3 Things You Must Understand Before Starting A Side Hustle

The thought of starting a side hustle is a pleasing one. Who wouldn’t like an opportunity to make cash on the side, usually doing something they love?! It sounds like the dream – and many side hustles turn into primary income sources and can change your life. 

Before you get ahead of yourself and dive headfirst into the side hustle of life, you need to know some things. Most people don’t get told these things and discover them alone, but you’re about to get a head start! It’s crucial to understand these three things before starting a side hustle, as they impact pretty much everything. 

It’s Not Going To Be Easy

There’s a common misconception that side hustles are easy to start. Everyone goes in with the same mindset; you’ll quickly make money and live a more balanced life. In reality, side hustles are the opposite of this. To get to the point where you’re living comfortably and have a more flexible life, you must put in a great deal of work. 

Starting a side hustle involves: 

• Coming up with a side hustle idea
• Marketing your services to others
• Finding ways to stand out from the crowd
• Retaining existing customers and gaining new ones

In other words, it’s like running a small business. This will take a huge amount of time, effort, and money. Success will not happen overnight, so be prepared to grind for months until you’re more comfortable. 

You’ll Need To Pay Tax On Your Side Hustle

Amazingly, most people forget that side hustles are a source of income. It’s a weird statement, given the whole point of a side hustle is to make more money. But from a tax perspective, loads of people get caught up because they only pay taxes from their main income source. If you have a full-time job and make money from a hustle on the side, you must pay taxes on both income sources! 

This will mean applying for an EIN and paying tax on your side hustle earnings. You already pay tax on your full-time job earnings as it gets taken from your paycheck every month, but you need to pay tax on all the extra money you make too – so keep that in mind. 

There’s A High Chance You Won’t Succeed

We don’t want to dissuade you from pursuing a side hustle, but be aware that the chances of success are slim. It’s very hard to do something on the side while managing a job and looking after all other aspects of your life. If it were simple, everyone would do it! 

Weigh up the pros and cons before making this decision. There’s no point wasting time and money on something that doesn’t have a chance of succeeding. The ideal side hustle will require minimal investment yet present a great chance of making money. 

We can’t tell you what these ideas are; you’ll need to figure them out yourselves! This post may seem a bit gloomy but think of it as educational. It’s better to be aware of these things before you get involved, as you can be better prepared. If you still want to pursue a side hustle, then go for it! As long as you’re aware of what’s to come, you’ll be in the best position to make the most of it.