6 Side Gigs That Can Create Bad Spending Habits and Cost You Money
As Americans struggle with inflation and higher interest rates, many turn to side hustles to help pay the bills. A recent GOBankingRates survey found that 40% of people had taken on side gigs over the past year.
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As helpful as a side hustle can be when it comes to paying the bills, you want to ensure that your gig doesn’t lead to bad spending habits that could add to your bills.
Here are six side gigs that may not be worth it since they could cost you money in the long run.
Rideshare Driver/Food Delivery
You can profit from the gig economy by trying out rideshare driving or delivering food, but you want to remember that these jobs could increase your spending. When you’re on the road constantly, you can easily forget to pack a lunch, or you may not have the space to carry food. This could result in you stopping for food or beverages since this side hustle will require you to spend time away from home.
“This gig puts you in a constant state of being in places where you’re consistently surrounded by tempting aromas and visuals of food,” said Scott Lieberman, founder of Touchdown Money. “This can tempt you to indulge in ordering quick bites to take with you, eating into your earnings.”
While you may feel like you have the self-discipline to avoid temptations, you never know how you’ll feel when you’re hungry or exhausted after a long day on the road.
You also want to factor in that this side hustle could increase your spending because you’re using your vehicle to deliver food or transport people, likely leading to automobile maintenance expenses and repairs. You also might have to replace your vehicle sooner due to the wear and tear of the miles.
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Handiwork or TaskRabbit Gigs
While there’s money to be made in handiwork gigs on platforms like TaskRabbit, you could spend more than you make up on supplies and tools. You could end up purchasing expensive tools.
“Engaging in gigs like handyman work may entail investing in specialized tools or equipment for a one-time job, ultimately impacting their net earnings,” Lieberman said.
If you’re not diligent about which supplies and tools you invest in, you may lose money on this side gig if you don’t find enough projects to cover the costs.
Personal Shopping
Personal shopping is another popular side gig that could lead to an increase in spending because there are constant temptations all around you. As you enter a mall or visit new stores, you may be tempted at times when you see something you want to purchase for yourself.
“Personal shoppers may find themselves easily distracted and purchase needless items for themselves while they are on a shopping gig for someone else,” Lieberman said.
You want to ensure that you have the proper self-control before pursuing a side gig like this so you don’t lose money on the venture.
Social Media Content Creation
If you want to start a side business in social media, you may end up spending more money than you make. While there are notable examples of people who have built wealth through social media platforms and creating content, many people lose money in this area.
Here are some of the issues with pursuing social media as a side hustle:
To create content, you may have to purchase new technology (phone, camera, lighting setup, etc.) more frequently.
You may try to justify going on a trip or purchasing a new wardrobe as a business expense.
You could find yourself going out more often, which will increase your spending on food and entertainment.
You may spend money on courses and products as you try to figure out how to monetize this side hustle.
Multi-Level Marketing
Some multi-level marketing business systems require you to spend money on supplies and setup fees. For example, if the business opportunity involves selling supplements, you may be responsible for purchasing a specific amount of stock in advance. If you don’t find the target market for this product, you could be stuck with a home filled with inventory that you can’t get rid of.
Flipping Stuff
Flipping items found at vintage shops or yard sales online has become a popular side hustle, but this venture isn’t always profitable for everyone. While you may occasionally find something at a thrift shop or yard sale that you could flip for a profit, you could end up with a living room filled with junk if you don’t know what you’re looking for.
You’ll also create another bad spending habit by always being on the road looking for items to purchase. Your spending could go up in the form of money spent on gas, stopping for coffee and eating out.
If you’re considering pursuing a side hustle, you’ll want to watch out for some of the red flags and issues mentioned here. Any time a new venture requires a significant upfront financial commitment or could put you in a position where you’re tempted to spend more money, you’ll want to proceed with caution as the goal is to make money to help cover the bills instead of adding new bills to your life.
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This article originally appeared on GOBankingRates.com: 6 Side Gigs That Can Create Bad Spending Habits and Cost You Money
