6 Side Hustles That Will Help You Manage Your Money Better
When it comes to side gigs, they can do more than earn you supplemental income. They can also help you learn about financial literacy and manage your money better. But which side hustles can help you do this the best?
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“In truth, most if not all side hustles will be perfect opportunities to uplevel your financial habits,” said Erika Kullberg, attorney, personal finance expert and founder of Erika.com. “Once you get into the trenches with a personal business, you’ll soon find that your bad money habits are impossible to look past. It’s time to sink or swim.”
That said, here are six side gigs that can help you manage your money better.
E-commerce Store Owner
You can set up an e-commerce store on platforms like Etsy or your own website. Once you have a shop, you’ll then be able to list, promote and sell your products or services online to other people.
“Setting up any kind of e-commerce store is going to require meticulous budgeting, careful cash flow management as well as the ability to work on forecasting your future finances,” said Kullberg. “At the most basic level, you’ll have to budget for [the] cost of materials, production and labor costs, as well as marketing, website and any other overheads.”
Food Delivery Driver
If you want to work on your own schedule and have a valid driver’s license and a reliable vehicle, you could become a food delivery driver. This type of side gig is flexible and a great way to learn more about how to manage your money and minimize your expenses — especially those related to car maintenance and gasoline.
“U.S. food delivery revenue hit $17.9 billion in 2022, and that number is expected to skyrocket to $165 billion by 2029. Suffice to say, there should be plenty of delivery driving work to go around for a long time to come,” said Todd Stearn, founder and CEO of TheMoneyManual.
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“Apps like DoorDash allow you to cash out your earnings daily for a small fee,” he continued. “If possible, make it a goal to save enough money so you no longer need to cash out daily. There is the tangible benefit of not losing the fee, plus the feeling of greater financial control once you reach that milestone.”
Alternatively, you could become a rideshare driver for a company like Uber or Lyft. These gigs work similarly to food delivery services and allow you to manage and track your earnings. And, as with any side gig, you’ll be responsible for your own taxes, something you’ll have to learn to account for as you go.
Property Rental Owner
If you own property and have a spare room or house, you can list it as a short-term rental on a site like Airbnb. You’ll set your own prices, manage the fees and interact with potential customers. While the platform can help with some of this, you’ll still have to handle things like taxes and the other financials.
Airbnb isn’t your only option, though.
“Renting property can teach good financial habits such as cash flow and asset management, long-term investing strategies, emergency funds planning, and good communication skills,” said Ryan Barone, co-founder and CEO of RentRedi. “Landlords must learn how to balance their rental income with the costs of owning and maintaining a rental property by budgeting effectively.”
Barone added that it’s important to set aside some of your earnings for an emergency savings fund. That way, you’ll be prepared for any unexpected expenses — like sudden vacancies or repairs — that come your way.
“Landlords also learn the benefits of long-term planning when it comes to investing by strategizing how to use their assets to build equity and wealth over time. Additionally, rental property investors will be more financially successful if they learn to communicate effectively with their tenants,” said Barone. “That includes responding to maintenance issues promptly and providing services that will make their tenant’s lives easier, such as offering the convenience of online rent payments.”
Investor
You might not think of investing as a typical side hustle, but it’s a great way to earn extra money. It also requires a lot of financial discipline and can help you manage your finances better.
“If you decide to use some extra liquidity or savings to put toward investing on the side, you’ll come up against a lot of things that typically trigger us financially,” said Kullberg. “Impulse purchases, overshooting budgets and second-guessing your decisions are all things you’ll get to work through when investing your money.”
As you overcome each of these challenges, you’ll be better equipped to handle others that come up in the future. You’ll also gain a better understanding of your own finances and potentially improve your financial situation.
Pet Sitter or Babysitter
“Side hustles that tend to pay a predictable amount of money can help you budget,” said Stearn. “Examples include a weekly babysitting, pet sitting, or tutoring gig. You can plan to set aside a set percentage of your earnings each week such as 10% for savings, 80% for essential bills, and 10% for fun activities.”
Bookkeeper or Virtual Assistant
If you’re comfortable with numbers, then choosing a side hustle that has you deal with them frequently can also help you hone your money management skills.
“Offering bookkeeping services to small businesses can help you better understand financial statements, business investments, and cash flow management,” said Ann Martin, director of operations at CreditDonkey.
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This article originally appeared on GOBankingRates.com: 6 Side Hustles That Will Help You Manage Your Money Better
