Side Gigs: How to Tell If One Is Actually Worth Your Time
Not every side gig pays what it advertises The hourly rate looks good until you subtract gas, wear on your car, self-employment taxes, and the time spent waiting. The real number is usually lower.
Side gigs can boost your income. But they can also waste your time if you don't do the math.
The problem with advertised rates:
Rideshare apps say "$25/hour." But after gas, car wear, taxes you'll owe, and unpaid time between rides, you might be making $10-12.
How to calculate if a side gig is worth it:
Step 1: Estimate gross earnings
What will you actually make in a typical week?
Step 2: Subtract expenses
- Gas/transportation
- Supplies or equipment
- Platform fees
- Anything you buy specifically for this gig
Step 3: Account for taxes
Side gig income is taxable. Set aside 20-25% for taxes.
Step 4: Count all your hours
Include time getting to/from, time waiting, time prepping.
Step 5: Divide
(Earnings - Expenses - Tax set-aside) ÷ Total Hours = True hourly rate
Compare to alternatives:
- Overtime at your current job (usually 1.5x your rate)
- A different side gig
- The value of rest and time with family
Sometimes the math says: overtime is better. Sometimes it says: this gig is solid. But you won't know until you calculate.
WHAT TO DO TODAY:
- If you're considering a side gig, estimate weekly earnings
- List every expense you'd have
- Estimate hours including travel/prep
- Do the math: is the true hourly rate worth it?
- Compare to overtime at your main job (your rate x 1.5)
