According to a recent survey by Bankrate, 36% of U.S. adults are making extra money from side jobs, a slight decrease from 39% last year.

However, their average monthly earnings have risen to $891, up from $810 in 2023.

A growing trend with no end in sight

The survey highlights that a majority of side hustlers are relatively new to the game. About 52% of side hustlers have been earning money on the side for two years or less, with 24% having started within the last year.

According to Bankrate, here’s the breakdown of how long individuals have been side hustling:

• Less than a year: 24%
• 1 to 2 years: 28%
• 3 to 5 years: 25%
• 6 to 10 years: 13%
• 11 to 20 years: 5%
• More than 20 years: 5%

This data suggests that side hustling has become a go-to strategy for many seeking to supplement their income, particularly in recent years.

Related: Top 13 AI Side Hustles to Try in 2024

So, where is the money going? 

The survey reveals diverse spending habits among side hustlers:

• Discretionary Spending: 37% use at least some of their side hustle income for non-essential expenses like travel, dining out, and hobbies.
• Living Expenses: 36% allocate a portion of their extra earnings to cover everyday costs, helping to alleviate financial stress.
• Savings: 31% save part of their side hustle income, building a financial safety net for future needs.
• Debt Repayment: 20% use their side gig earnings to pay down debt, striving for financial freedom.

Despite a robust job market, many still find side hustles essential. About 32% of respondents believe they will always need a side gig to make ends meet. Ted Rossman, Bankrate’s senior credit card analyst, commented, “It’s alarming that even in a good job market so many people need a secondary source of income.”

Related: Side Hustle Report 2024: Statistics and Industry Overview

What success looks like 

Emma Larson, a 29-year-old graphic designer from Austin, Texas, embodies the modern side hustler’s journey. After being furloughed from her full-time job during the pandemic, Emma turned to freelance design work to make ends meet. In 2022, she secured a full-time position at a marketing firm, earning $85,000 annually. Despite this, Emma continues to take on freelance projects, bringing in an additional $1,500 to $2,000 per month.

“We’ve been forced to adapt to rising costs and uncertain job markets,” Emma said, addressing the economic challenges many face. “Having extra income from my side gigs gives me the financial flexibility I need. It allows me to save more aggressively, pay down student loans, and still have enough left over to enjoy life.”

Emma’s side hustle has provided her with the security and freedom to pursue personal goals and maintain a comfortable lifestyle. “Knowing I have that extra cushion makes a huge difference. I can plan trips, treat myself occasionally, and support my family without constant financial stress,” she added.

Related: How to Become a Graphic Designer in 8 Simple Steps

What would an extra $891 per month mean to you? 

If you can’t quickly increase your 9-to-5 income, a side hustle that interests could be worth pursuing. The possibilities are vast. Imagine paying off debt faster, building an emergency fund, or treating yourself to something special. This additional income can transform your financial outlook.

So, how can you get started? Consider leveraging your existing skills to launch a side hustle. Are you a talented writer, designer, or programmer? Freelancing platforms like Upwork or Fiverr can help you find clients and projects. Love driving? Ride-sharing services like Uber or Lyft might be perfect for you.

And the best part is, side hustles don’t have to be just about the money. If you’re looking to learn new skills, side hustles can be a fantastic opportunity to do so. For example, starting an online store can teach you about e-commerce, marketing, and customer service. Platforms like Coursera or Skillshare offer courses in various fields, allowing you to learn while you earn.

The post New Survey Shows Side Hustlers Earn Nearly $900 per Month appeared first on DollarSprout.

That was Javier Ortega-Araiza’s response when asked what inspired him to become a freelance writer. And, despite being a journalism school dropout and dabbling in other careers, his true passion has always been writing and storytelling.

His story is proof that it isn’t always about what school you go to or what degree you have; if you have a passion for something, you can make a career out of almost anything.

The Prelude: His First Foray into Entrepreneurship

In business school, Javier started his first business which was centered around organizing immersive experiences for students who wanted to learn more about specific careers.

“I realized that if students could have a first-hand immersion into whatever they were into, maybe we could make more informed decisions about what path we wanted to pursue,” he explained. His business was a hit; Javier had surpassed $1.5 million in revenue within 18 months.

However, his success came with challenges. “I was very young and made wrong decisions, especially concerning people,” Javier admitted. These poor decisions eventually led to the business’s downfall.

“Losing that business jump-started my spiritual journey. After being close to opting out of life, I re-emerged stronger, with many stories to tell,” he reflected

Rediscovering Writing

While an undergraduate, Javier built a six-figure business writing papers for other students. However, he procrastinated on committing to writing as a career due to his own preconceived notions about its financial viability. He never viewed writing as a long-term career opportunity.

But when the pandemic hit, he decided to give freelance writing another shot.

“I wrote a few articles here and there for various outlets, but nothing consistent. My most consistent attempt had been writing on Medium, but I got disappointed because my earnings on the platform never surpassed $20.”

In 2022, Javier launched a few Substack newsletters and began pitching writing opportunities. “I started pitching every opportunity related to my topics of interest. The first few days, I received a lot of rejections, but gradually I got a couple of gigs, and I just gained traction from there,” he reflected.

Related: 12 Ways to Grow Your Income as a Freelance Writer

Five Pitches a Day, Every Day

Javier’s transition from treating freelance writing as a side hustle to making it his primary source of income was marked by a shift in mindset and discipline. “The gamechanger for me was this: My earnings from writing changed the moment I became serious about putting time into it, and treating my writing business as a business,” he explained.

In 2021 and 2022, Javier’s writing efforts were sporadic. “I published articles here and there, but they were scarce, and I did not have a habit of pitching publications consistently,” he admitted. This changed in 2023 when he set a clear and ambitious goal for himself. “I set a target of making at least five pitches a day, every workday. I reduced that gradually as I started to get more work, but I believe pitching so regularly also helped me hone my pitches and get better at identifying what editors were looking for.”

Javier also focused on building relationships with editors to secure ongoing work. “It was about building a relationship with some of those editors so that I could get ongoing work and not have to pitch so much,” he says. This strategy not only reduced the amount of pitching he needed to do but also helped him create a more stable and consistent income stream from his writing.

Reaching His First $10,000 Month

Javier’s persistence paid off. “I remember the first month my writing earnings surpassed $10,000. I was initially in disbelief. Did my words really earn me that?”

On average, he earns between $5,200 and $6,000 monthly from freelance writing, mostly because he has scaled back on some client work to focus on new projects. “I always have plenty of irons in the fire, so there’s no shortage of work,” he adds.

Javier’s Top 3 Challenges

Achieving success as a freelance writer did not come easy for Javier. Here are the top 3 challenges he says he faced as he was growing his business.

1. Balancing social needs with a solo profession

One of Javier’s biggest struggles during his first year of freelance writing was adjusting his schedule to meet his social and physical activity needs. “I need human interaction. I’m very social, and I’m an athlete,” he said, referencing his background as a competitive tennis player. Writing, however, can be isolating.

“I pivoted more times than I can count to make sure I had a schedule that worked for me,” Javier shared. Finding a balance that allowed him to be productive while maintaining his social interactions and physical activity was crucial. “When things are in balance, I love being in the zone and writing, but if I overdo it, I can get drained very quickly.”

2. Navigating the overwhelming “creator economy”

Another significant challenge was finding his way in the vast and overwhelming creator economy. “The creator economy is enormous; we constantly get bombarded by all kinds of ads, courses, coaches, and opportunities,” Javier explained.

In the beginning, he found it difficult to know where to start. “Everything can feel too much to digest.” To navigate this, he relied on newsletters that compiled opportunities from various platforms and centralized information, making it easier to manage. “I also relied on ChatGPT. It is an awesome assistant to structure complex scenarios and break them down into manageable tasks,” he added.

3. Balancing workload and income

Finding the right balance between making enough money and not overworking was another major challenge for Javier. “This required a lot of communication with my clients, especially those that paid per piece or per assignment,” he noted. He regularly communicated with editors to set expectations for each month, combining this information with the workload from clients who paid him a flat retainer. “Without having that line of communication open, it would have been a lot harder to plan for a month, and something would have suffered — my income, my health, or the quality of the work,” Javier said.

