Most people don’t think about starting a side business unless they need additional income, but the benefits of a side gig extend far beyond a few extra checks.There are many more, but here are seven reasons why anyone should give moonlighting serious consideration.
A business owner has more options to defer paying taxes. No one likes to pay money to Uncle Sam, and a small business owner has a variety of ways to take advantage of tax deferrals. Whether it’s setting up an individual 401k, a SEP IRA or even a defined benefit plan, there are ways to delay paying taxes with the ultimate goal of paying less taxes overall.
Some of the stuff you would buy anyway could become tax deductible too. There’s no rule that says you cannot turn your hobby into a business, so you can deduct costs incurred on stuff you would buy anyway as long as they are essential to the livelihood of your business. For instance, someone who enjoys creating sculptures can setup a business to sell the sculptures that are created. This way, all the materials used to create the masterpiece are deductible, as well as the tools that are needed to get the job done.
Learn a hobby on Uncle Sam’s dime. You can even the cost of classes. Again, they would need to be essential for your business to function, but classes you take to improve your skills used in your business will definitely qualify. The fact that you actually enjoy spending time learning it is just a bonus.
Alternative sources of income will reduce the damage caused by losing your job. There is no such thing as job security, and getting laid off will hurt no matter what. But the lost in income doesn’t sting nearly as bad if you have a side gig that brings in some cash. Without the burden of a job, you may even find that being your own boss can turn into full time income as long as you put in the effort to nurture it until the business takes off.
The side business can turn into a better career. For those who are lucky enough to be able to turn their side business into full time income, they probably enjoy the time spent working more than their 9-5 grind. A side gig provides another opportunity for you to try something different. Who knows? You may just find your life calling this way.
The additional responsibility will improve your skills at the current job. Dealing with customers and managing all facets of a business will enhance your communication and selling skills, which gives you a tremendous advantage at any job. Your unique experience will also make you more memorable to any employer, which increases your chances at landing job interviews and positions. Your additional experience also makes you a more interesting person in general, which is always a plus.
Having more income will lower your stress level. Not only is this important for health reasons, but being more relaxed will also mean better relationships with just about everyone close to you. You will live longer and you will be happier. Who wouldn’t want that?
The benefits of having a side business are abundant. You would need to work hard to genuinely try to make money from your side gig for them to work in your favour, but the rewards are well worth the time.