Side Hustle

Side hustle summary:

A side hustle is a job, gig, or other work a person does to supplement the income from their main job.
Some side hustles earn a modest amount of extra money, while others yield substantial earnings.
Many people find ways to turn their skills and hobbies into opportunities to earn extra money through side hustles.

Side hustle definition and meaning

A side hustle is work that you do to earn extra money on top of the income you earn from your primary job. A side hustle is any job, gig, business, or form of work that earns money. Some people earn a small amount from their side hustle. But it’s possible to generate a substantial income from some side hustles.

Key concept: A side hustle is work that you perform to supplement the money earned from your regular job.

Side hustle: a comprehensive overview

A side hustle is a part-time job or gig that a person performs in addition to their primary job to earn extra money. Side hustles could include freelance or contractor roles, part-time employee roles, or small business ventures.

Working a side hustle could be a great way to boost your earnings, allowing you to get closer to meeting your financial goals. Reasons for side hustle work could be saving up for a large purchase, such as a car or a house, paying off outstanding debt, or building an emergency fund.

Other reasons to work a side hustle could be to save up for a non-essential expense, like a dream vacation or a wedding.

Many side hustles are flexible and can be done whenever it fits into your schedule. For example, some people work on freelance projects during the weekends or in the evenings after they get home from their full-time jobs.

Before starting a side hustle, consider your interests, skills, and availability so you choose one that aligns with your lifestyle and goals.

It’s possible to earn substantial amounts of money from a side hustle, typically with specialized computer and digital skills. Some high-demand services, such as freelance digital marketing, online tutoring, or web design and development, have the potential to bring in more money. Experts in social media management, AI, or selling digital products also have the potential for higher earnings.

If you have a side hustle, you may qualify for tax deductions for work expenses, like supplies and equipment you purchase. Consult a tax professional to learn more.

Real-life example of side hustles

Jessie wanted an expensive closet redo for $1,500. She decides to walk a neighbor's dog three times a week for $50 total. Jessie calculates that 30 weeks of dog-walking, about seven months, will net her the money for her dream closet.

Side Hustle FAQs

What are the benefits of a side hustle?

A side hustle could help you increase your income and beef up your financial security. The extra money you earn could provide the financial means to reach your goals, like paying off credit card debt. A side hustle could also help you learn new skills and pursue personal passions.

Do I need a business for a side hustle?

No, you don't need to start a business to get a side hustle. Depending on the nature of the side hustle, however, you may need to register your side hustle as a business in your state. Operating your own business could be your side hustle, but that's not the only way to earn money through side work. You could become a part-time employee or do side hustle work as a contract worker or freelancer, operating as a sole proprietor.

Are there downsides to having a side hustle?

Yes, there could be downsides to getting a side hustle. For one thing, a side hustle requires time and commitment, and working a side hustle in addition to a full-time job may reduce the time you have to spend on leisure. The extra work could also cause additional stress because you’ll typically have to juggle multiple commitments.