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Side Hustle 101: Pros and Cons of Having Multiple Source of Income

Side Hustle
PASADENA, CA - MAY 14: Job seekers look over job opening fliers at the WorkSource exhibit, a collaborative effort by governmental agencies to offer jobs and job training resources at the Greater Los Angeles Career Expo at the Pasadena Convention Center on May 14, 2009 in Pasadena, California. Nineteen exhibitors offer job and educational opportunities as well as advice from the Board of Equalization at the event that is open to the general public. (Photo by David McNew/Getty Images)

You may have a hobby that has the potential to earn additional money but is unrelated to your day job. Consider whether the potential rewards outweigh the expense before pursuing that interest as a side hustle. 

Creating a handmade jewelry Etsy store, developing websites, building custom furniture, flipping houses, and various other activities are examples of side hustles. 

Side Hustle

OAKLAND, CA – FEBRUARY 02: A job seeker looks at a job listing board at the East Bay Career Center February 2, 2006 in Oakland, California. According to a government report, U.S. unemployment benefits claims dropped to about 273,000 last week, sending a four-week average of claims to the lowest level in nearly six years. (Photo by Justin Sullivan/Getty Images)

It enables you to make the most of your skills while boosting your revenue and assisting you in reaching your financial objectives.

But it always pays to take your time and explore new endeavors from a broader perspective.

Side Hustle 101: Advantages of Having Another Income

There are several significant advantages to turning a passion into a business opportunity. If launching a side hustle sounds attractive, take into account the benefits:

Allows You to Explore Interests

GoBankingRates said having a side hustle allows you to follow your interests if you work full-time but not in an area you are passionate about. Additionally, some people have another source of income to discover their actual calling, such as researching a market where they may become thought leaders or starting an original concept that will eventually become a firm.

ALSO READ: Money Rules To Follow If You Want To Become Rich

Gives You More Advantage In Career

Psychology Today said a side hustle could allow you to think a bit differently from the crowd, which is a good thing to do. When you commit to one professional path, you’ll frequently develop the same set of talents and way of thinking as everyone else who has received the same education and has comparable responsibilities. 

Having a side business will force you to develop new abilities. You’ll encounter several fields of knowledge and modes of thought. Due to the new skills and viewpoints, you’ll offer to your first employment, you may become distinctive in that field.

More Money

Of course, Discover said you increase your opportunity to earn more money if you’re not working to pay off debt. Even if it’s true that some side jobs barely make enough money to be deemed viable, it is still feasible to locate those that pay more than $25 per hour.

Making extra money can speed up the process of reaching your financial objectives, such as increasing your emergency savings or funding all of your investment accounts, compared to relying solely on your primary profession.

Disadvantage of Having Another Work

Before you start any kind of side business, take some time to reflect on what makes you tick. Here are the possible drawbacks of having side jobs.

Your Performance in Day Job May Suffer

Motley Fool said that your primary job may be in danger if your side gig demands you to respond to clients during working hours or jump on calls and meetings. 

Even if you don’t need to handle side hustle-related issues during the day, your performance may suffer if your secondary job keeps you up late and you frequently arrive at your primary work weary.

More Stress

Forbes said you’re going to feel more stress than usual if you’re working a part-time job in addition to your full-time employment. 

That might have a negative impact on your relationships, your personal life, and possibly even your physical health.

More Tax

GoBankingRates said it is not entirely yours to retain the money you make from a side job, especially if you make much money. You must pay self-employment taxes on any side-hustle income of at least $400. 

Although paying due taxes on a quarterly basis will help you pay less in taxes, most tax professionals advise that you set aside between 20% and 35% of your side hustle revenue for tax purposes.

Aside from being a great method to supplement your current career and accelerate financial growth, side jobs may also add stress to an already hectic lifestyle. Experts urge you to weigh your alternatives. Do your homework before participating. Making the finest option possible for your circumstances should be your main objective.

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