hustling is the ability to supplement your income. Having diverse revenue streams helps you achieve your financial goals faster and provide financial stability. A gig's earnings may be useful for building savings, getting out of debt, or affording vacations.

How much you can make is dependent on the type of hustle you do. But even an extra $500 monthly from a steady gig can make a big difference in your financial position over time. 

Expanding Your Network

A side hustle helps you expand your professional and social connections by interacting with new customers and colleagues. You gain exposure to contacts outside of your daily circle who may influence your career or business ventures down the road. 

If your side business relates to your full-time job, you may grow a customer base separate from your employer's network. However, it's essential to draw clear boundaries to avoid conflict. 

Improving Your Skills

Side hustles enable you to build hands-on experience with new skills outside of your regular job. When you're committed to one career path, it's difficult to develop diverse skills or perspectives. That's because you only interact with individuals with the same mindset, roles, and training as you. 

However, taking on different professional roles through a side gig allows you to develop abilities that make you well-rounded and marketable. You can leverage your newfound perspectives and skills in your day job. 

A Chance to Leave a Bad Job

If you feel your day job doesn't align with your career goals or provide growth opportunities, you may leverage a side gig as an exit plan. 

It might be impractical to quit your job and concentrate on securing another one if you don't have diverse sources of income. However, if you have an established side business, you can focus on finding a decent job since it'll cater to your bills. 

Building Confidence

Starting and maintaining a side hustle may build confidence, which comes with benefits such as:

• Remaining consistent after a failure
• Expressing ideas openly
• Making resolute decisions in challenging situations

Disadvantages

Here are the cons of having a side hustle:

Reducing Your Free Time

If you have a day job, you already have less spare time throughout the week. Committing weekends to a side business will mean denying yourself a chance to relax and pursue things that don't entail earning cash or advertising yourself. 

This may cause you to neglect other areas of your life, including attending to children or spouses. 

Causing Distraction at Work

A gig that grows too demanding may have a negative effect on your career. If you're a freelance writer working with multiple clients, they might request revisions, forcing you to set aside more hours. It's important to establish clear limits on how much time you can commit to a hustle and adhere to that.

However, if you have a high-paying job, it may not be practical to commit a lot of time to a side business that isn't as promising as your career. If your motivation to start a side hustle is a financial objective such as early retirement, it makes more sense to concentrate on your job. 

Taxes

If you make large amounts from side hustling, the cash isn't yours alone. Anyone making at least $400 from a side job should expect to remit self-employment taxes. Although you can minimize your tax obligations by making quarterly payments, prepare to part with 20-30% of your earnings. 

When Not to Consider Side Hustles

While side hustles can be rewarding, they aren't the right choice for every situation. Some instances where you may want to avoid taking on a side gig include:

• You don't have a significant amount of resources and capacity to cover startup costs: If overhead costs such as inventory or equipment are too high for your budget, taking them on can be risky. 
• You don't have a clear vision and plans for the execution: Starting a side business without thorough planning often leads to frustration. 
• You want instant passive income: Most side hustles require an upfront time investment before money starts coming in. 
• You're not a risk taker: Risk-averse individuals refrain from taking on new ventures if there's no guarantee for success. 
• You're uncomfortable selling yourself: Having a side gig means you're the manager, customer representative, marketer, and more. Some people don't have the confidence to introduce themselves and what they do, which is an essential component of side hustling.  
• You feel overwhelmed with your current obligations: Adding a side hustle on top of an already packed schedule can lead to burnout. 

Final Thoughts

Side gigs are the easiest way to have a regular paycheck outside your full-time job and achieve professional growth. 

With the gig economy on the rise, more people are taking on jobs such as selling handmade crafts online, affiliate marketing, starting a YouTube channel, dog walking, and rideshare driving. 

Considering pros, cons, and alternative options may help you determine whether starting a side hustle will benefit your situation. With realistic expectations, smart balancing of your priorities, and leveraging your inherent strengths, a gig can even replace your full-time job. 

Do your homework, choose the right business model, start small, and be patient expecting gradual growth rather than overnight success. Let us know your thoughts on whether side hustles are worth it in the comments section below.