The Case Against Side Hustles
As many of you know, I am a big fan of side hustles. I see them as a financial independence superpower that 
not only leads to increased revenue and diversification, but also joy and passion. I am not, however unaware of the fact that many feel they are a waste of time. The case against side hustles is real. There are many reasons why an individual may decide not to step into this busy street full of entrepreneurial traffic. And I cannot blame them. Starting a new business venture when already bogged down by kids, family and a full-time W2 can be difficult.
Yet, I think these excuses only hold so much water. The path to financial independence requires sacrifice. The fewer revenue streams a person has, the more limited.
So what are the arguments against side hustles? Are they valid?
Let’s take a look.
Ain’t Got No Time
The case against side hustles usually begins with the quip that one could never replicate the economic success of a main hustle. After years of education and climbing the corporate ladder, wages are maximized. Hourly rates reach heights that cannot be attained outside one’s specialized field. Why develop a side hustle in order to make less when one could just do a little extra overtime?
While certainly true, this argument is weak. First, often one is limited in how much overtime they can get paid for. Many salaried employees make the same whether they work 40 hours a week or 45. In this case, work begets more work. Not necessarily more money.
Second, we all believe in diversification of investments, why not when it comes to wages? Wage diversification provides for the strongest financial plan. What better way to protect against an economic downturn or mass layoff. The side hustle could be the most important insurance policy.
Lastly, we buy bonds even though we know that they will return less in the long-term than index finds. Yet, we do it anyway. Why not with income streams. It is ok to have variance in ROI of the different money-making ventures. It decreases long-term risk.
Ain’t Got No Skills
I have been known to preach about lazy side hustles. The idea is to capitalize on skills and training already paid for by the main hustle. Often, I am told that certain jobs don’t lend themselves to developing side gigs. Many think they don’t have the skills to make money outside of the traditional W2 wage they collect every other week.
I say horse pucky! For doctors, there is medical expert work. For accountants, tax season. Computer programmers can code on the side. Secretaries can become online personal assistants.
Most professions lend themselves to some kind of lazy side hustle or another. And if nothing else, why not write a blog about the seething underbelly of the profession. I imagine something like Walmart Greeters Gone Wild!
And if your main hustle does not immediately lead you down the path, there are always generic options. Teaching English online, Selling on eBay, etc. etc.
The case against side hustles falls apart.
Ain’t Got No Money
It is true that staring a new business can cost money. Learning a new skill can often require expensive training. Side hustles have startup and sometimes inventory costs. Time is money, and side gigs take up a lot of time. Especially in the beginning.
Although another barrier, the availability of cash does not do much for the case against side hustles. Lean startup principles are alive and well. Social media and the internet allow one to cheaply leverage massive amounts of marketing power.
The cost of entry into many side hustles today is next to negligible
Final Thoughts
The case against side hustles is weak. Any strong financial plan requires a certain amount of diversification of revenue streams. Most of us wouldn’t own stocks without at least some allocation for bonds. The same can be said for main hustles and side hustles.
Neither time, money, nor available skill set really needs to stand in the way.
The greatest barrier may just be something more basic.
It may be the willingness to try something new.
Good counters for typical excuses against side hustles.
The hardest thing to do is try something new because you go outside your comfort zone. But you need to get over this to really make some progress towards FI. It’s these passive income streams from side Hustles that is going to allow me to have a income floor in retirement when the main wages stop
It really is a mental block.
I personally think it’s side hustle specific. If the side hustle has the possibility to take off a have a life of its own or even replace your day job I’m all for it. But I personally believe a side hustle like Uber or dog walking or something is a waste of your time better spent on improving your career, education, or family relationships.
Ie I’d gladly hustle for my own business idea, but you won’t see me taking a manual labor style side hustle any time soon. The opportunity must be scalable for me to consider.
It is true, not all side hustles are created equal or relevant for each person.
There is always more than enough time and money to start something on the side. Even if it’s on a smaller scale…. As the age old saying goes, the journey of a thousand miles begins with a single step.
Cheers!
I agree. not enough time is a poor excuse.
To me the biggest case against side hustles is having enough money already. Declaring the word “Enough”. What every happened to the idea of a hobby? Does everything in life have to be monitized? Just asking.
I think we do live the overmonitized life. Good point.
This is where I am right now. I’ve wanted to sew my own clothing for several years now. I’ve taken baby steps to make a few garments, but it’s going to take time and energy to learn and perfect my skills. I’m also working on healthy meal planning and exercising 5-6 days a week to run a half marathon in October. If I want to crush my goals in these two areas, it doesn’t leave much time for side hustles with my current life obligations (2 kids, 6 and 4, plus running the household). I’m grateful for the tips and ideas so that by this time next year I’ll be able to progress much more quickly in my side hustle (return to work after SAHM) efforts.
When I was a resident, I learned that I could “moonlight” in the ED and make $100 an hour. I was making about $3 an hour at the time. I came home and told my wife about it and I was so excited to be able to bring home a lot of extra money with this side hustle. She asked me if I was home enough already. I was working about 100 hours a week at the time, so, no I was not home enough. Then she asked if we were hurting for money. The answer again was no as we lived on only half of our income at the time. So she then asked me to explain why I thought it would be a good idea to work more hours that I don’t have to earn more money that we don’t need. She was right, and I never did a single hour of moonlighting and it never came up again.
Yes there is a down side to side hustles and it is real. Physicians work a lot of hours and they need to put in time to keep up with the new thinking in their field. We all know that doesn’t leave much time to give to our families. Lack of available free time is probably the biggest complaint of spouses. Every side hustle will require some of your limited time. Will you take the time from your spouse, your kids, your play time, your vacation, or your CME studies? There will be a cost in your life of taking on a side hustle and the cost will be real. You better make sure it will be worth it. If your side hustle will cost your marriage, and half of your net worth, it will not be worth it. In the case of moonlighting, just trading my time (which I didn’t have) for more money (which I didn’t need), it definitely was not worth it. In the case of real estate, where I continue to get paid whether I work or not, it was worth it.
Dr. Cory S. Fawcett
Prescription for Financial Success
Great points Cory. There is definitely a risk/reward for all ventures, side hustles included.
Sometimes, it’s a case of timing. I’m strongly “for” side hustles, but there are times when they can get in the way of the main source of income. When I started a new job 18 months ago, I had to put everything else on hold for a few months while I put the hours in at work to get to grips with it. But they don’t go away – you can resurrect them when the time is right again.
The resurrection point is a good one. They can ebb and flow.
I had a guy who worked for me was always trying to get me to buy this soap powder and go to work for him. Think it was called Amway or something.
AMway. Good old MLM.