How many times have you been told to get a side gig to earn extra cash? A side gig is known as an attempt to make money with little effort. Babysitting, freelancing and walking a dog are some side gigs that do not require you to have a lot of skills. Many people find them promising when it comes to making little bit extra cash.

However, people juggle between a fulltime job and a side gig only when they need money urgently – for instance, they are struggling with debt payments. Side gigs are basically helpful when you lose your full-time job. You can easily survive your unemployment period if you have some cash coming in.

But some people believe that side hustles can make their financial condition better. They will less likely come across a situation when you are struggling financially. There is no denying that a side hustle can be your financially saviourin your tough times, but there is a more to it than meets the eye.

Some financial concerns cannot be addressed

When you come across some emergency, you should have some savings to fall back on. If you lack sufficient savings, you can get cash loans for emergency. Eventually, you realise that you cannot pay off the loan on time, and, as a result, you keep borrowing and then fall into an abyss of debt.

Had you had a side gig, you might have avoided a loan. It would certainly be a much cheaper alternative, but sometimes the problem of spiralling up debt is not the lack of money but your spending behaviour.

You will naturally end up being “cash-strapped” if you keep dissipating money. No matter how much you earn through your side hustle, you will find yourself “back to the drawing board”.

Side gigs can be helpful when you are on low wages

No doubt low wages can cause a lot of financial problems. You might have difficulty paying bills for food and utilities, let alone your debt. Borrowing money when you are not earning sufficient money will throw you in trouble. You will be tied to an ongoing cycle of borrowing money and eventually it will be a whopping of debt difficult to get rid of. The consequences can be worse.

Having a side gig will help you make some extra money. You can use this money for all of your essential expenses and a rainy day fund. However, it is recommended that you spend this money only to meet your essential expenses, not discretionary expenses. The way you manage money is the key that decides whether a side gig will help improve your financial condition or not.

It brings extra stress

Handing a side hustle along with a full-time job is not a cinch. You will have less time for yourself. If your side gig involves running a small business, it will make it even more difficult to have time left for you. You will be completely submerged in your cramped schedule.

You may be more stressed and disconsolate. Chances are you give up in the middle or fall prey to emotional spending. Soon, you will find yourself back in square one. 

So, should you avoid starting a side gig?

Undoubtedly, a side gig can help you make some extra cash to help tide you over in tough times, so there is no reason to deny you having one. But there are some factors you should consider before having a passive income source:

• Know what you want a side hustle

Before jumping the gun, you should ask yourself why you should start taking on this much work. Are you struggling to stash away money? Can’t you pay off the debt on time? Do you want to increase your income?

Having a clear goal will keep you motivated when you find it hard juggling between your full-time job and a side gig.

• Define your skills

Freelance platforms can help you get a lot of work. Create a profile and let people know about your speciality. Picking a niche is crucial so you can define your service. Make sure you choose the one that you think you are good at. Ask yourself:

• What you are good at
• Do you have any experience with that service?
• Does this interest you?

However, there are various other side hustles like babysitting, pet sitting and walking a dog that requires no skills.

• Do research

Research will help you know how to find your clients. If you have decided to babysit, you need to see the demand in your neighbourhood. If you are about to do something online, make sure that it does not cost you “an arm and a leg”. Identify who your target audience is, how you can reach out to them, what problems they are facing, and what solutions you can offer them.

• Invest a small sum

Most of the side hustles do not require initial capital even if you have to advertise it. It is pointless to spend a lot of money in your work set-up. If you join freelance platforms, you will just have to pay nominal fees.

• Be patient

Remember that you cannot start making money overnight. You will have to work harder to reach the level when you start making money. It is vital to be patient. Make sure you start a side gig when you are confident that you can manage your full-time job along with it too. do not pursue it if you will be burnt out.

The final word

Side gigs can help tide you over when life is giving you a tough time. Of course, you will be able to be in control of your money. But this is possible only if you spend money wisely. Most of the people struggle with their finances because of their impulsive buying habits. Your side hustle can do nothing about that. You will have to work on your spending habits on your own.