Establishing financial security is now a necessity and not an option. Adapting to the current economic framework means reconsidering your finances, which very often requires picking up a secondary job apart from your main 9-to-5. This has caused a massive boom in the popularity of side hustles. A side hustle does not only allow you to pay for expenses like debt, or put aside cash for buying a house, but it also helps you achieve a sense of financial wellbeing. Now to take the leap, here’s how you can get started.

The Necessity of Side Hustles in the Current Era

Over the past couple of years, the standard of living has gone through the roof. Basic needs such as buying food or going out have gradually increased in their pricing. Mortgage interest rates have also accelerated, which turns out to be a prime incentive for some payments doubling. Recently households have been tightening their belts, living paycheck to paycheck with little space to account for a financial setback.

Side hustles are not an option but a requirement for many Australians. A primary job simply does not provide enough income to account for all expenses, creating the absolute necessity for a side hustle. Side hustles are not just an easy stream of income which makes them appealing, but the lifestyle one can live after doing a side hustle along is what really matters.

The 3 Steps in Undertaking Side Hustles

Before anything else, consider evaluating the resource that you have at your disposal. It usually falls into these 3 categories:

1. Time: Do you have hours in a week which you can spend to earn extra income?
2. Skills: Is there a special talent that you have that others are willing to pay for?
3. Money: Can you spend some money on different tools or ventures to earn more money?

You can make the side hustle work with at least one category from above. Take the following scenarios for example:

• If you have no skills or money but a lot of time, consider delivering services or ridesharing.
• If you have skills like baking or photography, spend them from your side or productize them.
• If you have a certain amount of capital, consider investing in stocks or real estate, or starting an ecommerce business.

Some Side Hustle Ideas

Here are some side hustle examples that may give you some starting ideas:

• Freelancing: Selling your skill for hire as a consultant, designer, or writer.
• Online Selling: Dropshipping or reselling products on Amazon or eBay.
• Services: Event, birthday or wedding photography, tutoring or personal training.
• Gigs: Driving for Uber, food delivery, or listing a spare room on AirBnB.

Any of these approaches may be adjusted to your needs such as creating an emergency fund, repaying a mortgage, or setting money aside for a holiday.

Establishing Precise Objectives

Getting a side gig means figuring out what it is that you want to achieve. Otherwise, any extra income will probably be consumed by general spending. Some common aims are:

• Eliminating existing debt.
• Establishing an emergency fund containing 3 to 6 months’ worth of expenses.
• Saving money for purchasing real estate or stock.

Remaining focused towards meeting a particular end goal keeps you active and productive so the prospect of achieving long term financial health always remains attainable.

Navigating Obstacles

When trying to start a side hustle, you usually have to leave your comfort zone. Learning new things, working more, or enduring some initial struggles might be necessary. To keep yourself on the right path, here are some pointers:

• Allocate Your Time Wisely: Determine what activities in your day are time-depleting, such as too much scrolling on social media and excessive television watching, and replace those hours with something more useful.
• Address Your Pride: Don’t allow fear of what people think to keep you from pursuing your goals. Whether it means baking, driving a cab, or selling old items, concentrate on achieving goals, and forget about judgment from others.
• Resilience: Remember that being rejected and face some challenges is only a part of the broader picture. Treat them as ways to learn something new, and re-calibrate your strategy, will it be necessary.

Tax Considerations

Profits from side jobs are charged at your incurred marginal taxation rate. A lot of people worry about this, but taxes should not be seen as a blockade. Your side hustle is growing immensely, but if it does with some more effort, consider building a business structure around it to gain some tax advantages as well as safeguard your intellectual capital.

It’s Not Only About The Money

A side hustle brings more than just monetary gains, like confidence, skills, and most importantly, personal developmental opportunities. Whether you learn how to market, unlock a new hobby, or manage your time more effectively. All of these can be lifelong gifts from your alternate job.

Conclusion

Undeniably starting a side hustle takes a lot of work, but with the right mindset the returns can be astronomical. If you want to be financially independent, reduce debt or simply improve your life the first step is to do something. Set your expectations, assess your capabilities and take baby steps. And soon enough, you will find the fruits of your labor.