What I Wish I Knew Before Starting My First Side Hustle
Everyone seems to be talking about their side hustles these days. But if you're sitting there wondering what all the fuss is about while needing some extra cash, you're probably feeling a bit lost. Don't worry – I was in the same boat not too long ago.
Getting started with a side hustle isn't rocket science once you understand what you're getting into. Let me walk you through everything I've learned about what side hustles really are and how they can change your financial situation.
Understanding What a Side Hustle Actually Means
A side hustle is basically any work you do alongside your regular full-time job. It's typically freelance work that brings in additional income, and here's the key difference – it's usually something you actually enjoy doing, not just another job you're stuck with to pay the bills.
The biggest distinction between a side hustle and picking up a part-time job is control. With a part-time job, you're still answering to a boss who decides your schedule and paycheck. Your side hustle? That's all you. You decide how much work to take on and how much money you want to make.
For most people dealing with money stress, side hustles become an attractive way to get ahead financially or test the waters of running their own business.
Side Hustles vs. Getting Another Job
When people first hear about side hustles, they usually think it's just another way of saying "second job." While there are similarities, they're actually quite different animals.
The main difference comes down to choice. A regular job requires you to show up for specific hours, do specific tasks, and accept whatever they're willing to pay you. A side hustle is entrepreneurial – you're calling the shots on what kind of work you take, when you work, and what you charge.
Most people running side hustles tap into skills they've picked up at their day jobs. Others pursue things they're genuinely passionate about – stuff they'd probably do for free if they had to. Think about all those Etsy store owners who started making crafts as a hobby and turned it into income.
This doesn't mean every side hustle requires years of experience or has to relate to your full-time work. But the more skills you can develop, the better your chances of making decent money from it.
How Side Hustles Actually Work
Your side hustle happens outside your regular work hours – evenings, weekends, vacation days. It brings in extra money while letting you keep the security of your main job.
You can start your own thing from scratch, or you can take on contract, freelance, or part-time work for other companies. The beauty is in the flexibility.
For people who aren't ready to quit their jobs or jump into full entrepreneurship, side hustles offer a perfect testing ground. You can try out business ideas, explore what you're passionate about, and build up a customer base before making any major life changes.
How Side Hustles Can Actually Make You Wealthy
Making some extra cash is one thing. But even if that extra money hits six figures, you're probably not what most people would call rich. So how does a side hustle move beyond just supplemental income to actual wealth-building?
Here are the three ways that separate money-making side hustles from wealth-building ones:
Making It Passive
This means your earning potential isn't limited by the hours you can work. You put in money or effort upfront, then start making money indefinitely. You can do this by hiring people, investing, or creating intellectual property. Even consulting can become passive if you build the right team to handle the work.
Making It Scalable
Like passive income, scalable earnings aren't tied to your time. But scalability has an extra quality – the ability to reach massive volumes. If you can sell 50 units or 2,000 units per month without dramatically increasing your direct effort, you've got a scalable idea.
Making It Sellable
Selling a business can create a huge cash windfall. Whether you're selling your customer list, intellectual property, or an income-producing asset, this exit strategy can be game-changing.
Not every business idea checks all three boxes, and that doesn't make it a bad idea. It might be perfect for your current situation. But as you grow, try to focus on ideas with the best potential for real financial freedom.
Why Having a Side Hustle Matters
Running a side hustle comes with benefits that go way beyond just extra money. Here's what I've experienced:
Complete Control and Ownership
Nobody tells you what to do, but you also can't blame anyone else when things go wrong. This feels scary at first, especially if you're used to having parents, teachers, or managers giving you direction.
Once you get past that discomfort, it's incredibly empowering. You'll gain confidence in your abilities and develop resilience when you inevitably face setbacks – which is totally normal when trying something new.
Accelerated Learning
Starting a side hustle puts you on a steep learning curve as you navigate the business world. You'll gain experiences and skills that challenge you and prove what you're capable of.
There's tremendous personal growth that comes from stepping outside the comfort zone of your regular job description.
Personal Development and Self-Discovery
Working on your own ideas teaches you things about yourself – what you enjoy, what you hate, what you're good at. Beyond the problem-solving skills you'll develop, you're investing in your own personal growth.
In corporate jobs, you rely on whatever training programs your employer provides. As a business owner, your development accelerates, and you become much more aware of your strengths and weaknesses.
A Clear Sense of Purpose
Many people feel lost in their regular jobs after doing the same thing for too long. A side hustle can reignite your sense of purpose and energy as you focus on something you care about.
When you run your own business, you interact directly with customers and clients. You see the immediate, tangible impact of everything you do.
New Connections and Opportunities
Just researching and talking to people about your idea connects you with new contacts and opens doors you never saw coming. The whole experience gives you a competitive advantage – your creativity and resourcefulness in starting a side hustle makes you stand out.
Whatever happens with the business itself, it's guaranteed to advance your career.
Peace of Mind
The security of your regular paycheck gives you freedom to learn and experiment without pressure to make serious money immediately. Even if you have enough savings to quit your job, you might still feel anxiety creeping in, which can be draining and distracting.
Testing your business idea while keeping your day job is a much more comfortable approach.
Increased Confidence
Starting a side hustle while employed helps you recognize your worth, thanks to the respect and responsibility your regular job provides, while your steady salary means you're not desperate for side hustle income.
This gives you confidence to charge premium prices and walk away from projects when necessary. That's much better than having nothing else going on, where you'd feel pressured to accept whatever comes your way.
