WEBVTT - Make Extra Cash With The Perfect Side Hustle 0:00:01.320 --> 0:00:03.300 A side hustle can be a great way to get 0:00:03.300 --> 0:00:06.058 a little bit richer. More and more people are taking 0:00:06.059 --> 0:00:09.420 on extra work, whether it's selling old clothes online, renting 0:00:09.420 --> 0:00:12.360 out a spare room, or even starting a new business. 0:00:12.900 --> 0:00:15.360 But it's not something that you can just start doing 0:00:15.509 --> 0:00:18.569 without being aware of stuff like tax implications and other 0:00:18.570 --> 0:00:21.840 expenses you might have to pay. Also, you do still 0:00:21.840 --> 0:00:24.540 need a personal life. You can't spend all your time working. 0:00:24.960 --> 0:00:28.500 So today I'm chatting to Tolu Frimpong, a financial coach whose 0:00:28.500 --> 0:00:31.530 work includes helping women break the payday to payday cycle, 0:00:31.860 --> 0:00:36.239 beat debt, start investing, and crucially earn more via side hustles. 0:00:37.020 --> 0:00:41.159 So let's do it. So Tolu, there's a lot of ways 0:00:41.159 --> 0:00:42.960 that we can earn extra money so can you give 0:00:42.960 --> 0:00:46.348 us some examples of short- term side hustles and then some 0:00:46.348 --> 0:00:48.930 longer term regular revenue streams? 0:00:48.960 --> 0:00:51.870 Oh, absolutely. There are so many different short- term and long- 0:00:51.870 --> 0:00:54.479 term side hustles that people can try. I think the first one 0:00:54.480 --> 0:00:57.330 I always like to mention is reselling because that's something 0:00:57.630 --> 0:00:59.430 all of us can do. We all have clutter in 0:00:59.430 --> 0:01:01.860 our homes that we can turn into cash. So what 0:01:01.860 --> 0:01:04.200 I would say is sell some of that used stuff 0:01:04.230 --> 0:01:07.770 online, make some money from those furnitures, from the clothes, 0:01:07.770 --> 0:01:10.170 the shoes, the trainers, all these bits and bobs that 0:01:10.170 --> 0:01:12.658 you have at home that no longer are serving you 0:01:12.720 --> 0:01:14.670 and it's just taking up space in your house. Sell 0:01:14.670 --> 0:01:17.400 those things online and make that extra money. It'll be 0:01:17.400 --> 0:01:19.440 extra income for you to do what you need to 0:01:19.440 --> 0:01:21.840 do. In addition to that, I would say things like 0:01:21.840 --> 0:01:25.410 survey sites, market research is also another great side hustle 0:01:25.410 --> 0:01:29.069 that you can try. Focus groups are also fantastic. User 0:01:29.069 --> 0:01:32.400 testing is also great. Companies will pay you to test 0:01:32.400 --> 0:01:34.920 their apps or test their websites and you can make 0:01:34.920 --> 0:01:37.259 extra money for those things. And then those are short- 0:01:37.260 --> 0:01:40.139 term side hustles which anybody can start at any time 0:01:40.139 --> 0:01:42.209 with little to no experience. But then if you start 0:01:42.209 --> 0:01:44.880 talking about the more long- term side hustles, things that 0:01:44.880 --> 0:01:47.190 you can do may require a little bit more skills, 0:01:47.190 --> 0:01:49.860 a little bit more learning, but you can eventually monetize 0:01:49.860 --> 0:01:52.860 it. So those long- term side hustles that I like to mention 0:01:53.040 --> 0:01:55.500 are things like creating an online course. So what is something that you're great at that 0:01:55.500 --> 0:01:58.770 you're an expert in that you can monetize, you can 0:01:58.770 --> 0:02:01.349 create a course about, help other people to learn how 0:02:01.349 --> 0:02:03.929 to do it and sell it online. E- commerce is 0:02:03.929 --> 0:02:07.050 also a great additional side hustle to start. Again, it will 0:02:07.050 --> 0:02:09.030 take a little bit of learning what products to sell, 0:02:09.030 --> 0:02:11.760 et cetera, but once you get up and running, you 0:02:11.760 --> 0:02:14.309 can be able to monetize that side hustle. And then 0:02:14.309 --> 0:02:17.309 also things like renting out parking spaces at your house, 0:02:17.520 --> 0:02:19.500 renting out a spare room, that's something you could do. 0:02:19.500 --> 0:02:22.770 Even renting out your garage or your garden for events. 