Last Updated on July 17, 2024 by John Cirelly

Are side hustles worth it? And how do they compare to picking up a part-time job or clocking some overtime?

I crunched the numbers and even built a calculator to help you decide which path is right for you.

Are Side Hustles Worth It?

Side hustles can be a great way to earn extra money and potentially escape a stressful 9-5 job. Many people have found that the right side hustle can become a full-time business. Nearly 40% of Americans have a side hustle, showing how popular this option is.

The average side hustle brings in about $810 per month, which can make a significant difference. Some people even earn over $10,000 monthly from their side gigs. For those seeking financial security or a career change, a side hustle might be the answer.

Interested in starting a side hustle? Check out our list of the best side hustles to start.

What The Data Says

Data shows that the popularity of side hustles is increasing, with 40% of Americans having a side gig.

They can bring in an average of $810 per month, although only a small percentage (4.3%) make over $10,000 monthly. Most side hustlers spend 5 to 20 hours per week on their gigs.

Side hustles are especially popular among younger generations, with 70% of Gen Z and 50% of millennials participating.

Starting a side hustle typically costs around $16,000 in the first year, but I know firsthand that you can start one for much less.

Side Hustles vs Part-Time Jobs: Which Is Worth it?

When choosing between a side hustle and a part-time job, consider health insurance and benefits. Part-time jobs sometimes offer steady pay and benefits like health insurance, which side hustles typically do not. However, side hustles offer flexibility in work hours and location, which part-time jobs might lack.

Calculating side hustle income requires accounting for taxes, which you’ll likely be responsible for.

Side hustles can provide more control over your work and potential for growth, while part-time jobs usually provide more immediate financial stability. Weighing these factors can help determine which option suits your needs better.

Use the calculator below to see if it makes more sense to pursue a side hustle or take on overtime/part-time work.

Pros and Cons of Starting a Side Hustle

Pros

Enhancing Income
A side hustle can boost (and more importantly) diversify your income, providing financial security for unexpected expenses. It can also help you save for significant goals like buying a house or a car.

Discovering New Interests
A side hustle might help you discover new passions and potential career paths. For example, tutoring or personal finance coaching can become fulfilling pursuits.

Flexibility
Side hustles offer control over your work hours and location. This is ideal if you want more autonomy outside your regular job.

Expanding Professional Network
Side hustles provide opportunities to meet new professionals and peers. This networking can lead to new work opportunities and collaborations.

Exploring Creativity
Side hustles allow for creative expression and breaking the routine. They encourage you to tackle new challenges and projects.

Time Consumption
Side hustles require significant time investment, potentially affecting your leisure time. Balancing multiple commitments can be challenging.

Cons

Distraction at Full-Time Job
A side hustle can negatively impact your performance at your main job. It requires excellent time management skills.

Increased Stress
Adding a side hustle to existing responsibilities can lead to burnout. You must consider your mental and physical health carefully.

When Side Hustles Aren’t Worth Your Time

A side hustle isn’t worth it if it causes more stress and unhappiness than satisfaction. If the hustle doesn’t have the potential to become a full-time job or doesn’t align with your career goals, it may not be worth your time.

If the financial rewards don’t justify the time and effort invested, it might not be the best use of your resources. It’s essential to evaluate what your effective hourly rate is when understanding if a side hustle is worth your time or not.

Why I Think Side Hustles Are Worth It

I was able to escape my full-time job and earn over twice my salary by working a quarter of the time.

This change has greatly improved my mental health, giving me more freedom and flexibility. I can travel whenever I want since I make my own schedule. This all started from a side hustle I invested 5-10 hours a week in.

Running a side hustle also allows me to reduce my taxes by writing off expenses and contributing to my solo 401k. The experience has been incredibly rewarding, and I have discovered new passions and opportunities. Overall, having a side hustle has been a positive and life-changing decision for me.