Thousands of people are starting to earn more money through all kinds of side hustles, but this extra income isn’t always easy to manage. To make the most of your cash it’s important to have a plan, as not only will this help you stay on top of your finances, but it will also help you to grow your venture. If you’ve been thinking about starting a side job or are already increasing your income by freelancing or running an online shop, this blog has all the financial tips you need to succeed.
Separate your bank accounts
While you don’t necessarily need to open a business bank account for your side hustle, separating this extra income from your main account can help you stay on track. It’s up to you whether you have two accounts from the same provider or you choose to look into other solutions. These days there’s no need to limit yourself to just high street banks, as there are lots of alternatives on the market. Think about choosing an online bank so you can easily check your account and move money around without having to go into your branch. If you’re interested in learning more, check out some chime reviews online.
Use accounting software
If your side hustle is really taking off, you might be struggling to keep your finances in order using just a spreadsheet. Not only is it easy to get lost with spreadsheets, but it can be very time-consuming to stay up to date. Accounting software will help you to automate the whole process, allowing you to focus on things that are more important to you. What’s more, you won’t have to worry about taxes, as your chosen software should be able to take care of all of this for you.
Think about saving
While some people start a side hustle to help them to cover everyday costs, others will have the luxury of saving their extra income. If this applies to you, then consider keeping all your side-hustle earnings in a good savings account. It can be tempting to spend on exciting things to treat yourself, but if you haven’t got an emergency fund yet, your side hustle can really help you to build this financial security.
Don’t be afraid to reinvest
A side hustle doesn’t have to stay a side hustle forever. If you want to grow your new stream of income into a proper business, then think about investing the money you make back into your venture. This might slow down your profits for a while but, in the long run, you might be able to leave your full-time job and become financially independent. Even if you don’t want your side hustle to become a full-time job, it’s never a bad idea to spruce up your website or invest in some higher-quality tech to make your life easier.
Learning to manage money takes time and it’s a skill you can develop over the coming years while working on your side hustle. To learn more about managing your finances with Chime, click here.