Whether it’s through Instagram posts or conversations with friends, you’re probably hearing more people talking about working a side hustle. In addition to holding down full-time jobs, your friends might be spending their nights or weekends walking dogs, renting out their apartments or consulting for corporate clients. And they’re not alone.
Working a side hustle has become a way to both make some extra money – if your full-time job allows it – and test the waters with whether you’d like to turn a skill or passion into a new full-time job on your own.
Just like with freelancing, side hustles allow for more flexibility and freedom in how and when you work – as well as space to negotiate your rates with various clients. Over the last couple decades, there has been a significant and growing shift amongst people moving from working more traditional, 9-to-5 jobs to freelancing full-time for themselves. In fact, freelancers and side hustlers account for 57.3 million Americans today. In the next decade, freelancers will account for over half the workforce in this country and others around the globe.
The type of people who pursue a side hustle do so for multiple reasons. Often they are motivated financially – to start making multiple incomes streams to save for a big purchase, secure more retirement savings or pay off debt. But just as often they’re now looking to further develop passions, expand upon budding skill sets and reinforce their hireability across multiple job types as well.
When pursuing financial reasons, people are now largely looking to diversify and add to their full-time income. They’re not alone – one in four people in the US already have a second source of income. Side hustles and the gig economy are not only for people of a certain income range. People making over $100,000 in annual incomes are using gig employment to quickly boost their retirement nest egg – and now able to do this much more flexibly thanks to online platforms, like Etsy, Lyft and Airbnb.
When passion-driven, people typically feel their full-time job isn’t aligned with their interests or not very purpose-driven. Side hustling allows for people to keep their full-time job along with its stability while allotting some time to these passions. These side hustles may include picking up writing, photography or house sitting for animals on a regular basis.
Increasingly, people are also looking for a way to further develop their personal growth. When surveyed, 40% of freelancers reported they got into side hustles and freelancing to keep learning and supporting themselves through new skills. These people often look to side hustling to also expand their network and reputation through these new or additional skills.
A demographic increasingly taking to side hustles is baby boomers. They’re often looking most immediately to increase their retirement savings, having experienced the impacts of the last recession and often still paying off their children’s student loans. Along with the financial benefits though, side hustles allow baby boomers to stay involved in their communities through this part-time work or develop skills they can take and charge for along their upcoming travels.
All the reasons side hustles are taken on as listed above are the reasons they’re beneficial. They can net immediate and long-term increased income. Side hustles allow for someone to keep a day job as well as pursue passions and interests without having to go “all-in”. These gigs can help grow social network and create a forcing function to learning new skills. These benefits are particularly invaluable to growing a resume and keeping it fresh. And by working in another environment or context, there are constantly new opportunities to learn, expand and get exposed to different people and ideas. This final point is significant to what is now being referenced as the future indicator of success: adaptability quotient. Defined as the ability to adapt and thrive in a fast-changing environment, this is quickly replacing long held respect for IQ and EQ.
While there are many benefits that come along with side hustles, there are also disadvantages. Side hustling can leave one with very little down or free time. Once a side hustler is done with their full-time job, it’s off to the side hustle – creating an almost non-stop work life. If not monitored, a side hustle can also begin to intervene on a full-time job. Time management skills are critical to balancing a full-time job or pursuits along with a side hustle. It’s often best to wade into the side hustle waters slowly, so there’s the opportunity to increase or decrease the workload as needed around a principle income or family needs. Stress or feeling a sense of overwhelm around juggling jobs should be monitored and adjusted for accordingly.
Given the pros and cons of taking on another job or set of clients, there are a few questions you should ask yourself before determining this is the right time to start a side hustle:
If you answered yes to most or all of these questions, you’re ready and capable of taking on a side hustle.
It’s going to take a lot of elbow grease but if you apply yourself and search out the right communities, you’ll start gaining more than just another income stream. Whether it’s those new skills, turning your side hustle into your main income or growing your AQ, you’ll be well on your way to joining the growing ranks of side hustlers and freelancers. Throughout this week, we’ll post more about how to setup your side hustle using all the online platforms available to manage your invoicing and even marketing yourself through various social media channels.
Oona from Lance