These days, it’s not uncommon for people to try to make a little extra cash outside of their regular 9 to 5. While it’s not necessarily a bad idea, there are definitely some things you should consider before hopping into a side gig if your goal is to make sure it really is profitable. Here are a couple things to keep in mind that will help you ensure you’re getting the most you can out of your part-time job.
Consideration 1: Will this side gig improve or enhance your current work skills?
Why you should consider it: It’s not completely necessary that your side job further your current career goals (after all, passion projects don’t have to have anything to do with our day-to-day jobs … sometimes that’s what makes them more fun!). However, if there is some way to parlay the skills or talents that you’ll be using in your time away from work into attributes that will help you get ahead in your job, as well, then that’s all the more reason to start up that gig ASAP and add it to your resume.
Consideration 2: Will your hours be flexible?
Why you should consider it: It goes without saying that, even if you hope to some day turn your side gig into a full-time career, it’s important to protect the job that you currently have for as long as you have it. That means that any projects you take up on the side shouldn’t cause you to miss work or to be distracted from work while you’re in the office (sorry, no booking gigs on company time!). A perfect side gig will provide you with flexible days and hours so that you can fit everything in in your own free time.
Consideration 3: Do you need to invest a lot of money to get started?
Why you should consider it: You’ll need to really think about your motives behind your side gig before you can determine how important this consideration is to you. For example, if all you really care about is earning a little extra cash after work or on the weekends so you can afford the occasional getaway with friends, then you probably don’t want to start something up that requires a lot of investment capital up front. On the other hand, if your main goal with your side gig is to some day parlay it into your full-time job, then investing a couple hundred for fancy new camera equipment now so that you can become the next big wedding photographer in your town by next year might just be worth it. (This is assuming you can afford it, of course. If you’ll need to go into debt to fund your side gig, it might be worth waiting a little while longer before you start so that you can save up and start when you’re on better financial ground.)
Before you do jump ship at your current job to take up your side gig full-time, though, you might also want to check out this piece about five important things companies do for you that freelancers have to do for themselves.
Consideration 4: Have you thought about taxes?
Why you should consider it: You might be surprised how quickly a small side gig can snowball, and if you don’t consider saving for taxes on your new income as soon as possible, you could be stuck with a shocking IRS bill come tax season. Chat with your accountant ahead of time to discuss how much you estimate you’ll be bringing in, how much you should save up for taxes based on that number and whether or not you should consider making quarterly payments on your earnings.
Consideration 5: How much is your free time worth?
Why you should consider it: While it can be tempting to make some extra cash, or it might seem fun to finally do something about that hobby you’re passionate about, you might want to also consider how much free time taking on a side gig will leave you with. If you’re interested in a side job that allows you to pick and chose what projects you take on, that’s one thing, but keep in mind that if you’re building your own side business, that takes time and a whole heck of a lot of effort, which might not leave you with a lot of hours (or energy) for anything else. Before taking on an additional job, determine how much of your free time you’re willing to devote to it, and see if you can figure out a job that’s right for you based on that.