Tips to Maintain a Successful Side Hustle

For many, side hustles are an essential part of their existence. With the cost of living increasing, side hustles become more attractive as a way to close the gap. Many people start to create content as a way to supplement their income. But there are many mistakes people make with regard to these side hustles. Most notably in terms of budget. So what do you need to do so you don’t go over budget? Here are some approaches to fine-tune your finances and maintain a successful side hustle.

A successful side hustle should still track income and expenses

Track your income and expenses for a successful side hustle

This should be a no-brainer for any job you have. Whether it’s a side hustle or a full blown business. One of the easiest ways to keep track of your side hustle expenses is to keep a spreadsheet. Consider using Excel or Google Sheets. The spreadsheet so list the date the money was received, the amount, and a short description of how it was received. This will help you keep a running tab of money coming in and going out.

A very common side hustle involves selling products for Avon. To sell Avon, become an Avon Representative. But one of the biggest mistakes people make while working for Avon is buying too many products at the start. The process of working for a company like this involves taking orders and then buying the items for the customers to reimburse you. If you don’t have much money, tracking your income or expenses is critical. Especially if you want this to a successful side hustle.

Price your products or services accordingly for your side hustle

Price your services properly

Many people who start a side hustle think that they need to be competitive. Therefore they equate this to being cheaper. In order to ensure that you actually make money, you should calculate the costs of providing every aspect of your service or products. I know this sounds like a major “duh” moment. But so many people don’t account for all of their expenses. Especially when it comes to packaging materials! With realistic profit margins, this will give us a far better ability to keep on with our successful side hustle, rather than thinking it is a money pit.

If you aren’t offering a product or service, you may still have expenses to account for. If you are creating content, you will have to think about:

  • your time spent making the content
  • your expertise in the subject matter
  • your camera equipment
  • subscriptions you purchase to store or make content like Creative Cloud, DropBox, or Canva
  • and your audience size or engagement rate

Don’t sell yourself short for whatever your side hustle is. Value yourself accordingly and the money will follow – even if it takes some time! This is the key to a successful side hustle.

Avoid unnecessary expenses to pursue a successful side hustle

Avoid unnecessary expenses for a successful side hustle

You’ve heard the expression “you got to spend money to make money”. This might be true with big businesses, but side hustles should have modest expenses. If you plan on creating ads for yourself, consider testing a few platforms. Not all platforms yield the best results. As such, it’s no use putting money in ads that don’t help with conversions. But remember to be conservative with your ad spend. Your side hustle should be making you more money than you spending it. If it isn’t, then don’t keep throwing money at it.

Additionally, you may plan on expanding your side hustle’s products or services offerings. Before doing that, take stock of how your current offerings are doing first. If they are selling out frequently, then consider expanding. But if you are just covering your expenses, focus on your current offerings first. Expanding too soon could potentially mean disaster for your bank account.

Separate the business from the personal

A side hustle is exactly that – a SIDE hustle. Not your main hustle. Therefore you have to determine how much time you can invest in it but also understand your financial objectives. If your side hustle ends up affecting you negatively, you will have to cut ties. But if it starts to expand quickly, you may have to consider what that means for you. Can you turn it into a full time job? Are you saving for a specific goal or are you looking to just supplement your income? When you open a separate bank account for your side hustle, you can track your income and expenses accurately. It makes preparing your taxes that much easier.

As much as we want to invest in a successful side hustle we really have to stick to the idea that it is purely on the side not just of our lives, but of everything. And we have to treat it accordingly to make sure that we don’t go beyond what we can realistically afford.

First Steps Before Selling an Investment

Both buying and selling investments are decisions that you need to consider carefully. You might think about selling an investment because you want to cut your losses, or maybe because it’s gained in value and you want to cash in. Whatever your reason for selling, you need to make sure you’re doing the right thing. Getting the timing right is crucial when dealing with investments, and it needs to be the best decision for your goals. So what do you need to think about before you decide whether to sell an investment? From stocks to property, make sure you check these items off your list.

Check the value before selling an investment

The first thing that you might want to do is check the potential value of your investment if you choose to sell. How you do this will depend on what the asset is. If you want to sell a property, you’ll want to get it valued by a professional. If you’re selling gold bullion, check the spot price of gold and follow the trends to choose the best time to sell. Of course, you should also think about how much you paid for the investment and whether selling is going to make you a profit.

Think through your reasons for selling

There are several reasons you might decide to sell an investment. You might want to free up some capital, or maybe you’ve reached a pre-agreed point when you decided to sell. Your goals might have changed, or maybe you’ve experienced a loss and don’t want it to get any worse. Whatever your reasons are, it’s important to think about them and consider whether they’re the right reasons. If you make a mistake, you most likely won’t be able to reverse it. So it’s crucial to take your time and make sure you don’t make any hasty decisions.

Speak to a financial advisor before selling an investment

Speaking to a financial advisor is often the smart thing to do when you’re making investment decisions. Financial advisors can give you professional advice, taking into account your goals and your current financial situation. They can help you to think about whether you want to sell an investment, where it fits into your overall financial goals, and what positive and negative consequences could come from selling. It’s a good idea to speak to a financial advisor at least once per year anyway, especially if you’re handling investments.

Consider any tax implications

The tax implications of selling an investment are important to consider too. You may need to pay a capital gains tax, as well as other potential taxes on the profit from your sale. Different investment strategies can have different tax implications, so it can sometimes be better to hold onto an asset than to sell it if you want to reduce the taxes due. This is something to discuss with a financial advisor if you’re not sure how to approach it.

Before you sell any of your investments, take some time to check that you’re doing the right thing for your financial situation and goals.