One of the pieces of ‘advice’ which comes up regarding inflation is to make more money. You know, somehow. But many employers cannot afford to give raises and are also being told to not give too large of raises because of fears of wage-price spirals. (I don’t know that I’m a proponent of that really, but that’s an argument for another time). So, you can’t really lobby for a big enough raise because odds are you won’t get one and with only 24 hours in a day, getting a second full time job is doable, but horrific. So, what’s an inflation strapped person supposed to do?
Enter, the side hustle.
Once known as ‘moonlighting’, the side hustle is work that you take on, well, the side. But the idea isn’t to get another part time job or full-time job; instead, it’s to do something in your time that you enjoy doing. This massively opens the doors for many people, particularly those who only want to make a little extra spending money or who want to make money off doing something they enjoy doing anyway. That being said, there are some things to keep in mind when considering a side hustle. As someone who has been side hustling since 2008 (freelance writing!), I’m here to give you some advice so that you don’t end up doing more work for less return and harming your usual job performance.
What’s a Side Hustle?
A side hustle is still work that you do for pay, but you’re hiring yourself which means you make your own hours, set your own pay (obviously don’t go too extreme one way or the other or you’ll never get anywhere), and decide what you’re going to pursue. There are a million side hustles out there, but common ones include:
- Writing
- Graphic design
- Social media management
- Selling things you have crafted
- Tutoring
- Dog walking
- ‘Flipping’ jewellery, old furniture, etc.
- Collectible investing
- Yard work and housework
- Driving people to where they need to go
- Shopping for others
- Affiliate marketing
- Creating video content
And so many more! Basically, anything that you enjoy doing, you can probably turn into a money maker, if you choose to.
Getting Started
Sound good? Well, before you start trying to sell things (or your skills), it’s important to lay down some groundwork.
First of all, this is not your job. I still work weekly hours at CVTC (though they range wildly now) – my side hustle as a freelance writer is a side hustle. I don’t have to log hours or stress out over it, but it also means that I don’t get benefits. This means that it also shouldn’t feel like work and boundaries can be set. So for my side hustle, I might only do topics that I know inside out and backwards, only write one piece a day, and only spend an hour or less on it for a few days a week. It’s a side hustle (money for my hobbies usually), not my full-time job, so there’s no point in burning myself out over it.
The goal here is to choose something you really enjoy doing, but don’t have to stress out over doing, so it should be something you enjoy. Then make sure that you aren’t focusing all your time and energy on it because it’s not your full-time job. It will also make you enjoy doing it a lot less if you’re constantly worrying about it.
Second, figure out what you can realistically afford to charge. Research what other people in the same field are making and then figure out how much you want to make from your side hustle. And while the goal here isn’t to make you rich, you should be making enough money to feel like it’s worth the effort.
Marketing Yourself
Remember how we have talked about job searching and resumes being marketing yourself? Well, side hustles are the same – it doesn’t matter how amazing you are at making cupcakes; if people don’t know about you, they won’t be buying. Make sure you start upping your social media game (Facebook, Instagram, and YouTube are good places to go as they tend to have a wide audience, as well as Pinterest). Start talking to people! Join groups that are built around what you have to offer and start communicating with others. Don’t be afraid to put yourself out there because if people don’t now what you offer, you won’t be getting any offers for it.
Taxes
Assuming you make any money, the CRA is going to want to know about it. You must pay taxes on the income you generate and depending on what you are doing, you should also figure on paying your own CPP, EI, and other things that are normally taken off your payroll. Talk to a tax specialist about how much you should be setting aside (my personal rule of thumb is about 20-25% every month. That way, you either have enough to pay come April or you effectively get back a small return. Either way, you’re golden). Also figure out what you can write off if you decide to go the small business owner route. For example, you may be able to write off car expenses, office supplies, a portion of your rent or mortgage interest, advertising, and meals.
It’s important to talk to a tax specialist about these things though because the rules regularly change.
Even if you only make a little money, you still must declare it. If the CRA finds out you have undeclared income, you may be on the hook for a hefty bill.
Unfortunately, in today’s age, having a single income may not cut it for many people. But you also don’t want to basically have two jobs going all at once! A side hustle may be the best of both worlds: a way to generate some extra income, but on your terms, doing something you enjoy.
What’s your side hustle? Have you thought about it before? Sound off on our Facebook page!
