Is it Worth it to Have a Side Business for Extra Income?

In a word, yes. It is totally worth it to have a side business for extra income as opposed to another typical job where you are working and getting taxes taken out on a weekly basis. It makes more sense to have a small side business in addition to a job instead of getting another standard job for a couple reasons.

Tax reasons

One of the main reasons is for tax reasons. With two jobs, you are essentially having two jobs where you likely do not get any sort of tax deductions. With a business, you can deduct the expenses, so even if you are at a loss for the first year, you can at least deduct that at year end.

With a second job, you are likely to pay way more taxes because you have no control – it’s a flat rate. With a business, you have more flexibility because you pay quarterly payments and you have more control over your own taxable income.

Independence

I love have my second business in addition to my day job. It gives me a sense of independence and accomplishment. I actually had originally planned to have my day job only as long as it took for me to really get my side business going and be sustainable enough to replace the day job income.

However, certain economic events and circumstances beyond my control have derailed that plan. But it’s still a pipe dream I have, and I get a lot of gratification from doing my side business. It gives me a sense of purpose and a sense of control over my own financial destiny that a day job just can’t – at least not for me and my goals personally.

Something to Grow for Future Generations

Whether your side business is a true passion (I highly recommend that it is, that makes it feel less like “work” and more like fun and dramatically increases your likelihood of success) or just something to make money, it is something you can pass on. If you have children, or grandchildren, and the business is successful and sustainable, you can pass it on to your future generations.

This is a big draw for many people starting their own business. Instead of passing your children whatever is left after you are gone, you are passing them something that can potentially make them income years to come. It’s that saying “give a man a fish and feed him for a day, teach a man to fish, feed him for a lifetime”, that’s exactly what I’m talking about here.

Something to Pass Time That Makes you Passive Income

Some businesses can make you what’s called “passive income”, which means that a lot of effort up front can make you a lifetime of passive income in the form of commissions, or customers that become loyal, or whatever else may happen that can give you years of return income and can be one of the best ways to save extra money for your future.

It’s a great way to pass the time, and you can really enjoy it if it’s something that not only interests you, but also puts money in your bank account, food on the table, and pays for the roof over your head.