---
name: side-hustle-advisor
description: |
  Side income planning covering skills assessment, market opportunity analysis, time investment vs income matrix, popular side hustles by skill type, legal and tax considerations for 1099 income, scaling strategies, and passive income ideas.
  Use when the user asks about side hustle advisor, or needs help with side income planning covering skills assessment, market opportunity analysis, time investment vs income matrix, popular side hustles by skill type, legal and tax considerations for 1099 income, scaling strategies, and passive income ideas.
  Do NOT use when the request requires professional financial advice or falls outside the scope of side hustle advisor.
license: Apache-2.0
metadata:
  author: foundry-skills
  version: "1.0.0"
  tags: "personal-finance entrepreneurship guide"
  category: "personal-finance"
  subcategory: "budgeting"
  depends: ""
  disclaimer: "educational-finance"
  difficulty: "intermediate"
---

# Side Hustle Advisor

> **Disclaimer:** This skill provides educational information about financial concepts and general guidance for personal financial planning. It does NOT constitute financial advice, investment recommendations, or tax guidance. Individual financial circumstances vary significantly, and the information provided should not be relied upon as a substitute for professional counsel. Always consult a qualified financial advisor, tax professional, or licensed financial planner before making financial decisions.

## When to Use

**Use this skill when:**
- User wants to start earning extra income through a side hustle
- User needs help identifying side hustle options based on their skills and time
- User wants to evaluate the financial viability of a side hustle idea
- User needs a plan to launch and grow a part-time income stream

**Do NOT use this skill when:**
- User wants to start a full-time business -- use business planning skills
- User needs tax help for side income -- use tax-assistant
- User wants passive investment income -- use investment-advisor

## Process

1. **Step 1:** Assess available time, skills, resources, and income goal
2. **Step 2:** Match user profile to viable side hustle categories
3. **Step 3:** Evaluate top options: startup cost, time to first income, income potential, scalability
4. **Step 4:** Create launch plan with first 30-day milestones
5. **Step 5:** Build financial tracking system for side hustle income and expenses

## Purpose

This skill helps users identify, evaluate, launch, and grow supplemental income streams. It matches users' skills, time availability, and goals to appropriate side hustle opportunities and provides practical guidance on legal, tax, and scaling considerations.

---

## Questions to Ask the User First

1. **Professional skills:** What do you do for your day job? What are your strongest professional skills?
2. **Other skills/hobbies:** What can you do well outside of work? (Creative, technical, physical, teaching, etc.)
3. **Time availability:** How many hours per week can you realistically dedicate to a side hustle?
4. **Time of day:** When are you available? (Evenings, weekends, flexible, specific hours)
5. **Income goal:** How much extra money do you want to earn per month? What is the purpose (debt payoff, savings, investing, specific purchase)?
6. **Investment budget:** Do you have money to invest upfront, or does this need to be zero-cost to start?
7. **Location:** Are you in an urban, suburban, or rural area? Do you want in-person or remote work?
8. **Physical capacity:** Are you able and willing to do physical work?
9. **Risk tolerance:** Are you comfortable with variable income, or do you need predictable earnings?
10. **Current employer restrictions:** Does your employment contract have non-compete or moonlighting clauses?
11. **Long-term vision:** Is this temporary income or something you want to potentially grow into a business?

---

## Skills Assessment Matrix

```
SKILLS INVENTORY
================
Rate yourself 1-5 in each area:

TECHNICAL SKILLS
  Writing / Editing:              ___
  Graphic design:                 ___
  Web development / Coding:       ___
  Data analysis:                  ___
  Video editing:                  ___
  Photography:                    ___
  Social media management:        ___
  SEO / Digital marketing:        ___

PROFESSIONAL SKILLS
  Teaching / Tutoring:            ___
  Consulting in my field:         ___
  Project management:             ___
  Bookkeeping / Accounting:       ___
  Sales:                          ___
  Customer service:               ___

CREATIVE SKILLS
  Art / Illustration:             ___
  Music / Audio:                  ___
  Crafts / Handmade goods:        ___
  Content creation:               ___
  Creative writing:               ___

PHYSICAL / PRACTICAL SKILLS
  Handyman / Repairs:             ___
  Cleaning:                       ___
  Driving:                        ___
  Cooking / Baking:               ___
  Fitness / Personal training:    ___
  Pet care:                       ___
  Landscaping / Gardening:        ___

TOP 3 STRENGTHS (skills rated 4-5):
  1. __________
  2. __________
  3. __________
```

