How to Boost Your Income With a Side Hustle

Did you know that nearly 60% of people feel that they need to make at least $100,000 per year to feel financially comfortable? While we can all likely say with ease that a six-figure salary would indeed make things easier, the truth is that the average annual salary in the U.S. is only about $59,428. This means a lot of people aren’t anywhere near the income level that they desire.

So, what’s the solution? Well, while you can ask for a pay increase or take on a second job from a part-time employer, the chances are that a pay increase won’t get you all the way where you need to be. Part-time employment comes with specific hours and responsibilities you might not be inclined to take on.

That’s why so many people pursue side hustles. The gig economy offers you the flexibility to work when you want to work, and it’s really up to you how much you put into it. In this article, the team at Cash Store will walk you through how to assess your income situation and identify if a side hustle is the right way for you to grow your income.

Why Side Hustles Matter 

If you aren’t yet familiar with the concept of a side hustle, let’s help you get up to speed. A side hustle is a money-making opportunity that you can do in addition to your primary employment means. It can take on one or more of many forms, from food delivery to personal shopping to freelance work.

And today, about 36% of U.S. adults have sought a side hustle to help pad their pocketbook. Here are just some of the benefits that you might get to experience if you do the same. 

• Extra Income for Financial Goals: Side hustles give you the opportunity to earn more, helping to bridge the gap between your current earnings and the lifestyle or financial stability you’re aiming for.
• Flexible Hours: Most side hustles allow you to set your own schedule, meaning you can work during times that suit you best without disrupting your primary job.
• Skill Development: Many side jobs allow you to learn or sharpen skills, which can benefit your career over time.
• Creative Outlet: If your main job feels routine, a side hustle can give you the chance to pursue something you’re passionate about or that interests you outside of work.
• Increased Financial Security: Having a side hustle can provide a backup income source, which can be helpful in times of unexpected expenses or changes in your primary job.

Begin by Assessing Your Financial Starting Point

When deciding whether or not you should explore a side hustle to boost your income, we suggest stepping back first to assess your current financial situation. Starting with a budget helps outline your financial priorities. The 50/20/30 rule—allocating 50% to essentials, 20% to savings, and 30% to personal expenses—is a helpful guide. Knowing where your money goes can reveal opportunities to earn more.

Here’s how to do it. 

• List Your Monthly Income: Start by writing down all the income you bring in each month, including salary, tips, and any other reliable sources.
• Calculate Your Essentials (50%): Essentials include your rent or mortgage, utilities, groceries, transportation, and any other necessary expenses. Try to keep these at or below 50% of your income.
• Set Aside for Savings and Debt (20%): The next 20% of your income goes toward savings and paying down debt. This might include building an emergency fund, saving for the future, or making extra payments on loans or credit cards.
• Budget for Personal Expenses (30%): The remaining 30% is for personal expenses—things like dining out, entertainment, hobbies, and non-essential shopping.

Taking a clear look at your finances with this approach can reveal areas where you might need extra income. By understanding your current spending, you can identify whether a side hustle might help you cover any gaps or add more flexibility to reach your financial goals.

Leverage Your Skills for Profit

Now that you know where your gaps are and have identified how much you want to make, it’s time to consider your skills. Soft skills like communication and hard skills like graphic design or data analysis can be monetized. Freelancing, consulting, and teaching are all ways to turn these abilities into income.

And if none of those sound like you, there are other options. Food delivery has become super popular for folks who want to eat out without leaving the house. Customers order their food online and then you drive to the location, pick it up, and bring it to the customer. Similar options are available for grocery shopping, picking up dry cleaning, and more. 

Here are a few questions to ask yourself to determine what skills and interests you have and how they might align with a side hustle opportunity. 

• What skills do I use regularly at work or in daily life? Think about both technical skills (like writing, organizing, or working with numbers) and interpersonal skills (such as communicating or problem-solving).
• What hobbies or interests could I potentially turn into a paid service? Consider activities you already enjoy, like photography, crafting, or cooking, which might offer ways to earn extra income.
• Am I comfortable working independently, or do I prefer interacting with people? This can help determine if a side hustle like freelancing from home or doing customer-focused gigs is a better fit.
• How much flexibility do I need in a side hustle? Assess whether you want the freedom to choose when you work, which can guide you toward options like app-based work or freelance projects.
• Would I enjoy learning something new to take on this extra work? Sometimes a small investment in learning can help you unlock higher-paying opportunities.

Popular Side Hustles to Consider

At this point, it’s time to match that financial need and your skills to opportunities. As we alluded to earlier, you can either look for established gigs or you can create your own. For example, if you are a creative type and like crafting or building things, you can set up a shop on Etsy or another crafting site to sell your wares.

Or, you can take on a more traditional side hustle. Here are some of the popular side hustles that many people tend to go after.

• Freelancing: If you are the creative type but an Etsy shop isn’t your type of creative, consider things like graphic design, web development, writing, or editing services. Platforms like Upwork or Fiverr can help put your profile in front of hundreds of clients looking for help with those very services.
• Tutoring or Teaching: Share your knowledge by tutoring students online or teaching classes on platforms like Skillshare or Teachable.
• Delivery Services: Join services like UberEats, DoorDash, or Instacart to deliver food or groceries on your schedule.
• Pet Sitting or Dog Walking: Platforms like Rover and Wag! allow you to earn money by taking care of pets in your free time.
• Handyman Services: If you’re skilled with home repairs, use TaskRabbit or local listings to find short-term jobs helping others with repairs or assembly.
• Online Surveys and Market Research: Companies like Swagbucks or Survey Junkie pay for completing surveys or participating in focus groups.

Tips for Work-Life Balance with Side Hustles

Working a side hustle can be quite lucrative; before long, you might start seeing all that extra cash rolling in. That said, it’s important to maintain a healthy work-life balance. If you take on too much on the side hustle route, your primary job—and your primary source of income—could start to suffer. Plus, side hustles are typically done at night or on the weekends, which can cut into family time. 

Here are a few tips to help you manage your side hustle without it taking over.

• Set Clear Boundaries: Decide in advance how many hours you’re willing to dedicate to your side hustle each week. Having a set schedule can help prevent it from cutting into personal time or affecting your main job.
• Prioritize Self-Care: Remember to make time for rest and activities you enjoy. Avoid letting your side hustle take up all your evenings and weekends—balance is key to staying productive and motivated.
• Choose Side Hustles That Align With Your Lifestyle: Select a side hustle that fits smoothly into your schedule. For example, if you’re busy during the day, consider evening or weekend work, like food delivery or freelancing from home.
• Reevaluate Regularly: Check in with yourself every month to see if the side hustle is still working for you financially and mentally. Adjust hours or tasks as needed to keep it manageable.

Make the Most of Your Side Hustle Journey

If you are thinking a side hustle is for you, be sure to follow the recommendations above to set yourself up for success. Additionally, be sure to monitor your spending habits and use your new source of income wisely. If you spend too much of it on your wants, your needs may become out of balance, which can wreak havoc on your overall financial health.

Want more tips on how to maintain financial balance? Follow the Cash Store blog.

The content on this page provides general consumer information or tips. It is not financial advice or guidance. Each person’s circumstances are unique. The Cash Store may update this information periodically. This information may also include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.