While the number of people who have "side hustles" or second jobs has declined since the peak of the COVID-19 pandemic, we're still in an era when at least 1 in 5 people are working outside of their day jobs, according to national surveys this year.
But is having a side gig the right choice for you? Here are some things to consider before you start looking for a way to earn some extra cash.
1. Consider your reason! Do you need extra cash, or do you have free time you're looking to fill? Will you be looking to do something you're passionate about, or will the extra money be enough to keep you motivated? Side gigs can actually be a little bit stressful when you add them onto your schedule, and choosing the right job for the right reason is key to being successful.
2. Evaluate your time and energy. How many hours per week can you dedicate to your second job, gig or project? Can you dedicate that many hours all year, or will your availability fluctuate? How will this affect your free time, family time, weekend plans and other aspects of your life? What tradeoffs are you willing to make, and for how long? Also, find out if the schedule for your second source of income will be predictable or if that's something you can control.
3. Consider the net pay. An extra $25 per hour might sound great, but if your job means using your car more, investing in supplies and paying taxes (or saving to pay if taxes aren't withheld), will you be making enough for a second job to be worthwhile?
4. Find out whether this affects your first job. Some people's primary job does not allow them to hold a second job due to conflicts of interest and other considerations. You probably need to keep the job that pays you the most (and provides insurance, if you're lucky), so make sure you aren't setting yourself up for a problem down the road.
Answering these questions can help you figure out which -- if any -- side hustle is right for you! And choosing the right one is going to be very important to your financial success and happiness, too.
If you're considering a second job because money is tight, come talk to us first! We have a number of certified financial counselors here at CommonWealth One who can talk to you about ways to save money, budget and even increase your credit score — all of which can make your financial life a little less stressful.
We're here for you, for life, through all your professional endeavors, and we wish you the best for a happy, healthy and wealthy New Year!
