Written by: John Lambert
Side hustles are great because they give you the flexibility of earning a little more income on your own time, they allow you to keep your day job, and they usually have a low entry cost. Online side hustles are even better because all you need is an internet connection; you won’t even have to leave your house. Even though they have a low cost to start, your side hustle will likely get your email inbox flooded with offers for complete courses or products that can be expensive. Instead of wasting your money, follow this guide on starting your online side hustle on a budget.
Set an Actual Budget
Before you start spending money, do some research and figure out what your side hustle needs in terms of expenses. You can get rough estimates online for a variety of side hustles. Once you’ve done some research, set yourself a budget and stick to it! That’s very important because it’s easy to overspend. Just the act of making a budget can get you thinking and researching about the side hustle, which will also help you be more prepared to succeed.
One of the things about a side hustle is that you’re not even sure you’ll like it or that you’ll successfully make money with it. Therefore, it’s essential not to spend too much upfront. Establishing a reasonable budget can help you avoid paying a ton on what ends up being an expensive few-day hobby for you.
Determine Whether You Actually Need a Business
Many people get into the side hustle world and wonder whether they will need to set up a legal business for their work. There are several reasons why you might want to start a business, but creating an LLC or a similar legal entity can be a cost you don’t need right off the bat.
Instead of running to the closest lawyer to start the paperwork, you can probably start your side hustle without setting up an actual business. You can still enjoy the tax benefits of being self-employed and using some of your expenses like office supplies or internet service without going through the hassle, and cost, of starting a business.
Your side hustle is usually something you start small, to see if you enjoy it or see if you can actually make money doing it. You may, after some time, realize your side hustle is lucrative, and you could make it full time. Once you determine you’d like to formalize your side hustle, head over to this great website to create a professional logo for free and get to work!
Don’t Start Spending Money Immediately
When you start an online side hustle, it can be tempting to head to the store and deck out new office space with a new laptop, printer, and some nice decor. While it’s essential to have a suitable office space set up, this can put you in the red before you even get going. Many people start their side hustles and end up giving up on them, and it would be awful to spend all that money just to stop after a few weeks.
Instead, use what you’ve got and just get the bare essentials you need to get started. This helps you stay within budget, and it also gives you a way to incentivize yourself. Say, for instance, you have an older computer that gives you some problems while you’re working online. Set yourself an earnings goal, then when you reach that goal, you can buy yourself a new laptop. That helps you stay on track, gives you a reward you’re eager to earn, and can create good long-term habits. Plus, a computer is a great tax write-off!
While it can be fun and exciting to start a side hustle, it’s essential to keep these things in mind so you can set a budget and stick to it. It’s easy to create a side hustle with next to no startup costs, so follow these tips to keep yourself in the black.