If you’re looking to make some extra money outside of your regular job, a side hustle can be a great option. But how much can you realistically expect to earn from a side hustle?
The answer, of course, depends on a variety of factors, including the type of side hustle you pursue, your skills and experience, and how much time and effort you’re willing to invest.
According to a recent survey by The Ascent, the average person with a side hustle earns about $8,948 per year. However, this number can vary widely depending on the individual.
Some side hustles may only bring in a few hundred dollars a month, while others can generate thousands of dollars in extra income. It’s important to keep in mind that a side hustle should be viewed as a supplemental source of income, rather than a replacement for your full-time job.
There are countless side hustle opportunities out there, from freelance writing and graphic design to dog walking and house cleaning.
The key is to find a side hustle that aligns with your skills and interests, and that you enjoy doing. With the right approach and a bit of hard work, a side hustle can be a great way to earn extra money and achieve your financial goals.
Understanding Side Hustles
What is a Side Hustle?
A side hustle is a way to make extra money outside of your regular job. It is a flexible and independent way to earn more income, and it can be anything from selling handmade crafts to freelancing your skills.
A side hustle can be a great way to pursue your passions, build new skills, and achieve financial goals.
Popular Side Hustles
There are many different types of side hustles that you can pursue. Here are some popular options:
- Delivery driver: Deliver food or packages for companies like Uber Eats, DoorDash, or Amazon Flex. You can work on your own schedule and earn money for each delivery.
- Online seller: Sell items on websites like eBay, Etsy, or Amazon. You can sell items you no longer need, or create your own products to sell.
- Freelancer: Offer your skills as a freelancer in areas like writing, graphic design, or web development. You can find clients on websites like Upwork or Fiverr.
- Pet sitter or dog walker: Offer your services to pet owners in your area. You can set your own rates and work with animals you love.
- Tutor: Offer your expertise in a subject to students who need help. You can find clients through websites like Care.com or Wyzant.
These are just a few examples of the many different types of side hustles you can pursue. The key is to find something that you enjoy and that fits your skills and interests.
To sum up, a side hustle is a way to earn extra income outside of your regular job. There are many different types of side hustles you can pursue, from delivering food to freelancing your skills. Find something you enjoy and that fits your skills and interests, and you can start earning extra money today.
Earning Potential
How Much Can You Make from a Side Hustle?
If you’re looking to earn some extra cash, a side hustle can be a great way to do it. But how much can you actually make from a side hustle? The answer, of course, depends on a number of factors, including the type of side hustle you choose, how much time and effort you’re willing to put in, and how much demand there is for your services or products.
According to a survey by The Ascent, the average side hustler earns around $625 per month from their side hustle. However, it’s important to note that this is just an average, and your earnings could be higher or lower depending on a variety of factors.
Results from Surveys
Another survey by The Ascent found that the average man earns around $8,948 per year from his side hustle, while the average woman earns around $6,064 per year. However, it’s worth noting that these figures are based on a relatively small sample size, so they may not be entirely representative of the population as a whole.
If you’re looking for a more lucrative side hustle, there are plenty of options out there. Indeed lists 70 lucrative side hustle ideas that can help you earn between $500 and $1,000 in extra pay per month. Some of the most popular options include:
- Freelance writing or graphic design
- Pet-sitting or dog-walking
- Renting out a spare room on Airbnb
- Selling handmade crafts or products on Etsy
- Offering tutoring or coaching services in your area of expertise.
Of course, these are just a few examples, and there are plenty of other side hustles out there that could be a good fit for you. The key is to find something that you enjoy and that can help you earn some extra cash on the side.
Examples of Side Hustles
If you’re looking to make extra money, there are many side hustles you can try. Here are a few examples:
Driving for Uber
Uber is a popular ride-sharing service that allows you to make money by driving people around. As an Uber driver, you can set your own hours and work as much or as little as you want. The amount of money you can make as an Uber driver depends on a few factors, including:
- Your location: Drivers in busy cities tend to make more money than those in rural areas.
- The time of day: You’ll make more money during peak hours, such as rush hour or late at night.
- Your vehicle: The type of car you drive can also affect how much you make. Uber has different rates for different types of vehicles.