---

## Time Investment vs. Income Matrix

### Side Hustles by Time and Income Potential

```
                        LOW INCOME              HIGH INCOME
                        ($200-500/mo)           ($1,000-5,000+/mo)
                    +------------------------+------------------------+
HIGH TIME           | Delivery driving       | Freelance consulting   |
(15-25 hrs/wk)     | Retail part-time        | Agency-style services  |
                    | Task-based gig work    | E-commerce business    |
                    | Event staffing         | Content creation (YT)  |
                    +------------------------+------------------------+
LOW TIME            | Online surveys (avoid)  | Tutoring specialist    |
(5-15 hrs/wk)      | Pet sitting            | Freelance writing      |
                    | Selling used items     | Web development        |
                    | Focus groups           | Online course creator  |
                    +------------------------+------------------------+

NOTE: Most side hustles start in the low-income column and can
migrate to high-income with time, skill development, and reputation.
```

---

## Popular Side Hustles by Skill Type

### Freelance Services (Skills-Based)

```
FREELANCE OPPORTUNITIES
========================
Skill                | Platforms              | Hourly Range  | Startup Cost
Writing/Content      | Upwork, Contently,     | $25-150/hr    | $0
                     | Medium                 |               |
Web Development      | Upwork, Toptal,        | $50-200/hr    | $0
                     | Codeable               |               |
Graphic Design       | Fiverr, 99designs,     | $25-150/hr    | $0-300
                     | Dribbble               |               |             (software)
Video Editing        | Upwork, Fiverr         | $30-100/hr    | $0-500
                     |                        |               |             (software)
Virtual Assistant    | Belay, Time Etc,       | $15-50/hr     | $0
                     | Upwork                 |               |
Bookkeeping          | QuickBooks ProAdvisor, | $25-75/hr     | $0-500
                     | Bench                  |               |             (certification)
Social Media Mgmt    | Direct outreach,       | $500-3000/mo  | $0
                     | Upwork                 | per client    |
Consulting           | Direct outreach,       | $100-500/hr   | $0
                     | Clarity.fm             |               |
```

### Teaching and Tutoring

```
TEACHING OPPORTUNITIES
=======================
Type                 | Platforms              | Rate Range    | Requirements
Academic tutoring    | Wyzant, Tutor.com,     | $20-80/hr     | Subject expertise
                     | Varsity Tutors         |               |
Test prep coaching   | PrepScholar, direct    | $40-200/hr    | Strong test scores
Music lessons        | TakeLessons, direct    | $30-80/hr     | Musical proficiency
Language teaching    | iTalki, Preply,        | $15-60/hr     | Language fluency
                     | VIPKid                 |               |
Online courses       | Udemy, Teachable,      | Varies widely | Expertise + content
                     | Skillshare             | ($100-10K+/mo)|  creation skills
Fitness coaching     | Direct, apps           | $30-100/hr    | Certification helpful
```

### Gig Economy and Service-Based

```
GIG ECONOMY OPTIONS
====================
Gig                  | Platforms              | Earning Range    | Requirements
Rideshare driving    | Uber, Lyft             | $15-30/hr gross  | Car, license, insurance
Food delivery        | DoorDash, UberEats,    | $15-25/hr gross  | Car or bike
                     | Grubhub                |                  |
Grocery delivery     | Instacart, Shipt       | $15-25/hr gross  | Car, phone
Pet sitting/walking  | Rover, Wag             | $15-30/walk      | Pet experience
                     |                        | $25-75/night     |
Handyman services    | TaskRabbit, Thumbtack  | $30-80/hr        | Skills + tools
House cleaning       | Direct, Handy          | $25-50/hr        | Supplies
Moving help          | TaskRabbit, Bellhops   | $20-40/hr        | Physical fitness
Photography          | Direct, Thumbtack      | $100-500/event   | Camera, skills
```

### Digital and Passive Income

```
DIGITAL INCOME STREAMS
=======================
Stream               | Platforms              | Income Range      | Startup Investment
Print-on-demand      | Merch by Amazon,       | $100-5,000/mo     | $0 (design skills)
                     | Redbubble, Printful    |                   |
Affiliate marketing  | Amazon Associates,     | $50-10,000+/mo    | Website ($50-200/yr)
                     | ShareASale, niche blogs|                   |
Digital products     | Gumroad, Etsy Digital, | $100-10,000+/mo   | Time to create
(templates, ebooks)  | Payhip                 |                   |
Stock photography    | Shutterstock, Adobe    | $50-1,000/mo      | Camera equipment
                     | Stock, iStock          |                   |
App / plugin dev     | App stores, WordPress  | Varies widely     | Development time
YouTube channel      | YouTube Partner        | $100-10,000+/mo   | Camera, time (long
                     |                        |                   |  ramp-up)
Newsletter/Blog      | Substack, ConvertKit   | $100-10,000+/mo   | Time (long ramp-up)
```

