“A few key considerations as you decide which “hustle” is right for you.“
In the world of financial literacy, several items and actions have emerged as meme-level villains: daily Starbucks coffee, eating avocado toast, renting an apartment instead of buying a home.
Gurus demonize these behaviors while wagging fingers and criticizing personal decision-making. Yet while there’s more than enough emphasis on saving and saving, we rarely talk enough about the other half of the equation: maximizing your take-home income.
A mentor of mine once told me, “You can only save as much as you make, but you can always make more money.” Some may think of finding a second job as their only option, but more and more people read this quote and immediately think of two words: “side hustle.”
The idea of pursuing your passion is something that older generations didn’t necessarily focus on when choosing a career. Many have chosen jobs that pay the bills while allowing for some fun outside of work. But the side hustle has become more conventional in recent years—not least because of the rise of social media, which makes it easier to turn our occasional gigs into full-fledged money-making entrepreneurial ventures.
Whether you’re saving for a short-term goal like a wedding or a down payment, or you’re looking for longer-term supplemental income, side hustles can be a valuable path to extra cash. But take it from someone who’s made the transition from passion project to side hustle to full-time career, there are a few key considerations as you decide which “fast track” is right for you.
When I think of a side hustle, I think of something that makes you money relatively quickly. It’s different from a passion project, a hobby that acts as a mental break and ignites your creativity: drawing; reading, knitting, or even playing video games. The moment you enter money into a hobby, the stakes change. On the other side, there are paying customers, creating deadlines and the need for new ideas, products and services. You can’t just take a month off if you owe someone a good or service.
So while it may still seem like the fun activity you once loved, responsibility and obligation can change that. Recognizing that you don’t have to monetize every passion is the first step in ensuring that your side hustle doesn’t burn you out. Some things are sacred and should be kept as such.
“Your side hustle needs to fit into your life.“
The next consideration may seem obvious, but it’s essential: your side hustle needs to fit into your life. Whatever you choose, it should complement the life you already live. While this will cause some short-term discomfort (it is a job, after all), you shouldn’t take on too much stress or rearrange your entire life to make it happen. I like to tell people to look at their full-time jobs and consider what skills they aren’t using. Maybe you’re a data analyst and want to be more creative, or maybe you’re on your feet all day and don’t mind sitting at a desk at night. Let that guide you.
“Don’t go into debt because of your side job. “
As you narrow down your search, consider the costs associated with your side hustle. First of all, it should have a low starting price. The hope, of course, is that you love your side job and it sticks, but if not, we don’t want you to be worse off financially than when you started. Don’t go into debt because of your side job (we’re looking at you, MLMs).
Beyond start-up costs, you’ll want to consider your business expenses, time and energy. Just like corporations have margins, so does your side hustle, and the higher the margin, the better. Think you’re too old to babysit? Maybe you’ll change your mind when you realize that babysitting requires nothing but your time and minimal transportation costs — almost a 100% profit margin. On the other hand, something like an Etsy shop will require raw materials and web hosting and shipping and handling. These “hidden costs” can add up and make you wonder if your side job is even worth it.
“The best investment anyone can make.“
Finally, it is important to distinguish between a side job and a second job, as the use of both terms has become encompassing over time. People often work two or more shifts a day to make ends meet. It’s a second job: The hours are less flexible, and you’ve signed a piece of paper saying, “Yes, I work here and I’ll show up on time.” A second job can put a strain on your first job, as you’ll have to juggle both schedules.
Conversely, side efforts take longer to maintain and aren’t as consistent in what they pay, especially not early on. But they usually provide more freedom as you determine your working hours.
At the end of the day, whatever path you choose to create additional income is your choice. If your side hustle becomes lucrative, be sure to think about your intentions, goals, and what success looks like to you. When I started posting content on social media and consistently making money from it, I made a concerted effort to try out my newfound side hustle for 15 months before diving in full time. I had to make sure that I loved what I was doing and that it could sustain me year after year.
After juggling a full-time job and content creation for 15 months, I still liked it enough to keep going, so I finally decided to go all-in. Ultimately, the decision to make a full-time commitment was no different than any commitment. After a long trial period, I weighed the pros and cons and made a bet on myself — the best investment anyone could make.
Vivian Tu is the author of RICH AF: The Winning Money Mindset That Will Change Your Life (Portfolio, 2023). Tu, a former Wall Street trader, is the founder and CEO of financial capital platform Your Rich BFF. She also hosts the ‘Networth and Chill’ podcast.
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