To ask what I need to know before I start a “side hustle”?

[IAmBroke]

I’m not in a great financial situation and it’s giving me a lot of anxiety, but I’m finally facing up to it to try and sort the problem out.

I want to start doing some “side hustle” tasks, mainly focussing on typing (I have a lot of typing experience so I figure I can put it to good use), using transcription websites. I’m aiming to make about £10-£15 a day, not much but over the course of a month it would be £300-£450.

I aim to split it as follows:

25% tax
20% saving
20% spending
35% debt repayments

I know if I go over £1,000 in a tax year I’ll need to register for self assessment tax and complete a tax return. Do I need to know anything else?

Just pay off the debt! If you have to pay a tax bill take it out of the last incomes before you have to pay, but they can probably take it out of next years PAYE. I assume you are working, so no worry about NI? You may be able to claim some expenses, not sure what though.

Is it easy to get that sort of work?

I’ll be working as well, yes. The debt is a priority but i also don’t want to spend an extra 20 hours a week working with little reward

The reward surely is getting yourself out of debt? Honestly pay the debt off first, then after you will have more to spend!

I think I’d like to rotate it, my hands lab has me doing a lot over the weekends (5-6 hours a day), so I’d want to see something for it now - like one month all onto debt, another month into savings, another to spending, and sort of rotate it. I’m in desperate need of a new phone, for example

How much is the debt? Either way, have a look at Dave Ramsey, he’s absolutely excellent

How will you find the work. Interested because my daughter needs another,source of income and can do typing

And this mentality is why you’re in debt

Double check with your existing employer about whether you need to declare extra work and what the terms are, as this can be in your contract.

I don’t need sarcastic comments.

i am well aware why I am in debt and looking to do everything I can to get out of it. But at the same time, if I’m going to do an extra 100 hours a month, I’m going to want to be able to use some of it to treat myself!

We’re allowed extra jobs - almost everyone in the office has one

But you’re not looking to do “everything you can”. You’re planing to put a third of your earnings towards paying off your debt. You are right to be aware of tax and make provision for that.

I’m not being sarcastic, I’m being realistic.

being debt free is your reward and a wonderful feeling

Because like it or not, being in debt doesnt make me an awful person who doesn’t deserve nice things every so often.

If you start a side hustle and continue then make sure you know about making tax digital.

When I was freelance and my main income dried up for a while I did audio typing as I'm fast and accurate. I found a company on the internet - they transcribe from video clips for a TV production company. I couldn't find any other customers. Honestly, I could never get through the stuff fast enough to even earn minimum wage. So unless you've got clients in mind, or maybe local companies, I wouldn't bother. You'll earn twice as much working in a pub.
Also, I agree with the others. Forget factoring in a reward. Being debt free is your goal. The reward when you reach that goal will be immense.

What’s a hands lab?

@HermioneWeasley if you don’t pay off your debt, you will just be working to pay off accumulating interest. It only makes sense to NOT pay it off if your debt is interest-free.

Oops sorry that was for @IAmBroke

I meant plan!!! Cold fingers

I’m not here to debate being in debt or my plan to pay it off. I’m asking about having a side hustle and what i need to know.

I’ve heard a little about this but I’ll take a look

That depends on who you're in debt to. If you owe someone money then you have money that is not yours. If it's a credit card or some other interest charging organisation thar benefits from you owing them money then you are right. If you owe money to someone that should have been paid then it does make you an 'awful person' (to use your words).

It’s credit cards. But it’s not a reflection on my morality at all.

I am not trying to piss on your chips in terms of finding a side hustle, but there are SO many cons/scams out there. I know because I have been self-employed for 20 years and have seen them all.

Transcription is really only a thing for people who have audio and touch typing experience in a specialist niche like medicine. You probably also need the equipment at home and if you don't have that, you're looking at shelling out money before you start.

There used to be a series of threads on here - think it was in Money Matters - about earning £10 a day and I would seriously recommend reading through them ALL before leaping in.

Yeah, that's fair enough. Plenty of people constantly have credit card debt.

I'd consider the logic of saving as opposed to paying off debt. You're paying interest on your debt so losing money. You're not going to be saving much from a side hustle, you'd be better off using that money to reduce your debt. Savings are only useful if you need them. You already have a credit card so in an emergency you could use that.

Probably better money to get a part time job in a bar at weekends