With the current economy showing signs of a slowdown and inflation continuing to affect budgets, more people are looking to supplement their income. In fact, 5.3% of employed Americans now hold multiple jobs — marking 13 consecutive months that multiple jobholders have made up 5% or more of the total workforce, the longest streak since early 2020. This trend reflects both economic uncertainty and the growing accessibility of flexible, part-time work in the gig economy.

Whether you’re aiming to pad your savings, pay down debt, or simply create a safety net in case of economic shifts, a side hustle can help you achieve your financial goals. Here’s a look at some of the best side hustle options and important considerations to keep in mind.

Content Creation

Content creation is a flexible side hustle that leverages creative skills, allowing you to earn extra income by producing engaging written content. Here are two popular options for getting started:

Freelance Writing

Freelance writing offers a straightforward way to earn money from home or on your own schedule. Businesses, blogs, and media outlets frequently hire freelance writers to create articles, web content, and marketing copy. Specializing in a particular niche—such as finance, technology, or lifestyle—can make you stand out to clients.

How to Get Started:

1. Use platforms like Upwork, Fiverr, and ProBlogger to find gigs.
2. Build a portfolio with samples of your best writing.
3. Apply for gigs that fit your skills and experience, or reach out directly to potential clients.

Blogging and Affiliate Marketing

Blogging and affiliate marketing are ideal for those who enjoy writing on specific topics and building a personal brand. Bloggers earn money by driving website traffic and monetizing through ads, affiliate links, and sponsored content.

How to Get Started:

1. Set up a blog using platforms like WordPress or Squarespace.
2. Join affiliate programs such as Amazon Associates, ShareASale, or CJ Affiliate.
3. Write valuable content around topics that interest your audience and include affiliate links to relevant products or services.

Online Tutoring

With remote learning becoming more popular, online tutoring has grown as a flexible and well-paid side hustle. Platforms like VIPKid, Chegg Tutors, and Wyzant connect tutors with students across various subjects, from math and science to English and test preparation.

1. Pros: Great for those with teaching experience or subject matter expertise; flexible hours.
2. Cons: Time zone differences with students may require odd working hours.

Pet Sitting and Dog Walking

If you love animals, pet sitting and dog walking offer a chance to make money while enjoying time with furry friends. Apps like Rover and Wag! make it easy to find clients in your area.

1. Pros: Gets you out of the house; low startup cost.
2. Cons: Limited to specific locations; irregular hours.

Rideshare Driving or Delivery

Rideshare driving and food delivery gigs have become increasingly popular side hustles, especially in urban areas. Platforms like Uber, Lyft, DoorDash, and Instacart provide flexible options to earn on your own schedule.

1. Pros: Work on your own time; tips can boost earnings.
2. Cons: Wear and tear on your vehicle; fluctuating demand.

Investing and Day Trading

For those with market knowledge, investing or day trading can be lucrative side hustles. Day trading focuses on short-term stock price movements, while long-term investing builds wealth more gradually. Both require strategy and careful planning to be profitable.

Day trading basics: Day trading involves buying and selling stocks within the same day to capture quick gains. To succeed, it’s crucial to understand market trends and use tools for real-time data.

Getting Started:

1. Use trading platforms like Robinhood, TD Ameritrade, Webull, and more.
2. Start with a small amount and practice with demo accounts.
3. Learn technical analysis and develop a trading strategy.

Alternatively, if you've got a lot of capital to deploy, long-term investing can yield consistent sums of annual income if you invest in creating a stable, well-diversified portfolio. It's a more passive approach but a side hustle nonetheless. 

Important Considerations

Both options have risks, and short-term profits from day trading are taxed at higher rates than long-term investments.

Websites to Find Side Hustles On

Finding reliable side gigs has never been easier, thanks to the rise of online platforms dedicated to the gig economy. Here are some popular websites to help you get started:

Upwork: Ideal for freelancing in writing, design, tech, and more.

Fiverr: Offers short-term gigs in various categories, from graphic design to social media.