0:02:22.770 --> 0:02:25.050 There's just so many different things you can do to 0:02:25.050 --> 0:02:27.540 make that additional long- term income on the side. 0:02:27.750 --> 0:02:29.550 I think it's so great to hear that there's things 0:02:29.550 --> 0:02:31.889 that we can do in the short term that I 0:02:31.889 --> 0:02:33.749 know I've got a whole bunch of clothes at home 0:02:33.929 --> 0:02:36.150 sitting there that I can just sell online and make 0:02:36.150 --> 0:02:38.250 some extra cash from. And in the longer term, things 0:02:38.250 --> 0:02:40.980 that you wouldn't consider. You mentioned renting a parking space 0:02:40.980 --> 0:02:43.350 out. My dad does that. It's some extra money that 0:02:43.350 --> 0:02:45.090 you can bring in. We've all got things that we 0:02:45.090 --> 0:02:47.850 can look around and probably say, actually, I can make some extra money here. 0:02:48.120 --> 0:02:50.280 And I think the great thing about side hustles is that 0:02:50.280 --> 0:02:53.609 there's always scope for it to become the main hustle. 0:02:53.610 --> 0:02:56.370 And we've heard from Georgina earlier on in the season who 0:02:56.370 --> 0:02:59.100 turned her side hustle into a main stream of income. 0:02:59.279 --> 0:03:01.440 So I think it's great to explore what you can 0:03:01.440 --> 0:03:04.050 do, how you can make extra money, and yeah, just add 0:03:04.050 --> 0:03:06.000 to your revenue streams. I love it. It just depends 0:03:06.000 --> 0:03:07.320 on how much you want to make, how time you want 0:03:07.440 --> 0:03:09.359 to put in, if you have to learn a new skill 0:03:09.660 --> 0:03:12.480 and how quickly and how convenient you want it to 0:03:12.480 --> 0:03:15.000 be in your day- to- day life. So what would 0:03:15.089 --> 0:03:18.029 be your advice for anyone who's looking to do that 0:03:18.300 --> 0:03:21.600 and what should they be focusing on when they're deciding 0:03:21.600 --> 0:03:22.920 what work they should be doing? 0:03:23.010 --> 0:03:25.710 Anyone wanting to build out additional income streams. So first 0:03:25.710 --> 0:03:27.900 of all, look at what skills they currently have. What 0:03:27.900 --> 0:03:30.119 skills do you currently have in your hand that you 0:03:30.120 --> 0:03:32.699 can monetize, and what additional skills do you want to 0:03:32.700 --> 0:03:35.369 learn to be able to monetize at a later date? 0:03:35.580 --> 0:03:38.310 And then I'd say learners are earners. Yes, you want 0:03:38.310 --> 0:03:40.200 to have that skill, but how are you going to develop 0:03:40.200 --> 0:03:42.210 that skill? You want to commit to learning. So doing 0:03:42.210 --> 0:03:45.389 your research online, but not just researching and learning about 0:03:45.389 --> 0:03:48.000 that skill, but also practicing and learning to develop that 0:03:48.000 --> 0:03:50.070 skill for yourself. I think that's going to really help 0:03:50.070 --> 0:03:52.889 you to be able to generate that additional income on the 0:03:52.889 --> 0:03:55.710 side. I'd also say time is important as well. How 0:03:55.710 --> 0:03:58.350 you allocate and use your time in the evening and 0:03:58.350 --> 0:04:00.330 the weekend is going to really be the difference between 0:04:00.330 --> 0:04:03.420 you starting that side hustle and being successful at it. 0:04:03.450 --> 0:04:06.389 Because that time that we have in the evening after 0:04:06.389 --> 0:04:09.539 work, that time how we currently utilizing it, how you 0:04:09.540 --> 0:04:11.580 utilize it is going to have an impact on your 0:04:11.580 --> 0:04:14.370 earning potential when it comes to that side hustle because 0:04:14.370 --> 0:04:16.050 the amount of time you give to it is the 0:04:16.050 --> 0:04:18.810 amount of time you're going to be able to monetize 0:04:18.810 --> 0:04:19.589 it eventually. 