He emphasizes the importance of open and transparent communication with clients to achieve a balanced workload and maintain quality. “Even if, as freelancers, we’re independent contractors and we run our own business, we still need to learn how to work in teams and collaborate with our clients to reach our goals.”

A One-of-a-Kind Approach to Freelance Writing

Javier’s freelance writing strategy sets him apart due to his wide-ranging interests and refusal to confine himself to a single niche.

“So many people say that writers should find a ‘niche’ and stay within that niche,” Javier explains. While he acknowledges that focusing on a niche can be beneficial for specific publications, he believes that a writer’s body of work and personal brand can encompass much more.

Rather than limiting himself to one area, Javier embraces his many interests wholeheartedly. “I’ve written travel stories for literary magazines, done journalism for Canadian outlets, and even covered immigration issues,” he says. His passion for different subjects has opened numerous doors. For instance, his interest in entrepreneurship led him to write over 30 stories featuring inspiring individuals for Canadian newspapers like the Winnipeg Free Press and SaltWire-owned publications.

“I’ve published poetry books, written SEO articles on sports betting, explored personal development through tennis, and delved into mental health and spirituality,” he shares. His diverse interests have led him to write for prestigious outlets like Forbes, FOX, and the New York Post on topics ranging from personal finance to tech startups and venture capital.

This diverse approach has strengthened his writing. “Embracing various aspects of myself has made me a way better writer and given me better visibility of the big picture,” Javier notes. He believes that each line of work enhances the other, allowing him to bring a unique perspective to each project.

How Javier Finds Freelance Writing Clients

Knowing how to write well and knowing how to find freelance writing gigs are two very different skills, but you need both if you want to make it in this industry. Here’s how Javier goes about finding prospective clients.

1. Freelance gig newsletters

Javier finds newsletters to be invaluable in his client acquisition process. “Some newsletters really helped because they aggregate many opportunities and share them with people like me who don’t have the patience or time to scour LinkedIn, X, personal websites, and other portals like Indeed,” he explains. These newsletters provide a centralized source of potential gigs, saving him time and effort.

Related: 50 Freelance Jobs to Find Your Next Remote Gig

2. Old-fashioned research

Javier also employs a more traditional approach to finding clients. “I Google outlets that are looking for submissions on a particular topic I’m interested in, or brands that I believe can benefit from my input,” he shares. Once he identifies a potential client, he looks for a specific point of contact, avoiding generic email addresses. “Personalization is everything,” he insists. His detailed pitches highlight how he can add value to the client, increasing his chances of securing work.

3. Leveraging tools to find contact information

To streamline the process of finding contact information, Javier recommends using tools like RocketReach. “You can simply paste a LinkedIn profile, and it will give you an email address for whoever you’re trying to get in touch with,” he explains. He says it’s very effective, with an accuracy rate of over 90%.

It’s All About the Pitch: Javier’s Top Tips for Landing Clients

Javier emphasizes the importance of crafting effective pitches. Here are his top tips:

• Personalize Your Pitch: “If you’re limited on time, it is way better to send one thoughtful pitch per day than ten hurried, generic emails.” Taking the time to tailor each pitch shows potential clients that you value their specific needs and interests, making you stand out from generic submissions.
• Research Your Audience: “Do a Google query on a person and learn more about them. Genuine compliments and specific reasons why you can contribute to their mission can set you apart.” Understanding who you’re pitching to and showing genuine interest in their work can make a significant difference in your pitch’s reception.
• Share Relevant Work: “I tell them what I like about their work, how I believe my work can bolster it, and why I am the right person for the job. Relevant pieces from my portfolio, like my Substack on sports betting, have helped me secure gigs.” Highlighting work that aligns with the client’s interests demonstrates your expertise and relevancy to their needs.
• Be Honest: “For one personal finance section, I admitted I had no experience writing about credit cards but explained how I’d figure it out. Honesty helped me get started.” Transparency about your experience builds trust and shows potential clients your willingness to learn and adapt.
• Avoid Working for Free: “I don’t consider outlets that ask for finished pieces or unpaid samples. If someone doesn’t value my time in the short run, how can I trust they will in the long haul?” Valuing your work and time ensures that you establish relationships with clients who respect and appreciate your contributions from the outset.

Related: Should You Work for Free? 5 Scenarios You’ll Be Tempted To

On utilizing the “Deep Work” approach to time management

Javier employs Cal Newport’s “Deep Work” strategy to manage his time and projects effectively. He blocks specific periods for different types of work to maintain focus and ensure quality. “Editing with the PR agency requires me to be more responsive, so I allocate some time for that to be able to respond in real-time,” he explains. This method allows him to handle diverse tasks without mixing different types of writing.

By dedicating time blocks to specific tasks, Javier ensures that each project receives the attention it deserves. “The key is to not get different types of writing mixed up,” he advises. This separation helps him maintain clarity and productivity throughout his workday.

Another simple yet effective tip that Javier swears by is reading similar articles before starting a new piece. “Before writing a piece, read some articles that are similar or about the topic you need to write about,” he suggests. This practice helps stimulate creativity and ensures he is in the right mindset for the task at hand.

Javier’s Advice for Aspiring Freelance Writers

Drawing on his own experiences, Javier shares practical advice for stay-at-home parents, working professionals, and students who are considering freelance writing as a side hustle.

Embrace your unique story or perspective

Javier believes that everyone has a story worth telling. “A lot of people who I’ve spoken with doubt the power of their own story. They say, ‘What am I going to write about?’ But we’ve all lived through stuff. We all have interests,” he says. He emphasizes that the creator economy has room for everyone, with diverse topics and thriving communities around nearly any subject.

Set realistic expectations

For stay-at-home parents, working professionals, and students, time management is crucial. “If you only have half an hour a day to build your freelance writing career, it is better to be honest and define how you can use that half an hour to move forward than to set unrealistic goals,” Javier says.

Balance the short term with the long term

Javier recommends adopting a portfolio approach to manage your freelance writing finances, similar to how someone might invest their savings. “When I first started, I needed a source of revenue, so I prioritized that. Now, I’m allocating time to projects with longer-term potential returns,” he explains. Finding that balance is key for stability and long term success.

And, speaking of investing, don’t forget to set aside money regularly towards retirement. Since you won’t have a normal employer that offers a 401(k) plan, it’s up to you to save on your own.

Break down goals into bite sized chunks

Starting a freelance writing career can feel overwhelming. Javier suggests breaking down larger goals into smaller, manageable steps. “This is something that inspired me to start Write Your Freedom.” That’s his business that helps new freelance writers get started without getting overwhelmed. He offers one-on-one coaching as well as group coaching.

Diversify your income

Javier stresses the importance of diversifying income sources within the creative economy. “I’ve had jobs end because media outlets ran out of money, and clients tried to reduce rates. That’s why I’m skeptical about the subscription model,” he says. Instead, he looks for innovative ways to leverage his writing. For instance, he plans to incorporate experiential trips related to his personal finance newsletter, offering unique value beyond regular content. Additionally, freelancers can diversify by offering coaching, public speaking, organizing retreats, or selling merchandise.

The post Meet the Journalism Dropout Making Six Figures as a Freelance Writer appeared first on DollarSprout.

Investing in real estate can seem daunting, especially for those new to the scene. Platforms like Fundrise are making it easier for everyday investors to enter a market previously only accessible to big players.

Recently, Fundrise has taken a step further by introducing venture capital investing to its suite of services. As both a financial writer and an investor, I was intrigued to see what Fundrise has to offer.

I’ve since explored Fundrise firsthand, diving into its real estate and new venture capital options. Today, I share my experiences with the platform’s costs, potential returns, and risks involved. If you’re considering investing or looking to diversify your portfolio, understanding how Fundrise works can mean the difference between appreciable returns and unwelcome losses. 

Learn More

$10 Account minimum $1,000 for IRAs

1-2% Annual Fees of AUM

DollarSprout Rating

Fundrise is an online real estate and venture capital investment platform that allows individuals to access investments generally not available to the general public. By pooling investments, Fundrise provides access to these markets with a low minimum investment, making it accessible to a broader range of investors.

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Pros:

• Open to non-accredited investors
• Low investment minimum
• Historically strong returns with lower volatility

Cons:

• Limited liquidity
• High fees
• Methodology hasn’t been tested in a strong market downturn yet

Three Main Offerings from Fundrise

Fundrise provides a range of specialized funds that include real estate private equity, venture capital, and private credit—investment opportunities that, in the past, were typically available only to institutional investors.

