Five great side hustles for making extra income

With a rise in inflation, housing costs, and the general cost of living, finding ways to make extra income is becoming an increasing necessity for many Canadian households. And whether you're aiming to pay off debt, save for a rainy day, or gain a bit more financial freedom, there’s an effective way to boost your earnings: a side hustle.

A common concern among individuals from all walks of life is that the money coming in doesn’t seem to be stretching as far as it used to. And when you consider factors like the rising cost of living, debts and high interest rates, and/or unforeseen life events, it’s not hard to understand why Canadians are feeling this way.  

Licensed Insolvency Trustees (LITs) can often help you reduce debts. However, sometimes increasing your income is a secondary strategy, or might be all that’s needed, to improve your financial situation, allowing you to pay down debt and save more.  

With that in mind, here are five great side hustles that can help you generate extra income while keeping your financial health in check.

Freelancing — Use your skills

Freelancing is one of the most flexible side hustles. Whether you’re a writer, graphic designer, web developer, social media manager, carpenter, landscaper, childcare provider, or photographer (and the list goes on), there are countless opportunities for you to make money using your skills. To get started, you can advertise your services in classified ads or on social media, but there are also platforms — like Upwork, Fiverr, and Freelancer — that make it easy to connect with clients and start working on projects that fit your expertise and interests.

Why it works:

• Low startup costs
• Flexible hours
• Ability to set your own rates and choose your clients

Online tutoring or teaching

If you have knowledge in a particular subject and are passionate about helping others learn, online tutoring may be an effective way to earn extra income. There are several platforms online that connect tutors  with students who need help with a variety of subjects, like math, science, languages, and test prep.

Tutoring requires patience and the ability to clearly explain complex topics. It can be very rewarding for those who are organized and have good communication skills.

Why it works:

• Flexible hours and remote work
• Low upfront investment (just a computer, webcam, and a quiet space)

Pet sitting or dog walking

If you're an animal lover, pet sitting or dog walking could be the perfect side hustle. Many pet owners need someone to care for their furry friends while they're at work or on vacation.

While pet sitting and dog walking can be rewarding, it’s also a responsibility that requires reliability and the ability to take animals outside rain or shine. Make sure you’re prepared for the physical activity and care required to ensure pets are happy and safe.

Why it works:

• Low startup costs
• Flexible schedule (so you can work around other commitments)
• Growing demand for pet care services

Ridesharing or food delivery

If you have a car and a flexible schedule, driving for a rideshare company — like Uber or Lyft — or delivering food through services — like DoorDash, Uber Eats, or SkipTheDishes — can be an effective side hustle. These options allow you to work as much or as little as you want, making it an ideal choice for those who need flexibility.

This option has higher operating costs than other options listed. Remember to factor in gas, vehicle maintenance, and insurance costs when evaluating how profitable this side hustle could be for you.

Why it works:

• Immediate earning potential with no upfront costs if you already have a vehicle
• Flexible hours and the ability to pick when you will take calls
• The option to increase your earnings by working during busy times or in high-demand areas

House cleaning or organizing

If you consider yourself a clean or organized person, you may want to consider offering your skills to local clients. Many people are willing to pay for professional cleaning or organizational help, whether it's for their homes, offices, or even closets. And with the rise of property rentals on platforms like AirBNB or VRBO, many rental properties now require regular cleaning and servicing.

Keep in mind, this side hustle involves manual labour and some elbow grease, but it can be quite profitable. Ensure you factor in the cost of transportation to your clients when assessing how profitable this venture is for you.

Why it works:

• Low upfront investment
• High demand, especially for busy professionals and rental properties
• Flexible hours

A few things to keep in mind

While these side hustles can help to supplement your income, it's still important to manage your finances effectively. Here are some tips to help you manage your extra income:

Track your earnings and expenses: Keep a clear record of your side hustle income and related expenses. This will help you understand how much you're earning and make sure you’re paying the right amount of taxes.

Budget: If you’re not tracking and controlling your spending, you may not have any money left over for your financial goals despite the extra income.  Whether you use a budgeting app, a spreadsheet, a notepad that you carry with you, or a budget you keep on your fridge, it’s important to develop a system for both budgeting and tracking your spending to ensure that you stay on budget. 

Save: Make sure you allocate a portion of your budget towards an emergency fund for those unexpected expenses that are bound to come up, as well as to put toward saving for any financial goals — travel, larger purchases, and retirement savings. Pay your bills, emergency fund, and savings accounts on payday so it’s very clear how much money you have left over for your living expenses each pay period.

Avoid overextending yourself: A side hustle can improve your financial situation, but if not kept in check, it can become detrimental to your overall quality of life. Be mindful of your time and commitments so you don’t burn out.

Pay down debt: If you’re working to get out of debt, consider putting a portion of your side hustle income toward paying down your high-interest debts. This can help reduce financial strain in the long term.

Side hustles can provide much-needed financial relief and help you meet your financial goals. By choosing one that suits your interests, skills, and available time, you can set yourself up for greater financial stability. And remember, it’s always a good idea to seek professional advice if you’re unsure about how to best manage your finances or debts.

MNP Debt is here to help

If your side hustle isn't earning you enough to create a clear path toward a debt-free future, MNP’s LITs are here to help. Our advisors can share some great solutions to help reduce your monthly debt repayment costs and make your money stretch a little further.  

Reach out today for a free, confidential consultation to discuss your individual needs.