One of the biggest lessons I’ve learned on my own financial journey is that the fastest way to reach any financial goal is to increase your income.
Want to pay off debt? Earning more can help you pay it off faster.
Want to save for a home? Increasing your income will help you reach that goal sooner.
It’s simple math—the more money you have, the more options you have. One of the best ways to increase your income is to start a side hustle.
I started my side hustle journey in 2014. I had a full-time government job, but the pay was low, and it wasn’t exactly exciting. So, I started my first blog, partly as a creative outlet and partly to earn some extra cash.
Since then, side hustling has helped me pay off thousands of dollars in debt and save enough to buy an RV and travel full-time. Eventually, I was able to turn my side hustle into my main income source, allowing me to work from anywhere.
In this guide, I’ll share my top tips for starting a side hustle and making extra money to help you reach your financial goals.
Not sure if a side hustle is for you? Read on to find out why it might be the right choice!
Step 1: Choose a Side Hustle Idea
Some people already have a clear idea of the side hustle they want to pursue, while others know they want to earn extra money but aren’t sure how. This step is all about brainstorming.
Start by asking yourself what you’re good at and enjoy doing. It’s important to choose something you won’t get bored with. For me, personal finance is a topic I love, so writing about money was a natural fit for my side hustle.
Beyond your own interests, think about what others are willing to pay for. No matter how much you love your side hustle, you’ll only make money if people find it valuable.
If you’re stuck for ideas, I have you covered! Here are some popular side hustles:
– Freelance work (writing, graphic design, etc.)
– Blogging
– Opening an online shop
– Virtual assistance
– Selling digital products, like ebooks or online courses
– Teaching a skill
– Joining the gig economy
Step 2: Do Your Research
When I started my side hustle, I didn’t do any research. I didn’t even know people could make money blogging. But once I learned it was possible, I did a ton of research to make the most of it.
Whether your side hustle is blogging or something else, there’s likely a wealth of information online from others who’ve done what you’re trying to do. Side hustles are very common, and there are people who teach others how to get started in nearly every field.
Research everything from setting up your website to marketing your service. Join Facebook groups where you can connect with people in the same business. The online business community is incredibly supportive and willing to share knowledge.
Step 3: Get Started
Once you know what you’re doing and how you’ll do it, it’s time to take action. The time it takes to get up and running will vary depending on your chosen side hustle.
Life commitments may also impact how quickly you can get started. If you have limited free time, getting your side hustle off the ground might take longer.
When I was launching my blog, I spent every spare moment on it. I worked on weekends, stayed up late, and squeezed in time wherever I could. There have been other times, though, when I had far less time to work on it.
Pro tip: Knowing how much time you can realistically dedicate to a side hustle can help you pick one that’s manageable. Some side hustles need more time than others.
For example, starting a blog involves setting up your website, choosing a design, creating social media accounts, learning SEO, and writing your first posts. A different type of side hustle might have a completely different setup.
Step 4: Create a Work Schedule
If you want to make real money from your side hustle, you have to treat it like a business, which means setting aside time to work on it regularly.
Since you’re your own boss, no one will enforce work hours for you. It can be tempting to skip your scheduled time to do something more fun. But remember, your success depends on the effort you put in.
Whether you have a full-time job, are a stay-at-home parent, or a full-time student, choose work hours that fit your schedule.
When I was still working my day job, I used evenings and weekends for my side hustle. I put work hours in my calendar and treated them as non-negotiable. If I knew I’d be busy on the weekend, I made up for it by working extra hours during the week.
Respect your time and commitments by keeping your side hustle hours separate from your full-time job. Avoid working on your side hustle during your job’s work hours unless it’s during a break. Mixing the two could lead to issues with your employer.
Step 5: Set SMARTER Goals
Even though you’ll do lots of research before launching your side hustle, there’s always more to learn.
Once you’re actively working on your side hustle, start setting goals for yourself. I didn’t set any goals when I first started my blog, and it took me a year to make my first dollar. Don’t make the same mistake—organize and set clear goals to keep moving forward.
Your goals should be SMARTER:
– Specific: Set a clear, measurable goal like “earning $1,000/month from my side hustle in
the first year.”
– Measurable: Track your progress so you know if you’re reaching your goal.
– Attainable: Set challenging but realistic goals based on what you can commit to.
– Relevant: Make sure your goals align with your long-term dreams.
– Time-Bound: Set deadlines to create urgency and keep yourself motivated.
– Exciting: Choose goals that inspire and excite you.
– Routine Bound: Build your goals into a routine to stay consistent, like working on your side
hustle every evening.
Step 6: Invest in Growth
Treat your side hustle like a business by investing time and, when necessary, money into its growth. Many side hustles are affordable to start, and you can gradually increase your investment as you earn more.
Some useful tools include:
– SiteGround: Affordable website hosting starting at $3.95/month.
– Canva: A design tool for creating graphics for your website and social media.
– Flodesk: Essential for email marketing, especially as you build a customer base.
– QuickBooks: Helps manage business finances, an essential tool for any business.
Step 7: Track Your Progress
Tracking your progress is important as you work toward your goals. There will be highs and lows, and you’ll always be learning.
Have a system in place to monitor your progress. Track numbers relevant to your side hustle, but avoid focusing on vanity metrics like social media followers. Regularly evaluate your numbers to see what’s working and where you can improve.
Step 8: Make a Plan for Your Income
To make the most of your side hustle earnings, plan how you’ll use the money. For example, if your goal is to pay off debt, decide in advance how much of your earnings will go toward that.
Maybe you allocate 75% of your side hustle income to debt and save 25% for fun. Having a clear plan helps you stay on track while still enjoying the extra income.
Step 9: Understand Side Hustle Tax Laws
Remember that there are tax laws for side hustle income. Unlike a regular job, no one withholds taxes for you on side hustle earnings, but the IRS still expects taxes to be paid.
Track every dollar you make and spend. Software like QuickBooks can help, or consider hiring an accountant to make sure you’re handling your finances correctly.
Final Thoughts
Starting a side hustle is one of the best ways to increase your income. It can help you pay off debt and reach financial goals faster. While starting may feel overwhelming, it becomes more manageable once you dive in. Take it step by step, and watch your financial progress unfold!
