What is a side hustle?
A side hustle is a way of bringing income into your household budget, aside from your normal income. Other names include nixers, extra income, moonlighting, and side projects.
Some side hustles are quick and easy to do, and some require a skill, qualification or a talent. I’ve tried to add a good mixture to my list.
Considerations when getting side hustle income.
Yes all side hustle income is taxable, unless it is paid in the form of a voucher. This income must be declared with revenue.
In Ireland, if you earn under €5,000 in the year you can declare this income on your income tax return. This is very easy to do using myAccount.
If you earn more than €5,000… first of all WELL DONE you!! Again yes, you must declare this income. You will need to register for self-assesment. Once registered it is easy enough to file a tax return form with ROS. Checkout this link for more info.
As this income is taxable, its very important to track it, and keep a record of what you have coming in.
Which Side Hustle is for you?
Well first off, you need to look at how much time you have spare… do you have weekends free, evenings, or even one evening? This will help you decide for sure what side hustles are definitely not for you.
Another thing to consider is what are your passions? If you are passionate about something, you are more likely to for one enjoy doing it, but also you are more likely to strive for it to succeed.
You should also consider any skills or qualifications that you have. For instance, teaching grinds if you are a teacher, which can be very flexible.
Lastly I think its important to think about how much it is going to cost you to start doing this side hustle… some side hustles will be free to start, and some may require an investment, which is something to think about.
Types of Side Hustle Income
Earned Income: Where you have put time and effort in to earn the income in return. This is the easiest time of income. Examples include a part-time job, freelance work, or doing a craft.
Passive Income: More complicated to set up in the beginning, takes time effort and maybe money. However once it is set up, the money should come in without any time and effort on your part. This income may be slow, but as is requires little effort, that is ok, it will accumulate over time. Examples include rental properties, investments, and affiliate sales.
Capital Gains Income: Where you buy something and in return for doing something to it, or even holding on to it for a while, you can sell it and get a profit. This is capital gains income. Examples include buying and selling furniture or buying and selling stocks.
I hope these ideas are helpful to you! If you do Side Hustles to increase your household income, let me know what you do below!