Have you mastered budgeting, while cutting unnecessary spending? However, are you still living paycheck to paycheck?
If you own a car, consider this flexible side hustle to add extra cash to your pockets. Driving for Uber or another ride sharing service has never been simpler or quicker to generate additional income.
How to Get Started
No matter if it is to pay off debt, build an emergency fund, or save for retirement – having a side hustle can help you meet all of these financial goals more easily. Unfortunately, however, with all the different side hustle options out there it can be daunting trying to determine where exactly to begin.
Uber and Lyft rideshare apps make driving for these ridesharing companies one of the most attractive options available to car owners with smartphones, enabling drivers to connect passengers in their area with drivers nearby and provide rides based on distance and time taken, plus per-minute fees for driving in busy areas or during rush hour periods. Drivers will earn money based on each trip taken; you’ll earn extra based on driving longer trips during busy periods such as rush hour – plus additional bonuses may apply!
As part of your vehicle requirements for service with any company, and to pass background checks, it is necessary to keep up-to-date on local events, festivals, or tourist hotspots that could increase demand for rides. By adhering to any rider tips that your city provides and keeping an eye out for any updates to service that could increase earnings potential, it will help maximize earnings potential.
Uber Eats or DoorDash delivery apps offer another avenue for freelance delivery work, as these side hustles require vehicles capable of transporting large items like trucks or SUVs, giving you flexibility when it comes to scheduling deliveries during both daytime hours and evening times.
Make extra cash by helping people move. Companies like Dolly and Lugg provide paid gigs for people willing to provide muscle or transport boxes – these gigs tend to be most popular on weekends when people need assistance moving, and often pay well.
Side hustles can also be great for your health, providing much-needed exercise during an otherwise sedentary job or recovery from surgery. They also allow you to pursue passions more fully while speeding up financial goals like retirement savings or debt payoff. Just be sure that when selecting one that’s suitable for you – weighing the various options carefully first is key!
Insurance
Driving for Uber or Lyft can be an excellent side gig that brings in extra income, but before diving in you should carefully consider some of its expenses.
Saving for big purchases, paying off debt or just making ends meet during record inflation are all reasons to pursue side hustles as an essential part of America’s economy. And with more and more people adding jobs to their portfolios, there are endless possibilities available to you for earning extra cash – babysitting, grocery delivery services or renting your home out on platforms such as Turo and HyreCar being some of the more popular side hustles available today.
Your research and planning can lead to an opportunity to create a side hustle that fits into your schedule, giving you financial independence. Side hustles also serve as an excellent opportunity to network and gain experience in your field – plus can often provide skillsets necessary for career or financial independence goals.
Before diving in with any side hustle, carefully assess your insurance needs. Certain activities could put your regular auto, home or renters insurance at risk; and in certain instances a separate commercial policy may be required for revenue-generating activities.
Uber or Lyft driving can be an excellent side hustle; however, their profitability largely relies on customer demand; if there’s not enough demand to support profits or even break even.
Your expenses must also take into account gasoline, vehicle wear and tear and any additional fees the company imposes, such as fuel surcharges to help drivers offset rising gas prices. If delivering on-demand food services such as Uber Eats or DoorDash deliveries is your goal, special rideshare/commercial auto policies must be in effect and perhaps also a commercial license may be needed.
Cottage food sales require special licensing from your state’s Department of Agriculture or health department, with some processed meat products not qualifying as cottage foods. A commercial general liability (CGL) insurance policy could protect you against lawsuits related to running a cottage food business.
Taxes
One of the first steps when starting a side hustle is establishing your budget. This involves determining how much time and resources can be dedicated to this venture, what start-up costs will incur and when payments will come. Another factor to keep in mind when considering any side hustle is taxation: depending on its nature and payment methods, taxes could play a vital role in either its success or failure.
Uber and Lyft drivers must account for fees like city and state taxes as well as fuel surcharges when earning their fare. When combined with car insurance premiums and maintenance expenses, drivers often find themselves struggling financially.
As independent contractors, rideshare drivers have the benefit of deducting many expenses from their taxable income. By tracking expenses throughout the year and keeping track of them all year, it will become much simpler to calculate what amount needs to be set aside for tax payments in April. Common deductions include fuel, vehicle maintenance fees, insurance premiums and mileage fees as well as snacks or bottled water given out as services to passengers.
To help estimate how much savings is necessary, utilize an app like SherpaShare or similar tax preparation software which helps calculate taxable income and allows you to enter expenses you’ve incurred. This will give you a clear picture of your true profit so that you can adjust withholding or make quarterly estimated tax payments accordingly.
Not only should you save for taxes, but you should also set aside enough funds in an emergency savings account in case unexpected costs such as doctor visits or tire replacement arise. Many drivers find the best way to decrease the risk of running out of money is diversifying their income sources; for example if you drive for Uber consider registering with Lyft as well for greater earning opportunities.
Car Maintenance
Many people turn to side gigs to earn extra income for various reasons. Perhaps they need extra funds for an important purchase or event in life, pay down debt or simply make ends meet between paychecks. Whatever their motivation may be, having multiple sources of income – passive such as babysitting or active such as driving for Uber – can help accelerate reaching financial goals faster.
Uber driving is an immensely popular and profitable way to make extra income on the side. Offering flexible hours, immediate payment and 24/7 support services if needed – Uber has even added an incentive for drivers who use dashcams during rides so as to protect passengers from scammers!
Before signing on as an Uber or Lyft driver, it’s essential that you fully comprehend the costs involved. Unlike full-time taxi drivers, Uber and Lyft don’t pay hourly; rather they charge per fare. Therefore, budget for fuel costs, wear and tear repairs and cleaning supplies in addition to rideshare insurance costs that may add up quickly.
If Uber isn’t right for you, there are other ways of earning a steady income with your car. Consider grocery delivery through services such as Instacart and DoorDash or complete restaurant deliveries for Uber Eats/UberXL as they have higher earning potential than driving Uber itself. With increased income generated from driving your own car comes quicker financial freedom!