According to survey results, more than a third, or 36%, of U.S. adults have a side hustle. Further, the average side hustler earns up to $891 per month. That’s up from $810 monthly in 2023, indicating a 10% increase.
That’s not all. Millennials have been making the most from side hustles. 44% reported making about $1,129 per month, on average. Then we have the Gen Zers, who bring in $958 per month, and the Gen Xers, who make $751 monthly. Last but not least, Baby Boomers stand at $561. That’s a lot of good money on the table.
The most obvious reason side hustles are gaining popularity is the rising cost of living. The less obvious reasons are that they present an opportunity to include a hobby in your career trajectory, learn about how businesses work, participate in the community, and create a stepping stone for self-employment.
The days when working one job was enough to maintain a great lifestyle are slowly fading. Having a side hustle means more money and fewer worries about paying bills.
Some of the most popular side hustle ideas include:
Social media management involves helping brands/businesses create and grow their presence on social media platforms. Tasks involve creating social media strategies, developing content calendars, copywriting, and content creation.
Ride-sharing: Working as a part-time driver comes with a lot of benefits. Take Uber, for example. As an “independent contractor,” you can set your schedule and work as much or as little as you decide. There’s loads of flexibility, and you can earn a good income. As long as you own a car and can drive safely, you should be able to do this easily.
Tutoring: If you enjoy teaching children or teens, consider this option seriously. You can personalize your services by focusing on one specific subject or age group or offering virtual or in-person sessions.
Babysitting is another good option for those who like spending time with kids. For a more consistent gig, consider working as a part-time nanny. However, success in this role will require prior preparation from your side, like certificates in first aid and CPR, in case of emergencies.
Bookkeeping: You’ll be working on balance sheets and reconciling business budgets. If you’re good with numbers and know how to use bookkeeping software, this can be a great side hustle option.
Writing: Writers who can write and edit well are rare. If you have a flair for both, this option is for you. You can write for publications, create copy for marketing firms, help people polish their CVs, and even start your blog. The possibilities can be endless.
Fitness instructor: This idea can work wonders if you have the qualifications and experience in the fitness industry. Your specialisations could include power yoga, Pilates, kickboxing, strength training, and more.
Pet sitter: Do you like spending time with pet animals? If so, you can earn money by taking them for a walk around your neighbourhood. Looking after them for extended periods, or pet-sitting, can boost your side income.
Website designing: As a web designer, you’ll be responsible for elevating the aesthetics and usability of websites. To be successful, you’ll need to have good knowledge of concepts like UX (user experience), UI (user interface), and so on.
SEO specialist: Do you get a kick out of boosting website traffic, offering SaaS link-building services, and earning companies the top spots in Google searches? As an SEO (Search Engine Optimization) consultant, you’ll do just that and make good money.
Do I Have to Pay Taxes for Doing a Side Hustle?
According to the IRS, “You must file a tax return if you have net earnings from self-employment of $400 or more from gig work, even if it’s a side job, part-time or temporary.”
“gig work” refers to any activity that generates income, even through an app or website. Examples include driving a car for booked rides or deliveries, selling goods online, providing creative or professional services, and doing freelance work.
Depending on your industry, you’ll need to consider several factors. Let’s take Uber’s tax return example. Uber cannot withhold federal income taxes or Social Security and Medicare taxes from independent contractors. You could owe a significant tax at the year’s end if they do.
Understanding the tax implications for your side hustle will allow you to make the most of your hard-earned money.
How to Start a Successful Side Hustle
It’s no secret that side hustles can turn into full-blown commercial ventures. Ask any successful small business owner, and they’ll tell you they started slow but eventually grew by making the right moves. Here are some tips from small business owners to start your side hustle on the right note.
Identify and Plug Gaps
Before you begin your side hustle, you must figure out one important detail: what can you monetise? Consider the skills and activities you enjoy doing. Then, ask yourself if your offerings can solve people’s problems or fulfil a need.
Do your research and find out what real struggles your target audience is facing. What solutions are they looking for but can’t find? For example, consider offering copywriting or content writing services if you’re great with words. Do you enjoy driving? Think about providing reliable local delivery options if that’s where the gap exists in the market.
Keep Studying Your Market
Launching your side hustle is only the first step in your success story. You must keep learning about your target audience, customers, and industry to succeed. Note ongoing market trends and any deviations from the status quo. These could change how customers use your product or service.
For instance, new AI tools can help simplify your work or make your approach redundant. Study what other players within your industry are doing and if that’s working. At the same time, keep track of your customers’ changing lifestyles or preferences.
The more you learn about your industry, the better you can adapt and stay relevant. Studying your market will help you stay competitive and discover new growth opportunities.
Capitalise on Your Strengths and Experience
People are always willing to pay for the services they think serve them well. This is where you can play to your strengths. Whether you excel at baking, teaching, or even giving business advice, your knowledge and experience can help you earn money.
For example, if you’ve worked in finance, you could offer financial consulting services for small businesses. Or, if you love making crafts, you can sell your creations online or at market fairs.
Put It in Writing
Once you’ve finalised your side hustle idea, write a mission statement. For example, a simple statement like, “I will provide affordable digital marketing services to small businesses” will suffice. Make this statement the bedrock of every decision you make. Having this in writing will keep you focused and help avoid distractions.
As you can see, starting a side hustle has several benefits. However, certain important factors, such as your interests, skill level, qualifications, and tax implications, must be considered. Once you have these figured out, you can move full speed ahead with your idea.
This post will help guide you in the right direction and help you choose a side hustle that supports you financially and nurtures the entrepreneur in you.
Tim Robinson is Digital Marketing Manager at PACK & SEND New Zealand, a 25+ years old and respected ecommerce, logistics, and freight delivery solutions brand. Tim has 20 years of combined experience in sales and marketing. His core expertise is logistics, D2C, franchising, business planning, and operations management. Connect with Tim on LinkedIn.
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