The rise of the side hustle
14th May 2019
The rise of the side hustle
These days, having a second income is becoming more and more popular. In fact, a fifth of the UK’s workforce regularly ponder the idea — especially the millennial generation.
Originally, the term ‘side hustle’ was coined in the 1950s and meant ‘a way to make money from your passion, interest or hobby’. Although this may be the case, the actual idea of working a second job has been around for centuries; freelance work can be dated back to the 18th century when the word was used to describe a mercenary for hire. Nowadays, it’s true that you can be a freelancer in nearly every industry.
You can’t, however, simply pick a trade and begin to work in it. Here, we delve into why side hustles are so popular and how easy it is to set one up.
What makes side hustles so popular?
Unfortunately, for some the side hustle is more of a necessity than a choice. It’s a way for some to gain extra income, something which is important when considering that nearly a quarter of the UK believe the average monthly wage simply isn’t enough. While the UK’s cost of living continues to rise and inflation year on year rising by three percent in the last few years. This has meant that different avenues have had to be investigated for many in a bid to top up their main wage and improve their quality of life.
It can also be a way to get into your dream profession as it can help open doors at an established company or allow you to become your own boss. For many, secondary roles are used as a gateway into a creative or technical sector as it can help you showcase your skills to companies while also improving your CV. Graphic designers and writers are often found to be dipping their toes — or pens — in the freelance world and sites such as UpWork and Fiverr are able to provide a top platform to pick up jobs. This can help you get noticed in your sector as well as helping you build up the contacts required to eventually start your own full-time business.
On the other hand, it can simply be a way to earn while undergoing a hobby. Again, the aforementioned sites are a great place to do so as you can pick and choose which jobs you bid on.
How do you start a side hustle?
Unfortunately, not every job allows you to simply jump into a project. For some, legalities are in place which must be followed and to make it a success and make any source of regular income you must pay that dreaded thing we call tax!
Although the trading allowance allows you to turnover up to £1,000 tax-free, any more than this will be subjected to taxes. Working as a freelancer means that you are classed as self-employed and these extra funds are taxable, meaning it’s your responsibility to make sure you pay it correctly. According to a survey, 34% of those who have a side hustle have confessed that they don’t declare their side projects’ earnings.
Another point to bear in mind is that some roles will need you to have insurance. For example, being a dog walker is one of the most popular side hustles in the UK. Doing this, though, requires you to be insured. See how we can cover you here at Cliverton.
The future of the side hustle
There are currently over 16 million Brits who use a side hustle as a means to cover their living costs and if inflation keeps rising faster than wages, then this number will more than likely continue to rise. Also, with the days of ‘job loyalty’ looking to be behind us, more people seem to be willing to start a side hustle. This is having a huge impact on careers across the world as workforces see it as a great way to starting their own business.
For several reasons, the side hustle remains a big player in the UK’s working environment. Whether it’s a secondary income, or businesses completing tasks without hiring full-time staff, the concept is set to stay. However, ensure that if you plan to set up a side hustle, you research your field fully and find out any legal requirements.
See how Cliverton can help you with your insurance needs and policies.