Everyone and their dog (and possibly their cat too) has a side hustle these days. And while it is great that people are doing their best to make some more money, it can be tough to manage your side hustle finances. However, I’ve been doing this side hustle thing for a while and I have some ideas about how you can manage your side hustle finances better.
Because we live in a world where money is needed to survive, Latte Lindsay runs a number of affiliate programmes and offers contributed or partnered content. If you choose to click the links and read the posts, the site may earn a commission or receives a payment. All of the opinions are my own. Opinions expressed here are the author’s alone, not those of any partner brands/company(s), beauty & lifestyle brands, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities unless specified.
Keep your receipts
We aren’t talking about screenshots and the tea. We mean actual receipts. It can be tough to remember what was what when it comes to tax season. Trying to remember what that small payment was from six months ago or trying to figure out why you send so much at Starbucks is scary. Especially when you can be audited and have to explain yourself to the tax office. Always keep your receipts and make a note of what it was that you bought. You could store all of your receipts in a cute cardboard box, a jar, or in a special drawer (clipped together with a big clip). Just make sure that they are clearly labelled and you don’t lose them.
Spread sheets are your friend
It doesn’t matter how you record what you do, but you need to keep a track of it. For most people, using a spread sheet is a great way to get the hang of recording your sales and expenses. Even if you have no intention of filing your own paper work, it can help your accountant out. Also, logging this information yourself into a spread sheet can help you be more aware of what is going in and out. You can make it as complicated or as pretty as you want, you can do it on paper or with an app such as Google Sheets.
Use a professional
Depending on the amount of money that you are making, you might need to consider talking to a professional about managing your finances. Even using an accounting helpline can make a big difference with how you handle your finances, especially if you are struggling. Dealing with the money side of things might not be your strong point, so it might be better to have a professional manage your side hustle finances. Always check and make sure that the person or company that you use has the correct qualifications.
Banking for business
If you are using your personal account for your side hustles, it can be tough to tell which payment is which. There will come a point when you find yourself mixing up your amounts and spending your business profits on your weekly food shop instead of putting it where it needs to go. Depending on the amount of money that you are making, you might have some options with business banking options. If you are only starting out or aren’t making that much, you could open an instant access saving account to help keep your personal and business finances apart.
As you can see, there are a few simple ways that you can help manage your side hustle finances. By using these tips, you could grow your side hustle into a business that you can be proud of. If you have any suggestions about managing your finances, drop a comment below and share your wisdom with the rest of us.