Side hustles have become all the rage over the last few years, especially for Gez-Zers and Millennials. From your Instagram explore feed to stories on the news, it seems like every week you hear about someone making it big through the humble beginnings of a side hustle… but is it really that easy? Well, truthfully, no.
Side hustles are good for three specific reasons. They are useful for extra cash, passion projects, and learning new skills – but they are not the way to reach your ultimate financial goals. Let’s break down the 3 reasons a side hustle is NOT worth your time… and what you should be doing instead.
1. Side hustles rarely out-pay your day job.
Side hustles are a lot like start-ups; they require immense time and effort to get off the ground and often significant time to truly take off. Making your first few bucks could easily happen in the first month or two… or you might not break even until after the first year. Even when you do start making cash, the breakdown of what you’re paid per hour of your time usually comes out to just a few bucks an hour, because you’re investing hundreds of hours just to get things together.
If you’re working a minimum-wage job, your side hustle may match up sooner rather than later. But, if you instead are working a job that requires some sort of degree, it will likely take your hustle years for you to outpace your day job’s salary.
Instead of spending time figuring out a new side hustle that you have limited experience in, why not pick up extra shifts at your current job or even a second part-time job in your field? Your experience will likely bring you a higher starting pay and more flexibility than a time-draining side hustle, all with more cash coming in.
By the way, if you’re looking to get more cash to quit your job sooner, check out another post we have called “The Only Way You Can Retire in 10 Years or Less.”
Now, if your job doesn’t offer overtime or you don’t want to commit to another part-time position doing the same kind of thing, then number two may be for you.
2. Classes, courses, and practice can increase your income faster than a side hustle.
Chances are you’re working in a field that you either studied for or one you have been in for a while. If this is the case, you are already marketable in that field and could likely find a way to bump your salary by at least 10% within the next six months. You heard me right.
While it may sound like a lot, this $5-$10k bump is actually the norm. According to a recent study by the Pew Research Center, most of those who switched jobs between 2021 and March of 2023 saw their pay increase by up to 10%! Inflation and the lingering effects of the pandemic have created some attractive working conditions for those looking to make a change.
Am I telling you to quit your job and start elsewhere? Not really. I mean, if you’re up for the switch, plan it out and go for it, by all means, but what I’m talking about is upping your expertise, making yourself more marketable, and getting all that you can out of your potential salary now.
Find out what certifications, courses, and training would make you more attractive in your field. Is there a leadership or specialized class you can take over the next few months? If so, sign up, get it done, and bring it up to your boss during your annual review or a meeting you schedule to request a pay bump. Start writing down everything you do well for your team and your organization and keep tabs on your work. Meet with your supervisor, ask for feedback, implement it, and keep trying to grow.
Will this take some effort? Sure. Will it take the countless hours you’d otherwise need to figure out a side hustle? Not at all. Think of it this way; instead of building a brand-new house from the bottom up, you’re upgrading one that you’re already moved into and familiar with. Make it better and increase its value.
3. Side hustles take away from the things that matter.
Our culture has glorified the side hustle lately, but that’s no different than the backward and unhealthy glorification of working an 80-hour week. People say it with pride, but when you truly think about what’s going on, it’s kind of pitiful. I mean, who wants to spend most of their waking hours working? Do you really want to go from your 9-5 to another 5-9 that leaves almost no time for you to do things like exercise, spend time with loved ones, cook a good meal, or just sit down and decompress after you already worked a long day?
Side hustles are another time-consuming commitment that will take away from your balanced life – especially if your main goal is purely financial. The only exception I will say for number three is that if you’re pursuing your side hustle because it is your true passion, then that’s different. Like, if you’re a CPA on weekdays but being an artist is what brings you back to life on the weekends, then maybe pursue that as a side hustle in your free time because it’s also going to fulfill your personal and passionate needs for creativity. But if you’re like most side hustlers who are just trying to find the job that brings in the big bucks, the hustles will likely come at the expense of other things that truly matter and bring you joy – so be wary.
Check out: 15 Small Investments That Make Money
Conclusion:
Side hustles are time-consuming and have a very slow starting pace when it comes to making cash. If you’re looking to increase your income, be sure to think deeply about these three reasons why a side hustle is just not worth your time. On the other hand, if you are drawn to pursue your passion, then head down side hustle lane because it may just be your destiny. If you have any questions left about the subject or want to share your own side hustle ideas, pop them in the comments! And, as always, thanks for watching.