TaskRabbit: Great for those looking for local gigs, like handyman work, moving, or personal assistance.

FlexJobs: Specializes in remote and flexible job listings, including part-time and freelance work.

Craigslist: Local listings can include odd jobs, part-time work, and one-off gigs in your area.

Important Considerations That Come with Side Hustles

While side hustles can bring in extra income, they also come with additional responsibilities and considerations. Here are some important factors to keep in mind.

Work-Life Balance

Adding a side job on top of a full-time position can be rewarding, but it’s essential to maintain a healthy work-life balance. Many people pursuing multiple income streams report burnout, so be cautious not to overextend yourself. Remember, a side hustle should ideally fit around your primary responsibilities and personal life.

1. Tip: Set limits on your side hustle hours, and take regular breaks to prevent exhaustion.

Current Employer Arrangement & Agreements

Before starting a side hustle, it’s important to check your current employer’s policies. Some companies have rules against taking on outside work in the same industry, which could lead to conflicts of interest. Additionally, your employment contract may contain clauses restricting certain types of work.

1. Tip: Review your employment agreement, and if necessary, consult with HR to ensure compliance with any outside-work policies.

Self-Employment Taxes

Arguably, the most important consideration to make when you’re thinking about a side hustle is that doing work on the side likely means you’ll be a contractor, and your client won’t be paying taxes on your behalf like a traditional, full-time employer would. 

Earning extra income through a side hustle often means you’ll be responsible for self-employment taxes, which can catch many new side hustlers by surprise. Income earned through freelancing, gig work, or other self-employed avenues isn’t subject to withholding, so you may need to set aside a portion of your earnings for taxes.

Here Are Some Things to Know

Tax Rate

The self-employment tax rate is currently 15.3%, which includes:

1. 12.4% for Social Security (up to the annual limit)
2. 2.9% for Medicare (with no income limit)

If your net earnings exceed $200,000 ($250,000 for married couples), an additional 0.9% Medicare tax may apply.

Quarterly Payments

To avoid underpayment penalties, you must make estimated tax payments quarterly. The due dates for these payments are generally:

1. April 15
2. June 15
3. September 15
4. January 15 (of the following year)

Using Form 1040-ES, you can calculate your estimated tax payments based on your expected income. Keeping track of your earnings throughout the year can help ensure you meet these payment deadlines.

Late Penalties

If you miss a payment or underpay your estimated taxes, the IRS may impose penalties and interest on the unpaid amounts. It’s essential to stay proactive in managing your tax obligations to avoid these costs.

Impact on Withholding

If you have a regular job in addition to your side hustle, it may be beneficial to adjust your withholding to account for your self-employment income. This can help cover your tax liabilities and prevent a large tax bill at the end of the year. You can adjust your withholding by submitting a new W-4 form to your employer.

Other Considerations

1. Deductions: Keep track of all business-related expenses, as these can reduce your taxable income.
2. Record keeping: Maintain accurate records of income and expenses, as this will be crucial during tax season.
3. Consult a professional: Consider consulting with a tax professional to ensure compliance and optimize your tax situation.

Here’s a list of websites for filing self-employment taxes:

TurboTax: Offers guided filing options for self-employed individuals and small business owners.

H&R Block: Provides tax filing services with options tailored for freelancers and self-employed individuals.

TaxSlayer: Budget-friendly tax software for self-employed and gig workers.

FreeTaxUSA: Offers free federal filing and low-cost state filing, which are suitable for self-employed users with basic needs.

IRS Free File: Free filing options for individuals under certain income thresholds, provided directly by the IRS.

Closing Thoughts

Starting a side hustle is a great way to diversify your income, especially during uncertain economic times. Whether you’re looking to build a financial cushion, pay off debts, or simply explore new interests, side hustles offer flexibility and opportunity. 

However, balance is key — avoid taking on more than you can handle, and remember to consider the tax and time management aspects of earning extra income. By planning carefully and choosing the right side hustle for your skills and interests, you can enjoy the benefits without unnecessary stress.