The idea here is that since Fundrise has such a large pool of investors, they have more collective power and can access these more exclusive investments. However, exclusive doesn’t always mean better. More on that later.

Investors who choose Fundrise can customize their portfolios based on their specific goals. The offerings include a variety of strategic options such as:

• Developing rental housing in the Sunbelt region,
• Investing in late-stage, high-growth private technology companies, particularly focused on artificial intelligence and machine learning,
• Acquiring industrial properties, including last-mile distribution warehouses and data centers, and
• Engaging in bridge loan financing for real estate deals.

Regardless of which portfolio you choose, Fundrise is designed for long-term investors, especially those who can invest for at least five years. The platform focuses on real estate and venture capital, areas typically not easy to pull money out of quickly. Since it’s not liquid, that also means won’t see your portfolio value fluctuate daily like you would for a normal portfolio of stocks or ETFs.

Recognizing that some investors might occasionally need to access their funds, Fundrise does offer a chance to cash out quarterly without penalty. This setup is designed for people who are prepared to commit their money for the long haul and understand that while their money may grow, accessing it isn’t immediate.

Related: How to Start Real Estate Investing (Beginner’s Guide)

Fundrise Cost & Portfolio Performance 

At the end of the day, these are the only two things that I really care about when it comes to investing.

Cost and performance are also the two reasons that I primarily invest in index funds: they are extremely cheap and they match the performance of the market. Beating the market is hard, but matching it is easy. So how does Fundrise stack up?

First off, investing in Fundrise is not cheap.

Every fund has a 0.15% advisory fee, which is already higher than most index funds, but it’s not unreasonable. The real kicker though is the management fee, which is an additional fee on top of the advisory fee. And this is not a small fee.

For real estate funds with Fundrise, the yearly management fee is 0.85%, which means the total fee is 1% of your invested assets, every year, for as long as you invest.

Think of this as compound interest, but instead of working for you, it’s working against you. 

The venture capital fund (the Innovation Fund) is even more expensive, with a 1.85% management fee. Add in the advisory fee and you are looking at a 2% yearly fee, which, in my opinion, is almost a deal breaker.

A headwind that strong is difficult to overcome. I know the idea is that it takes significant research and skill to find these possible unicorn tech companies, but this fund tends to invest in late-stage, more mature companies (which have higher valuations to match).

To be fair, none of the companies in the Innovation Fund have gone public yet, so we haven’t had the chance how big those private-to-public valuation jumps will be.

Fee Summary

I do want to note that the fee structure for the Innovation Fund is in line with what other venture capital funds charge, and in many cases, is actually better.

Many VC funds operate on the “2 and 20” model, which means a 2% yearly fee + 20% of the profits.

But just because it’s better, in my opinion, doesn’t necessarily make it worth it. It’s somewhat of an open secret in the financial industry that these fees are ridiculous (I used to work at a firm that charged 1.5 – 2% per year), but the lay investor often knows none the better.

The chart above from Fundrise is a cool feature that I haven’t seen used very often, but I recommend seeing it at this link since it updates daily. The main point that Fundrise wants you to take away from it is that the longer you invest with them, the higher the likelihood that you will achieve a positive return (and the higher those returns will be).

Even with the fees, many investors were able to see positive returns, but it’s important to point out that Fundrise has only been in existence since 2012 and has operated in one of the biggest bull runs in history. That’s not a shot against Fundrise, I just want to point out that some of this performance is likely linked to the fact that the entire market has been pumping.

Since Fundrise is primarily focused on real estate, I don’t think it’s exactly fair to compare it to the S&P 500 index (which is composed of 500 U.S. companies in all industries). When I look at the chart above, here is what stands out to me:

• Avg. income return is higher for Fundrise than both the REIT index and public stocks. Good
• Fundrise appears to be somewhat less volatile. Good
• Fundrise has missed out on some major upswings in the market (2023 and 2019 mainly). Really not good
• Downside protection was great in 2018 and 2022. Good

Overall, a mixed bag of results. The question is, is a mixed bag worth a 1-2% yearly fee, especially when the alternative is to match the market performance (whether it’s a REIT index or the S&P 500 index) with the appropriate index fund at a fraction of the cost?

That’s for you to decide. Personally, I don’t see the value, but I recognize that every investor is different. 

Related: 20 Best Passive Income Ideas to Make Extra Money

My Experience Investing with Fundrise

Even though I’m not sold on Fundrise quite yet, I was intrigued by the idea of being able to invest in a venture capital fund. Typically, VC funds are only available to accredited investors. 

I also wanted to go through the onboarding process for the purposes of this review. 

From start to finish, opening an account took me less than five minutes. 10/10 easy.

After answering a few questions about what my investment goals were (like how long my investment horizon is, what level of risk I am comfortable with, etc.), it recommended the Innovation Fund for me:

I imagine their recommendation algorithm is fairly simple since they only have three open funds at the time of this writing. In all likelihood, here is what I think they recommend:

• Income-focused investors (meaning people who primarily want dividends) will be funneled into the Income Real Estate Fund, with the Flagship Real Estate Fund as an alternative. Lowest risk appetite investors will likely have similar recommendations.
• Growth-focused, higher-risk investors, like me, will be funneled to the Innovation Fund, with the Flagship Real Estate Fund as an alternative.
• Investors primarily focused on real estate will be put in the Flagship Real Estate Fund or the Income Real Estate Fund as an alternative. 

These are just my guesses, but I don’t think I’m far off. 

Here are some details of the Innovation Fund that was recommended to me:

At first glance, it looks like a great portfolio of companies. But since the fund is so new (it only launched in 2022), I can’t imagine that it got in super early on any of these companies. So my expectations are somewhat tempered. As I mentioned earlier, none of the companies in the Innovation Fund portfolio have IPO’d yet, so we will have to wait and see just how big of a valuation jump we get once that happens. 

I wasn’t looking to put a lot of money into Fundrise, at least to start, just because I wanted to test out the platform first. Strictly from a user experience perspective, I would give it a 10/10. Everything is neat, clean, and easy to navigate. 

One thing I like about the Account Dashboard in Fundrise is that it contains a feed of cool resources and articles, including content that is specific to the fund I am invested in. I was able to read the Annual Letter to investors of the Innovation Fund and found it quite interesting and accessible for most investors. You might have to look up some terms here and there, but it’s a well-written letter that is meant to be read by normal people.

Liquidity & Redemption Options

Fundrise, catering mainly to long-term investors, does not offer the same level of liquidity as more traditional investments like stocks or bonds. Here’s what you need to know about how Fundrise handles liquidity and redemptions:

Quarterly Redemptions: Fundrise provides a redemption program that allows investors to request withdrawals every quarter. This feature is designed to give some flexibility in what is otherwise a long-term investment. However, it’s important to note that these redemptions are subject to availability. The three open funds do not charge a liquidation fee, but previous Fundrise funds have charged a 1% fee if you liquidate within five years of your initial investment. It’s unclear if waiving the fee is going to be a permanent change going forward, but it’s something to be aware of. 

Limitations and Conditions: The ability to withdraw funds is not guaranteed. Fundrise reserves the right to suspend or restrict redemption offers under certain economic conditions. This means if the market is under stress, you might not be able to withdraw your funds during that period.

Planning Ahead: Given these conditions, investors should consider their cash flow needs and regard their investments in Fundrise as illiquid. It’s wise to have a financial cushion elsewhere that you can access easily if immediate needs arise.

Fundrise Advantages

• Low Minimum Investment: Fundrise makes real estate investing accessible with a relatively low minimum investment (only $10 for taxable accounts and $1,000 for retirement accounts), opening up opportunities that were traditionally available only to institutional investors or those with significant capital.
• Diversification: By investing in a variety of real estate projects, including residential, commercial, and industrial properties, Fundrise offers a diversified portfolio that can help reduce risk and enhance potential returns.
• Passive Income: Fundrise provides the potential for passive income through dividends, which are distributed from rental income and other earnings from its real estate investments.
• Transparency: The platform offers high transparency with regular updates on investment performance, property acquisitions, and comprehensive reporting, allowing investors to stay informed about where and how their money is being used.
• Tax Benefits: Investors can benefit from various tax advantages associated with real estate investments, such as depreciation and the potential for tax-deferred or tax-free returns in certain scenarios.
• Professional Management: The investments are professionally managed by Fundrise’s team, reducing the burden on individual investors to manage and make decisions on properties.
• Liquidity Option: Although primarily a long-term investment platform, Fundrise offers a quarterly redemption program, providing an option for liquidity that is not typically available in traditional real estate investments.

