Choosing the Correct Side Hustle
In today's environment, it is no surprise hearing people discussing their side hustle to help supplement their income, generate extra money for that dream vacation or trying to get away from their 9-5 and follow their dreams. Side hustles can be an easy way to get extra money into your wallet.
More than half of U.S. millennials are running side hustles, picking up extra cash outside of their regular day jobs doing everything from babysitting to reselling stuff online — and some are making a pretty penny doing it, according to a new study by Bankrate.
Here are a few steps you can take to make sure that you're profiting off the time you're spending.
Step 1: Make a list of what you're good at or enjoy doing.
Finding a good side hustle means nothing if you aren't interested in doing it. What's the point of spending time on something that doesn't excite you? Reflecting on your favorite hobbies and skills will ultimately lead you to the right side hustle. Even if it is something you want to learn about in the future, it still makes for a good option. Writing all of these thoughts down will help so that you can further research different opportunities depending on your skills and passions.
I have a friend who is talented at drawing pets and she started an Etsy store showcasing her artwork and allows people to submit their photos of their animals and she will create a frameable (and Instagramable) artwork.
More hobbies may come to mind than you initially think - so get to writing!
Step 2: Narrow down your list.
Now that you have such a large list of your talents and skills, it's time to say narrow some of the options you wrote down. Not every hobby you have is going to align with a money-making side hustle. After doing some research, narrowing your list down to around 5 options will give you the best opportunity to do a deep dive into each and see which one will be the most beneficial. Think about how much time it will take, the payoff and any other factors that will effect your day-to-day life.
Step 3: Pick one!
Though this may seem straightforward, it is relatively common that people don't commit to their side hustle. You've gone through the time and effort to write a list, now choose one and follow through. Do you need to invest in a website presence, specific material or new technology? Make sure you come up with all of the necessary items you need to get started and budget for the extra expenses. When coming up with your pricing for your service remember to take in your start-up costs.
Now what if you want to make your side hustle your real job?
Sometimes people get burnt out at their day job and realize that their side hustle is their true passion. Your side hustle needs to be your primary motivation, or else you will stay with your 9-5 and keep having that "what if" thought circle through your mind.
Many of us millennials do not think or want to go to work just for the paycheck, but we want to have a purpose and be excited by what we are doing as a career. This goes back to side hustles and how they should be your passion. You have to look at your day job and value the skills you are learning, that way if you do decide to make your side hustle your primary job, the skills that you learned previously will begin to help you in your endeavors.
There is never going to be a good time to start a side hustle (let alone make that side hustle your main hustle) so it is important to plan accordingly. Talk to your friends and family and bounce ideas off of your inner circle. It is also a good idea to speak to a financial professional about planning for this new adventure. At the end of the day, take that risk and see where that side hustle will take you.
CNBC, "How much young people are really earning doing side hustles"
Bankrate, "The average side hustler earns over $8K annually"
For Educational Purposes Only – Not to be relied upon as financial, tax, or legal advice. The views expressed are those of the author/presenter and all data is derived from sources believed to be reliable.