Moonlighting for the masses.
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We could all use a little extra cash in our pockets every now and then. And if youâre living paycheck-to-paycheck, youâre not only giving yourself little to no margin for error (or emergency), but you may also be shortchanging your retirement and other financial goals. One way to give a boost to your monthly budget is to pick up some side-hustle income in your free time.
If you regularly watch influencers and reality TV, perhaps itâs time to instead join the gig economy or pick up a side hustleâwhere youâre the starâand youâre getting paid.
Key Points
- Many gig economy jobs are done on a contract basis in hours you choose, often aided by technology platforms.
- Some side hustles, from lawn care and pet-sitting to tutoring and crafting, are simply a new spin on job opportunities that have been around for generations.
- Sustainable passive income streams are possible, and worth shooting for, but you typically need to continually add value if you expect to continue getting paid.
The gig economy is a term that describes various side hustles that are done on a contract basis. Rather than being hired by a company, you enter into an arrangement where you get paid based on providing various services to others. Some common gig economy side hustles include:
- Driving for rideshare companies like Lyft (LYFT) and Uber (UBER).
- Shopping for others through Instacart.
- Delivering restaurant food through companies like DoorDash (DASH) or Uber-owned Postmates.
- Connecting with pet owners to provide sitting services through Rover.
If you have the time, you can look to earn side-hustle income through such gigs. You get paid a rate for completing the tasks, plus any tips that consumers provide. The cash you earn can be used to target financial goals like paying down debt, bolstering your emergency fund, saving for a major purchase, or boosting your retirement account.
In general, side-hustle income is considered something you earn âon the sideâ of a regular day job. In some cases, side hustles can eventually provide you enough income to quit your day job and make the side hustle your âmain gig.â
You donât need to commit to gig economy jobs to be successful at making side-hustle income. Here are some other side hustles to consider:
- House sitting. Some people like to have someone stay in their home while theyâre on extended trips. This can make the house look occupied and ensure that plants and animals are looked after. Itâs possible to make money, plus have a free place to stay, if youâre willing to live in the home for weeks or months.
- Freelancing. Various freelance careers include web design, writing, software development, coding, graphic design, and social media management. If you have talents in various content creation and development areas, you could potentially sell your services and make money.
- Lawn care. This one has been around for generations: Getting paid for mowing, trimming, weed control, and other aspects of making sure an outdoor space looks good. Some lawn care service providers also offer snow removal during winter months.
- Tutoring. If youâve mastered a particular subject, are a teacher, or have some other credential, you can make money as a tutor. Earn money on the side by helping students fill particular knowledge gaps or prepare for tests.
- Wellness services. With a bit of trainingâand proper certification, depending on the state you live inâyou could offer wellness services, including foot zoning, massages, manicures, and hair styling.
- Selling handmade products. If youâre talented at sewing, woodworking, crochet, or some other craft, you can sell products online. There are many websites like Etsy (ETSY) that allow you to list items, as well as ecommerce sites like Shopify (SHOP) that can help you set up a store. You can also sell your wares on your own website (itâs never been easier to set up!) or through marketplaces on Amazon (AMZN) or Facebook parent Meta (META).
- Share your expertise. Are you a subject matter expert? Share what you know, perhaps for free (at least in the beginning, until you can charge a subscription). This might include providing digital products, like printables, or offering courses. You can also get income from self-publishing books or starting a blog and/or video channel that makes money through affiliate marketing partnerships.
No matter what side hustle you want to pursue, itâs important to know local laws and licensing requirements. In some cases, you might be able to offer your services immediately, without worrying about getting a license or certification. In other areas, you might need to pass a test or fulfill some other criteria.
Sustainable passive income streams are difficult to achieve, no matter what youâve heard.
Personal finance sites seem to love sharing anecdotes of influencers and other side hustlers who set up passive income streams, then just sit back and collect money without lifting a finger. Sure, itâs possible, but itâs more the exception than the rule.
That truth shouldnât dissuade you from starting a side hustle or even working toward passive income. Just know that, in each of the gig examples above, youâre being paid to add value. Thatâs how a free market economy works. If youâre not adding value, donât expect to keep getting paid.
How to choose the best side hustle for you
There are many choices when it comes to side hustles, but the decision starts with you. What do you enjoy, and what are you good at? Here are a few things to consider as you decide how you want to make extra money on the side:
- What are your skills, credentials, and interests? Begin by figuring out what youâre good at.
- Do you have a skill or interest that can be monetized? Make a list and prioritize it. Know your strengths and prepare to sell them.
- Do you need money immediately? Gig economy jobs have the potential to provide almost immediate cash. In some cases, you can transfer money to your account multiple times per week. If you need fast cash, a gig economy job like rideshare driving or shopping can be a good choice to get started. You might need a few days to verify certain information, but you can begin earning relatively quickly.
- Do you hope to build a business? If you donât need money immediately, a side hustle that allows you to build a sustainable business might make more sense. Review your skills to see what you can turn into a long-term venture, whether itâs selling a product or providing a service.
- Whatâs your endgame? Some people get side gigs temporarily to save up for a specific goal, such as making a purchase or paying down debt. Gig economy jobs and part-time work can be good choices if you know the situation is temporary. On the other hand, if you plan to replace your day job, you might need to build a business of your own, based on your skills and credentials. Carefully consider what you hope to accomplish with your side hustle so you can determine the best course of action for your situation.
The bottom line
Earning extra cash can help you achieve your financial goals faster. Whether you hope to retire early, buy a house sooner, or pay off debt, a good side hustle can steer you toward your goals.
And who knows? Todayâs side hustle may be tomorrowâs full-time career or successful start-up. Influencers, hoteliers, franchisees, transportation magnatesâmany started out as side businesses.
Hustle up!
This article was most recently revised and updated by Miranda MarquitThis article was most recently revised and updated by Doug Ashburn