Fundrise Disadvantages

• Fees Hurt Returns: Depending on the fund, Fundrise charges between 1-2% of your account balance each year, regardless of whether your account balance goes up or down. Over time, these fees can significantly hurt your overall returns. 
• Limited Liquidity: Unlike stocks and bonds that can be sold on the open market relatively easily, Fundrise investments are much less liquid. The quarterly redemption program offers some level of liquidity, but it comes with limitations and potential fees, and redemptions are not guaranteed.
• Long-Term Commitment: Fundrise is best suited for investors who can commit their capital for at least five years. This long-term investment horizon may not be ideal for those who need or prefer quick access to their funds.
• Market Risk: All real estate investments carry inherent market risks, including economic downturns and fluctuations in property values. Fundrise’s investments are no exception, and the value of your investment can decrease (sometimes rapidly) depending on market conditions.
• Dependency on Management Decisions: Since the investments are managed by Fundrise’s team, investors have limited control over individual investment decisions. The success of your investment heavily relies on the management’s ability to choose and manage properties effectively.
• Tax Complications: Real estate investments can lead to complex tax situations. For instance, dividends may be taxed as ordinary income, and the tax benefits of depreciation might require more complicated tax filings.

Alternatives to Fundrise

While investing in real estate is often most easily and cost-effectively achieved through buying REITs within your existing investment accounts, other popular investing apps like RealtyMogul, CrowdStreet, and Roofstock offer specialized alternatives that might suit different investment needs.

Each of these platforms presents unique opportunities and fee structures that could be more aligned with certain investment strategies or preferences. 

Is Fundrise Worth It? Here’s My Take

While Fundrise offers an innovative approach to real estate and VC investing that democratizes access to previously inaccessible markets, the platform’s fee structure is a notable drawback. Investors should carefully consider the impact of these fees on potential returns, especially given the other challenges such as limited liquidity and the long-term nature of the investment.

Unless the platform drastically improves its fee structure, I think I will stick to my passive, low-cost index fund strategy for now.

Related: 7 Best Short-Term Investments for Growing Your Money

The post Fundrise Review 2024: Risks, Returns & How It Works appeared first on DollarSprout.

Michael Muinos is proof that, with the right offer marketed towards the right people, there is still room for new course creators. 

Here’s the inspiring story about how Michael got started selling online courses — with no marketing or business experience.  

Finding his niche 

For aspiring software engineers eyeing positions at big tech companies, acing the technical interview is often the make-or-break moment. After struggling through several interviews at top tech companies like Google, Twitter, and Salesforce, Michael realized his technical interview prep wasn’t good enough — and also that he probably wasn’t alone in that regard.

“What initially inspired me to create the Algos With Michael platform is my experience going through the interview process at different tech companies” Michael explains.

His struggle wasn’t just about solving coding problems; it was about finding an efficient way to prepare for them.

He discovered a strategy that worked wonders for him — a focus on studying patterns rather than rote memorization of solutions. “Once I started taking this approach for my own study preparation, interviews became significantly easier, and I was eventually able to land my dream job,” he recalls.

Surprisingly, he found that no other coding interview prep websites offered this method, which focuses on understanding underlying patterns in data structures and algorithms. This gap in the market is the core component of any successful online business idea. 

He envisioned Algos With Michael as a platform that breaks down coding interview topics into digestible patterns, making complex problems more approachable and solvable.

Michael set about creating his platform with a clear goal: to launch with a pilot course that would serve as a proof of concept. 

Related: How One Med Student Makes $190K a Year Selling Online Courses

Getting an idea to market quickly

Michael chose “Mastering Binary Search Problems” as the launchpad for his platform, capitalizing on his expertise in one of the most commonly asked topics in tech interviews.

Binary search, a fundamental concept in software engineering interviews, was a topic Michael felt exceptionally confident in, which allowed him to develop and refine the course content swiftly. His choice was strategic—starting with a strong subject not only ensured a high-quality inaugural course but also set a solid foundation for the credibility of his platform.

Explaining his choice, Michael said, “I knew Binary Search inside and out, and it’s a topic that can really make or break an interview. I wanted to create something that not only helped others master it but also showcased the effectiveness of my teaching approach right from the start.”

To bring this course to life, Michael focused on creating high-quality, video content that was structured yet flexible enough to engage users at various learning stages. He utilized his social media platforms to gauge interest and gather initial feedback, ensuring his content met the expectations and needs of potential students.

His first course served as a proof of concept, demonstrating the unique value of a pattern-based approach to learning coding for interviews. This initial launch not only validated his educational model but also built a loyal following that was eager for more specialized content, setting the stage for the expansion of Algos With Michael.

“Launching with ‘Mastering Binary Search Problems’ was a test to see if my followers would see value in a comprehensive, pattern-based learning course. The positive feedback was overwhelming and confirmed that we were on the right track.”

Related: How to Start a Business in 9 Simple Steps 

Standing out in a crowded space

There are dozens, if not hundreds, of other online courses that teach technical interview prep. So how did Michael make his content different?

“Other technical interview prep resources will teach you how to solve individual problems, but the issue with that approach is the sheer number of potential questions. You could end up feeling overwhelmed and underprepared.”

Instead, Michael’s approach trains students to recognize underlying patterns across various coding challenges, equipping them with a more versatile and adaptable skill set.

This methodology not only helps students tackle a wide array of problems with confidence but also prepares them for unexpected questions. Michael believes that understanding patterns is key to navigating the unpredictable nature of tech interviews, where a single question can have multiple layers of complexity.

“Algos With Michael will teach you how to solve the majority of questions for a specific coding topic using an easy-to-understand pattern that you can adapt,” Michael says. He acknowledges that while there will always be outliers, the goal is to prepare for the majority, not the minority of problems.

Building the right audience 

To effectively market Algos With Michael and attract a dedicated following, Michael went all-in on his YouTube channel. Now he has roughly 20,000 subscribers eager to enhance their tech interview skills.

The most successful of his marketing strategies involves producing free, high-quality content related to coding interviews, which not only positions him as an authority in the field but also funnels potential students to his course platform.

Michael explains the synergy between his YouTube content and course offerings: “Every video I post is an opportunity to promote Algos With Michael. I always make sure to include links to the platform in the video description, which significantly drives traffic to our courses.” This approach harnesses the power of content marketing, offering value upfront while subtly guiding viewers towards a paid resource where they can delve deeper into complex topics.

The effectiveness of this marketing strategy is evident in the numbers. “Nearly all of my traffic to the Algos With Michael platform is a result of my YouTube channel,” Michael shares. His channel not only helps in building an audience but also in converting viewers into paying customers, demonstrating the power of educational content as a marketing tool.

Moreover, Michael emphasizes the importance of consistent and relevant content creation: “It’s about staying relevant and continuously engaging with your audience. Each piece of content is crafted to address their current challenges and needs, which keeps them coming back for more.”

Michael’s process for creating a course

Creating engaging and effective courses for Algos With Michael is a meticulous process that involves identifying needs, scripting detailed content, and producing high-quality videos. Michael shared with us the five-step framework that he uses for creating new course content.

Step 1: Identify a Pattern

Or, in other words, coming up with a specific topic.

For Michael, the first step in developing a new course is recognizing a common pattern that can solve a broad range of problems within a specific coding topic. He begins this process by analyzing problems from popular coding platforms like Leetcode to identify those most frequently asked in tech interviews.

“I solve 10-20 of the most popular coding questions for a topic, looking for similarities in their solutions. If I find a consistent pattern, that becomes the core of a new course,” Michael explains.

Step 2: Engage the Community

Before fully committing to a new course, Michael seeks to validate the need among potential learners.

“I try to answer the question ‘Do people even need help learning this topic?'” His go-to sources for that initial validation are his YouTube channel and Discord.

