Side hustles have become a popular way to earn extra income and explore passions outside of a full-time job.
But before you start one, it’s important to evaluate whether the benefits outweigh the costs.
In this guide, we’ll explore what side jobs are, the potential benefits, and the challenges you may face. Keep reading!
What is a side hustle?
A side hustle is any job or project you take on outside of your regular full-time employment.
It could be something related to your hobbies, skills, or even just an opportunity to earn extra cash.
Many Canadians have started these alternatives as a way to build savings, pay off debt, or explore a career shift without leaving their full-time jobs.
Side hustles vs. part-time jobs
While part-time jobs often involve set hours and a regular wage, side hustles are usually more flexible.
They allow you to set your own schedule, but they also require more initiative and may not guarantee consistent income.
Side jobs also provide a sense of independence and creativity that traditional employment may not offer.
The financial benefits of side hustles
Side hustles can help you improve your financial situation.
Take a look below at some of the advantages of this kind of job:
Extra income
It can provide additional funds for paying off debts, saving for future goals, or building an emergency fund.
It’s an interesting way to achieve financial stability without relying solely on your full-time job.
Opportunity to turn a passion into profit
Many people use side hustlers as a way to monetize their hobbies and passions.
Whether it’s photography, crafting, or writing, they allow you to combine personal interests with financial rewards.
Tax benefits for self-employed individuals
Self-employed people often have tax advantages, such as the ability to deduct business-related expenses.
These benefits can contribute to overall tax burden reduction and make the hustle more financially rewarding.
The costs of a side hustle
Before committing to side hustles, it’s essential to weigh the advantages they may bring to your routine:
Time commitment
Balancing a side hustle with a full-time job and personal responsibilities can be challenging.
Time management becomes critical, as working extra hours may reduce your quality moments with family, friends, and yourself.
Expenses
Starting a side job often comes with expenses, such as equipment, marketing, business registration, and other costs.
It’s important to consider these charges and how they may impact your profits.
Burnout and mental health risks
Juggling multiple responsibilities can take a toll on your mental health and well-being.
Make sure to manage your workload carefully to avoid overextension and burnout.
Potential tax implications in Canada
Self-employed citizens of Canada must pay taxes on their earnings, and there are specific requirements for reporting income and expenses.
Best side hustles for Canadians
Here are a few popular side hustle options in Canada that can fit several skill sets and interests:
Remote work opportunities
Freelancing roles like writing, graphic design, virtual assistant, and consulting are in high demand.
These remote alternatives offer flexibility and the ability to work from anywhere.
Gig economy jobs
Jobs in the gig economy, such as driving for Uber or delivering food through DoorDash, are a popular choice for people looking to earn extra cash in their own schedules.
Investing and passive income streams
Real estate investments, stock trading, and affiliate marketing are ways to generate passive income.
These require an upfront investment of time and money but can offer long-term benefits.
Local side hustles
Local opportunities, such as tutoring, pet sitting, or creating handmade crafts, can be an interesting way to supplement your income while engaging with your local community.
How to determine if a side hustle is worth it
It’s essential to evaluate the side hustle’s potential return and how it fits into your personal goals.
Calculating return on investment
Consider the time you invest in your side hustle versus the money you’re earning.
That way, you can answer the question: are you making enough to justify the extra hours you’re working?
Identifying your goals
Are you looking for short-term cash to pay bills, or do you want to turn your side hustle into a long-term business?
Clarifying your goals will help you guide your decision-making process.
Evaluating work-life balance
Ensure that the extra job doesn’t negatively impact your health, relationships, and main career.
Conclusion
Sides hustles offer an interesting opportunity to boost your income, explore passions, and gain financial independence.
However, they come with their own set of challenges, such as time commitment and potential burnout.
Weighing the pros and cons before starting an extra job can help you determine if it’s truly worthy of your time and energy.