How to Budget Your Side Hustle Earnings

If you’re just getting started with your side hustle, you’re going to enjoy having that extra income every month. However, you are going to have to learn how to handle this extra cash. If you’re not sure what you’re doing yet- don’t panic. In this article, we’re going to look at four tips to help you budget your side hustle earnings. This will help you reach those financial goals you have been striving for much quicker than you ever thought possible. 

 

Keep Track of Your Earnings

 

First and foremost, you must keep track of the money that you are earning. If you don’t, you won’t be able to appreciate the extra income your side hustle is bringing in. In addition to being able to know what your side hustle is doing for your finances, it will help you keep track of the taxes that you owe on the money that you are earning. As an employee in a regular 9 to 5, your employer takes care of that- but as a side hustler, you are your employer and therefore, obligated to pay taxes. 

 

Watch Your Budgeting

 

There are some side hustles that have some inconsistency in earnings. You may earn $800 one month and only $500 the next. Therefore, you must learn to not depend on those good months. Instead, set your budget based on the leaner months so that you don’t end up running out of money with bills that still need to be paid. 

 

Keep Side Hustle Earnings Separate

 

One of the best ways to budget your side hustle earnings is to keep them separate from the rest of your earnings. If it’s not readily accessible, you’re less likely to spend it. Plus, if you have a savings account, you can keep your earnings in this savings account, and then earn interest on it the longer it sits. 

 

Be Careful with Debt 

 

If you can possibly start a side hustle without taking on debt, this is ideal- whether you get started by investing your savings or with no money down. If you want to turn your side hustle into a full-time gig, only take on debt if you don’t have any other options. 

 

Bottom Line 

 

A side hustle is a great way to earn some extra money- but it’s also a great way to get off track with your budget. You start seeing the money roll in and you get excited and it can cause you to go a little crazy with spending. However, if you’ll keep these four tips in mind, you can learn to budget your side hustle earnings with ease.