GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you could read more about oureditorial guidelinesand our products and servicesreview methodology.
But as you grow a side hustle, its common to make mistakes along the way.
Explore some of the mistakes to avoid as you grow your side gig.
After all,making extra moneyoften comes with a rush of emotions.
you might handle this in multiple ways.
Or you might pay for accounting software to handle this somewhat tedious task for you.
Most side hustles come with plenty of expenses.
Dont overlook any of these costs.
Not Saving for Your Tax Bill
Earning money outside of your main employer is awesome.
But this extra income isnt immune to tax bills.
Like all other income you earn, youll need to pay income taxes on your earnings.
Many fledging side hustlers forget about their tax obligations at first.
Instead of letting yourself get surprised, understand that youll owe taxes on the funds.
After all, thats probably why you started a side hustle in the first place.
If possible, hold off on pulling out all of your earnings.
The reinvestments you make will look different based on the pop in of side hustle youve started.
For example, as a freelance writer, Ive reinvested in my business by paying to attend industry conferences.
But if you have a product-based business, you might invest in improving your product.
Of course, taking out some of your profits is a good idea.
For example, you might start bysaving up for a vacation.
Or you might decide topay off all of your debt.
Another option is tosupercharge your retirement investmentsto make life easier for your future self.
Setting a concrete goal can help you verify your hard-earned funds get put to good use.
Plus, the goal might motivate you to press on when your side hustle gets tough.
More From GOBankingRates
Share This Article:
