When Your Side Hustle Becomes Your Main Hustle [What To Know]

BY- SAHIL SAIFI

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A side hustle is one way to improve your financial future and the extra income created can help you reach major financial goals. But, sometimes, your side hustle can grow to become your main hustle and transform your whole life.

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First things first, do you want to do your side hustle full-time? If you don’t particularly enjoy your side hustle, then you might not want to take it full-time. Think about how you would feel if you were spending all of your working time on your side hustle. If you don’t see yourself enjoying this hustle as a main source of income for the long-term, then you might want to keep it in the side gig category.

Do You Enjoy The Time Spent On Your Side Hustle?

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A major component of taking your side hustle full-time is the transition into becoming your own boss. As a side hustler, you probably have the discipline you need to succeed as your own boss. But is this a responsibility you want to take on? For me, I always dreamed of becoming my own boss.

Do You Want To Be Your Own Boss?

A key indicator that a side hustle has the potential to support you full-time is the potential for expansion. Consider whether there are more opportunities to bring in cash if you had more time in your day. In my case, I knew that my time was the biggest limiting factor for my side hustle. With that, freeing up more time in my week was a no-brainer

Does Your Side Hustle Have Solid Expansion Potential?

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As you approach the tipping point, consider your risk tolerance. Many of us feel a certain amount of security in our day jobs. So many of us cling to our day jobs in hopes that our income will never disappear. Whether or not that sense of security is validated or not will depend on your industry. As we saw in 2020, a ‘regular’ job doesn’t protect you from unemployment

Would Giving Up A Steady Paycheck Stress You Out?

When my side hustle reached the tipping point, I knew that I had to make a tough choice. At the time, I had a "dream" job as a marine biologist. But the compensation was not enough to reach my financial goals. With that, I decided to approach my employer and ask for a part-time role. I knew when I made my ask that I might have to walk away forever.

Would You Miss Your "Real" Job?

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If you know that it's time to make your side hustle full-time, you probably feel very excited, but also a bit nervous about the unknown. Here’s how to prepare yourself financially and emotionally for when your side hustle becomes your main hustle.

How To Prepare Yourself Financially And Emotionally

Choose The Right Business Structure

right structure for your small business will depend on your financial situation. The options include: – Sole proprietorship – Partnership – Corporation – S Corporation Do some research on the different options to determine the best fit. If you’re unsure about the right business structure for your business, consult with Block Advisors.

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Proper bookkeeping will help you manage your business efficiently. Not only can organized books help you make the right financial decisions for your business, but they also make tax time less stressful. You can do it yourself with online services, but if that seems overwhelming or takes too much time, you can find a bookkeeper to help. In fact, a bookkeeper is one of the first things most small businesses outsource.

Keep Accurate Records

Don’t Forget About Taxes

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Although you are transitioning into a new income stream, you can't forget about taxes. Many side hustles forget about this critical piece of the puzzle. Unfortunately, this can lead to an unpleasant surprise at tax time.

Consider Opening A Self-Employed Retirement Account

Without a W-2 job, you won’t have access to the same retirement accounts that you are used to. But there are many great retirement investment plans for self-employed individuals.

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THANK YOU

Although it can be a big step to take your side hustle full-time, it can be incredibly rewarding. I have never regretted my decision to turn my side hustle into my main source of income. The increased control and flexibility are second to none in my opinion.