How to Turn Gigging into a Side Hustle
Side hustles are as popular as ever. With rising inflation and interest rates, more and more people feel they need to take on a second job to stay ahead. Otherwise, many Canadians fear they won’t be able to keep up with the rising housing costs or car payments. You might ask: How can I supplement my income when I already work full time?
Side hustles give workers unlimited earning potential. You can take on as much or little as you want, although make sure you schedule some rest time! A great way to make extra income is through side gigs, and this is what we'll be focusing on. We'll outline what a side hustle is, the benefits, and how to start side gigging.
Definition
A side hustle is:
"Any type of employment in addition to one's primary job."
Generally, people start a side hustle to make extra money. Other reasons are following a passion or staying productive in your spare time.
There are different ways to start a side hustle. Some people decide to start their own business, and some take on a second job. A second job allows you to make extra income without the stress and risk of starting a business.
Benefits of a Side Gigs
A great way to find extra work is through side gigs. Here are some of the advantages of gigging for a side hustle.
Earn Extra Money
A side hustle's most obvious benefit is to supplement your income. You can earn as much as you’re willing to work. As an example, picking up 20 hours a week at $16 per hour will lead to over $16,000 per year. That's only 3 extra shifts a week!
Explore a Passion
As mentioned earlier, following a passion is another common reason to start a side hustle. You can explore career interests with side gigs without leaving your full-time job. Choose gig work if you want to test a new career before committing.
Flexibility
If you choose side gigs, you have the flexibility to decide when and where you want to work. If you wish, you can pick up more shifts one week. Or, if you want to lighten your workload, you can take a week off.
Learn New Skills
Taking on different jobs is a great way to learn new skills. Pick up jobs that teach you new skills to get on-the-job experience. You can learn in-demand skills with AmbiMi to better your chance of getting a job or promotion in the future.
How to Start Side Gigging
Although there are many benefits to side gigs, there are potential drawbacks too. It could distract you from your 9-5 job or cause burnout. Follow our best practices to ensure that doesn't happen.
Set Expectations
First, look at your current workload to determine how much extra work you can take on. Everyone's limit is different, so you can use trial and error to determine your threshold.
Set a Financial Goal
After determining your ideal hours, you can use those number of hours to make a financial goal. There are two types you can make: a savings goal or an earning goal.
Savings Goal
I.e., Save up $12,480 in one year.
We usually recommend a savings goal to make sure you save your hard-earned cash. A savings goal is also good when picking up an extra job to save for a purchase or event.
Earning Goal
I.e., Make an extra $16,640 in one year.
An earning goal is good for those who need the income in the short term. Or you can choose an earning goal if you work a second job for disposable income.
Hint: Follow the formula below to get a realistic yearly earning goal.
52 weeks x desired weekly hours x desired wage
52 weeks x 20 hours per week x $16/hour = $16,640
If you choose a savings goal, pick a percentage you wish to save.
75% x $16,640 = $12,480
Set Dedicated “Side Hustle Time”
Some people prefer only to work side gigs after their primary job. Others want to work over the weekend. Decide which time is best for you and set that time in your calendar as "Side Hustle Time." Then you won't double book yourself with other things and are more likely to commit to working then.
With AmbiMi, you can set your availability to only show you gigs during that time. For example, if you want to work four 5-hour shifts weekly, set your schedule to match. You can select your availability for Mondays, Tuesdays, Wednesdays, and Thursdays from 6:00 PM-11:00 PM.
Network
During your shifts, network with colleagues. You can learn about the industry, their jobs, and different company cultures. It'll also increase your chances of getting another offer if you switch career paths.
Prepare for Tax Season
Make sure you understand what type of gigger you are and how it will affect your tax returns. Taxes vary by region, but the following information is for Canadian workers.
If you're a payrolled employee, there should be no difference from your primary job. You should receive a T4 from the employer to submit during the tax season as you would your full-time job.
If you're an independent contractor, keep track of your pay statements to submit in tax season. You likely weren't paying taxes on each pay cheque. Instead, the deductible amounts will be taken from your tax return. Set aside a percentage of your income to prepare for tax season. The deduction amounts vary by region and income level, so research the rates first.
Interested in using gigs as a side hustle? Download AmbiMi below!
