From tax implications to burnout, here are 3 common missteps to avoid if you're looking for a gig on the side to earn extra money.
At the beginning of the year, many people have their eyes set on goals. Some of these goals may include increasing your income, starting a dream business, or both if you’re reaching for the stars. Before you get your hands dirty in the sometimes chaotic combination of formal employment and entrepreneurship, here are a few pitfalls to avoid.
Not having a plan for your side hustle income People get side hustles for different reasons. It could be to help make ends meet, save toward a dream vacation or grow your business to a point where you can quit your job. Catching up on my retirement savings is one reason I decided to start a side hustle.
The plan I conjured up thanks to my side gig income is increasing my 401 contributions at my full-time job so I’m on track to max out that account this year. I also opened a SEP IRA, a simplified employee pension plan, for 2023 to put more money away for retirement and potentially reduce my taxable income.
Nisall put money he saved from coupons and any extra bucks he made from a raise or overtime into that fund.Not being aware of tax implications Oftentimes, people think having a side hustle means they can make extra money without reporting it, says Atiya Brown, a certified public accountant and certified financial education instructor in Dallas.