Step 3: Scripting and Planning

Once a course topic is validated, Michael meticulously scripts every lesson. “I write down every sentence I will say in the videos in Google Docs, noting where animations should emphasize key points,” he details.

This script is the blueprint for the course, ensuring clarity and coherence in the final product. “Each course typically includes 40 videos, so the scripts are comprehensive, usually over 50 pages long,” Michael adds.

He says a full script for a course takes around 2-3 weeks.

Step 4: Filming and Editing

With the script in hand, filming becomes a streamlined process. “Since everything is scripted, filming is straightforward—I just deliver the lines, which minimizes errors and editing time,” says Michael.

However, the most time-consuming part of the process is the video editing. “I focus on custom animations for each video to enhance understanding and engagement, which can take anywhere from 6 to 8 weeks for a full course,” he shares.

Step 5: Launch and Promotion

The final step involves integrating the new course into the Algos With Michael website and promoting it across various channels. “I create thumbnails, write video descriptions, and ensure everything works seamlessly on the site,” Michael mentions.

He continues, “Keeping my email list informed and promoting the course through YouTube videos are crucial for generating initial sales and ongoing interest.”

His advice for aspiring entrepreneurs

Michael’s journey from software engineer to educational entrepreneur taught him a lot about starting and sustaining successful side hustles. For others looking to venture into the world of educational technology or any entrepreneurial pursuit, he offers his advice.

Embrace a structured schedule

One of Michael’s key recommendations is the importance of maintaining a disciplined schedule. “Having a schedule and sticking to it is crucial,” Michael stresses.

He explains that consistent effort is essential to build momentum and keep various aspects of the business moving forward. “A schedule gives you structure throughout your week so that you are never left wondering what you should be working on next,” he adds.

Build a strong online presence

Michael emphasizes the role of a strong online presence in reaching and engaging potential customers. “You have to make potential customers believe in your product as much as you do. For that, a well-designed website and convincing sales copy are essential,” he advises. Michael’s success with Algos With Michael largely stems from his effective use of YouTube and other social media platforms to generate interest and drive traffic.

Offer value first

A significant part of Michael’s marketing strategy involves providing free, valuable content to his target audience. “By offering free educational content on YouTube, I not only help potential students but also establish credibility and trust,” he explains. This approach encourages potential customers to invest in more in-depth courses, knowing the quality and value they can expect.

Listen to your audience

Feedback is another cornerstone of Michael’s strategy. He actively seeks out and listens to student feedback to continuously improve his offerings. “Reaching out to existing customers for direct feedback via email or offering free access in exchange for detailed reviews has been invaluable,” he says. This feedback loop allows him to refine his courses and better meet the needs of his students.

Keep learning and adapting

Finally, Michael advises aspiring entrepreneurs to remain students themselves—constantly learning and adapting to changes in their industry. “The landscape of online education is constantly evolving, and staying updated with the latest teaching strategies and technological tools is key,” he notes.

Related: How One Recent Grad Started a $2,000 a Month Shopify Side Gig

The post How One Googler is Helping Students Land Lucrative Tech Gigs appeared first on DollarSprout.

Except perhaps when that tax refund deposit hits. Suddenly, all that number crunching and receipt gathering feels worth it.

This year, Americans are seeing an average federal tax refund of $3,028._[1] Now the real fun begins: deciding what to do with this unexpected windfall.

Before you sprint to the nearest Target or book that impulse spa weekend, let’s pause and think strategically. Your tax refund isn’t just a rebate—it’s an opportunity. With a little planning, this lump sum can boost your financial health, propel personal projects, or even multiply in value over time.

Let’s explore some clever and calculated ways to put your tax refund to work.

Invest in Your Business — or Start One

Who says tax refunds can’t be your business’s mini-stimulus package? Pouring that extra cash back into your own venture could be the smartest move you make this year. Think upgrading technology, enhancing services, or maybe something a bit more…green?

Take a leaf out of Ray Pierce’s book—literally. As the CEO of Zippy Cash for Cars, Ray used his tax refund to add an eco-friendly twist to his fleet of tow trucks.

“I’m allocating a portion of my tax refund to enhance our fleet of tow trucks with eco-friendly upgrades. This not only reduces our carbon footprint but also sets an example for environmental responsibility in the industry,” says Ray.

This green investment not only boosts his business’s efficiency but also polishes its reputation, proving that sustainability and profitability can go hand in hand.

Investing in your business with your tax refund is about thinking big and acting boldly—whether that means going green like Ray or simply sharpening the tools you already have.

Related: 48 Small Scale Business Ideas for Beginner Entrepreneurs

Invest in Yourself

Personal development and career advancement are excellent channels for using that extra cash, whether it’s for acquiring new skills, gaining certifications, or even transitioning to a new career path.

Consider the proactive approach of Lacey Muinos, a freelance writer who decided to boost her credentials. “I’m obtaining my certifications in personal training and nutrition to boost my credibility and authority as a health writer. And to do so, I had to shell out some cash.”

Her investment in education not only enhances her expertise but also opens new doors for her career, allowing her to stand out in a competitive field.

“Getting a tax refund this year was an unexpected surprise, and since I’d been putting this off for a couple of years, the timing seemed perfect,” Lacey added. 

Continuous learning is not just a boon for those in creative fields. Sherman Standberry, a CPA at My CPA Coach who plans to take an online course, emphasizes the importance of staying updated in the finance industry. “As a CPA, I know the value of continuous learning and staying updated in my field. Since the finance industry is constantly evolving, I need to make sure that I am equipped with the latest knowledge and skills to succeed in my career.

My clients trust me to handle their finances and I want to make sure that I am providing them with the best service possible,” explains Sherman.

Make Strategic Financial Moves

David Ciccarelli, CEO of Lake.com, is a prime example of using a tax refund strategically. He and his wife are preparing for the day when they decide to refinance their mortgage and ditch the high interest rate environment that they bought their home in.

“We’re setting it aside for when it’s time to refinance our mortgage. Rates are significantly higher than they were a few years ago, and many homeowners like us face nearly double interest rates. We’re stashing away our tax refund toward a lump sum payment at renewal time to keep our monthly payments low and minimize the interest we have to pay,” David explains.

Using your tax refund to pay down mortgage principal, or save for future home-related expenses, can be a smart decision. It reduces future interest costs and can potentially shorten the life of your loan, leading to substantial long-term savings. 

While strategic investments in your mortgage are wise, don’t overlook the basics. An emergency fund is your financial safety net, ready to catch you in times of unexpected expenses or economic downturns.

If your safety net has been looking a bit threadbare, consider bolstering it with your tax refund. Financial experts often recommend having three to six months’ worth of living expenses tucked away, but any amount you can add will help with the inevitable bumps in your financial journey.

On the flip side, if you’re carrying a balance on your credit cards, your tax refund offers a prime opportunity to pay down high-interest debt. It’s not the most glamorous use of your refund, but the satisfaction of seeing those balances drop can be a major stress reliever.

Paying off credit card debt not only improves your credit score but also frees up more of your monthly budget for other priorities.

Become a Real Estate Investor

Keith Sant, Founder & CEO of Sell My Mobile Home Park, explains the strategic value of using a tax refund for real estate investment.

“Using a tax refund to invest in real estate can be a smart move, as it allows individuals to put money towards a tangible asset that can appreciate over time. It also provides an opportunity for diversification in one’s investment portfolio,” Keith notes.

This approach not only capitalizes on the potential for property appreciation but also can generate passive income through rental earnings.

Investing in real estate with your tax refund might involve making a down payment on a rental property, buying into a real estate investment trust (REIT) through a platform like Fundrise, or even funding renovations that increase property value.

Each option offers different levels of risk and return, so it’s crucial to do your homework and possibly consult with a financial advisor to align these decisions with your overall financial goals.

Related: How to Start Real Estate Investing (Beginner’s Guide)

Give Back to Your Community

Your tax refund can do more than just boost your savings—it can amplify the potential of your entire community. When you redirect that financial windfall into local initiatives or educational programs, you’re not just spending money, you’re investing in futures.

Nischay Rawal, an accountant at NR Tax and Consulting decided to do just that. He used part of his refund to nurture the next generation of number crunchers.