---

## Market Opportunity Analysis

### Validating a Side Hustle Idea

```
OPPORTUNITY VALIDATION CHECKLIST
================================
Idea: __________

DEMAND CHECK:
  [ ] People are searching for this (Google Trends, Keyword Planner)
  [ ] People are paying for this (competitors exist and charge money)
  [ ] I can find potential customers easily (specific target market)
  [ ] There's a subreddit/forum/community for this (engaged audience)

COMPETITION CHECK:
  [ ] Competitors exist (good -- validates demand)
  [ ] Market is not oversaturated (room for more providers)
  [ ] I can differentiate (niche, quality, speed, price, experience)
  [ ] Average ratings of competitors show room for improvement

FEASIBILITY CHECK:
  [ ] I can deliver this with my current skills (or learn quickly)
  [ ] I can start within 2 weeks (not months of preparation)
  [ ] Startup cost is within my budget: $__________
  [ ] Time requirement fits my schedule: ____ hrs/week
  [ ] Legal requirements are manageable (licenses, permits, etc.)

PROFITABILITY CHECK:
  [ ] Revenue per hour of work: $__________
  [ ] After expenses: $__________
  [ ] Scales beyond my time? (can I earn while sleeping?)
  [ ] Path to $__________ /month within ______ months?

SCORE: ____ / 16 checks passed
  12+: Strong opportunity -- proceed
  8-11: Promising but needs refinement
  Under 8: Reconsider or pivot
```

---

## Legal and Tax Considerations

### 1099 Income Basics

```
SELF-EMPLOYMENT TAX PRIMER
============================
When you earn $400+ in self-employment income, you must:

1. REPORT IT: All income, even without receiving a 1099 form
2. PAY SELF-EMPLOYMENT TAX: 15.3% (Social Security 12.4% + Medicare 2.9%)
   - This is in ADDITION to your regular income tax
   - You deduct half of SE tax from your AGI
3. PAY INCOME TAX: At your marginal tax bracket
4. PAY ESTIMATED TAXES: Quarterly if you expect to owe $1,000+
   - Q1: April 15  |  Q2: June 15  |  Q3: September 15  |  Q4: January 15

QUICK TAX ESTIMATE ON SIDE HUSTLE INCOME
=========================================
Gross side hustle income:          $__________
Deductible expenses:              -$__________
Net self-employment income:        $__________
Self-employment tax (15.3%):       $__________
Income tax (at your bracket ____%):$__________
TOTAL TAX on side hustle:          $__________
EFFECTIVE TAX RATE on side hustle: ____%

RULE OF THUMB: Set aside 25-30% of net side hustle income for taxes.
```

### Deductible Business Expenses

```
COMMON SIDE HUSTLE DEDUCTIONS
===============================
[ ] Home office (dedicated space -- simplified method: $5/sq ft, max $1,500)
[ ] Internet and phone (business use percentage)
[ ] Vehicle mileage (67 cents/mile for 2024, business use only)
[ ] Equipment and supplies
[ ] Software and subscriptions (used for business)
[ ] Marketing and advertising
[ ] Professional development (courses, books)
[ ] Business insurance
[ ] Transaction fees (PayPal, Stripe, platform fees)
[ ] Legal and accounting fees

KEEP RECORDS: Save all receipts and maintain a mileage log.
Consider a separate bank account and credit card for side hustle expenses.
```

### Legal Structure

```
BUSINESS STRUCTURE DECISION
============================
SOLE PROPRIETORSHIP (default):
  - No setup required
  - File Schedule C with personal return
  - No liability protection
  - Fine for most early-stage side hustles

LLC (recommended when earning $5,000+/year consistently):
  - Formation cost: $50-500 depending on state
  - Separates personal and business liability
  - No change in taxation (unless you elect S-Corp)
  - Adds credibility

S-CORP (consider when earning $40,000+/year from side hustle):
  - Can reduce self-employment tax
  - Requires payroll (salary to yourself)
  - More complex; requires accountant
  - Not appropriate for most side hustles initially
```

---

## Scaling Strategies

### From Side Hustle to Serious Income

```
SCALING FRAMEWORK
=================

STAGE 1: VALIDATE ($0-500/month)
  - Prove people will pay you
  - Get your first 3-5 clients/customers
  - Refine your offer based on feedback
  - Track your hourly rate: $__________ /hr effective

STAGE 2: OPTIMIZE ($500-2,000/month)
  - Raise your prices (you undercharged in Stage 1)
  - Systematize your workflow
  - Create templates, processes, standard deliverables
  - Build a portfolio or reviews
  - Effective hourly rate target: $__________ /hr

STAGE 3: SCALE ($2,000-5,000/month)
  - Choose a scaling strategy:
    a) RAISE PRICES further (fewer clients, higher value)
    b) PRODUCTIZE (sell templates, courses, digital goods)
    c) DELEGATE (subcontract or hire to increase capacity)
    d) AUTOMATE (build systems that earn while you sleep)
  - Build an email list or client pipeline
  - Consider if this could replace your day job

STAGE 4: BUSINESS ($5,000+/month)
  - This is no longer a side hustle; it's a business
  - Get an accountant
  - Consider LLC or S-Corp
  - Build systems for marketing, delivery, and client management
  - Create recurring revenue streams
```

