Should I Find a Side Hustle To Increase My Income?

Managing your expenses can be difficult, especially if you have a lot of bills to pay and a lifestyle to maintain. So far, you’ve learnt how to budget, track expenses and save for your financial goals. But still, living in your country is not cheap. Your daily coffee, monthly rent, and weekly outings with friends can all add up to very little money in your savings or emergency fund.

Once you have taken control of your finances you may still want to increase your income with a side gig to help offset the impact of rising costs on your lifestyle or allow you to hit your financial targets on schedule.

Too much penny-pinching can start to feel restrictive. Having a side hustle can be more useful than you realise, giving you more flexibility to spend and more opportunities to save.

Benefits of a side hustle

Who would say no to extra cash? This can be one of the most exciting benefits of having a side hustle. 

The additional flow of income can help boost your savings, pay off loans faster, build an emergency fund, or make investments that could provide financial stability in the long run. 

Moreover, having a side hustle can add more than cash to your financial future; it can provide valuable experience and access to new skills or industries. 

This can open up career opportunities and make you even better at your main job which improves your chances to progress. Having a side hustle is no joke, so at the very least, your time management skills would have to improve!

How cool is it to get paid for doing something you’re passionate about? Our full-time jobs aren’t always what our dream jobs are, but turning your hobby into a side hustle can give a sense of achievement, purpose and fulfilment that your full-time job might not provide.

Challenges and considerations

However, it can be tough to run a side hustle alongside your full-time job or studies, not to mention your personal life. 

Setting a realistic schedule and task list is important to ensure that neither your main job nor your personal life for yourself suffers. 

You could experience burnout if you do not manage your time effectively! Rest and fun are important, or your side hustle might turn into a nightmare. 

Another important consideration you might have to account for is the initial investments of cash needed to start your side hustle, whether it’s for buying materials or equipment, marketing, or signing up for training. 

At the beginning, income from a side gig may be inconsistent or non-existent. Factor this into your plans and decide how long you can afford to carry it before it turns a profit.

Do also keep in mind that your full-time job is still your main source of income, so ensure that you prioritise well and that your side gig doesn’t get in the way of you fulfilling your professional commitments and responsibilities. 

It’s okay to identify your own limitations and boundaries so that you do not encounter any conflicts.

Steps to start and succeed

It is important to know what your goals are so you can focus on them and stay motivated. What is it that you want to achieve with your side hustle? Do you want to save for that European trip? Or do you want to pay off a loan? 

It’s not going to be a walk in the park and having these goals will give you an incentive to keep moving forward.

Do your homework before you start anything! Research is key, as you will see what others are doing, what people are looking for, and determine if your side hustle can be a success. 

Having a solid business plan based on your research will help you stay on track. It can also help you compare different options so you can decide what side hustle would be best for you to pursue. 

An example is being a GrabFood or FoodPanda delivery rider, as these companies offer flexible hours that you can schedule to do outside your main job. 

Or you can offer tutoring services in the fields that you excel in – like mathematics or another language – either online or in person. 

Maybe walking dogs can get you some extra cash. Or you can try to make use of the varied income opportunities social media offers by sharing your cooking talents or singing skills on Instagram but be warned this can take a lot of time and energy without generating any income.

Remember that there is no such thing as a free meal and stay away from getting rich quick jobs. They are usually too good to be true and you could potentially be scammed.

Additionally, there may be legal implications related to your side gig so it’s a good idea to look it up too. For example, would you need to declare the additional income for tax purposes? 

There are lots of tools out there that can help you keep track of tasks (Trello, Google Tasks), monitor expenses (Spendee, Dobin), and manage timelines (Evernote, RescueTime). Use them to stay organised. 

Conclusion

Having a side hustle can offer extra cash, new skills, work experience, access to different industries, networking opportunities and even a personal sense of fulfilment. 

But it also comes with challenges that you must seriously consider, such as financial risks, time investment and opportunity cost, as well as potential for burnout if you don’t manage your time effectively. 

However, if you set clear goals, do your homework, and stay organised, you can successfully balance everything and reap the benefits of having a side hustle. 

Ready to take the next step? Here’s your sign to find a side hustle that feels right for you! After all, boosting your income is always a welcome reward. 

This content is part of the Temasek – Financial Times Challenge, a financial literacy education series in Singapore for youths.