There is a dark side to side hustles.
Hidden beneath the countless articles and videos you see on YouTube on how to make money with side hustles, there is either a hidden agenda, or regurgitated information that finance youtubers are pushing as they flood the platform looking to earn the highest CPA possible in the finance niche.
Some of these content creators and writers, have never even started a business or a side hustle, and may only have a surface level understanding on how money works. Even though they may have spent countless hours researching, to deliver the most accurate information, the truth is it is very different when you have actually taken action on those things that you are teaching.
Let me put it this way, let’s say, for example, you were looking to get in shape, and trying to find a trainer to help you achieve your goal. There are 2 trainers placed in front of you, and both trainers have the exact same level of knowledge in the fitness space.
The first trainer is clearly out of shape, doesn’t work out at all or eat clean. The other trainer has the physic that you are looking to achieve.
Which trainer would you choose?
Obviously the second trainer, why? Because they have actually applied what they are teaching you and therefore will have a deeper understanding of what it takes to get you to your goal. They have walked the walk.
This is a simple illustration of what’s going on in the side hustle space right now.
I wanted to go over some things that I felt is worth pointing out, in hopes that it ultimately helps provide a balanced perspective on side hustles in general.
It’s in the Data!
A recent study showed that over a third of 16–34-year-olds are side hustling alongside their full-time job. This is increasing by the day as more and more people are looking to make some additional income with side hustles. And Companies that used to offer ‘life-long’ careers are no longer offering the security that our older generations experienced.
Side hustles are a great way to make extra money and can even turn into your main source of income. Back in 2018 I started selling stuff I had around the house, because I was desperate to make some money. I remember selling my old Adam speakers and a canon camera.
I took the $800 I got from the stuff that I sold and reinvested it into more stuff that I could sell online, at the end of the year I had grossed 420K. I worked hard all year, reinvested all my profits, and scaled as much as I possible could that year. I wanted to see how far I could take it.
This was a life changing year for me and this side hustle of selling stuff online had made me more money than I’ve ever had. Also, I did all of this while working a 9-5 and balancing my life as a husband and father. But I’m super lucky to have a wife and kids that understand that I was only trying to make life much better for everyone.
Over the years I lived below my means and started funneling the profits in other business ideas that I wanted to start. Some failed and some did well.
But the point I want to make, is that it took action, learning how to leverage debt and scale, how to manage my finances, how to build credit with my business, how to deal with major fires, losses and learn to pivot and adapt.
This was all learned through execution.
Make money money, make money money MONEY!
Making some extra money, that’s not from your day job, is a great idea. There are a lot of side hustles out there, that really do work and can even have the potential to become your main hustle.
BUT, then there are side hustles being thrown around, that are dressed up as money making opportunities but simply are not, and are an absolute waste of time in my opinion.
And finance creators, with a large following are telling you how to make lazy money without doing any work! These are all lies. You will never see me make a video on lazy side hustles or lazy ways to make money.
Side hustles like completing surveys, reading e-mails, and watching videos to make money. This is an absolutely terrible exchange of you time for the amount of money you make off this. You might as well pick up an extra few hours at your day job.
The issue with these types of side hustles, boils down to the trade off on your time for the money!
Then I see some creators teaching how to make money on websites like Swagbucks. Which would require you to spend money to either earn points to redeem for gift cards. This side hustle has absolutely no merit and won’t make a difference in your finances.
Often, I see creators mention these weird side hustles to either get clicks or get their viewers to click on their affiliate links. I don’t believe this is done maliciously, but what happens is the creator looks at what topics are performing well, as all us creators do, and will create a video AROUND the topic they see that’s getting a lot of clicks right now, instead of actually taking a second to think if it truly going to benefit the viewers that are watching it, and does this align with my methodology on how to effectively make money with a side hustle.
Listen, if you want to become successful at a side hustle, you need to put in the work, there is no easy or lazy way to accomplish anything worth having.
Then there are the so-called experts, in this space. Whose main side hustles, ironically, is to get you to sign up for their course.
I’m all for courses, I have purchased many courses as well. It’s a great way to jumpstart and accelerate your business or side hustle that you are looking to start. But, the person selling the course should be vetted and transparent, as they have an obligation to their viewers who trust them enough to buy into their so called, expertise.
If you find a side hustle that you want to try, do some research on your own first, see if it’s something you truly want to do, and if you decide to buy a course, make sure it someone that is actually doing the business and not just trying to sell you something. This ties back into the fitness and trainer example we mentioned earlier.
Opportunity Costs
Next, there is the opportunity cost that comes along with side hustles.
Most people have a job that is their primary source of income, and starting a side hustle by definition, is “work performed for income supplementary to one’s primary job”
So therefore, doing your side hustle has an opportunity cost, as you are trading time for money. So, for example, if you have a 9 to 5 and decide to uber or door dash on the weekends, you have traded your weekends, or time with your kids and family, that you are normally off, to make more money.
So then at what point do you stop trading your time for money, and let your money work for you and create you more time.
Our time is the most precious commodity we have! So, depending on your current needs and the season of your life that you’re in, you may have more time then say someone with a 9 to 5 and a family. Its important to factor this into your goals of the side hustle you are looking to start.
If you are someone that wants to start a side hustle to ultimately make it your main source of income, then to start you will want to choose a legit side hustle, and not anything like surveys or make money watching videos. At first you will leverage your time to develop a skill or grow your side hustle business to where you are generating consistent income. Then you will eventually want to transition, from trading less of your time and leverage your money to give you time back.
You can do this by hiring, automating, or creating systems and process that remove you from tasks that you can delegate.
Now, if for example you have your dream job, and you just want to make some extra money here and there. Then you can choose a side hustle, like creating a service-based gig on fiverr around a skill you have and start getting additional income servicing your customers.
So this brings me to my next point.
One will suffer..
Side hustles can also negatively affect your primary job. If you’re so focused on your side hustle that you start neglecting your job, it will show in your performance and maybe even your attitude and may lead to you losing your primary source of income. Your employer will most likely see it as a lack of commitment.
It’s also worth mentioning that a side hustle is not for everyone. If you’re naturally a go getter and don’t mind putting in the extra work and accept the risks and the ups and downs that come with running a business, then go for it.
But if you find it to be too stressful and overwhelming. Then just have some self-awareness, and maybe take a step back to analyze why you may be anxious. I mean just be honest with yourself about whether a side hustle is right for you, and to be ready for the challenges that come with it.
There is no guarantee in success when you’re starting a business, and you could possibly fail or even loose some sleep, time, and money. Also, if you lose that job, because they notice that you aren’t focused anymore, and you need to depend on the side hustle to generate a steady stream of income Then that can lead to an increase in stress and anxiety, which can impact your overall well-being.
Side hustles can be a game changer in your life, but it’s important to listen to the right source and do your own research before you waste a lot of your time and resource on a side hustle, that has little to no potential of actually making you very much money at all.
