How to Start Side Gigs: A Simple Path to Extra Income

The average American side hustler earned $1,242 a month in early 2026, according to LendingTree’s 2026 survey. But the typical earner made far less. Bankrate’s 2025 survey put the median at just $200 a month. That gap explains most of what you need to know about side gigs.

So how do you start side gigs the right way? First, pick work that uses a skill people already pay you for. Next, find clients on a trusted platform or through your own network. Then price your time after fees, and set aside money for taxes from day one. Most people who struggle skip one of these steps.

In this guide, you’ll get a five-step plan, real platform fees, scam red flags, and US, UK, and Australian tax basics.

Key Takeaways

• Plan around the median, not the average. Most side gigs pay a few hundred dollars a month at first.
• Start with a skill someone already pays you for. It’s the fastest way to your first client.
• Platforms take a cut. Upwork charges freelancers 0% to 15%, and Fiverr takes 20%.
• Legit side gigs never ask you to pay before you get paid.
• Tax starts early: $400 of net profit in the US and £1,000 of income in the UK.

What Are Side Gigs, and What Do They Really Pay?

Side gigs are paid work you do outside your main job, such as delivery, freelancing, tutoring, or selling online. Most pay modest sums for a few hours a week.

People also call them side hustles, and the two terms mean the same thing. What matters more is how common they are and how much people earn. According to LendingTree’s March 2026 survey, 33% of Americans have a side hustle.

That’s down from 38% in 2025 and 44% in 2022. Still, those who have a side hustle rely on it. In fact, 61% say life would be unaffordable without that extra income.

The time commitment is smaller than many expect. The Federal Reserve’s household survey, fielded in October 2024, found that 20% of US adults did some gig work in the prior month. Of those, 70% spent under five hours a week on it.

Only 21% treated gig work as their main job. In short, most side gigs are part-time by design.

What most guides miss: the average is misleading.

Many “best side gigs” lists quote big monthly numbers. However, a few high earners pull those averages up. Bankrate’s 2025 Side Hustle Survey put average earnings at $885 a month. Yet the median was $200.

So set your first target near $200 a month. Treat anything above that as upside. This keeps you from quitting in month two because you didn’t hit a number that was never typical. Once your hourly rate climbs, you can raise the goal.

Step 1: Pick a Side Gig That Fits Your Skills and Schedule

The best first side gig uses a skill someone already pays you for. That cuts your learning curve and your time to the first payment.

Most side gigs fall into three broad groups. LendingTree’s 2026 data shows gig and on-demand work is the most common type (29%), followed by freelance and professional services (26%) and creative, content, and media work (23%). Here’s how they compare:

Side gig type	Examples	Startup cost	Time to the first payment	Income ceiling
Gig and on-demand work	Food delivery, rideshare, pet sitting	Low (phone, sometimes a vehicle)	Days	Capped by your hours
Freelance and professional services	Writing, design, bookkeeping, tutoring	Low	A few weeks	Grows as your rates rise
Selling and content	Resale, crafts, digital products, video	Low to medium	Weeks to months	Highest, but slowest

Now match a type to your life. Use these four steps:

1. List five skills you use at work or that friends ask you for help with.
2. For each one, ask: “Would a small business pay for this?”
3. Count the hours you can consistently dedicate each week. Be honest.
4. Pick the option with the shortest path to a paying client.

Here’s a simple example. An accountant can offer monthly bookkeeping to two local shops within weeks. By contrast, learning video editing from scratch could take months before anyone pays.

One contrarian point: don’t chase “passive” income first. Digital products and content can pay well later. But they rarely pay quickly. Start with active work, then build towards [passive income opportunities] (INTERNAL: passive income opportunities) once cash is coming in.

Step 2: Find Work and Price for Platform Fees

Start with one marketplace and one personal channel. Then raise your prices once reviews come in and build fees into every quote.

Marketplaces give you a stream of buyers. They also take a share. According to Upwork’s own fee comparison, Upwork charges freelancers a variable fee of 0% to 15% per contract, while Fiverr takes a flat 20% of everything you earn.

Delivery and rideshare apps work differently since they set the pay per job.

Your personal network costs nothing. For instance, post a short offer on LinkedIn, message past colleagues, or join a local business group. Your first client often comes from someone who already trusts you.

How to price your fees

Most beginners quote the rate they want to keep. Then the platform’s cut shrinks it. Instead, work backwards from your target:

• On Fiverr (20% fee): To keep $40 an hour, charge $50 ($40 ÷ 0.80).
• On Upwork at a 10% fee: To keep $40 an hour, charge about $44.50 ($40 ÷ 0.90).

Remember that withdrawal and currency fees can take a little more. So check each platform’s payout options before you set your rate.

Furthermore, read the rules about taking clients off-platform. Upwork, for example, restricts moving clients you met there. Use marketplaces for early reviews and proof. Then grow direct clients through your network and referrals.

For the tools that help you invoice and track work, see our guide to business tools for small teams.

Step 3: How to Spot Legit Side Gigs and Avoid Scams

Legit side gigs pay you for work. They don’t charge you to start. If a job offer requires you to pay money, provide cryptocurrency, or share your bank login information upfront, you should walk away.

This risk is growing fast. According to the US Federal Trade Commission, reported job scams rose to over 105,000 in 2024. That’s nearly three times the 2020 level, with reported losses above $513 million. The FTC also estimated that “task scams” made up nearly 40% of job scam reports in 2024.

