In times of economic hardship… or in times of career frustration and stagnation we’ve become accustomed to turn to a relatively new solution, but one that thousands around the world swear by… The humble side hustle. In the digital age, where the gig economy presents us with a wealth of potential opportunities, it seems as though we have access to more money-making opportunities than ever before, from starting an ecommerce business to monetizing your social media.
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Yet, while a side hustle certainly can help the entrepreneurially minded to make money, find a more rewarding pursuit outside of their day job or even transition to full-time entrepreneurship, the way is not always paved with gold. Like any entrepreneur, side hustlers must walk a fine line. They must invest sufficiently to lay the foundations for success while also keeping their overheads under control. This begs the question… How much should you spend on your side hustle? Truthfully, there are no right or wrong answers. You can, however, find the right answer for you by asking yourself the following questions.
What are you side hustling for?
This is the most important question to ask yourself as it will determine the extent to which spending on your side hustle is “worth it”. There are many reasons why one would choose to set up a side hustle and many goals that they could accomplish. By ascertaining clear goals you will either see spending on your side hustle as an expense or an investment. So… Why do you want to side hustle?
- To make a little extra money to make up for your holiday spending?
- To get a feel for entrepreneurship?
- To achieve financial independence?
- To establish a new career path for yourself?
Different goals will require varying levels of investment, which begs the question…
Will you still be side hustling in 5 years’ time?
How long do you intend to keep side hustling? Will you stop as soon as your goals have been met or do you intend to keep on going and growing? If you find yourself with a longer term plan you will invariably need to invest in quality. You’ll also need to invest in Mobile Computer Repairs when your equipment fails. Even investing in great quality equipment doesn’t mean that you won’t have to have a solution in place to minimise downtime if something goes wrong.
Will your customers notice if you cut costs?
There are some side hustles in which you’ll wear the cost of your investment will be worn very much on your business’ sleeve. Indeed, it will be used as a selling point and demonstrate your commitment to invest on bringing them quality and value… There are some side hustles, however, in which your customers won’t necessarily notice how much you’ve spent… Nonetheless, it still behoves you to invest in being able to give them a standard of service that keeps them coming back.
Are your costs tax deductible?
Finally, it’s important to remember that some of the costs incurred may well be tax deductible. You may be able to use this to your advantage. If, for example, you use your car for a side hustle, your repairs and running costs will (at least in part) be tax deductible meaning that while you may incur expense, it balances out by saving you on tax.
On the subject of tax, remember that your income from your side hustle will still be taxable!
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