Side hustle culture
It feels like the side hustle culture has been the hottest topic over the last few years, and it completely exploded during the COVID-19 pandemic. Gary Vee and almost every other "influencer" preaches that if you want to succeed in life (whatever it means to you), you need to work hard, never have rest and have multiple side hustles. If you're going to achieve happiness in life, you need to work your 9 to 5 and spend the rest of your day working on a side hustle that you should bring from a hobby level to a business. And when your side hustle brings more money than your day job, and you see the potential growth of your business, you need to quit your full-time job and focus on your new venture. And then add another side hustle to it and continue until you pass Elon Musk in the Forbes list. It is pretty simple. However, for a regular professional not obsessed with Youtube videos and self-improvement articles from Medium, there are multiple reasons and approaches to get a side hustle.
In today's economy, many people are struggling to make ends meet. A side hustle can provide a much-needed financial boost. It can help you pay off debt, save for a rainy day, or have a little extra spending money. Another reason people may start a side hustle is to pursue a passion. If you have a hobby that you love, a side hustle can allow you to turn it into a business. It can also be a way to meet new people and make new connections. Whatever your reason for starting a side hustle, it can be a great way to supplement your income and pursue your goals, such as a down payment on a house or a child's college education. A side hustle can be a success with a bit of planning and effort.
Why not a second job?
Most people don't consider a second job a side hustle, even though some use these terms interchangeably. A second job is, for instance, when you finish your office job and go to a local restaurant to wait tables or something else. This is not a new concept; it has existed for as long as capitalism has existed in most countries.
So why people don't treat a second job (or maybe extra shifts at your current job) in the same way as a side hustle? The biggest reason is for whom you work. By having a job (9-5 or whatever it is), you work for somebody, or "the man." It means you make somebody more wealthy by trading your time for money. It's either mom-and-pop or a Fortune 500 corporation. The result is the same - you make that company, the board of directors, and investors more wealthy.
On the other hand, you get only a tiny percentage of that profit you make for your employer. And this is what is called, surprise surprise, your salary or wage. On which you pay a much higher tax than your employer pays on their profit. Does not really sound fair, does it? So, in a nutshell, this is a second job as a concept, but what about a side hustle? With a side hustle, you ultimately work for yourself, and this is, frankly, the idea of not working for "the man."
What about being over-employed?
Over-employed - another creature of the modern side hustle culture triggered by the COVID pandemic and work-from-home arrangements. Do you remember how you worked in your office? You would sit for 8 hours straight, work only for a couple of hours a day, and spend the rest of your day gossiping with your colleagues, staying next to a water cooler. Working from home, however, you can work the same a couple of hours and spend the rest of your work day doing something else.
Some people used this time to work another job, quite often as full-time employees. However, there are a few key differences between being over-employed and having a side hustle. First, with a side hustle, you usually have more control over your work schedule. This can be a big plus if you have other commitments outside of work. Second, a side hustle is usually something you're passionate about - it's a way to make extra money doing something you love. Finally, a side hustle is generally less stressful than being over-employed. When you're over-employed, you often have to work long hours and deal with a lot of office politics, even though you are physically not in your office. You can set your hours and work at your own pace with a side hustle.
Early retirement and side hustle
Early retirement is also one of the modern trends that everybody talks about. People nowadays don't want to work until retirement and only then enjoy life, travelling, pursuing hobbies and spending time with their loved ones. But suppose you want to achieve your financial goals before you retire. Obviously, you need to earn more money in your 20s-30s, and not surprisingly, this can be achieved by having a side hustle.
But making more money is only one side of this medal. What about spending less while earning the same money as you do now? This is another way to achieve the same goal and retire early. In addition, your costs of living can be reduced by moving to another city/province/state or even country while still maintaining the same income level. You are very fortunate if you have a full-time remote position, and in this case the early retirement plan can quickly become a reality.
If you have a job requiring you to be in your office daily, you can explore online/remote side hustles. And frankly, this is the most common scenario in many situations. The overall idea is that you are not tied to a specific location; thus, you can work from anywhere.
Cons of a side hustle
There are a few potential drawbacks to taking on a side hustle in addition to your full-time job. First, finding the time to fit your side hustle around your regular work schedule can be challenging. This extra stress can lead to burnout and potentially decreased quality of work in both your side hustle and your regular job. Additionally, if your side hustle doesn't produce enough income, it can cost you money instead of making you money. You might keep investing your time and money into it, and it does not pay off. Sometimes, you can write off some of your business expenses to offset some of your losses, but always consult your accountant regarding your tax returns.
Finally, there is always the risk that your side hustle will fail, and you'll end up back at square one. And hey, there is nothing wrong with it. One failed opportunity allows you to explore hundreds of others. As long as you cut your losses (if any) and start planning your next venture, you are in good shape to achieve success in future. So as always, the choice is yours.