“Part of my refund was allocated towards starting a small scholarship fund for aspiring accountants in our community. This initiative not only invests in the future of the profession but also reinforces our commitment to giving back to the community that supports us,” Nischay explains. 

Samantha Lee, a small business owner, also plans to chip in to the common good with her refund. “With this year’s tax refund, I decided to sponsor a youth soccer league in our neighborhood. It’s a fantastic way for kids to stay active and learn teamwork, and it helps ease the financial burden on their families.”

How Will You Use Your Refund?

Whether you’re paying down debt, saving for future expenses, investing in real estate, or something else entirely, each decision should align with your personal and financial goals.

Remember, the best use of your tax refund is one that brings you closer to financial freedom and stability. So think creatively, plan strategically, and let your tax refund work for you. What will your smart move be this year?

The post 6 Experts Share Advice for Putting Your Tax Refund to Good Use appeared first on DollarSprout.

Before you know it, you blurt out, “I onboarded 2 new clients for my fitness coaching business!” and suddenly, all eyes are on you—especially your boss’s. Oops.

In today’s gig-fueled economy, side hustles are more popular than ever. They’re a fantastic way to pad your wallet, pursue passions, or just get out from under the 9-to-5 grind for a few hours each week.

But this brings us to a modern workplace quandary: should you tell your boss about your side gig?

It’s a delicate dance between transparency and maintaining your professional image, and getting it right can feel as tricky as explaining TikTok to your grandparents.

Why You Might Want to Tell Your Boss

Diving into whether to share your side gig with your boss can feel like walking a tightrope. Let’s unpack the reasons why opening up might just be a step worth taking.

Transparency First

Yulia Saf was a full-time project manager when she first started her side hustle, a tourism blog called Miss Tourist. “Transparency was pivotal in maintaining professional relationships at my day job while I was developing my own venture,” Saf shares. “In many cases, an employer could immensely benefit from the diversified skill set an employee acquires balancing multiple roles.”

Remember, trust is a two-way street. Being upfront about your side hustle can build trust between you and your employer. It shows that you are honest and considerate of your workplace obligations – plus it can also prevent any misunderstandings about where your loyalties lie, especially if your side hustle activities ever impact your work schedule or performance. 

Seeking Support

You might be surprised to find that your boss could be your biggest cheerleader. “I think if you have a good culture, bosses can help influence and inspire your side hustles to grow and flourish” says Brittany Betts, a marketing manager at FloridaPanhandle.com who does freelance photography on the side. 

Disclosing your side hustle opens the door to potential support, whether it’s flexible hours to accommodate your other commitments or advice based on their own experiences. This conversation could lead to valuable mentorship and growth opportunities. “It shouldn’t have to be a secret, but also it can be completely up to you whether or not you choose to divulge that information” Betts adds.

Related: How to Stand Out at Work (According to 10 CEOs)

Legal and Ethical Considerations

Depending on your contract or the industry you’re in, you may be legally obligated to inform your employer about any external business activities.

This is often true in fields that handle sensitive information or have strict non-compete clauses.

Being open from the start can help you navigate these waters without jeopardizing your job or reputation. 

Reasons to Keep it Under Wraps

While openness has its perks, sometimes the spotlight can attract more drama than applause. Let’s explore why you might want to keep your side hustle a secret.

Conflict of Interest? Better Safe Than Sorry

If your after-hours project aligns too closely with the interests of your employer, it could raise eyebrows or even breach company policy.

Obviously, this introduces an ethical gray area, but if you know that disclosing your side hustle will cause more harm than good — and you cannot afford to lose your day job just yet — staying discreet can help you avoid any unintended professional clashes or questions about your loyalty.

If you do choose this route, it’s best to have a game plan in place for what to do if word gets out…before it happens. 

Just make sure that you are not breaking any laws by not disclosing. 

Related: What to Do When You Hate Your Job and Want to Quit

Focus on the Day Job

“My boss doesn’t know, and I don’t want him to know,” one anonymous side hustler told us. 

Employers value commitment, and showing that your primary focus remains on your main role is key to maintaining trust and job security.

And once the seed gets planted in your boss’s head that you might have obligations elsewhere, it’s hard to un-plant that seed – even if you are clearly maintaining your day job as your number one priority. This is one of the top reasons why it might be best to keep your side hustle to yourself.

Keeping the Peace at Work

Discussing your side hustle might unintentionally lead to workplace tension or envy.

By keeping these activities to yourself, you ensure that office dynamics remain undisturbed and that colleagues continue to view you through the lens of your professional accomplishments. This approach helps maintain a neutral and supportive work environment.

Related: How to Quit Your Job: 10 Tips for Leaving on Good Terms

How to Decide

When it comes to telling your boss about your side hustle, the decision isn’t always black and white. It requires a careful balance of personal judgment and professional awareness. Let’s walk through some key considerations that can help you make the right choice.

Check Your Contract

Before making any decisions, it’s essential to review your employment contract and any related policies. Look for specific clauses that might restrict or require disclosure of secondary employment. Understanding these details will help you gauge whether it’s even an option to keep your side hustle under wraps. Again, don’t violate your contract. That’s easy grounds for dismissal or even legal action.

Evaluate Your Boss’s Temperament

Knowing your boss’s attitudes towards entrepreneurship and side projects can be a critical factor in your decision. Consider their past reactions to similar situations and their overall management style. Are they supportive of personal development and entrepreneurial efforts, or do they prefer a strict focus on work-related activities? 

Consider Your Company’s Culture

The general culture of your workplace can also influence your decision. Is there a spirit of innovation and self-improvement, or does the company maintain a more traditional view on employment? Understanding this can help you predict how news of your side hustle might be received. 

How to Approach the Conversation

Deciding to share your side hustle with your boss is one thing, but discussing it effectively is another. Here’s how to approach this tricky conversation with tact and confidence.

Plan Your Pitch

If you choose to disclose your side hustle, think about how you can present it in a positive light. Emphasize how the skills you’re developing can benefit your primary job, perhaps by enhancing your creativity, time management, or technical skills. Prepare to explain clearly how you’ll ensure that your side hustle won’t interfere with your job responsibilities.

Timing is Everything

Choosing the right moment to discuss your side hustle can significantly affect the outcome of the conversation. Opt for a time when your boss is less stressed and more open to discussion—perhaps after a successful project completion or during a routine one-on-one meeting. 

Prepare for Reactions

Be ready for any type of response from your boss, whether it’s support, indifference, or concern. Plan your responses to possible questions or objections. Demonstrating that you have thought through potential impacts on your work shows responsibility and foresight, which will likely be appreciated by your employer.

Sharing Your Side Hustle — Yay or Nay?

Deciding whether to tell your boss about your side hustle is a personal decision that requires weighing various professional and personal factors.

Whether you choose transparency or discretion, the most important aspect is to ensure that your side hustle enhances rather than hinders your career growth.

Now, we’d love to hear from you! Have you ever shared your side hustle with your boss, or do you prefer to keep your entrepreneurial adventures on the down-low? Drop your stories or tips in the comments below. Who knows? Your experience might just be the guiding light someone else needs to make their decision.

Related: 

• How to Change Careers in 7 Easy Steps
• How to Write a Resignation Letter (with 3 Examples)
• 15 Best Employee Benefits to Look For When Job Hunting

The post Should I Tell My Boss About My Side Hustle? Here’s How to Decide appeared first on DollarSprout.

With insights from individuals across the United States, our latest study peels back the curtain on the inner workings of the side hustle economy.

It reveals not just the economic motivations driving people towards these additional income streams, but also the personal aspirations and challenges they encounter along the way.

From the time committed each week to the variety of side gigs pursued, and the tangible impact on participants’ wallets, the 2024 Side Hustle Report by DollarSprout offers a comprehensive look into the hustle culture that’s reshaping the American dream. (See Methodology)

Overview of the top side hustle statistics in 2024

Rising living costs, inflation, and economic uncertainty have prompted individuals to seek additional income streams at an astonishing rate.

