Does Your Side Gig Make Sense Financially? Three Tips to Keep in Mind

It never hurts to have more money in your pocket, right?

Side gigs are all the rage right now according to Forbes, with approximately 30% of workers taking on a second job to supplement their full-time income.

Although it’s certainly common to have a secondary job or side project to support yourself, it’s important to note that not all side gigs are created equal. Just because you’re working more doesn’t necessarily mean that you’re making the most of your second gig. After all, everyone gets the most bang for the buck when it comes to their time and earning potential, don’t they?

If you’re skeptical that your secondary paycheck is too small or simply want to figure out how to ensure that your side gig makes sense, taking the following tips into account.

Make Sure You Ain’t Losing Money

Okay, so not taking a job that puts you in the red is a no-brainer, right? Unfortunately, there are numerous cases where workers don’t realize that they’re actually losing money due to their side gig.

Uber drivers are a classic example when you consider factors such as wear and tear on drivers’ vehicles and the cost of fuel. Many drivers often find that they’re working for pennies an hour when they take into consideration how much they’re spending to support their jobs. This rings true for multi-level marketing schemes and many commission-based jobs as well.

Meanwhile, consider also that many side gigs are just an accident away from a potential financial disaster. That’s why insurance for van drivers and other delivery vehicles (whether you’re working with people or products) is so important. In short, don’t put yourself in a position or financial ruin or liability because of your side job.

Make Sure It’s Not Impacting Your Day Job

Ask yourself: is your side gig potentially impacting your productivity at your 9-to-5? If so, you may be sinking yourself into a deep hole financially. Side gigs certainly aren’t worth potentially losing your primary income stream, although some people don’t realize this until it’s too late.

Think about it: if your late-night waitress shifts are cutting into your ability to focus at the office, are they really worth it in the long-run? It’s important to work on a schedule that doesn’t make you miserable and is likewise flexible with your primary job. Remember: your first gig should come, well, first.

Make Sure That You’re Saving

Many people take side gigs which are below their typical pay-grade because money is money, right? That’s all well and good, but don’t make the mistake of blowing your side income on needless nights out and instead put it to good use.

As a rule of thumb, many people put their side income directly into a savings account. Over time, you can actually use your side gig to build a hefty nest egg for a big purchase such as a down-payment on a house or car.

Restraint is so important when you have two paychecks coming in. Don’t forget the reason why you have your side gig in the first place: you might even consider opening a separate savings account to house your side income so you’re not tempted to touch it.

Side jobs are a great idea for anyone looking to earn more money, as long as they make sense financially. By making the most of your secondary income, you make the most of your time both on and off the job.

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July 1, 2017 Does Your Side Gig Make Sense Financially? Three Tips to Keep in Mind