Moonlighting and Work: Are Side Hustles Worth It?

In the 21^st century, the world economy has become more complex and interdependent. Production and manufacturing happen cheaper and faster, ideas are shared more easily, and competition is fierce. Businesses are becoming leaner and more cautious with their expenses.

The International Monetary Fund’s 2024 report said that while world inflation is falling, it is giving way to issues with supply of resources and restrictive monetary policies. As a result of this precarious economic situation, employers often get stingy when it comes to paying employees, consultants, contractors, etc. With worldwide population explosion, there are more people and fewer jobs- which gives leverage to employers.

Consequently, most people don’t feel comfortable relying on one source of income, especially in the early stages of their career. Freshers, temporary contract employees, part time workers, and freelancers, often search for a second job, turn a hobby into a small business, etc. so that they can live comfortably with a beginner’s salary.

In this article, we will look at the pros and cons of having a side gig. We will first look at different kinds of side gigs, the potential benefits of multiple sources of income, and then explore the pitfalls and negative consequences of the same.

What is a ‘side-gig’?

A side gig, for practical purposes, could be anything that a person does, alongside their main career plan or full time job. According to a survey by Bankrate (April, 2024), 39% of US adults have a side hustle, and 44% believe they will always need multiple sources of income. Contrary to popular opinion, side gigs are taken up for various reasons apart from money, like enjoyment, satisfaction, skill diversification, etc.

Here are some common examples of side gigs

• Part time job as a server, cashier, sales executive. According to the US Bureau of Labor Statistics (February, 2024), 27,941 adults in USA have part time jobs, which is 17% of the total number of employed people.
• A freelance opportunity, like writing articles, editing videos, teaching
• A small business for selling articles, like making flower bouquets, jewelry, or providing services like babysitting, household chores, taking tuition classes.

Why people have side gigs

Here are some reasons why people are motivated to have second job or a side gig

Extra income

Let’s start with the most common, and most obvious reason that comes to mind- money. Juggling multiple jobs is not an easy feat, and it requires more energy, effort and time management. But many people are willing to put the effort, even though it is unpleasant, because extra income is always good.

There are quite a few professions that don’t pay people enough to sustain in daily life, at least in the beginning. Side gigs offer extra income that helps them sustain themselves, while staying in the career of their choice.

For example, an art or literature student might not find stable employment immediately after graduating from college. Say, for example, they find an opportunity to paint for a client who is paying commission. While they love this work, it isn’t enough to pay rent in the city where they live. So, they might take up a part time job as an art teacher to help manage their expenses.

Learning new skills

Sometimes, a particular job may be financially secure, but may not provide the necessary opportunities for developing professional skills. So, the person may look for other opportunities that allow them to learn and practice skills that are relevant to their career goals.

For example, a software engineer might find themselves working with a coding language that is no more relevant or sought after in the job market. On one hand, they need their current job to have a steady income.

On the other hand, they have to get experience with different software systems, that will prepare them for a job shift in the future. So, they might take courses to learn a new coding language, and start taking up client projects as a freelancer.

Networking opportunities

Professional development is not just about qualifications and achievements, sometimes you just need to know the right people in the industry. If someone’s full time job doesn’t allow them to make helpful connections with other professionals, they feel like their progress is thwarted.

So, they search for more opportunities where they can meet and work with like minded professionals, while keeping their current job. Such networking often gives birth to innovative ideas and startup initiatives.

In fact, the newer generation of employees approaches the job market in a very different way. Earlier, people used to place emphasis on stability and steady income. While those priorities are still important today, the nature of the job market- full of sudden changes and risks- doesn’t allow that to happen.

As a result, job seekers have accepted this reality, and have adapted to it. They now place more emphasis on the quality of work experience they get, including opportunities for learning new skills, networking and professional growth, which will allow them to stay relevant in the industry, regardless of who they work for. They know that companies can’t really assure long term secure employment- so they have stopped looking for it, and have shifted their priorities!

What could go wrong with a side-gig?

So far, we have looked at the potential benefits of a side gig, and they sound amazing. If it was that easy to maintain multiple jobs, everyone would have one! But unfortunately, people have gotten into trouble because of side jobs, and here’s why.

Performance suffers

Juggling multiple jobs requires good time management, planning, and a lot of energy. If you are not able to keep up with your work, you might find yourself getting exhausted. You will be already tired when you show up to work, with no energy left for the day.

If your side job is taking a toll on your main job, that’s not a good sign. This often happens with people who work part time night shifts along with their day job. Apart from work hours, if your side job is stressful and requires a lot of thought, you might have little time to relax.

For example, say your side gig is selling flower bouquets. Sounds nice and fun. But you have to constantly worry about storage and inventory, your customers keep contacting you during work hours, your shipping partner is not delivering on time, and there are a million other things on your mind!

Legal consequences

If you’re moonlighting and your boss doesn’t know about it, you’re in for trouble! So make sure that there is nothing in your employment contract about being employed elsewhere. If possible, discuss your situation with your employer, and assure them that your performance will not be affected by what you do outside work hours.

Adapt, learn, decide!

Now that you have seen both the pros and cons of having a side gig, we hope you are in a better position to decide whether you are ready for a second job. Make sure that you are clear on why you want another job, how you are going to manage it, and keep a timeline for how long you will continue it, because at some point you will have to integrate your work. Good luck!