So, you’ve decided you need some extra money and want to do something on the side. You’re not alone. Self Financial says that 45 percent of working Americans have some kind of extra job. But side jobs do need some planning to make sure they’re as helpful as they can be.
First, don’t take on too much.
You might look at how much money you can make by working 20–30 hours a week at a second job and decide to start right away. The problem with this is that you will quickly push yourself too hard. Your work quality might also go down if you try to go from 0 to 100 without giving yourself enough time to learn about your new job.
Instead, try it out for a few hours a week to see how it fits into your schedule and how it makes you feel to have two jobs. As you get better at both jobs, you can add more hours and, as a result, make more money.
Find out why you want a second job.
A side job is a lot of work, so you should know what you want to get out of it before you start. Do you want to get out of debt? Spend less money? Put money into stocks? Or, are you looking to change jobs? Do something you love and get paid for it?
If you don’t have a clear reason for having a side job, you might feel like it’s more trouble than it’s worth. Even if you have a good reason for your side job, it can still be tiring at times. Think about why you want to do this, and if you get tired, ask yourself if the reason is still important enough to work more hours.
Know your value.
You might think that if you are just starting a side job, you can’t charge much or even the going rate. But you’re still spending your time on something. That alone deserves fair payment. You don’t want to get a second job and be paid too little for it. If you take on a side job to make more money, being undervalued is the worst thing that could happen. Find out how much other people in your field are getting paid, and don’t be afraid to say no if your employer can’t match that.
Plan ahead for what you will need.
You might be starting a new job that needs you to buy things you don’t already have. Find out how much they will cost before you agree to do a job so you can decide if the cost is worth it. Even if your side hustle doesn’t require any new equipment or costs, you should still set aside a small amount of money to advertise your services. This could mean getting a Yelp for Business account or making a website.
Get ready for tax season
When it comes to taxes, side jobs are often a little tricky. You might have tax forms from more than one client, and depending on how much money you make from your side job, you might have to pay taxes every three months. You should also keep track of all the money you spend on your business so you can write those costs off.
Before you start working, it’s best to talk to an accountant about what you’ll need to keep track of or pay. This way, you won’t be caught off guard when it’s time to file your taxes.
Don’t be scared of failing.
It’s important to remember that when you get a side job, you’re basically starting your own business. There is a lot to learn, and nobody is expected to know everything right away. You can do as much research and planning as you want, but the best way to learn is to do. You will make mistakes at work, but you will be able to learn from them. Customers might be upset or you might not pay enough taxes, but that’s all part of the process. So long as your side job gives you what you need, you’re doing it right.
