Side Hustles: What You Need to Know
Whether you’re trying to tackle school loans, build up a mortgage down payment, or just trying to stay afloat, side hustles are becoming increasingly common. Getting ahead is incredibly enticing but it’s important to make sure you understand the pros and cons fully, as well as take into account your personal situation and motives. Before you jump into an opportunity there are a few things to think about to help yourself make the best choice.
Is it a good time to get a side hustle?
There are many personal factors you need to consider before jumping into a new opportunity, especially one that will be taking your precious free time. The reward of extra income or being a part of something new and exciting can hinder your judgement. Before taking the next step ask yourself the following five questions:
- Do I have the time to commit to an additional job? It’s important to fully understand the time commitments associated with the role. If you know there will be big changes in your life soon such as getting married, a move or starting school, take those new responsibilities into account when deciding if the time is right. This is important as it saves you time in the long run, and the time of others. Typically, when starting a side hustle such as a new part-time job, another person is investing their time by training and educating you. If you quit shortly thereafter, you might unnecessarily end up burning a bridge that could have come in handy if you waited until the time was right.
- Is the side hustle credible? It’s important to remember, if it sounds too good to be true, it probably is. Be weary of individuals selling you an opportunity that will make a lot of money with little to no time investment, especially if there are up front costs.
- What is the opportunity cost? Remember, if the side hustle takes time, and it certainly will, you are giving up an opportunity to do something else with that time. If you’re struggling with your classes, needing to invest more time in personal relationships, or need more time for yourself, it may not be the best time to invest in a side hustle. For more information on opportunity cost check out our article: https://www.goalgirlfinance.com/blog/opportunity-cost-what-are-you-giving-up
- What are the costs associated with the new job? Do you need a new wardrobe? Will you be driving your car more? Do you have to buy a new computer or starter kit upon signing up? Remember to factor in everything and take those costs off your potential profits when weighing your options.
- How will the side hustle impact your current employment? It’s absolutely essential to respect those who have already given you an opportunity and those who support you. If a new job will reduce your current quality of work, distract your from your current work or negatively impact important partners, it may not be worth it.
Stay tuned for our next article on side hustle series: Which Side Hustle is Best for You.