• 69.6% of Americans now report having a side hustle.
  • 115.9 million Americans 16 and older report having a side hustle.
• 68% of side hustlers earn less than $500 per month.
  • 12% report earning $1,000 or more per month.
• 72.4% of men and 66.8% of women report pursuing a side gig.
  • Millennials make up 55.4% of all side hustlers; Baby Boomers 18.40%.
  • Black or African Americans are more likely to side hustle (15.2% participate vs. 13.6% of U.S. population).
  • Hispanic Americans are significantly less likely to side hustle (3.2% participate vs. 19.1% of U.S. population).
• Reselling or flipping items (39.40%) and online freelance work (29.80%) were the most side hustles, outside of market research (paid surveys).
• 77.2% of side hustlers are somewhat or highly dependent on earned income.

Survey data

Americans from all walks of life were asked 11 questions about their participation in the side hustle work. Here’s what their responses revealed.

How much are side hustlers earning?

Monthly earnings can vary widely but are generally correlated with how many hours each week someone is putting in.

• $0 – $100: 32%
• $101 – $500: 36%
• $501 – $1,000: 20%
• $1,001 – $2,000: 8%
• More than $2,000: 4%

18% of side hustlers are spending more than 15 hours per week on their side hustle(s).

More than 1 in 4 side hustlers depend on that income for everyday expenses

27% of side hustlers are “highly dependent” on the extra income, while 23% are “not dependent at all”.

Money is still the motivating factor for most side hustlers

“Earning extra income” remains the primary motivation for 80% of side hustlers. “Passion and personal interest” were the primary motivation for only 8% of side hustlers.

The impact of AI on side hustlers

AI tools like ChatGPT have been taking the world by storm over the past year, and side hustlers have definitely started to take notice. Here’s what they had to say about the rise of AI and automation tools:

• 40% say that AI has created more opportunity
• 30% reported increased efficiency
• 24% say it has made their side hustle more competitive
• 42% report that the impact of AI has not yet been significant

How has inflation affected side hustlers?

It should come as no surprise that gig workers are also feeling the pinch from inflation. However, there is also a small portion of workers (8%) that say inflation has actually improved profitability for their side hustle.

• 26% of side hustlers report significantly increased costs and reduced profitability
• 30% report somewhat increased costs
• 36% claim that inflation has had no impact on their side hustle yet
• 8% say inflation has improved profitability for them

On the impact of proposed gig work regulations:

The survey’s findings on proposed regulations for gig work, such as for ride-sharing and delivery services, reveal a wide range of opinions. A notable 39% of respondents believe these regulations will positively impact their side hustles by providing more rights and protections. However, 12% anticipate a negative effect, fearing increased costs and reduced flexibility. The remainder either see no impact or are unsure, reflecting the uncertainty in how regulatory changes could shape the gig economy’s future.

• 39% anticipate a positive impact
• 12% expect a negative impact
• 34% say there will be no impact
• 15% of respondents are unsure

How has the trend of remote work impacted side hustling?

A significant portion of those surveyed (43%) found that the shift towards remote work not only opened up more hours in the day for their side hustles but also enhanced their ability to juggle multiple income streams more effectively. This suggests a positive correlation between the flexibility afforded by remote work and the growth of side hustle activities.

On the other hand, a smaller group (7%) discovered that the benefits and freedoms of remote work diminished their need or desire to pursue additional work.

Outside of surveys, online freelance work and selling goods online are the most popular side hustles

It’s important to note that these results are somewhat skewed since this question was asked in a survey.

Online freelance work and selling goods online have emerged as the most popular side hustles among Americans. This trend clearly shows a growing preference for digital platforms that offer flexible earning opportunities outside of traditional employment.

• Online freelance work (e.g., writing, graphic design): 29.80%
• Ride-sharing/delivery services: 23.20%
• Selling goods online (e.g., Etsy, eBay): 39.40%
• Real estate (e.g., Airbnb): 9.00%
• Investing/Trading: 23.20%
• Surveys: 72.6%
• Other: 10.20%

Note: Respondents were allowed to pick more than one selection in the above question.

Side hustles and the post-pandemic economic recovery

In the context of the post-pandemic economic recovery, our survey found some illuminating statistics: 40% of respondents were encouraged to start or continue their side hustle as a financial safety net, while 31.4% saw it as an opportunity to capitalize on new possibilities emerging from the recovery phase. This indicates a significant portion of the workforce turning to side hustles not only to navigate the uncertainties left in the wake of the pandemic but also to take advantage of the evolving economic landscape. Moreover, a smaller segment, 5.2%, reconsidered or stopped their side hustle activities, possibly reflecting adjustments to new job opportunities or shifts in personal priorities as the economy began to rebound.

An optimistic (or depressing) look into the future, depending on how you look at it

This enthusiasm points to the dual nature of side hustles: they’re not just a way to earn extra money, but also an avenue for pursuing personal passions and interests. However, this growing trend also prompts a deeper examination of our work lives. On the positive side, it showcases a proactive approach toward financial resilience and personal growth. On the flip side, it raises important questions about the sufficiency of primary jobs in fulfilling both our financial needs and career aspirations.

Are we living to work, or working to live?

More background on side hustles

A side hustle is a job or project you take on in addition to your main job, usually to earn extra money. It’s like having a second job but with more flexibility to choose what you do and when you work. People pursue side hustles for various reasons, including to follow a passion, develop new skills, or simply boost their income. Here are a few examples of popular side hustles:

• Online freelance work, such as writing, graphic design, or programming, where you take on projects as they come.
• Ride-sharing or delivery services, where you use your own vehicle to transport people or deliver food and goods.
• Selling goods online through platforms like Etsy or eBay, turning a hobby or crafting skill into a profit.
• Tutoring or teaching online courses in subjects you’re knowledgeable about, from academic topics to personal hobbies.

These are just a handful of the countless side hustle opportunities out there, offering both the chance to earn extra money and the flexibility to fit around your main job or personal commitments.

According to our polling, over 70% of Americans have pursued a side hustle in some capacity — even if only for a few extra dollars each month.

3 smart uses for your side hustle income

If you’re fortunate enough to be sitting on some side hustle cash and wondering the best way to use it, here’s a little guidance to kickstart your decision-making:

Boost Your Emergency Fund: Everyone should have a safety net of three to six months’ worth of living expenses tucked away.

Consider stashing your side hustle earnings in a high-yield savings account. Not only is your money accessible, but it’ll also grow faster than it would in a standard account.

Slash Your Debt: Imagine the relief of being debt-free sooner. You could start small with the debt snowball method or go big by attacking high-interest debts first with the debt avalanche method.

Using your side hustle income to pay down debt can make your financial load a lot lighter.

Treat Yourself: All work and no play? Use some of that hard-earned side hustle money for a bit of fun. Whether it’s a weekend getaway or a fancy dinner, rewarding yourself is a healthy reminder that life isn’t all about the grind.

Methodology

Conducted across the United States via Pollfish, the survey collected data from 500 participants who reported having a side hustle (out of a total sample of 718), ensuring a diverse representation of demographics including age, gender, and primary employment status.

• Age distribution: 18 – 24 (5.6%), 25 – 34 (20.0%), 35 – 44 (35.4%), 45 – 54 (20.6%), >54 (18.4%).
• Gender distribution: Female (47.2%), Male (52.8%)

Participants were presented with 11 qualitative and quantitative questions, the responses of which were combined with 22 Pollfish-provided demographic endpoints to compile the aforementioned statistical inferences.

The post DollarSprout Side Hustle Report 2024: Side Hustle Statistics and Industry Overview appeared first on DollarSprout.

His Shopify side hustle, IVORY & EBONY, offers water-repellent clothing and moissanite sterling silver jewelry, an unlikely combination that blends fashion, technology, and sustainability.

With an initial investment that grew from a modest $2,800 to a substantial $56,000 within a year, Sheershak’s venture has begun to bear fruit, boasting a remarkable revenue jump to $2,174.88 in February 2024 from just $358.88 in the entire year of 2023.

How the Idea Came About

The start of IVORY & EBONY came from a simple but annoying problem: Sheershak spilled ramen soup on his t-shirt and couldn’t find a good way to clean it off.

This led him to look online for a solution, where he noticed there weren’t many options for clothes that resist water and stains in a way that’s also good for the planet.

“That moment of frustration sparked an idea that I couldn’t ignore,” Agarwal says.

He saw a chance to create something new that would help people avoid similar annoyances, focusing on keeping things environmentally friendly. This is how IVORY & EBONY began, mixing technology with fashion to offer unique, sustainable products.