0:04:19.950 --> 0:04:23.130 I think that's great. I think like you said, the time is 0:04:23.130 --> 0:04:25.080 a key one. When I think back to my days 0:04:25.080 --> 0:04:26.910 of learning how to illustrate, so I was like you, you 0:04:26.910 --> 0:04:29.250 know when you said you uploaded your first YouTube video, 0:04:29.250 --> 0:04:32.040 had no idea how to edit. I decided to download 0:04:32.250 --> 0:04:35.250 Illustrator. I had no idea how to illustrate anything, but 0:04:35.250 --> 0:04:38.070 I dedicated my evenings after work at least two, three 0:04:38.070 --> 0:04:41.610 hours to learning that skill, which again, eventually gave me 0:04:41.610 --> 0:04:44.428 that earning potential. But it is just investing that time in. 0:04:44.580 --> 0:04:46.020 This is something that you want to do. So I 0:04:46.020 --> 0:04:47.100 love that point that you made. 0:04:47.459 --> 0:04:49.560 Yeah. Oh, I was going to also say to learn 0:04:49.560 --> 0:04:52.230 a skill in something that you're passionate about because what 0:04:52.230 --> 0:04:54.750 tends to happen is you start something and then you 0:04:54.750 --> 0:04:57.359 lose interest or it becomes too difficult and you quit 0:04:57.360 --> 0:04:59.640 before you actually see the fruits of your labor. So 0:04:59.849 --> 0:05:01.349 I think when it comes to a side hustle, you want 0:05:01.349 --> 0:05:03.059 to make sure it's something that you're really interested in 0:05:03.059 --> 0:05:05.729 doing, something that you're passionate about and something that you're going to 0:05:05.730 --> 0:05:08.460 put in the work for because yeah, if you don't 0:05:08.460 --> 0:05:10.409 do it that way and you do something that someone 0:05:10.410 --> 0:05:11.640 else is doing or you just think, I'm going to 0:05:11.640 --> 0:05:14.309 jump on that wave because it seems like other people 0:05:14.309 --> 0:05:16.620 are making money doing it, you're going to burn out 0:05:16.620 --> 0:05:19.050 and you're going to quit before you actually see success. 0:05:19.230 --> 0:05:22.289 I absolutely agree with you. So now you've given us 0:05:22.289 --> 0:05:25.410 some ways of actually adding in that extra stream of 0:05:25.410 --> 0:05:28.560 income. What can some of the benefits be? So obviously 0:05:28.620 --> 0:05:32.879 money is the main driver for most people, but is 0:05:32.880 --> 0:05:35.160 there other benefits that people can consider like maybe just 0:05:35.309 --> 0:05:37.920 they're trying something different. What else can come from picking 0:05:37.920 --> 0:05:38.640 up a side hustle? 0:05:39.029 --> 0:05:41.879 Absolutely. I think a great benefit of a side hustle, 0:05:41.879 --> 0:05:45.479 obviously beyond the monetary aspect is the personal development aspect 0:05:45.480 --> 0:05:48.840 of it as well, because you're stretching yourself beyond your 0:05:48.870 --> 0:05:51.750 current comfort zone and comfort levels because if I put 0:05:51.750 --> 0:05:54.630 myself in that example once upon a time, I used 0:05:54.630 --> 0:05:56.700 to hate public speaking. When it was someone's birthday, for 0:05:56.700 --> 0:05:58.589 example, and I had to give a speech, I will 0:05:58.589 --> 0:06:00.900 be so scared I'd run away and hide or I 0:06:00.900 --> 0:06:02.969 would say two words and then that would be it. 0:06:02.969 --> 0:06:06.540 But doing this personal finance content creation, I've had to 0:06:06.540 --> 0:06:10.260 now speak in front of audiences of hundreds of people, 0:06:10.380 --> 0:06:12.330 something that I never thought I'd be able to do, 0:06:12.330 --> 0:06:15.389 but I've had to stretch myself. And it's so funny because 0:06:15.389 --> 0:06:18.359 when you stretch yourself