Household finances continue to be tight and most families are scrimping and saving everywhere they can, which begs the question: What can you do if you’re struggling to make ends meet, but can’t cut your spending any more than you already have?

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Cutting costs not enough? Here's how to start a side hustle that works Back to video

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You’re not alone if this question is keeping you up at night. Reaching for your credit card is not the answer. That might get you by for a few months, but your debt will get even harder to manage in the long term because your minimum payments will skyrocket. There’s no easy answer for fixing a disconnect between your budget and your spending, but you likely have more options than you think.

One choice is to go through all your expenses again — yes, again — and scale them back like you did for your emergency budget at the start of the pandemic. A lot of people came up with extremely thrifty ways to get by. Those habits could come in handy again now, especially if combined with increasing your income.

But if taking on extra shifts at work, changing departments to get a raise or finding a second job aren’t possible or don’t net you enough extra cash, it might be worth considering a side hustle to increase your household income.

A quick search online will turn up countless articles dedicated to side-hustle ideas. Sift through the various blogs with an open mind and jot down anything you might be able to do. Then, create a short list of your top two or three realistic options. If your goal is to generate extra income sooner rather than later, this will help you focus on bringing to life the ideas that best align with the talents and strengths you already have.

Next, think about how much time you have to commit to a gig. Consider what it would take to get it up and running, how much time you’ll need to spend on marketing and running the show, and the time needed to create the product or do the service.

It’s important to calculate the potential time commitment as realistically as possible to see how much you’d actually earn, but also to ensure that starting a particular side hustle doesn’t interfere with your primary source of income.

If it looks like time might be an issue, choose side hustles that complement what you already do. For example, double or triple the meal prep you’re already doing for your family and offer the additional portions for sale to a select group of friends or neighbours whose households have a similar kitchen to yours — that is, minimal substitutions or dietary restrictions to work around.

If you plan to run errands on specific days of the week, offer to add someone else’s errands to your list while you’re already out and about. Do you have a room or two that could be rented out to students? Or maybe you’ve got a friendly pooch who wouldn’t mind a friend or two along on their walks. Conversely, if you love jogging and a non-running neighbour with a high-energy pup, a four-legged running partner could be just the gig you need.

Starting a side hustle is a big commitment that could take you away from your spouse, kids and household commitments. If your extended family has offered to help or would like to spend dedicated time with your kids, now might be a good time to incorporate that into your family’s schedule.

Keep the lines of communication with your partner open to get their input, as well as to ensure they are on board with your plans. Ultimately, it will be up to them to pick up the slack and life is hard enough, so you don’t need to add any new reasons to argue.

One way to ensure you and your family are on the same page is to be clear about your goals and why you’re starting the side hustle. Do you want to use the extra money to pay off debt, create breathing room in your budget or fund a special event such as a wedding or bucket list getaway? Maybe you need the extra money to help one of your kids through school or to give back in your community.

Or perhaps you have always wanted to become your own boss. Countless small-business owners tested the waters first with a side hustle before leaving a steady paycheque in favour of their own business venture.

There’s a lot to consider when starting a side hustle or entering the gig economy. In addition to all your creative energy, you’ll need to consider tax implications, and whether you need any special licences, equipment or insurance.

But don’t let a long checklist of to-dos deter you from getting started. Use social media to connect with others who are doing what you plan to do and ask them for advice. If your city has an active small-business community, join relevant associations to find out about mentorship opportunities.

Ensure that your reason for pursuing a side hustle aligns with your lifestyle and long-term goals. You’re more likely to stay committed when you have a clear understanding of your motivation, even when faced with challenges. Remember, your side hustle should be a source of inspiration and fulfilment, not just a means to an end.

Sandra Fry is a Winnipeg-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt for more than 27 years.