Before you begin your side hustle journey, be sure it's really a path you want to go down. In today's economy, a side hustle may seem necessary to many who aren't earning enough with their primary jobs to live the lifestyle they'd like. But there are several considerations to keep in mind to determine if a side hustle is worth it for you.
"Understanding your 'why' and keeping it top of mind will help you deal with the day-to-day challenges of starting and maintaining your side gig," says Anne-Lyse Wealth at Harvard Business Review.* "It will also help you narrow down potential options, and eliminate the ideas that don’t make sense for your situation."
Are You Already Doing Something That You Could Monetize?
If you're thinking of jumping into a side hustle, it can help if you're already doing something that could be monetized. This gives you a clear advantage. For example, if you make arts and crafts as a hobby, you may be able to earn money by selling them. Maybe you're good at woodworking and have created cornhole boards for yourself or friends and family. Are they well made enough that others might be interested? You could sell them online or at a local flea market.
Turning something you're already good at into extra income is one of the most practical side hustle options. Having access to the right customers is key, however.
How Soon Do You Need the Extra Money?
"Think about when you need the money — and remember that building an audience can take years," says Charlotte Cowles at The Cut, who interviewed financial educator Melissa Jean-Baptiste on the topic of side hustles.**
She shared her experience of creating YouTube videos that didn’t generate income until six years after she started. Even then, the revenue was modest.
If you need money in the near term, which many people do, a side hustle may not deliver as quickly as you'd like unless you choose one with immediate earning potential. This is an important point to keep in mind if you're facing financial challenges.
Do You Have the Time?
Do you have the time it would take to work a side hustle? Consider what else you would be doing during that time. Is it taking time away from your family? Are you already working long hours or overtime at your primary job? You need to determine whether you have the time to perform your side hustle well and whether it's worth sacrificing your free time for more work.
Do You Need Money to Get Started?
Depending on what your side hustle is, you may need money upfront to get started. If you're launching a side business, for example, you may need to factor in startup costs, supplies, equipment, and any necessary fees. There are funding options available if you plan to start a business, but that also means taking on a new expense. You'll need a solid business plan to ensure it's worth the investment and that you're able to manage any loan or credit payments.
Is Your Plan Sustainable?
Whether your side hustle idea involves starting a business or working for others, ask yourself if your plan is sustainable. Are you able to commit the time, effort, and resources needed to maintain this side gig over the long term? If not, consider an exit strategy. Either way, try to plan ahead so you can determine whether the side hustle is right for you.
Conclusion
Many people find success with side hustles, and others are able to supplement their main source of income to improve their quality of life. There are real benefits, but side hustles take time, effort, and possibly money. It's important to decide whether it's a change you're ready to make.
If you're looking for short-term financial support, a personal loan may be an alternative to starting a side hustle, especially if you need funds quickly. Consider speaking with a financial professional to explore your options.
* https://hbr.org/2022/07/is-starting-a-side-hustle-really-worth-it