Better Work-Life Balance
While it might seem like adding more work would create stress and reduce free time, it actually can help you achieve better balance.
When you have something you're excited about doing after work, you'll set better boundaries and stop letting your office job spill into evenings and weekends.
Creative Outlet
A side hustle lets you be more creative than your standard full-time job allows. Think about how creative kids are when they play with LEGOs. Society tends to crush most of that creativity as we grow up, replacing it with the need to make money and hold down conventional jobs.
A side hustle can reawaken your creative side. If you love building furniture, doing DIY home projects, or making music, a side hustle can help you sell custom furniture, DIY projects, or music lessons.
When you turn something you're passionate about into a side hustle, you get a creative outlet while making money.
Extra Income
If you're constantly stressed about living paycheck to paycheck, additional income streams are probably the main reason you're considering a side hustle.
Extra income helps you save for a house down payment, pay off student loans, build an emergency fund, or pay for vacations. Whatever your reason, making additional money is always beneficial.
A side hustle helps you reach financial goals faster and can set you up for long-term success.
Something to Fall Back On
There's an old saying: "Don't put all your eggs in one basket." So why would you depend on just one income source to pay your bills and support your financial goals?
Getting a side hustle ensures you have something to fall back on if something unexpected happens. It's your Plan B and safety net if your primary income disappears.
Continuous Learning
Whatever side hustle you choose, you'll improve your skills and grow personally. A side hustle is ongoing work in progress, and it only succeeds if you keep learning.
Nothing beats entrepreneurship for learning new things – from networking to building websites to understanding SEO. You'll expand your knowledge from every angle.
What You Need to Know Before Starting
Before jumping into a side hustle, there are several important things to consider.
Think Carefully About Your Motivation
Regardless of which type of side hustle you choose, side-hustling isn't easy. It's crucial to examine your reasons for starting one by thinking about how you'd most enjoy making money in your spare time.
If your main motivation is just needing cash, maybe you should look for a full-time job with better pay instead. If you're genuinely passionate about your side hustle idea, could you reduce hours at your main job to make it work?
Figuring out what role your side hustle plays in your future career plans is essential. Is it just a way to make extra money doing something you love? An economic necessity you hope to drop once you have more financial security? Or a dream you'd like to pursue full-time once it takes off?
Clearly defining your reasons helps you determine how much time and energy you're willing to invest.
Understand That Finding Work Could Be Half the Battle
Most people aren't prepared for this reality when they start a side hustle. Side hustles are about you finding the work that needs to be done. Since most side work happens outside normal business hours, side-hustlers often take freelance jobs or depend on the gig economy. This means many of them need to constantly search for new opportunities.
The huge task of finding your next side hustle project can feel demoralizing and exhausting. You need to be ready for rejections and many hours invested without any payoff. The good news is that once offers start coming in, it's all worth it.
Expect a Slow Start and Lots of Hard Work
If you've decided your side hustle won't involve flexible freelance work, expect the beginning to be slow. Building interest in your work and developing a client base takes time, and money might not start flowing immediately. After all, if it were easy, it would probably be your main source of income, right?
Be prepared to invest lots of time without immediate financial returns. Accept that you might need to be flexible with your rates or take on less desirable clients at first. Keep an open mind about the type of work you're willing to do.
Be Ready to Make Sacrifices
If you plan to invest extra time in your side hustle, you'll need to give up something else. Maybe it's gym time, weeknight drinks with friends, or evening movies.
It can be tough to give up things that matter to you, but if you want your side hustle to succeed, those declined invitations will seem minor compared to the satisfaction of building something successful.
Set Clear Boundaries
While side hustles offer many benefits, there are also downsides. Working more than 40 hours per week has been linked to various physical and mental health issues, including depression, heart problems, and anxiety. The stress of juggling a full-time job and a side hustle can be overwhelming.
Making sacrifices might be necessary for a successful side hustle, but you need boundaries to prevent burnout. Exercise, relationships, and downtime are essential for your mental and physical health. If you notice you're struggling to balance these areas with your side work, step back and figure out better time management.
Having specific evenings that are always work-free and keeping social events on your calendar can help maintain work-life balance.
Stay Organized
Running a side hustle involves a lot of administrative work that's probably already handled for you at a regular workplace. Invoicing, bookkeeping, and dealing with self-employment taxes are just some of the challenges you'll face down the road.
While there's no way around the extra paperwork that comes with side-hustling, staying organized helps tremendously. Keep copies of all your documents, research deductions or subsidies you might qualify for as a gig worker, and prepare to file taxes early. If your side hustle generates significant income, consider setting aside one day per week for admin work or hiring an accountant occasionally.
Plan When and If You Want to Quit Your Day Job
If your side hustle starts generating serious money, you might face a difficult decision. Do you plan to turn it into a full-time career, and if so, when is the right time to make that leap?
For many people, a side hustle stays just that – extra work for fun and additional income. For others, it's an aspirational career or dream they'd love to pursue full-time if they could be sure it would support them.
Deciding to change careers can be frightening. For many people, it might never feel like the right time to leave a stable job and commit to something riskier. That's why it's essential to have a clear plan from the beginning about where you want your side hustle to take you.
How much would you need to earn from your side hustle to support yourself? Is there a timeline for when you'd like your side hustle to ideally become a full-time job? Being realistic and clear about your financial needs can give you the push you might need to transition your side hustle into your primary income source.
