Rising costs mean Americans are looking for ways to supplement their incomes. And for 44% of Americans, it means hustling on the side to bring in some extra money. The average side hustle from jobs including reselling items on sites like Amazon or eBay, day trading, tutoring or online freelancing will bring in about $473 a month—$5,700 a year. However, other side hustles are in high demand and can fetch four or five times that amount.
A recent study by Freelancer.com analyzed data from 372,000 jobs posted on the platform between October 1 and December 31, 2022, and found programming—, report writing—among the fastest growing skills on the platform. And research related jobs were ranked.
“We have employers turning to freelancers for content jobs, such as writing and research projects, all the way to highly complex jobs such as math, programming, and engineering. The trends in tech-related projects that result from global tech layoffs We’re seeing that continue,” Matt Barry, chief executive of Freelancer.com, said in a statement.
5 party hustles with the potential to make over $20,000 in additional payments each year
If you’re looking for a new side gig that you can do from home, freelancing platform Upwork has compiled a list of some of the most popular freelancing jobs on its site. According to Upwork, the following can earn you at least $20,000 per year working 15 hours per week.
Let’s say you make $30 an hour as a writer, work 15 hours a week, and work 48 of the 52 weeks in a year (including four weeks of vacation and vacation). This would mean that you would work a total of 720 hours in a year and earn a total of $21,600 before taxes ($30 x 720).
Experts say that if you’re already using these types of skills in your 9-to-5, it may be worth looking for a side job that allows you to flex those muscles even more.
“Many companies don’t have the budget to hire a full-time employee, but they can help you out for a few hours each week,” says Emily Casey Rassam, senior financial planner at Archer Investment Management. Consider a second job using your expertise and experience from your primary career. Reach out to target companies and offer your time and services. They may not have listed a position not knowing your existence.
What to Consider Before Taking Up a Side Hustle
There are many factors to consider before choosing a side hustle—besides earning potential. Even if you’re only working a few extra hours a week, you don’t want to find yourself in a situation that leads to burnout or causes unnecessary stress.
Your hobbies, passions, and existing skills can work to your advantage.
You can use your side hustle to find a passion or hobby that has nothing to do with your day job, but if nothing piques your interest, you can make extra money. You can also use some of the skills you use in your regular job to Party. It can also be an opportunity to build your resume with experiences from outside companies.
Time Management Is Key, So Pick a Side Hustle That Doesn’t Cause Burnout
Your side hustle will inevitably eat into your free time, so aim to set aside a designated time for side hustle work and a time to rest and recharge. “I would recommend that this side hustle be done in the evening or on the weekend,” says certified financial planner and wealth wellness expert Dawn Dahlby. “Take off your social media scroll and you’ll have plenty of time to indulge in something you’re passionate about.”
You must include your employer in your plan
If you want to start working on the side, you may need to let your employer know if this could be considered problematic.
For example, if you are producing work similar to what you normally do in your job, your employer may or may not have a problem with it. Review your employee handbook to see if your company has outlined any specific rules or limits regarding outside work. Usually, it’s best to err on the side of caution and let them know in advance if possible.
“Honesty and integrity are a must. Discuss the side hustle with your employer and that you set boundaries between the two responsibilities,” says Dahlby.
Consider the tax implications for the extra income you earn
Earning a side hustle is taxable income, so you should keep records of your earnings and retain any tax documents you receive from tasks you complete. If you earned $600 or more in income, the company you worked for will require you to provide a 1099-form. If you earned less than $600, the company is not required to send you a form, but you are still required to report that income on your taxes.
“If you have a second source of income, consider increasing your tax withholding from your primary paycheck,” says Rasam. “The IRS has an excellent Paycheck Withholding Calculator that can help you dial in the right number so you don’t have to pay a significant tax bill in April.”
takeaway
Side hustles can be a great way to take a breather from your day job and explore other talents. It can also be an opportunity to continue to strengthen the skills you already have. If you’re considering a side hustle, think carefully about how to balance the added work with your day job, and be sure to keep your employer and the IRS in the know to avoid any surprises.