you realize, wow, I'm capable of 0:06:18.359 --> 0:06:20.460 so much more than I thought I was capable of. 0:06:20.610 --> 0:06:22.320 So I think that's one of the great things about 0:06:22.320 --> 0:06:24.779 starting a side hustle is that you don't realize where it 0:06:24.779 --> 0:06:26.789 will take you and how far it'll take you and 0:06:26.790 --> 0:06:30.480 opportunities that can present themselves from you starting that side 0:06:30.480 --> 0:06:32.009 hustle because you might just think, this is a little 0:06:32.009 --> 0:06:35.129 passion project that I've started today, but a year from 0:06:35.129 --> 0:06:37.229 now, if you continue to keep at it it will 0:06:37.230 --> 0:06:40.230 take you places that you never even imagined. And also 0:06:40.230 --> 0:06:42.240 I think a great benefit of it is your network 0:06:42.240 --> 0:06:44.549 as well that it expands because I know since I've 0:06:44.550 --> 0:06:47.670 started doing the personal finance content, I've met so many 0:06:47.670 --> 0:06:49.409 incredible people like yourself, for example. 0:06:49.529 --> 0:06:50.001 There we go, we have met (inaudible) . 0:06:50.160 --> 0:06:53.009 Exactly. Exactly, and I would've never met you had it 0:06:53.010 --> 0:06:55.589 not been for me starting this side hustle. So I 0:06:55.589 --> 0:06:58.680 think it's just amazing the opportunities that can come from 0:06:58.680 --> 0:07:01.380 you stepping out of your comfort zone, backing yourself, and yeah, it 0:07:01.380 --> 0:07:03.750 just expands you and stretches you and adds so much 0:07:03.750 --> 0:07:06.389 value to you as well. That's another great thing is 0:07:06.389 --> 0:07:09.268 your skillset. It develops it beyond what you think you're 0:07:09.270 --> 0:07:11.910 currently capable of or what you are currently capable of. 0:07:11.910 --> 0:07:14.670 You develop new skills, you learn new skills, which is 0:07:14.730 --> 0:07:17.730 basically adding to your skill stack, which in addition to helping 0:07:17.970 --> 0:07:19.800 you generate income on the side, if you do want 0:07:19.800 --> 0:07:22.590 to continue your 09:00 to 5: 00 as well, that's going to help 0:07:22.590 --> 0:07:24.750 you with your employability when it comes to applying for 0:07:24.750 --> 0:07:27.749 promotions because you've got all the additional skillset that you've 0:07:27.750 --> 0:07:29.909 developed while building that side hustle. 0:07:29.969 --> 0:07:32.730 Absolutely. I agree. I've listed on many a side hustle, 0:07:32.730 --> 0:07:34.740 many a skill I picked up on that CV. It 0:07:34.740 --> 0:07:35.820 is hefty. 0:07:35.880 --> 0:07:36.060 Yes. 0:07:36.060 --> 0:07:38.249 I've committed time and I said, this is going on because 0:07:38.250 --> 0:07:40.559 I've put my time into this. And I think another 0:07:40.559 --> 0:07:42.839 one that I'd love to add on the back of what you said as well 0:07:43.020 --> 0:07:46.409 is it helps you to problem solve because you do 0:07:46.410 --> 0:07:49.710 reach barriers and hurdles. You're going to think, how do I do this? And even 0:07:49.800 --> 0:07:51.930 back again what you said of editing, when I first 0:07:51.930 --> 0:07:53.910 started learning how to edit. There were so many things I was like, how do I do 0:07:53.910 --> 0:07:56.639 that transition that you do there? How do I get 0:07:56.639 --> 0:07:59.160 that up? But you come across that problem and you 0:07:59.160 --> 0:08:01.169 figure out how to get over it. So let's talk 0:08:01.170 --> 0:08:04.619 about the cost associated. What are the rules when it comes 0:08:04.619 --> 0:08:08.280 to paying taxes on the extra money that you've earned 0:08:08.280 --> 0:08:10.590 because we know when you're working a 09:00 to 5:00, you pay 0:08:10.950 --> 0:08:13.860 PAYE, you pay income tax. But if you're earning side 0:08:13.860 --> 0:08:16.380 hustle income are there taxes that we should be aware 0:08:16.380 --> 0:08:19.200 of and any other expenses that we should be aware 0:08:19.200 --> 0:08:21.120 of if you're trying to build that extra stream of income? 