Motley Fool recently released this article that detailed why side hustles could actually be costing consumers. It reminded me of a Money article that was published a few months ago, which included the findings from an MIT study about the actual hourly income Lyft and Uber drivers make after taking into account expenses like gas and repairs (don't forget the mints, too).

Interestingly enough, the Money article found that “30% of Uber and Lyft drivers are actually losing money once expenses like gas, insurance, vehicle repairs, and depreciation are included, according to the paper.” This is a great segue to another point: depending on your side hustle, you may not actually be profiting if you don’t dedicate enough hours a week.

The Motley Fool article identifies the following costs that could potentially do more financial harm than good to consumers with a side hustle:

– Materials and equipment will undoubtedly eat into your earnings

– Travel to and from jobs is necessary for many side hustles

– Depending on how much you earn, you’ll need to fill out tax form 1099

– Less advancements at a full-time job is a repercussion of spending more time on your side hustle

Many websites advertising “easy jobs” don’t explicitly mention the amount of time involved—only the money aspect is highlighted. For example, some of my friends would spend hours a day watching random video a day and rating them all for the measly sum of a few dollars. After dedicating three straight hours of watching videos, my friends would make about $11. The money seemed worth the rote work, but they were ultimately making just over $3 an hour—which isn’t that much better than Lyft and Uber drivers who earn about $3.37 per hour before taxes. They soon came to the realization that their time was worth more than that.

While side hustles are a great way to earn additional income, a good rule of thumb is to do a cost-benefit analysis prior to jumping into what may seem like a beneficial financial endeavor. Believe it or not, your time is actually worth money. So… how much do you value your time?

Questions:

• What are the pros and cons of having a side hustle in addition to a full-time job?
• Consumers with a side hustle take home an average of $686 per month (USA Today). Do you think that amount is worth the hours of work they put into their side hustle?
• According to Bankrate, 4 in 10 consumers has a side hustle. Why do you think there’s been an increase in people pursuing side hustles in the last couple of years?

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If you liked this article, check out our Question of the Day: What percent of workers have a side-hustle? It’s a great bell-ringer!

We also have a spreadsheet of all of our Questions of the Day for your convenience.

About the Author

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!