If you are trying to achieve financial freedom from relying on your job alone, you might want to think again.
This year’s ongoing spate of layoffs has made one thing clear: Relying on a single job for money is no longer a safe bet in today’s world.
In 2024, companies across sectors announced mass layoffs, from startups like Shopback to global conglomerates like Citibank and Microsoft, and thousands of workers found themselves jobless overnight.
The hard truth is that your job is never 100 per cent guaranteed.
As the economic landscape grows increasingly volatile, relying solely on a single pay cheque leaves you vulnerable to the prospect of sudden and total income loss – a situation that could derail even the most disciplined of financial planners and most seasoned of the budget-conscious.
To ensure nothing can throw off your plans, it might be worth building multiple income streams through side hustles.
SIDE HUSTLES ARE NOT MOONLIGHTING
One of the biggest objections I hear from people about side hustles is that their full-time job does not allow them to have one.
Indeed, the idea of a side hustle often raises questions about legality especially in Singapore, where employment contracts frequently contain clauses against moonlighting.
However, there’s a distinct difference between moonlighting and doing a side hustle.
Moonlighting usually refers to taking on a second job in the same industry or that has clear conflicts with your primary employment, which could lead to breaches of your contract, particularly with regard to your company’s business interests.
A side hustle, on the other hand, typically involves non-conflicting activities that are unrelated to your employer’s industry and are often more passion-driven, such as freelance creative work or selling homemade goods online.
For instance, I taught tuition on the side throughout my 20s. At S$40 to S$70 an hour, it was good income that helped me clear my student debt and grow my savings faster.
Nevertheless, it’s always wise to check your employment terms before diving into a side hustle.
In most cases, your employer does not have the right to restrict you from engaging in passion projects during your free time outside of work. Some income-supplementing activities, such as investing in stocks or leasing your property, are clear-cut cases that do not fall under the umbrella of moonlighting.
If you’re still worried, there are always faceless options that do not require you to reveal your identity in order to start earning.
SIDE HUSTLES DON’T HAVE TO LEAVE YOU DRAINED
After a long day at work, the idea of having to dedicate extra hours to another paid task can be overwhelming.
However, when you start being intentional with your time, it may surprise you how much more you can achieve.
Start by examining your weekly schedule and identifying the time spent on unproductive activities that don’t enrich your life.
Do you spend your entire commute scrolling mindlessly on your phone? How many hours do you really spend binge-watching shows on Netflix?
Could you replace some of these with productive work for a side hustle?
For example, after she has put her baby to sleep each night, my friend spends an hour editing short-form videos for content creators as a freelance gig.
A side hustle doesn’t have to feel like a second job. It can be an opportunity to explore hobbies or try something new.
Love baking? Sell your creations on weekends or online. Skilled in writing or design? Freelance for small projects. Passionate about fitness? Why not become a part-time instructor at a gym or fitness studio – or even just to lead people in your neighbourhood while you get your workout in at the same time?
When you choose side hustles that align with your interest or natural strengths, passion projects can often energise you instead of depleting you further. In my case, I’ve always enjoyed writing – so this is a no-brainer.
Not only do these side projects add to your income, but they also bring fulfilment and can even grow into something bigger over time.
NOT ALL SIDE HUSTLES ARE TIME-CONSUMING
Contrary to popular belief, not all side hustles need a lot of your time and energy.
This is especially so in today’s digital economy, where anyone can set up an account to start doing affiliate marketing or be paid for user reviews.
For instance, you might already be sending online links of e-commerce listings whenever your friends or colleagues ask you where you bought your latest item. But rather than just sending them the shop link directly, why not take a few seconds to convert this to an affiliate link that pays you a small commission?
Some e-commerce platforms such as Shopee and Lazada already offer this function directly to users – for instance, by signing up on the site as an affiliate. My friend does this during her daily commute and has been consistently earning a few hundred dollars each month for the past year.
Others make extra cash by hitching their estate neighbours on their rides to and from work, along the same route.
The possibilities are endless.
Among the various streams of income that I’ve built up over the years, my favourite is dividends from Singapore-listed companies I’ve invested in through stocks.
These are almost effortless – other than the initial time and energy spent in analysing the stock before purchasing, I get to collect dividends for the next several years without putting in any extra dollars or hours.
RELYING ON ONE JOB IS NO LONGER ENOUGH
Relying solely on one’s full-time job might have been enough for the generations that came before us, but in today’s unpredictable world, this approach has become riskier than ever.
To properly protect your financial plans, diversifying and supplementing your income through side hustles, investments or other ventures is no longer just smart – it’s now absolutely necessary.
Dawn Cher, also known as Budget Babe, has been running a popular blog on personal finance for more than 10 years.
