A side hustle is an increasingly popular option for people hoping to make a little extra money. But how much can you realistically make from one? Read on to find out how much the average person makes from a side hustle. I’ve also included some tips on how to maximise the earning potential of your side gig.
What’s happening with side hustles?
A side hustle is basically a second job that brings in extra money to supplement your income. Millions of people have them, and they’re on the rise in the UK. Indeed, recent research reveals that 46% of people in the UK currently pocket a second income through a side hustle.
Additional research by online freelance marketplace Fivver shows that 58% of those who have a side job started it after March 2020, that is, after the Covid-19 pandemic hit.
According to Fivver, more Brits have needed to earn some extra money due to irregular employment resulting from the pandemic and higher costs of living.
There are many side hustle ideas out there to choose from. Here are a few of the most popular:
- Freelancing (web design, article writing, or transcribing)
- Affiliate marketing
- Driving for a ride-hailing service
- Selling goods online (e.g., on eBay)
- Dog walking
What does the average person make from a side hustle?
According to the survey conducted by Fivver, those with side hustles added an average of £6,300 to their income last year. This equates to about £525 per month, which is quite a sizable sum to add to your regular income.
Of course, this is an average figure. Side hustles come in all shapes and sizes, so it’s not always easy to predict how much you might make. The exact amount will depend on the type of side job you do and how much time and effort you put into it, among other factors.
How can you increase the earning potential of your side hustle?
Here are four tips to help you maximise the income from your side hustle.
1. Choose a side hustle that you actually enjoy
When it comes to a side job, it’s best to pick something you actually enjoy doing. You’ll be more motivated to run it and increase your chances of success if it’s something you consider to be fun rather than something that feels like a chore.
2. Go for something that is scalable (if possible)
A scalable side hustle is one that has potential to grow into something bigger. You’ve probably heard or read about people who have been able to grow a small side hustle into a full-fledged business.
Not all side jobs are scalable. Take driving for Uber, for example. On one hand, it’s a great side hustle because you get to choose your schedule and set your own hours. However, you have to drive for every pound you earn. Because there are only 24 hours in a day, there are only so many hours you can drive, and thus, there is a limit to how much you can realistically make.
Online sales, blogging, and affiliate marketing, on the other hand, are excellent examples of scalable side hustles. The potential for growth here is almost limitless, not to mention that you can make money in your sleep with these side jobs.
3. Boost your skills
Developing the skills related to your side hustle is ultimately one of the best ways to increase your earning potential. You could, for example, take online courses or even seek advice and guidance from more experienced people in the field you are interested in.
4. Invest your earnings
Finally, you can significantly boost your side hustle money by investing some of it. Although investing is inherently riskier than, say, putting your money in a savings account, it has the potential for greater returns. Investing essentially means making your money work harder for you and it could help you build wealth in the long term.
Looking to boost your income in 2022 through a side hustle? Check out these three top sectors for generating a second income with a side hustle.
The post How much money can you really make with a side hustle? appeared first on The Motley Fool UK.
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