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Many side hustles can be started for free or for an extremely low cost. Does this mean you don't need a budget? If you can start it cheaply now, there will likely be some expenses in the future.
Setting up a budget and planning for possible expenses is recommended. You never know what extra costs your side hustle may end up incurring in the future. It is best to be prepared even though you may not have any outgoing expenses now.
In this article, you can learn about 3 side hustle expenses you should include in your budget. Having a plan will help you be ready.
1. Motivation and mental health
Working a side hustle can be hard. Especially on top of other responsibilities, such as a full-time job or parenting. It is easy to get overwhelmed, overworked, and frustrated.
Don't worry. Those feelings are OK and everyone experiences them sometimes.
This is where having a mentor can be beneficial. A mentor with years of experience can help you learn coping strategies. They can also help you identify when you need a break before you get to the point of wanting to give up!
Reducing stress and learning ways to manage stress are great life skills to have.
Finding the right person to serve as a mentor may take time. You might be fortunate enough to already have a mentor in the circle of people you know.
But, if not, paying for a professional mentor is an option. This route could be expensive as charges may be more than $100 per hour.
If you want a lower-cost way of getting help and advice, there are some other options. Try one of these:
- Look for blogs of people you find inspiring and follow them
- Look for other content created by them; this could include podcasts or other media
- Check their social media
- Find out if they offer a book rather than paying for 1-to-1 coaching
Getting advice and support has never been easier thanks to the internet. You could join groups online through Facebook or LinkedIn. There are also group coaching sessions available. Having a virtual friend is better than constantly feeling alone.
Ultimately, only you know how much support you need and how much you want to pay for it. However, the benefits of staying motivated and looking after your mental health are numerous. You could also see an increase in your earnings as you are able to focus better and work more efficiently.
Another tip to help with your mental health is to budget some money that can be used for the fun stuff, even if it's just a coffee or a trip to the movies. Doing activities to relax is important. After all, there is no point in earning all that extra money if you can't enjoy some of it!
2. Training and development
Once you have built a successful side hustle, you should have a good amount of extra money every month. However, what if you want to take things to the next level?
Maybe you hope to leave behind your full-time job and have your side hustle become your main source of income. This is perfectly doable and there are many people who achieve that goal.
Depending on your side hustle, you may need to pay for additional certifications or courses that can help unlock access to new jobs. They can also help you build skills that allow you to diversify and build additional revenue streams.
A bonus of taking part in additional learning is that you can connect with other learners. This can help you build a network of like-minded people.
At the very least, you should always be maintaining your skills to the latest standards. For example, if you are a blogger, then it's important to keep up to date with best blogging practices.
The good news is that there are lots of free resources online. Sometimes fees are unavoidable for specific courses or certifications. But if you look around, you can often find good quality courses for free! This can help keep expenses down.
Children are one of the biggest expenses in life. All working parents know that childcare is expensive, but often it is a necessary cost.
You might think you can work while looking after your children at the same time. This might be OK occasionally, but ask yourself honestly if you are doing your best work or being the best caregiver when trying to do both at the same time. Neither will get your full attention and both your work and your parenting skills could suffer and result in negative consequences.
Do yourself a favor and use childcare as much as you can afford during your work hours. This allows you to work distraction-free and gives you the chance to increase your earnings.
In the long run, this investment in your time could be worth it. If your side hustle becomes successful, then the income you are earning might allow you to cut back on how much you work. This would be a double win as you would pay less childcare costs!
Don't forget you may be able to save money by working your side hustle after your children’s bedtime or asking friends or family to help with childcare. If you personally know other parents that are also working a side hustle, then ask if they want to participate in a childcare swap and take turns looking after the kids.
Budgeting for these 3 side hustle expenses should help you meet your financial goals. Having money set aside for these things means less worry about sudden unexpected expenses.
Budgeting is an essential part of staying financially healthy, even in business. But remember: you started a side hustle to put more money in your pocket. Budget for necessary side hustle expenses and know that you can use money you don’t spend for your savings or to pay off debts quicker!