### Passive Income Ideas (Semi-Passive)

True passive income requires significant upfront work or capital:

```
PASSIVE INCOME SPECTRUM
========================
MOST PASSIVE <-----------------------------------------> MOST ACTIVE

Dividend stocks    Digital products   Rental property    Freelancing
Index fund income  Online courses     Affiliate sites    Consulting
Bond interest      Print-on-demand    YouTube channel     Client services
REIT dividends     Mobile apps        Newsletters         Tutoring

Realistic expectation: Most "passive" income requires 100-500 hours of
upfront work before generating meaningful returns. Budget 6-18 months
before seeing significant passive income.
```

---

## Side Hustle Decision Framework

```
SIDE HUSTLE SELECTOR
====================
Answer these questions:

1. Primary goal?
   a) Quick cash (< 3 months) --> Gig economy, selling items, freelancing
   b) Steady supplemental income --> Freelancing, tutoring, services
   c) Build toward replacing day job --> High-skill freelancing, business
   d) Passive income eventually --> Digital products, content, investing

2. Strongest skill?
   a) Writing --> Freelance writing, blogging, copywriting
   b) Technical --> Web dev, data analysis, automation consulting
   c) Creative --> Design, photography, handmade goods
   d) Teaching --> Tutoring, courses, coaching
   e) Physical --> Gig economy, handyman, cleaning
   f) People/Sales --> Consulting, real estate, affiliate marketing

3. Hours available per week?
   a) Under 5 hours --> Micro-tasks, selling, very part-time freelancing
   b) 5-10 hours --> Freelancing, tutoring, content creation
   c) 10-20 hours --> Serious side business, multiple clients
   d) 20+ hours --> This is practically a second job

YOUR RECOMMENDED PATH: Based on answers [__], [__], [__],
consider: __________
```

---

## Output Format

When advising on side hustles, provide:

1. **Skills summary** -- User's top strengths and marketable abilities
2. **Top 3 recommendations** -- Specific side hustles matched to their profile, with reasoning
3. **Quick-start guide** -- For the recommended option: exact first steps for this week
4. **Income projection** -- Realistic range for months 1-3, 3-6, and 6-12
5. **Tax preparation** -- Set-aside percentage, quarterly payment dates, deductions to track
6. **Legal setup** -- Business structure recommendation and any required registrations
7. **Scaling path** -- How to grow from initial income to target income
8. **Warning signs** -- Red flags and common mistakes for the chosen hustle

## Example

**Input:** "I am a graphic designer working full-time. I have about 10 hours per week free and want to earn an extra $1,000-$2,000 per month. What should I do?"

**Output:**

## Side Hustle Plan: Graphic Designer

**Available time:** 10 hrs/week | **Income target:** $1,000-$2,000/mo | **Core skill:** Graphic design

### Top 3 Options Ranked
| Option | Startup Cost | Time to First $ | Monthly Potential | Effort |
|--------|-------------|-----------------|-------------------|--------|
| Freelance design (Upwork/Fiverr) | $0 | 2-4 weeks | $1,500-$3,000 | High client management |
| Template/asset shop (Etsy/Gumroad) | $50 | 1-3 months | $500-$2,000 | Front-loaded, then passive |
| Social media design packages | $0 | 1-2 weeks | $1,000-$2,500 | Recurring revenue |

### Recommended: Social Media Design Packages
Why: Recurring clients, predictable income, leverages your existing skill, and 10 hrs/week is enough for 3-4 clients.

### 30-Day Launch Plan
- Week 1: Create 3 sample social media packages (5 posts, 10 posts, 15 posts/month at $250, $400, $600)
- Week 2: Build simple portfolio page (Carrd.co, $19/year) with samples
- Week 3: Reach out to 20 small businesses in your network or local area
- Week 4: Onboard first 1-2 clients, refine workflow with templates

### Financial Tracking
Track separately from personal finances:
- Income per client per month
- Hours per client (target: 2-3 hrs per client)
- Effective hourly rate (target: $50-$75/hr)
- Set aside 25-30% for taxes on side income

## Edge Cases

- **Incomplete information:** Ask clarifying questions before proceeding. Do not assume details the user has not provided.
- **Out of scope requests:** Redirect to appropriate professional resources when the request exceeds educational guidance.
- **Conflicting requirements:** Present trade-offs clearly and let the user decide priorities.
