If you’re just starting a side hustle and want guidance on the macro issues (tax planning, financial planning/budgeting, timing of launch), CNBC’s Ultimate Guide for 2021should be a good starting point.
Included in the post are these three videos:
Key questions you need to answer before starting a side hustle
This side hustle is so lucrative it can build your wealth by six figures
Five ways to keep your side hustle from taking over your life.
Valuable reminders from this post:
“Not to mention a side business can be the best way to get a taste of a future career you might want to ramp up later.”
“What are you the go-to person for at work? In your personal life?”
“Once you find an option you like — whether it’s freelance blogging, selling hand-knit hats or helping people declutter their garage — do a trial run.”
“…listen to podcasts focused on starting a business in a particular niche (you can find them through ListenNotes)”
“,,,stash 20–35% of all your side hustle money for taxes. That way, you’ll have enough money to pay for the income taxes and the self-employment taxes…”
“One common mistake for first-time business owners accustomed to having taxes taken out of each paycheck is to forget to pay quarterly taxes and find themselves in a world of pain when they find they owe taxes in April.”
“Three ways your side gig could mess up your taxes.”
Your tax bill could rise by the hundreds or thousands.
If you don’t keep those receipts, you could be in a world of hurt if the IRS decides they need more documentation.
If you make enough, you might well have to pay estimated taxes.
Here’s hoping you pick up a few tips or ‘oh, yeahhhh’ moments from this post.
I’m including his P.S. because of his sincere message:
PS: This may just be words for you on a screen right now, but I beg you to read this very carefully. Read it and make sure it sinks in. We are absolutely living through the greatest generation of fake entrepreneurship that we’ve seen in a long time. Unfortunately, many people will be hurt both financially and emotionally because of this era. I implore you to take these words seriously.
Reminder: Links are not affiliate links. I just want to point you in the direction of resources and information that might help you along your way.