The term 'side hustle' is becoming more and more popular all over the world. Earning passive income has become a way of life of many people who are either following their dreams or playing financial catch up. We dig deep into the topic here.
Why You May Need a Side Hustle
Many factors may cause you to need a side hustle, either to pay the bills or to have some extra spending money. Either way, consider why you might want to start working on the side.
Paying Off Debt
If you have debt, you should consider a few side hustle jobs. Whether you have a credit card, mortgage, or personal loan, you may struggle to pay everything off.
Fortunately, having a side hustle can give you some extra income to put toward your debt. Then, you can pay off your loan sooner, and you can save money on interest. And you can keep your side hustle to avoid going into more debt.
Saving for a Goal
Maybe you don't have debt, but you're looking to buy a house soon. If you're a first-time buyer, the process can be scary, especially if you don't have enough money.
Working a side hustle can help you save money to pay for a house. When you have some extra money, you won't have to compromise on the location or size, so you can buy the house of your dreams.
Building an Emergency Fund
Even if you don't have a specific savings goal, you should have an emergency fund. An emergency fund is a general savings account that you should be able to access quickly.
It can contain anywhere from three to six months' worth of expenses, though you can save more. If you lose your job or have an unexpected expense, such as car maintenance, you can use the emergency fund to cover your expenses.
Wanting a New Full-Time Gig
If you want to obtain a full-time job but can't find one, having a side hustle in Canada can help support you while you look for work. Then, you don't have to rely on savings or help from family to pay for your expenses.
Another reason why you may want a side hustle while looking for a job is that it can help you receive a job. If you start side hustling for a company, they might switch you to a full-time role if they like you and your work.
Having More Fun
A lot of fun activities, like eating out, going to the movies, and travelling, can be expensive. If you're tired of hanging out at home, consider using a side hustle to fund those fun things.
You won't have to cut back on other expenses to pay for your next night or week out. That way, you can still enjoy your life at home, but you can do more with your friends or on your own.
The Pros and Cons of Having a Side Business
Working on a side business can be great for some people but not for others. Before you start looking for side hustle ideas, consider if having one is right for you.
Do What You Love
Some of the best side hustles let you do what you love, and you can earn money for it. You can find side hustle jobs for writers, musicians, animal lovers, and more.
If you have a hobby or interest, you can probably turn it into a side business in some way. Writers can create blog posts for companies, while animal lovers can offer pet sitting or dog walking services.
Meet New People
Depending on the side hustle you choose, you may meet tons of people while working. While this can help you make new friends or talk to people, it can also help you in your day job.
You can use your side hustle to grow your network and advance in your career. And if you don't like your current job, you can use your side hustle to change directions. Then, you can gain experience in a new field before you look for a full-time job.
Can Be Time-Consuming
Unfortunately, even the best side hustles take time to start and grow. While you may be able to work an hour a day or only on the weekends, that might not always be the case.
In some cases, you may need to spend more of your free time on your side hustle to maintain it. That means you could sacrifice your work at your day job or time with your family and friends.
Detrimental to Your Health
Having a side hustle in Canada can make it hard to maintain a balance between your life and your work. If you let your side hustle control you, you could end up sacrificing sleep or healthy eating.
When that happens, you may not feel well, and you could become sick. If you decide to start a side hustle, make sure you take care of yourself to keep this from happening.
Important Things to Consider Before Starting a Side Hustle
Before you decide on a side hustle to start, you should consider a few factors. That way, you can make the most of your time.
How Much Time You Actually Have
If you live alone, you will probably have more time than a single parent. On the other hand, if your day job is close to where you live, you might have more time than someone with a longer commute.
You should think about how much time you have to dedicate each day or week to your side hustle. Then, you can look for side hustle jobs that fit that schedule.
Figuring Out What Highlights Your Strengths
Next, think about your strengths and how they can help you find good side hustles. If you're good at writing, you can look for freelance writing gigs.
But if you prefer to work with kids, you might want to start a side hustle as a babysitter or tutor. Consider what you're good at and what you like doing to help find the right side hustle ideas for you.
Setting Goals and Realistic Expectations for Yourself
The next factor to consider is your goals and expectations. While you may want to work as much as you can, think about if you can do that and keep up with a busy schedule like that.
f not, you may want to set goals that are more achievable. That way, you'll know that you can earn some extra money, and you won't stress yourself out over your side hustle.
Understand How Taxes Work for a Business
As you start your side hustle, you should learn about business taxes in Canada. Figure out what you can deduct from your income and how to prepare your tax return.
While you can work with an accountant, understanding the basics is crucial. That way, you can run your side business for most of the year, and you'll only need help for taxes.
Rent Out Your Car
Renting out your car can be an excellent side hustle if you hardly use it. You can sign up with a website, like Turo. That way, you can easily find renters.
Another benefit of Turo is that the company has an insurance policy to cover you while someone rents your vehicle. If you rent your car on your own, you should obtain third-party liability insurance to cover yourself and the renter.
If you live in a city with a lot of tourists, you can give tours as your side hustle.
To market yourself as a tour guide, you can create a website or post on social media. Consider working with local businesses or hotels to promote your services.
Refurbishing and Selling Used Furniture
If you want to work with your hands, consider buying cheap furniture and refurbishing it. You can find furniture to buy on places like Craigslist or Kijiji. Then, you can refinish or repaint the item and sell it for a profit on those same marketplaces.
Salvation Army and Goodwill are also great places to find cheap furniture. This is an excellent side hustle for people who need a flexible schedule.
Begin a Drop Shipping Business
Another great side hustle with a flexible schedule is drop shipping. This is where you order products from a manufacturer but have them send the products to your customers, so you don't have to deal with inventory.
If you start as a sole proprietor, you don't need a business license. All you need to start is to find suppliers and set up an online store to attract customers.
Will You Start a Side Hustle in Canada?
Working a side hustle in Canada is a great way to earn extra money to pay off debt or save for a big purchase. But you should consider if a side hustle is right for you.
If so, you should look at some side hustle ideas to find one that suits your schedule and needs. Once you find a good idea, you can start making money outside of your day job.
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