Could a side hustle give your finances a boost?
If you are looking to boost your finances a side hustle could help you take home some additional income.
Pensions advice specialist, Portafina, surveyed* the nation to find out how many Brits are turning to side hustles, revealing that 69% have taken up additional work alongside their main job, with men being more likely to do this (77%), compared to two thirds of women (66%).
The top ten most popular side hustles Brits are taking on are:
- Taking online surveys (59%)
- Selling unwanted clothes/possessions on eBay or other reseller websites (45%)
- Cleaning (14%)
- Making and selling handicrafts e.g. art, cards, jewellery (11%)
- Dog walking/pet sitting (11%)
- Tutoring/coaching (9%)
- Freelance writing (8%)
- Making and selling home-baked goods (5%)
- Affiliate marketing/brand ambassador e.g. Avon, Herbalife (5%)
- Childcare (5%)
Which side hustles will give you the greatest income? Renting out homes/rooms for holiday rentals takes the top spot as the most profitable side hustle with Brits making £2,460.31 on average.
For those who don’t have a second home or spare room, taxi driving makes the second most profitable side hustle, earning a total average of £2,037.56, closely followed by tutoring with an average of £2,034.60. And despite almost six in ten (59%) of Brits admitting they take online surveys to make extra money, this didn’t even make the top ten most profitable side hustles.
The top ten most profitable side hustles (overall) are:
- Renting out home/room for holiday rentals e.g. Airbnb – £2,460.31 (average)
- Taxi driving e.g. Uber, Lyft – £2,037.56 (average)
- Tutoring/coaching £2,034.60 – (average)
- Web design/development – £2,029.77 (average)
- Freelance writing – £1,959.14 (average)
- Photography – £1,882.43 (average)
- Cleaning – £1,872.04 (average)
- Alterations e.g. making/altering curtains, clothes etc – £1,827.21 (average)
- Making and selling home baked goods – £1,784.72 (average)
- Childcare – £1,611.88 (average)
The most common reasons people are choosing to take up a side hustle include to boost their savings (20%), to help pay the bills each month (16%) and to have extra money to spend on non-essential purchases such as a car, holiday or home renovations (16%).
Specific life events have also been known to spur the nation on to take up an activity to earn them additional income. These include Christmas (34%), holidays (31%), birthdays (18%) and retirement (11%).
Sam Preece, a twenty-three-year-old from York took up nightclub photography to help save for Christmas.
“As well as making some extra money, I was able to pursue something I really enjoyed. I loved photography, so nightclub photography was an easy way to make some money for Christmas outside my normal working hours. Since it was Christmas, the clubs were always really busy and the busier the club, the more I got paid!
“My advice for anyone thinking of taking a side hustle up would be don’t push yourself too hard. Only do a few extra hours and remember to leave time for yourself. The best thing about my side hustle was that it allowed me to still embrace Christmas while working. However, the extra hours tired me out a lot, so don’t over-do it.”Sam Preece
Commenting on the research, Jamie Smith-Thompson, Managing Director of Portafina, said:
“The new year is the perfect time to make positive changes and focus on what you want to achieve now and in the future.
“What’s really encouraging is that one in five Brits would most likely take up a side hustle to top up their general savings. And in these instances, it’s worth thinking about how you’re going to get the best return for your cash, after all, you’ve worked hard for it.
“It’s helpful to think about your savings in three ways: an everyday pot, an emergency fund and your long-term plans. For short-to-medium term savings think cash ISAs and easy-access savings accounts, and for long-term savings, think of your pension. Whilst this does mean locking in the cash for the foreseeable future, the benefits in the long-term can be huge, and you’ll have two other savings pots to access for the things you need in the short-term.”Jamie Smith-Thompson