Scrolling through social media, it seems everyone is boosting their income with side hustles. Of course, many of the posts boasting an easy method to generate thousands of pounds in a matter of weeks are too good to be true. But beyond the flash Instagram reels, everyday folk are topping up their savings or covering bills with genuine side hustle cash. So should you join them? We’ve weighed up some of the pros and cons.
✅ Boost your income
Let’s start with the obvious. While it’s unlikely you’ll be retiring any time soon on your side hustle income, you could genuinely make enough to pay down your debt faster, or save for big purchases such as a holiday or a first home.
❌ You might have to declare your earnings and pay tax
If your side hustle generates more than £1,000 per year then you’ll need to declare this income to HMRC. To do this you must register as self-employed and complete a self-assessment tax return for the previous tax year in time for the deadline in January. If you’re new to handling your own tax affairs then this can feel daunting. If your side hustle involves renting out a room in your home through a platform such as Airbnb then you’ll benefit from the government’s Rent-a-Room scheme, which allows you to earn £7,500 tax free before you have to declare your earnings.
✅ Develop new skills
Away from any immediate financial gain, a side hustle is a great opportunity to expand your skillset or learn something new. Whether you’re printing humorous t-shirts, or creating social media content for small businesses, you can gain transferable skills and make yourself more marketable to progress faster in your 9-5 role.
❌ You could risk your work-life-balance
Advocates of side hustles on social media often claim they have the potential to free you from the day job, leaving you free to work fewer hours in return for big money. Sounds great, right? But the reality is most side hustles will never generate sufficient income to replace your salary and you’ll still have to commit to working hours above and beyond your 9-5. This could increase your risk of burnout, lead you to neglect your other passions or interests, and lead to tensions in your relationships.
✅ Turn your passion into a career
A side hustle could allow you to monetise an existing hobby or skill, pursuing a passion without taking the risk of ditching your regular salary. It can also help you to expand your network within your chosen hobby or niche resulting in new contacts or collaborators. Who knows, maybe it could eventually open the door to following your dream full time?
❌ Investment of time or money could come to nothing
Not every side hustle will succeed. If yours doesn’t take off, you may experience stress or frustration at the loss of the time and/or money you’ve invested in it. This is especially true if your side hustle requires some degree of upfront investment, such as training or materials.
Most households would benefit from earning a little extra each month. But a side hustle isn’t right for everyone. Anyone considering embarking on this journey should think carefully about how much they are prepared to commit, and weigh up the pros and cons.
The Hattie 