Lesson Three
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Lesson Three
There is always a temptation to take out a credit loan to give your Side Hustle an immediate boost. But this option is not always sustainable as you are committing to a significant repayment every month. Rather try to minimise your costs when starting out and use what you have available.
Almost all of the concepts within this Hustle Up series embrace the free alternatives to get started, so start there and use what is Free and available.
As your Side Hustle starts to grow and you are making a lot more money each month, then you can start to consider your options at expanding. If you are ready to open a shop, buy a vehicle for transport and other bigger moves – This is a good time to consider credit options.
Any Side Hustle you have that receives income will need to be taxed, this is standard and can be a lot trickier as a business owner than your personal tax requirements. As with any business, your income and profitability will fluctuate, and it is difficult to determine how much tax will need to be paid every year.
Always understand that tax is a legal requirement and ensure you make provisions for this expense when it is required. A good rule of measure is to allocate 15% of your profit towards taxes each month, it may be more or less than your eventual payments, but it should be close to the required value.
Once you start earning you first clients and income, consult a local tax consultant to advice on the requirements of your Side Hustle and how to navigate these issues along the way.
As your business grows, so will the income and expenses you take on. This will start to make your budgeting practices a lot more complicated and time consuming. But growth brings further profits that will allow you to use services that ease the burden of this admin.
There are countless options for financial consultants and accounting systems that automate and lighten your load with the financial recording and tracking you need.
Once you are able to cover the cost of these services, it is highly recommended that you find one that fits your budget and financial needs. You can than focus all of your energy on doing what you enjoy most and are passionate about – Growing your Side Hustle!!!
How much is a good average to set aside for your Tax requirements?
