Pros and Cons of Having a Side Hustle (2024)

Much has been written about having a side hustle to become successful. For example, if you go to Amazon, you will be surprised to find over 2,000 books on the subject. There are online tools to help you find the best side hustle for you. With all these opinions and advice, there is a decided need to examine the topic and the pros and cons before committing.

The art of the side hustle is alluring and tempting, especially when looking for quick money or recognition; there is nothing wrong with either. However, far too many people jump on this bandwagon before fully understanding the work, funding, and emotional investment necessary to succeed. Before committing to any side hustle, this article has pros and cons you should consider.

Please don’t get suckered into any side hustle because someone convinces you that it is the best way to get rich quickly. Trust me, there are minefields galore in these endeavors when you don’t prepare properly. Check your ego and biases at the door and look at every aspect of your side hustle.

Pros:

Additional Income: Side hustles can provide extra money to supplement your primary income. Many have turned a hobby or passion into a successful side hustle in food, crafts, manufacturing, teaching, or one of many life areas. The key is to start small and expand as the market allows. Be aware that you may reinvent yourself and create a whole new career path.

Income Diversification: It diversifies your sources of income, reducing financial risk. With more income streams, you can expand and explore new growth areas. In today’s fragile economy, it is vital to have multiple streams whenever possible; hopefully, one or more are passive. However, as we will see in the cons, there are some roadblocks one must be aware of in the process.

Skill Development: When executing any side hustle, you must learn new skills and gain experience in different areas or afford to hire those skills to support the work. There is no way around this side of the equation. Finding or inventing the right skills is paramount to creating any unique niche product or service, so this will be time well spent.

Expanding a Passionate Pursuit: Side hustles can be a way to follow your passions or hobbies. Many side chair experts are candidates for starting a side hustle if they are committed to making it work. However, some passions are so esoteric that the market may be too small to engage, so it behooves doing some homework in this area.

Testing Entrepreneurial Desires: It’s an opportunity to test entrepreneurial ideas and desires without quitting your primary job. One can succeed in this arena when one does their homework about the market and potential and starts small. However, do it with your eyes wide open and try to be as objective as possible when starting.

Career Networking: It’s fascinating how well you can expand your professional network through side hustles. Doing your research alone can be a key to finding resources and potential clients while still being anchored in your current job.

Cons:

Time-Consuming: Side hustles require time and effort to be successful, which can be draining. Time is one’s non-replishable commodity, so underestimating the time necessary to make a side hustle work has doomed many attempts. Hence, I have always recommended starting small.

Destruction of Work-Life Balance: Balancing a side hustle with your main job and personal life can be challenging. Doesn’t make a difference if you are single or married; everyone needs to understand there is a balance that will provide you with the most tremendous confidence, energy, and enjoyment possible.

Risk of Burnout: Overcommitting can lead to burnout and negatively impact your health. Have seen too many cases where one has tried to do a side hustle only to find out that it becomes another full-time job on top of the primary one they are involved in, so the energy levels drop, emotions are fried, and burnout is just around the corner. Always count the cost of any side hustle, and this is just one of them.

Financial Risk: Some side hustles may involve investments with no guaranteed returns. Like any endeavor, it is critical to understand the cost/benefit ratio before you have invested too much money, effort, and sweat into the project. It is very simple to get this one out of control when the passion to succeed is running fast and furious, so slow down and genuinely evaluate your willingness and resources to proceed.

Income Tax Complexity: Managing income from multiple sources can complicate tax filing. In the US, home-based businesses have so many limitations that most people don’t realize. Many believe all expenses can be written off and deducted from your tax liability, but it may not be realistic or legal. So, check yourself before filing so you don’t have to deal with an IRS audit.

Potential Job Conflicts: Your employer might have policies against certain side hustles, potentially leading to conflicts. Having been part of many corporate management jobs, I can attest to the limitations, primarily if you deal with any knowledge your employer feels is proprietary. Other times, unwritten expectations may show up that will discourage your side hustle or cost you your primary job. Put out feelers so you understand where the potential roadblocks may reside, then make your choice.

Ultimately, deciding to pursue a side hustle depends on your goals, circ*mstances, and willingness to manage the associated challenges. This will require self-awareness, brutal honesty, and a keen observation of the market one is entering. If you are married, you must include the whole family in your decision because the outcome will affect you first and then them based on how well you did your homework.

A side hustle can be one of the most significant decisions of your life or one of the worst. Being honest and vulnerable with yourself and others can go a long way toward successful implementation.