Getting a Side Hustle in 2024? Ask Yourself This Question First

If you've made financial resolutions for the new year, one of them may be to get a side hustle. Working a second job could do several great things for your financial situation. The extra money could make it possible to build savings, pay off a lingering credit card balance, or take the vacation you've been dreaming of for years.

A side hustle might also give you peace of mind with recession-related worries. A good 85% of workers today are worried they'll lose their jobs in 2024, according to data from MyPerfectResume. Having a second source of income to fall back on could help alleviate that concern.

But while there are plenty of good reasons to get a side hustle this year, there may be a more effective means of boosting your income. So before you take on the hassle of a second job, ask yourself this key question.

Am I better off working harder at my current job?

If you work a side hustle, you're almost guaranteed to boost your income to some degree. It may not be a large one, but chances are, if you put in the time, you're going to earn some amount of money from a second job.

But what if instead of pushing yourself to work many hours a week at a second job, you put in a bit more time and effort at your main job? Doing so could set you up for a promotion and raise. And that could be a more effective way to increase your earnings.

Let's say you're looking to boost your income by $300 a month. You might earn $20 an hour fetching groceries or babysitting other people's children. But if that's your going rate, that $300 is going to require 15 hours of your time each month.

On the other hand, if you put in one extra hour a week at your main job to tackle an additional task, it may be the thing that convinces your boss to promote you. Once that happens, you may have to continue working an extra hour per week to get that task done. But if your promotion comes with a $3,600 annual raise, in that case, you're earning an extra $300 a month by putting in four more hours on the job, not 15.

It's a matter of managing your time

Another benefit of trying to boost your pay at your main job instead of getting a side hustle? It could make your life easier from a scheduling and time management standpoint.

Let's say you decide to take on a side gig that requires you to drive all over town every evening, whether to look after kids or drop grocery bags on people's porches. That's a lot of running around. And it's not easy to fit that work into your schedule. You may find that putting in a little extra time at your main job is just plain easier and not as physically tiring.

Of course, the benefit of a side hustle is income diversification. If you score a raise at your main job but are then laid off, you're out 100% of your earnings. If you get a side gig and lose your main job, you at least have some income remaining.

But still, it pays to at least weigh your options before determining that a side hustle is right for you. You may realize that you can do better for yourself financially and logistically by working toward a promotion and raise that comes from your primary employer.