0:08:21.719 --> 0:08:23.730 So that's a great question, Kia, actually, when it comes 0:08:23.730 --> 0:08:25.770 to side hustle, I think there are so many tax 0:08:25.770 --> 0:08:27.690 implications that we need to be aware of so that 0:08:27.690 --> 0:08:30.420 we don't get ourselves into trouble when it comes to 0:08:30.420 --> 0:08:32.699 that extra money. So the extra money that you're making, 0:08:32.700 --> 0:08:34.020 first of all what I would say is when it 0:08:34.020 --> 0:08:35.790 comes to the first part of your question in terms 0:08:35.790 --> 0:08:38.700 of the costs associated with it, I think it's great to 0:08:38.700 --> 0:08:41.250 know that a lot of side hustles can be started with 0:08:41.250 --> 0:08:44.160 little to no money at all. So you don't need to think, 0:08:44.190 --> 0:08:45.838 oh my gosh, I need 10, 000 pounds to start a 0:08:45.840 --> 0:08:48.030 side hustle. Actually, all you need is your phone and 0:08:48.030 --> 0:08:51.088 the internet and you can get started there and build 0:08:51.090 --> 0:08:53.130 it. But then when you do start making that money, 0:08:53.160 --> 0:08:55.920 HMRC are going to want their money too. So you 0:08:55.920 --> 0:08:57.270 are going to need to make sure you set money 0:08:57.270 --> 0:09:00.269 aside for taxes. So the first 1000 pounds that you 0:09:00.300 --> 0:09:02.220 earn, actually you don't have to pay tax on or 0:09:02.220 --> 0:09:04.500 declare, but beyond that, you are going to need to 0:09:04.500 --> 0:09:06.420 start paying income tax. So what you want to do 0:09:06.420 --> 0:09:10.349 is have separate account for your business expenses from your 0:09:10.349 --> 0:09:13.500 personal income because the danger there is that you just 0:09:13.500 --> 0:09:16.139 start spending that business money and mixing it with your 0:09:16.139 --> 0:09:18.540 personal money and then when it comes to that tax 0:09:18.570 --> 0:09:21.179 time of the year, you're in trouble because you don't 0:09:21.179 --> 0:09:23.550 have the tax money set aside. So I would say 0:09:23.550 --> 0:09:26.669 have a separate savings account or separate bank account for 0:09:26.670 --> 0:09:28.770 the business income and expenses because you are going to 0:09:28.770 --> 0:09:31.320 need to pay tax. When it comes to taxes there's 0:09:31.320 --> 0:09:34.079 income tax that you'll need to pay, national insurance contribution 0:09:34.080 --> 0:09:36.480 if you are paying yourself as an employee within that 0:09:36.480 --> 0:09:39.540 business. Also, you want to consider the structure for that 0:09:39.540 --> 0:09:41.970 side hustle as well actually. Do you want to register as 0:09:41.970 --> 0:09:43.680 a sole trader or do you want to set up 0:09:43.710 --> 0:09:46.469 a limited company because that would determine how you need 0:09:46.469 --> 0:09:49.200 to pay your taxes for that business so when you 0:09:49.200 --> 0:09:51.750 are paying yourself as a sole trader, you want to 0:09:51.750 --> 0:09:54.029 make sure you're setting that money aside for your self- 0:09:54.029 --> 0:09:56.250 assessment that you're going to need to pay. And if 0:09:56.250 --> 0:09:58.350 you are a limited company, you're going to need to 0:09:58.350 --> 0:10:00.809 register as well on company's house and set the business 0:10:00.809 --> 0:10:02.490 up that way. So there is quite a lot that 0:10:02.490 --> 0:10:05.040 you want to make sure you look into and research 0:10:05.040 --> 0:10:06.958 when it comes to the side hustle to make sure 0:10:07.110 --> 0:10:09.720 you don't get yourself into financial trouble later on. 0:10:09.900 --> 0:10:12.540 Yeah, I agree with you. I think earning extra money is 0:10:12.540 --> 0:10:14.430 great, but like you said, it is just