Side hustles are big news right now. Between the cost of living crisis and the difficulties that come with work and balancing family life, side hustles are becoming an increasingly popular way for people to boost their income. With an average income boost of 22%, it can be very tempting for many as we go into 2025.
Whether you’re thinking of starting one or you’re already bringing in a little extra, here’s how you can make the most of your side hustle.
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Finding the right side hustle
Looking for your ideal side hustle? Here are some tips to help:
Explore different types of side hustles
There are a lot of different side hustles out there, so finding the right one for you might take some time. A side hustle could be as simple as a second job alongside your main job, or it could be something else that helps you make income, such as online tutoring, completing surveys or using your skills to freelance. Research different options to help you find a good match.
Avoid fronting any money where possible
When looking for the right side hustle, it’s tempting to try anything that promises a lot of money for little time and effort. While some side hustles can be low-effort, many get-rich-quick schemes are too good to be true. Explore some worthwhile side hustles for 2025 that help put you in control, instead of someone else.
Avoid side hustles where you need to front some of your own money first. Some schemes that can sound appealing, such as becoming a travel agent or selling beauty products, which are actually known as ‘multi-level marketing’ (MLM) schemes. Learn how to spot an MLM to stop from falling for them.
Find something you enjoy
Side hustles should be something you enjoy – otherwise, it can feel like more work! From content creation to doing some shifts in your local pub, find something that you find easy or enjoyable to help make it worth your while. Content creation can be a great one, especially if you’re creating content about something you enjoy like travel, fashion or home and garden. Imagine being able to make money while doing something you love!
Find the balance between your side hustle, work and free time
Side hustles are great for bringing in extra income, but it’s important to find the balance between your side hustle, work and free time. A side hustle should be treated as an additional income stream, and shouldn’t interfere with your job or take over family time. If it starts feeling like you’re putting too much time into your side hustle, you might need to make some changes to help you find the balance again.
Managing your income
It’s nice to have some extra money coming in, but how can you manage it sensibly? Try some of the following:
Open a separate account
Opening a separate account is a good idea for your side hustle. It will make it easier to track your earnings and manage your taxes, helping to keep it separate from your other income. Seeing it in a different account from your usual current account will make you more aware of it, so you might be less tempted to spend it frivolously. Apps that let you put money into pots are great, helping you separate your side hustle income easily so you can reach your various goals.
Track your income
Keeping records of your side hustle income will benefit you in a lot of ways, including:
- Helping you see how much money you’re earning.
- Keep track of how much tax you’ll need to pay.
- Manage any income you’re owed.
Keeping a spreadsheet is a simple and free way to track your income, helping you keep track of payments you’re owed and help you see your earnings over time too.
To save or to spend?
What should you do with your side hustle income? Should you save or spend? You could ‘pay’ yourself out of your earnings, helping you afford some treats or pay some bills, or use it to save as much as you could.
The important thing to remember is that your side hustle income may not always be guaranteed, so try to see it as additional income and manage the rest of your finances accordingly. Make some sensible decisions and your side hustle could be used to clear some debts, boost some savings or fund some of your dreams!
Record your expenses
You may incur some expenses as part of your side hustle. Whether you need to purchase equipment, subscriptions or even travel costs, keep a record of your expenses. It’s good to do this from the beginning of the year as part of your tax prep, helping you work out what you’ve spent versus what you’ve earned. It will help you pay less on your self-assessment at the end of the tax year.
Remember to file for self-assessment
Speaking of self-assessment, remember to register for it! If you earn additional income over £1,000, you will need to pay some income tax. This might sound daunting, but with a free self-assessment app, things will be a lot easier. The way self-assessment income works is you will file based on your earnings from the 6th of April – the 5th of April (April 2023 – April 2024, for example), and the tax will be due by the 31st of January the following year (so January 2025). Keeping track of your earnings will help you work out how much self-assessment you need to pay.
Check-in to see if it’s worth it
A side hustle can seem like a great idea, but you will need to ask yourself if it’s really worth it! Consider some of the following:
Is it making you money?
Some side hustles pay better than others, so you need to work out if it’s actually making you much money for the amount of effort you put in. Passive income streams make some of the best side hustles, because they help you make money without putting in continuous effort. If your side hustle income is being swallowed by tax, it may not be worth doing after all.
Is it worth your time?
Side hustles can be an excellent way to top up your income, but some of them come with a time commitment. You need to ask yourself if the extra money is really worth your time. Some side hustles, like content creation or affiliate marketing, could mean a lot of time spent on your phone. You could find this impacts you in other ways, such as your mental health. If it’s eating into your sleep, your social life or time with family, it might be time to reassess and make some decisions about what’s manageable.
Can you work smarter, not harder?
As mentioned above, passive income streams are a great way to make some extra money, without much effort. Some of the ways you try passive income include selling digital courses, affiliate links and even making digital templates:
@socialcheatsheet2.0 How to sell editable templates on Etsy! #etsysellertips #howtosellonetsy #howtoselldigitalproductsonetsy #editabletemplate #etsytipsforbeginners #digitalproducts ♬ original sound – Selling Digital Products & PLR
All you need is a little creativity and a small marketing push to help you promote your products to your target audience.
If you’re looking for ways to make extra income, a side hustle could be for you. Whether you want to find your passion, reach your financial goals or simply top up your income, a side hustle provides many opportunities, so make the most of them and discover some new and exciting ways to make money.
