MONEY: JOB PLUS A SIDE GIG? AVOID THESE MISTAKES

At the beginning of the year, many people have their eyes set on goals.

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Some of these goals may include increasing your income, starting a dream business, or both if you're reaching for the stars.

Before you get your hands dirty in the sometimes chaotic combination of formal employment and entrepreneurship, here are a few pitfalls to avoid.

NOT HAVING A PLAN FOR YOUR SIDE HUSTLE INCOME

People get side hustles for different reasons. It could be to help make ends meet, save toward a dream vacation or grow your business to a point where you can quit your job. Catching up on my retirement savings is one reason I decided to start a side hustle.

But you need a plan for that motivation to help make your side gig worthwhile. Think about having goals for your income and a strategy in place to help you achieve those goals.

For instance, you could divert funds from your side hustle into retirement savings accounts like an IRA. This is a way to put away more for retirement, and you could reduce your taxable income, depending on how much you make, because contributions may be tax-deductible.

The plan I conjured up thanks to my side gig income is increasing my 401(k) contributions at my full-time job so I'm on track to max out that account this year. I also opened a SEP IRA, a simplified employee pension plan, for 2023 to put more money away for retirement and potentially reduce my taxable income.