Task scams operate similarly to a game. You’re paid small amounts to “rate” products or “boost” apps. Then you’re told to deposit your own money to unlock bigger earnings. That money never comes back.

Watch for these red flags:

• An unsolicited text or WhatsApp message offering easy, well-paid work
• A fee for training, equipment, a “starter kit,” or a background check
• Payment in crypto, or a check you must cash and send part of back
• Pay that’s far above the normal rate for the task
• A recruiter who does not use a company email address or conduct video calls raises a red flag.

Scammers now copy real brands, so a famous logo proves nothing. Instead, find the company’s official website yourself and apply there. Also search the company name plus “scam” before you share any personal details. These checks take five minutes and can save you thousands.

What if you’ve already paid? Contact your bank or payment app at once and ask it to stop or reverse the payment. Then report it to the FTC at ReportFraud.ftc.gov in the US, Action Fraud in the UK, or Scamwatch in Australia.

Step 4: Sort Out Tax Before Your First Payment

Side gig income is taxable in the US, UK, and Australia, and the thresholds are low. Track every payment and expense from day one.

Each country has its own rules. Here are the basics:

Country	Key rule	What it means for you
United States	You must file a return if net self-employment earnings reach $400 (IRS).	Self-employment tax of 15.3% applies on top of income tax.
United Kingdom	One £1,000 trading allowance covers all your side hustles combined (HMRC).	Above £1,000 in a tax year, you must tell HMRC and file
Australia	The ATO decides if your activity is a hobby or a business (ATO).	A business needs an ABN, and GST applies at an A$75,000 turnover.

No tax form doesn’t mean no tax.

This error is the mistake we see most often. In the US, payment apps and marketplaces only have to send Form 1099-K once you pass $20,000 and 200 transactions, a threshold the IRS confirmed in October 2025. However, you still owe tax on every dollar below that line.

The UK has a similar trap. The £1,000 allowance is not per gig. For example, £800 from content creation plus £500 from crafts makes £1,300, which is over the limit.

A simple habit helps. Move about 25% of each payment into a separate savings account. That’s our editorial guideline, not official advice, so please verify your rate with a local accountant.

For more money basics, read Business 101: core concepts every new entrepreneur must know.

Step 5: Protect Your Day Job, Time, and Energy

Review your employment contract before accepting a client and consider capping your weekly hours. A side gig that costs you your main job isn’t extra income.

Look for four clauses in your contract:

1. Outside work: some employers ask you to disclose or get approval for other jobs.
2. Conflict of interest: working for a competitor or client is usually off-limits.
3. Non-compete or non-solicit terms: these can block certain clients.
4. Intellectual property: work made on company time or devices may belong to your employer.

So keep things separate. Use your own laptop, your email, and your hours.

Next, protect your time. LendingTree found that 32% of side hustlers spend five to 10 hours a week on their extra work, while 24% spend 11 to 15 hours. Pick a fixed block, such as two weekday evenings and a Saturday morning, and stick to it.

Burnout is the hidden cost here. If your sleep, health, or main job starts to slip, cut hours before you add clients. A small gig you can keep beats a big one you quit.

Finally, review your numbers after 90 days. Divide what you kept, after fees and taxes, by the hours you worked. If one gig pays less than your floor, drop it and double down on the best one.

Some side gigs grow into full businesses, and 16% of side hustlers in Bankrate’s 2025 survey hoped theirs would. If that’s your goal, avoid these common startup mistakes.

Conclusion

Extra income is easier to build than most people think, but it’s rarely quick. Expect a few hundred dollars a month at the start, and treat bigger numbers as a bonus.

Your best opening move is a skill you already sell at work. From there, use one marketplace for reviews, price every quote with fees in mind, and grow direct clients over time.

Guard against scams with one simple rule: never pay to get paid. And handle tax early, because the thresholds in the US, UK, and Australia are lower than most beginners expect.

Starting side gigs doesn’t take a big plan. It takes a small, steady one. So here’s your next step: tonight, write down three skills a small business would pay for. Then post one clear offer on LinkedIn or a freelance marketplace by the end of the week.

FAQs On Side Gigs

1. Is a side gig the same as a side hustle?

Yes. Both terms describe paid work you do outside your main job. “Side gig” often points to short, task-based work like delivery or freelancing. “Side hustle” can also cover a small business you’re building. Tax rules treat them the same way.

2. How do I start a side gig with no experience?

Begin with low-barrier work like delivery, pet sitting, or simple online tasks through a trusted app. At the same time, learn one skill buyers want, such as bookkeeping or editing. Then use small paid jobs to build reviews before you raise your rates.

3. Do I need to pay taxes on side gig income?

Usually, yes. In the US, you must file if net self-employment earnings reach $400. In the UK, income above the £1,000 trading allowance must be reported to HMRC. Keep records of all payments and expenses from your first job.

4. How much can you realistically earn from side gigs?

Plan for modest income at first. Bankrate’s 2025 survey found a median of $200 a month, while LendingTree’s 2026 survey reported a $1,242 average. Skilled freelance work usually pays more per hour than app-based gigs, but it takes longer to start.

5. Can my employer stop me from having a side gig?

It depends on your contract and local law. Many contracts include clauses on outside work, conflicts of interest, or intellectual property. Read yours first. If it’s unclear, ask HR in writing or get advice before you take on paying clients.