figuring out 0:10:14.820 --> 0:10:16.439 how am I going to register? How much money am 0:10:16.440 --> 0:10:19.590 I making and do I need to declare a certain 0:10:19.590 --> 0:10:22.349 amount? And especially it's good to also note that if 0:10:22.349 --> 0:10:25.290 you are a limited company, things like the VAT, depending on how 0:10:25.290 --> 0:10:28.590 much money, how successful your side hustle may be, we 0:10:28.590 --> 0:10:30.239 hope that you get to the point that you will 0:10:30.240 --> 0:10:32.520 have to be VAT registered, you earn over like 85, 0:10:32.790 --> 0:10:35.368 000 pounds per tax year, then you are going to 0:10:35.370 --> 0:10:37.770 have to declare that. But again, that is another thing that 0:10:37.770 --> 0:10:40.230 you'd have to research because we want you to earn your 0:10:40.230 --> 0:10:42.120 extra money, get your money up. This is a great 0:10:42.120 --> 0:10:44.280 time. But also, like you said, make sure you're researching 0:10:44.280 --> 0:10:48.088 and understanding what that looks like. But overall, I think 0:10:48.090 --> 0:10:51.240 we've said that side hustles are great, so there's a lot 0:10:51.240 --> 0:10:54.958 of ways that people can increase their income. But I 0:10:54.960 --> 0:10:57.239 want to end the episode as I do with asking 0:10:57.330 --> 0:10:59.189 every guest the same question. So I'm going to ask 0:10:59.190 --> 0:11:02.190 you, Tolu, what are your three top tips to help 0:11:02.190 --> 0:11:04.230 our listeners get a little bit richer? 0:11:04.289 --> 0:11:06.690 The first top tip I would say is to learn 0:11:06.690 --> 0:11:09.238 a new skill. So learn that skill which you can 0:11:09.240 --> 0:11:13.110 eventually monetize. So commit to reading about it, listening to 0:11:13.110 --> 0:11:16.170 audiobooks, listening to podcasts. Learn as much as you can 0:11:16.170 --> 0:11:19.410 about that subject area so that you can become very 0:11:19.620 --> 0:11:22.619 knowledgeable about it. But don't just stop there. The second 0:11:22.619 --> 0:11:24.720 tip I would say is to practice that skill. So 0:11:24.720 --> 0:11:27.630 it's one thing learning, it's another thing actually applying what 0:11:27.630 --> 0:11:30.900 you've learned. So commit to becoming an expert in that 0:11:30.900 --> 0:11:33.719 area, or at least very competent. So I don't know 0:11:33.750 --> 0:11:35.670 if you know about the 20 hour rule. If you 0:11:35.670 --> 0:11:38.549 spend 20 hours learning a particular skill, you can become 0:11:38.549 --> 0:11:40.770 very competent in it. So if you say I'm going 0:11:40.770 --> 0:11:43.650 to commit 20 hours to learning this skill, I will 0:11:43.650 --> 0:11:46.380 eventually become competent at it and I can then monetize 0:11:46.380 --> 0:11:48.270 it. And I guess the third thing I would say to 0:11:48.270 --> 0:11:50.639 become a little bit richer is to believe in yourself 0:11:50.639 --> 0:11:53.458 and trust in your ability to monetize that side hustle. 0:11:53.940 --> 0:11:56.520 Amazing. I love that Tolu, and especially ending it on that 0:11:56.520 --> 0:11:59.399 believe in yourself. Yeah, I love that. That's a good 0:11:59.400 --> 0:12:01.078 way to end. It makes you believe in yourself everyone 0:12:01.080 --> 0:12:03.780 listening. Thank you so much, Tolu. You've shared some impeccable 0:12:03.780 --> 0:12:06.660 gems and some very useful ways that people can increase 0:12:06.660 --> 0:12:10.080 their income. That has been very helpful. Thank you so 0:12:10.080 --> 0:12:12.630 much to Tolu for another great episode. So you know 0:12:12.630 --> 0:12:15.000 the drill by now, hit follow, leave a review and 0:12:15.000 --> 0:12:17.518 tell a mate. Also, if there's anything you'd like me 0:12:17.520 --> 0:12:20.310 to discuss on future episodes, get in touch via Legal & 0:12:20.400 --> 0:12:23.040 General's Instagram and TikTok channels. Thank you for listening.