Related: 19 Profitable Digital Product Ideas to Sell Online

Startup Costs

For Sheershak, starting this side hustle involved a significant financial investment (but it doesn’t always have to be that way). According to him, his initial startup costs were initially around $2,800 but then slowly increased to over $56,000 to cover everything from product development, inventory, and marketing.

With the hefty financial commitment, Sheershak still needed to keep his engineering job to ensure a steady income while getting his side hustle off of the ground.

“It was a balancing act, investing in IVORY & EBONY while keeping my day job. But seeing our sales start to pick up in early 2024 was incredibly rewarding,” Sheershak shares.

Finding the Right Path in Marketing

When Sheershak first started with ads on Meta (Facebook and Instagram), things didn’t go as planned. The ads weren’t bringing in sales like he hoped.

But realizing the importance of knowing when to pivot and try something new, he switched to using Google Ads and also added moissanite jewelry to his store, which turned out to be a game-changer.

“Adding moissanite jewelry was a big step for us. It really helped us get more visitors and sales,” he says. 

Looking Ahead

Agarwal offered straightforward advice for anyone thinking about starting their own business: find a real problem to solve, keep your prices fair, and be ready to change your plan if you need to.

He’s excited about the future of IVORY & EBONY. He wants to make the jump from selling just online to opening a real store people can visit. And he dreams of making his brand well-known for being kind to the planet.

What We Can Learn from Sheershak’s Story

Sheershak Agarwal’s path from software engineering to pioneering a sustainable fashion brand offers a lot of takeaways for those pondering their own entrepreneurial journey. Here are three lessons you can draw from his story.

Your Side Hustle Can Be Unrelated to Your Career

Agarwal’s leap from the tech world into fashion and jewelry is a compelling example of how your side hustle doesn’t have to align with your primary career. This divergence can be a refreshing outlet for creativity and passion, allowing you to explore different facets of your interests and skills.

“Diving into something completely different from my day job was liberating and allowed me to apply my skills in new ways,” Sheerhak emphasized.

Don’t Be Afraid to Pivot Until You Find Something That Works

In the beginning, it’s essential to stay flexible, continually assess your strategy’s effectiveness, and be ready to change course if necessary. This might mean exploring new marketing channels, tweaking your product line, or even overhauling your business model.

For example, many successful companies, like Slack, began as something entirely different before pivoting to the products we know today. Similarly, YouTube started as a video dating site before becoming the world’s leading video-sharing platform.

“The willingness to pivot was crucial in discovering our successful path,” Sheershak states, highlighting the importance of being open to change and experimentation to find what truly resonates with your market.

Related: 21 Low-Cost or Free Small Business Marketing Ideas

Work on a Cause You Believe In

Centering your business around a cause you’re passionate about, as Sheershak did with sustainability, can be deeply rewarding. This approach not only fulfills a personal mission but also appeals to like-minded customers, creating a deeper connection with your audience.

Whether it’s championing eco-friendly practices, advocating for education, promoting mental health awareness, or supporting local communities, aligning your business with a cause can drive motivation beyond just financial gain.

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• How to Start a Dropshipping Business in 8 Simple Steps
• How I Built a Luxury Candle Brand on Shopify as a Total Beginner

The post How One Recent Grad Started a $2,000 a Month Shopify Side Gig appeared first on DollarSprout.

Luckily, the IRS recently released new guidance aimed to make tax time a little easier for gig workers. Here’s the quick and dirty.

You’re Your Own Boss, According to the IRS

If you’re earning by gigging, the IRS sees you as an independent contractor, or in simpler terms, a mini-business owner. This status brings specific tax responsibilities, including dealing with forms in the 1099 series. Whether or not you’ve received these forms, you need to report your income to Uncle Sam.

What Counts as Income?

Income isn’t just the cash you make; it includes anything of value you receive. Got paid through a barter exchange? That counts. Received payment in goods or services? Yep, that’s income too. The rule of thumb is: if you got paid, it’s income, and you need to report it.

Keeping Tabs on Your Earnings and Expenses

When you work gigs, it’s crucial to keep records of what you earn and what you spend for your gig. You can deduct certain business expenses, which lowers the tax you owe. Even if no one sends you a form reporting your income, you’re still expected to report it on your tax return.

Forms 1099: NEC, K, and MISC

• 1099-NEC: This is for independent contractors who made $600 or more from a client. It’s a form you might receive, showing what you earned.
• 1099-K: This one’s for payments over $600 received through payment cards or platforms like PayPal. Starting in tax year 2024, if you hit this amount, expect a 1099-K.
• 1099-MISC: This form reports various types of income, like rent or royalties. It’s less common for gig workers but still important.

The Solo Tax Withholding Challenge

Unlike regular employees, gig workers don’t have taxes automatically taken out of their paychecks. It’s on you to set aside money for taxes. The IRS expects most gig workers to make quarterly estimated tax payments. Miss these, and you could face penalties.

The New Kid: NIL Income

For college athletes, monetizing their name, image, and likeness (NIL) is a new way to earn. This income is taxable, just like other gig earnings, so keeping detailed records is essential.

Related: 19 “Odd” Jobs That Pay Surprisingly Well

Key IRS Forms and Guides for Gig Workers

• Form 1040-ES: Helps you figure out and pay your estimated quarterly taxes.
• Schedule C: Where you report your gig income and expenses.
• Schedule SE: Used to calculate the tax on your net gig earnings.
• Publication 505: Offers detailed info on tax withholding and estimated taxes.

Wrapping It Up

The gig economy might feel like a tax labyrinth, but it doesn’t have to be overwhelming. By understanding the key forms, diligently tracking your income and expenses, and planning for taxes year-round, you can navigate through tax season with confidence. For more detailed guidance, the IRS website is your go-to resource.

Related: 6 Tips to Avoid an Unexpected Tax Bill from Your Side Hustle

The post IRS Releases New Tax-Filing Guidance for Gig Workers appeared first on DollarSprout.

In what’s being billed as the most expansive Big Game giveaway yet, the local commerce giant is offering fans a chance to win items from every commercial aired during the game.

The list of all commercials hasn’t been revealed yet, but DoorDash has confirmed offerings from Doritos Dinamita®, Dove, Kia, MTN DEW® Baja Blast®, and M&M’S®, ensuring the winner receives a treasure trove of “stuff”.

But a haul of sugary grub — while a tasty reward in and of itself — isn’t the expected main attraction. 

All those car commercials? Yes, those are included too. 

The full list of advertisers hasn’t yet been revealed, but here’s a sampling of what we know is included so far: 

Here’s what the CMO of DoorDash, Kofi Amoo-Gottfried, had to say about the promotion:

“DoorDash was founded 10 years ago with a simple mission: grow and empower local economies. What started out as connecting consumers with their favorite local restaurants has transformed into a multi-category marketplace where you can get pretty much anything from your local neighborhood delivered – from food, to flowers, alcohol, retail items, and more – straight to your door. We believe there’s no better way to showcase what’s possible with DoorDash than literally delivering all the Big Game ads to one lucky winner.”

Related: DoorDash Driver Review 2024: How It Works, Tips & Is It Worth It?

How to Enter the DoorDash Sweepstakes

DoorDash has made the entry process as exciting as the prize itself. Viewers must bookmark www.doordash-all-the-ads.com and stay glued to their screens. When the DoorDash commercial airs, a special code will be revealed. Crack the code, enter it on their site, and you might just be the grand prize winner. It’s a high-stakes game of attention and speed – perfect for an adrenaline-filled football Sunday.

*Terms & Conditions.

*NO PURCHASE NECESSARY. Begins 2/11/24 at 3:30 pm PT & ends 2/11/24 at 11:59 pm PT. Open to legal US residents physically residing in the 50 United States or DC who are 21+ years of age at the time of entry. Void where prohibited. Msg & data rates may apply. Sponsor: DoorDash, Inc. For full details, see Official Rules at www.doordash-all-the-ads.com. Prize depictions are for illustrative purposes only. Prizes will be awarded after winner verification. Actual prize subject to Sponsor’s discretion & depends on ads, featured products (excluding restricted product categories) & availability.

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The post DoorDash Takes the Big Game Experience to New Heights with a Unique Giveaway appeared first on DollarSprout.