Navigating a Career Change with a Side Hustle

Are you considering a career change? Looking for something more fulfilling in your professional life? Something that interests you and that you’re passionate about? Or perhaps you’re looking for that next step in your career and are ready for something more challenging. A side hustle can provide a pathway to a new career. The side hustle industry is booming in the US, with an estimated 45% of employed people working at a side hustle.¹ While many people use a side hustle to earn extra money, it can also provide a practical and strategic pathway to transition smoothly into a new field.

Changing careers can be a challenging prospect, but a side hustle can help you gain experience, acquire and hone skills in a new field without fully committing, and provide an opportunity to make new connections with professionals in the field. As a bonus, you can supplement your primary income, which can be important during a transition period. This blog post explores how you can leverage a side hustle to navigate a career change, set yourself up for success, and ensure financial stability.

Setting Yourself Up for Success

Transitioning from a side hustle to a full-time career requires strategic planning and execution. The first step is identifying a side hustle that aligns with your career aspirations. We’ve already mentioned choosing something you are interested in and passionate about. Another consideration is to research the opportunities for growth and income. Identifying specific side hustles that offer experience and skills applicable to your desired field is a crucial next step. As you move through the career transition process, some steps to take for setting yourself up for success include:

• Investing in learning and development to build the necessary skills for your new career. This could involve taking online courses, obtaining relevant certifications to bolster your credentials, and attending industry-specific events.
• Creating a portfolio that demonstrates your capabilities and showcases your work and achievements. Elements of a portfolio can include projects, testimonials, and case studies. This is essential for demonstrating your abilities to potential employers or clients.
• Networking to build your network of professionals in your new profession via LinkedIn; attending industry events such as conferences, webinars, and workshops; and joining associations related to your new career choice.

Planning for the Transition

Balancing a side hustle with a full-time job can be challenging. Effective time management is key. Some steps to consider: defining what you want to achieve with your side hustle and creating a timeline. Be sure to allocate specific times to your side hustle and stick to the schedule to help you maintain a healthy work-life balance and avoid burnout. Financial stability is a critical aspect of transitioning to a new career. Some tips for financial planning during the transition from a side hustle into a new career include:

• Create a detailed budget that accounts for all your income and expenses. Be sure to include the income from your side hustle and account for potential expenses during the transition, such as courses and networking events.
• Build an emergency fund to cover at least 3-6 months of living expenses. This will provide a financial cushion in case of unforeseen circumstances during your transition.
• Develop a savings and debt management plan to ensure you have enough funds to support yourself during the transition. If possible, if you have existing debts, create a plan to manage or pay them off during the transition.
• When you feel confident in your skills, network, and financial stability, it’s time to make the leap. If it is an option, consider transitioning gradually by reducing hours at your current job and increasing your commitment to your side hustle.

Final Thoughts

Using a side hustle to navigate a career change is a strategic approach that offers flexibility and skill development and can provide financial stability. Identifying appropriate side hustle opportunities, setting yourself up for success, and planning for the transition can help you seamlessly transition to your desired career. Remember, patience and perseverance are key. With the right mindset and preparation, you can turn your side hustle into a fulfilling full-time career. At Treehouse Wealth, we’re here to help you create a financial plan to support your significant life transitions.