In the last few years, especially with the COVID-19 pandemic, the rise of side hustles has taken the world by storm. Ten or even twenty years ago, the idea of working a second job was mainly relegated to those who found that they simply couldn’t survive on one income alone. Now with Doordash, freelance work, and consulting the world is embracing side hustles as a normal part of life.
Side incomes are no longer taboo and are now the norm for millions of people, including baby boomers and Gen Z. The type of side hustle might vary, but there is no question that the rise of side hustles has reached such heights that it’s hard to think of a world without them. But when does a side hustle become a main job, or when should people consider making it one?
LendingTree Survey
According to a recent LendingTree Side Hustle Report, 6 out of every 10 individuals with a side hustle hope to go full-time. A similar number says they would love to have just one income, so the opportunity or hope to convert a side hustle into a full-time role is a very real idea many people are entertaining.
For millennials and Gen Z, in particular, more than half indicate they have side hustles, while 80% of this group says they rely on the extra money they receive from this additional work.
However, the biggest realization here isn’t the necessity of the extra income, it’s that side hustles have opened the eyes of millions to the benefits of self-employment. As soon as you become self-employed, you don’t have any bosses calling you at all hours, last-minute meetings on your calendar, or an inbox spiraling out of control after you return from a vacation.
Going Full Time Pros
Flexibility
As soon as you go full-time, you will find some immediate benefits. First and foremost is the increased flexibility you now have with your day. This means you have more control over when, where, and how you work. Approximately 45% of respondents to the LendingTree survey said that being able to work from anywhere alone is one reason why they are considering going full-time.
Higher Earnings
In a corporate role, your salary, bonus, and any other monetary perks are all capped unless you are in sales. This means you know the ceiling of what you can earn, and it’s limiting, but this isn’t the case with side hustles, where you can convert them to full-time income, and the sky’s the limit, as there is no income cap.
Cons of Going Full Time
No Benefits
No question, losing corporate benefits like health insurance, retirement plans, and paid time off can be a significant blow for someone working full time with a side hustle. When you are self-employed and don’t work, you don’t get paid, which is a new reality many people struggle to come to terms with, as it can keep you working more than you might like. Add in the high cost of private health insurance, without a steady income, and it can be unnerving to try self-employment.
Unpredictable Income
When you start with a full-time self-employed role, your income can also be highly unpredictable. The reality is that 61% of side hustlers say they can’t afford their current lifestyle without this extra income, but the earnings can be inconsistent. The hope is that you get to a point after your business has been running for a while that income stabilizes, but the beginning can be jumpy.
How to Decide If Full Time Is Right For You
Assessing Market Demand
The best thing you can do to decide if taking your side hustle full-time is to assess the overall market demand and see what exists and if you can move forward. Depending on your business, you can try things like Upwork or Fiverr to see if there is a lot of client interest, as well as your own personal Facebook page or groups.
Build An Emergency Fund
Before you leap into the full-time self-employed world, you must ensure you have some runway with your finances. This means building out at least 6-12 months’ worth of an emergency fund to cover your expenses. You shouldn’t walk away into a full-time self-employed role if you are unable to build out an emergency fund, or at least should wait until you do.
Test Sustainability
You should gradually scale your side hustle while maintaining your primary job to test the viability of its success. You should also be tracking your monthly revenue or income against how much time you put in, and as you scale your hours, how much extra income are you earning?
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