On average, Uber drivers make around $15-$20 per hour. However, this can vary depending on the factors mentioned above.
Selling Goods Online
Another popular side hustle is selling goods online. There are many websites and apps that allow you to sell items you no longer need or want. Some of the most popular platforms include:
- eBay: eBay is an online marketplace where you can sell a wide range of items, from clothing to electronics.
- Amazon: Amazon allows you to sell items directly to customers through their platform.
- Etsy: Etsy is a marketplace for handmade and vintage items.
The amount of money you can make selling goods online depends on what you’re selling and how much you’re selling it for. To be successful, you’ll need to do some research to determine what items are in demand and how much they’re selling for.
Overall, there are many side hustles you can try to make extra money. Whether you choose to drive for Uber or sell goods online, the key is to find something that works for you and fits into your schedule.
Maximizing Your Earnings
If you want to make the most out of your side hustle, there are several strategies that you can implement to increase your earnings. Here are some tips to help you maximize your income:
Tips for the Average Person
- Choose a side hustle that pays well: If you want to make more money, you need to choose a side hustle that pays well. Look for opportunities that match your skills and experience, and that have a high earning potential. For example, if you have a background in graphic design, you could offer freelance design services.
- Work more hours: The more time you spend on your side hustle, the more money you can make. Try to find ways to increase your productivity and efficiency, so you can get more done in less time. For example, you could use time tracking tools to monitor your work hours and identify areas where you can improve.
- Expand your services: If you offer a variety of services, you can attract more clients and increase your earnings. For example, if you offer writing services, you could also offer editing and proofreading services.
- Network and market yourself: Building a strong network and marketing your services can help you attract more clients and increase your earnings. Use social media platforms, such as LinkedIn and Twitter, to connect with potential clients and showcase your work.
Investing Your Earnings
If you want to make your side hustle earnings work for you, consider investing your money. Here are some investment options to consider:
- Stocks: Investing in stocks can be a good way to grow your money over time. However, it’s important to do your research and choose stocks that align with your investment goals and risk tolerance.
- Real estate: Investing in real estate can provide a steady stream of income through rental properties or flipping houses. However, it requires a significant upfront investment and can be risky.
- Mutual funds: Mutual funds are a good option for beginners who want to invest in the stock market without taking on too much risk. They allow you to invest in a diversified portfolio of stocks and bonds.
- Savings accounts: If you want to keep your money safe and easily accessible, consider putting your earnings into a high-yield savings account. This will allow you to earn interest on your money while keeping it easily accessible.
By implementing these strategies, you can maximize your earnings and make your side hustle work for you. Remember to choose opportunities that match your skills and experience, work hard, and invest wisely.
Tax Treatment of Side Hustle Income
When it comes to earning money from a side hustle, it’s important to understand the tax treatment of your income. In general, any income you earn from a side hustle is taxable and must be reported on your tax return.
If you are paid on a freelance or self-employed basis, you won’t have taxes withheld from your earnings. This means that you will be responsible for paying both income taxes and self-employment taxes on your side hustle income.
Self-employment taxes are typically higher than the taxes paid by employees because you are responsible for both the employee and employer portions of Social Security and Medicare taxes.
In 2023, the self-employment tax rate is 15.3% on the first $147,000 of net income, and 2.9% on any net income above that amount.
To avoid any surprises come tax time, it’s important to keep track of all the income you earn from your side hustle. This includes any payments you receive in cash or through digital payment platforms like PayPal or Venmo.
You may also be able to deduct certain expenses related to your side hustle, such as supplies, equipment, and home office expenses. However, you can only deduct expenses that are directly related to your side hustle and that you wouldn’t have incurred otherwise.
If your side hustle income is significant, you may want to consider making estimated tax payments throughout the year to avoid any penalties for underpayment of taxes.
The IRS requires you to pay at least 90% of your tax liability for the current year or 100% of your tax liability from the previous year (whichever is less) through estimated tax payments.
Overall, any income you earn from a side hustle is taxable and must be reported on your tax return. You may be responsible for paying both income taxes and self-employment taxes on your side hustle income. Keep track of your income and expenses related to your side hustle, and consider making estimated tax payments to avoid penalties.
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