The concept of the ‘side hustle’ is seemingly well-known in the UK, with an estimated 1.1 million Brits currently holding a second job or freelancing as a way of earning a secondary source of income.
This equates to 3% of the working population on these shores, while this figure is likely to increase further as remote working and its associated technology becomes increasingly commonplace.
But why should you consider a side hustle in 2021, and what are the best options for workers? Let’s find out.
Why Should You Create a Side Hustle
There’s an old adage which says that you should speculate to accumulate if you want to achieve financial security, and this has arguably never been more relevant than now.
After all, inflation and the cost of living continues to rise at a disproportionate rate to earnings growth, while a minimal base interest rate of just 0.10% means that creating a secondary income is the best way to boost your finances in 2021.
This also affords you a greater sense of control over your finances, rather than leaving you at the mercy of minimal savings rates and everyday cost-cutting measures.
Make no mistake; reducing your everyday spending tends to drive only incremental savings over time, whereas there is no realistic ceiling on what you can earn from a secondary income.
Three of the Best Side Hustles
Of course, the viability of this strategy depends largely on how you choose to generate a secondary income, as there are various options available in the digital age.
We’ve outlined three of the best below, so that you can make an informed decision and hopefully choose the right sidehustle to suit your circumstances.
#1. Investing and Trading
We’ll start with a couple of passive income streams, in the form of financial market investment and the trading of derivative assets and securities.
While these terms are often used interchangeably, the former refers to longer-term investments such as stocks and a so-called “buy and hold” strategy (where you retain assets as they appreciate incrementally over time).
Conversely, trading is often used to profit from forex and currencies, which are derivative assets that enable speculators to profit without assuming ownership of the underlying instrument.
You can use a forex broker to begin trading in this space, while also utilising a demo account to test and hone your strategies in a simulated market environment.
#2. Start a Business
Next up is a slightly more intensive and time-consuming side hustle, as you look to launch a business venture that can scale and grow organically over time.
Of course, this is part of a longer-term outlook in most instances, as ideally, you’ll want your business to become a primary source of income in the future.
The key is to create a viable venture that can target an existing gap in the market, while also establishing a low-overhead business that doesn’t require significant funding or initial investment.
#3. Consider Drop Shipping
We live in an age where ecommerce is thriving, with Internet retail sales growing by an impressive 46.1% through 2020 (the fastest rate in the last decade).
Sure, this trend was partially accelerated by Covid-19, but there’s no doubt that this market creates long-term opportunities in terms of secondary income streams.
For example, you could set yourself up in the field of drop shipping, using sites like Amazon and Wish to buy selected products at wholesale prices and ship them directly from the supplier to customers.
You profit by taking the increased retail price margin for yourself, creating a nice and relatively accessible income in the process.