Financial Literacy Month: Why People Start Side Hustles, by Aureo C. Pinto, Jr.

Guest Blog: Financial Literacy Month with Aureo Pinto Jr and Vask Financial, Side Hustles.

April 2025 is the 22nd anniversary of Financial Literacy Month. Public Libraries are committed to supporting all types of literacies. Education about finances empowers people. During these times of economic duress, improving financial literacy is essential. If you are interested in starting a side hustle, or curious about what it entails, this blog is for you! Catch the replay of his Spring into Action How to Determine The Best Side Hustle for You from March 8 the YPL YouTube Channel.

Aureo C. Pinto, Jr is a Registered Financial Consultant (RFC)/Accountant/Enrolled Agent (EA) for Vask Financial Awareness Group.

Why People Start Side Hustles: The Motivations Behind Extra Income

Side hustles have become increasingly popular. People from all walks of life are jumping into entrepreneurship. But why do so many people start side hustles? Here are four of the most common reasons:

Extra (Needed) Income: For many, a side hustle provides additional income to cover bills, pay off debt, or save for future goals. With rising living costs, having multiple income streams can be a financial safety net.
Response to a Need (Necessity is the Mother of Invention): Some of the best business ideas come from identifying a problem and creating a solution. Many people start side hustles because they see an unmet need in their community or industry.
Passion: A side hustle allows people to explore their passions outside of their full-time jobs. Whether it's art, writing, or crafting, a side hustle can turn a beloved hobby into a profitable venture.
Career Shift: Many use side hustles as a stepping stone toward a career change. Whether transitioning into freelancing or testing a new industry, a side hustle provides experience and income while making the switch.

Exploring Different Types of Side Hustles

If you’re considering a side hustle, it’s important to choose the right type based on your skills, interests, and financial goals. Here are four common categories:

Services: This includes freelancing, consulting, tutoring, or any service-based business that leverages skills you already have. Examples: graphic design, copywriting, and virtual assistance.
Products: Selling handmade or manufactured products, whether online or at local markets, is a common way to earn extra income. Examples: jewelry, clothing, or personalized gifts.
Reselling Items: Buying products at a low price and reselling them at a profit is a popular side hustle. Examples: flipping furniture, thrift store finds, and limited-edition sneakers.
Dropshipping: With dropshipping, you sell products online without holding inventory. A third-party supplier ships directly to your customers. This model requires strong marketing skills and an understanding of e-commerce platforms.

How to Choose the Right Side Hustle for You

Not every side hustle is a perfect fit for everyone. To find the right one, consider these factors:

Identify Your Skills and Interests: What are you good at? What do you enjoy doing? A successful side hustle aligns with your strengths and passions.
Assess Your Available Time: Some side hustles require minimal effort, while others demand significant time. Make sure your choice fits into your schedule.
Consider Startup Costs: Some side hustles, like freelancing, require little to no investment, while others, like e-commerce, may need upfront capital.
Research Market Demand: Ensure there is a demand for your service or product before diving in. Market research can help validate your idea.

Tips for Success in Your Side Hustle

Starting a side hustle is exciting, but success requires strategy and persistence. Here are key tips to grow your hustle:

Set Clear Goals: Define what you want to achieve—extra income, a full-time business, or skill-building—so you stay motivated.
Manage Your Time Wisely: Balancing a side hustle with other responsibilities can be challenging. Create a schedule and set realistic deadlines.
Focus on Quality and Customer Experience: Whether selling a product or offering a service, delivering value and great customer experience will keep people coming back.
Market Yourself: Use social media, networking, and online platforms to promote your side hustle and reach your target audience.
Keep Learning: The more you refine your skills and stay updated on trends, the more successful your side hustle will become.

How to Balance a Side Hustle While Working Full-Time

Juggling a full-time job and a side hustle can be challenging, but with the right strategies, you can make it work. Here’s how:

Set Realistic Goals: Be clear about what you want to achieve with your side hustle—whether it’s extra income, career growth, or creative fulfillment.
Create a Schedule: Dedicate specific hours to your side hustle and stick to them. Avoid burnout by setting boundaries.
Maximize Your Productivity: Use productivity tools, time management techniques, and automation to streamline your work.
Take Care of Yourself: Don’t sacrifice sleep, health, or personal time. Make self-care a priority while managing both work and hustle.

Avoid These Common Side Hustle Pitfalls

Starting a side hustle is exciting, but mistakes can slow down your progress. Watch out for these common missteps:

Not Having a Clear Plan: Jumping in without goals or a strategy can lead to confusion and burnout.
Underpricing Your Work: Know your worth! Research pricing to ensure you’re being compensated fairly.
Ignoring Marketing: A great product or service won’t sell itself—learn to market effectively.
Trying to Do Everything Alone: Outsource, automate, or ask for help when needed to prevent overwhelm.

When and How to Take Your Side Hustle Full-Time

If your side hustle is gaining traction, it might be time to make it your main source of income. Here’s what to consider:

Assess Your Financial Readiness: Ensure your side hustle can replace your full-time salary or support your lifestyle.
Test the Waters: Transition gradually—start by increasing your side hustle hours before quitting your job.
Build a Safety Net: Have savings to cover at least 3-6 months of expenses in case of slow months.
Plan for Growth: Develop a strategy for scaling your hustle, whether through new offerings, marketing, or outsourcing.

The Ultimate Checklist: Questions to Ask Before Starting Your Side Hustle

Starting a side hustle can be an exciting and rewarding journey, but it requires careful planning. Before you dive in, ask yourself these critical questions to set yourself up for success.

Time Management: How Will You Balance It All?

A side hustle requires time and dedication. Consider:

How much time do I have outside of my full-time job and responsibilities?
What systems can I put in place to stay focused and avoid burnout?

Expenses and Income: The Financial Aspects

Understanding the financial side of your side hustle is crucial:

What will it cost to launch and maintain?
Do I need materials, and if so, where do I source them?
How will I get paid, and what payment methods will I accept?
If needed, how do I raise funds for my side hustle?
How do I maintain financial records for tax purposes?
What is my marketing strategy?
Can I leverage bartering to reduce costs?

Talent and Partnerships: Who is on Your Team?

Even if you’re working solo, accountability and support matter:

Who will hold me accountable?
Do I need a mentor, partner, or team members?
Am I asking for help when I need it?

Business Structure: Setting Up for Success

Decide on the legal and operational structure of your side hustle:

Will I register as an LLC, sole proprietorship, or another business type?
Will my side hustle be online, in-person, or a mix of both?

Trust and Belief: Overcoming Fear and Uncertainty

Self-doubt can hold you back—be honest about your mindset:

Am I afraid of success or failure? How can I overcome these fears?
How will I decide when to pivot or let go if things aren’t working?