Side hustles are all the rage these days. Everyone seems to have one, from selling beauty products online to driving for Uber. But before you rush out to start one of your own, it’s important to ask yourself: Do I really need a side hustle? In many cases, the answer is no. Here’s why focusing on better money management might be your better bet.
The Side Hustle Hype
When Greg and I started blogging back in 2011, no one in our circle could understand why we wanted to take on more work outside of our full-time jobs. But for us, it wasn’t about earning more—it was about building something that would eventually allow us to leave our 9-to-5 jobs and create more freedom for ourselves. Fast forward a few years, and we’re self-employed, living comfortably, and making multiple six figures.
However, over time, the concept of the side hustle has become a lot more mainstream. Now, it feels like everyone is trying to make extra cash on the side. You can’t scroll through social media without seeing someone trying to sell a product or promote a business opportunity. While there’s nothing wrong with extra income, I’ve noticed that many people are diving into side hustles without first fixing the root of their financial issues.
The Real Problem Isn’t Earning More Money
A few months ago, one of my friends told me she was struggling with debt and wanted to improve her finances. I was fully on board until she mentioned that she needed a side hustle. Here’s the thing—she already makes a great income, six figures in fact, and is just as busy as I am.
I told her, “You don’t need a side hustle. You need to cut back on your spending.”
Her problem wasn’t a lack of income; it was her spending habits. She was spending more than she needed to, and adding another stream of income wouldn’t fix that. In fact, it might only make the problem worse, as more money often leads to more spending.
Instead of working extra hours or starting a side business, I suggested that she focus on budgeting and cutting down on unnecessary expenses. By tracking her spending and finding areas to cut back—such as dining out or entertainment—she could reallocate that money to pay down her debt. It’s simple: A penny saved is a penny earned.
When You Don’t Need a Side Hustle
If you’re in a similar situation—making enough money but still struggling financially—it might be time for a reality check. Here are five signs that you don’t need a side hustle, but a better money management plan instead:
1. You Don’t Know Where Your Money Goes
If you can’t say with confidence how much you’re spending each month, a side hustle isn’t going to solve your problems. You need to first figure out where your money is going. Track your expenses—groceries, dining out, entertainment—and see where you can make cuts. Once you know where your money is going, you might find that you don’t need to work extra hours after all.
2. Your Income Should Be Enough
Some high earners still feel the need for a side hustle, but if you can’t manage your money on a good income, the issue likely lies in your spending habits, not your earnings. A side hustle will only give you more money to spend—without addressing your spending problem, you’ll still end up in the same place.
3. You Think You’re Budgeting, But You’re Not
A lot of people say they’re on a budget, but don’t actually track their spending or know how much they’re spending in various categories. If you don’t have a clear picture of where your money is going, you’re not budgeting. Before jumping into a side hustle, get serious about budgeting—whether it’s a zero-sum budget or another method that works for you.
4. You Eat Out Too Often
If you’re dining out multiple times a week, you don’t need a side hustle; you need to stop spending money on restaurant meals. The amount of money spent at restaurants can easily be redirected to more important financial goals like paying off debt or saving for the future.
5. You’re Constantly Thinking of Ways to Spend More
If you’re focusing on how to spend money—on a new car, a vacation, or a shopping spree—rather than focusing on paying off debt or saving, you’re missing the point. A side hustle might earn you more money, but if you’re always looking for ways to spend it, it won’t help in the long run. Take a step back and focus on spending less before thinking about earning more.
Final Thoughts
A side hustle might sound like a great way to earn extra money, but if you’re not managing the money you already have, it won’t fix your financial problems. Before jumping into another job or business venture, take a step back and assess where your money is going. By creating a realistic budget and cutting back on unnecessary spending, you can improve your financial situation without adding more work to your plate.
The goal isn’t necessarily to make more money, but to manage the money you already have. When you take control of your finances, you’ll be in a much better position—without the added stress of juggling multiple side hustles.
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