A Raise or a Side Hustle?

Side hustles are often touted as a way to earn extra cash, but if you’re already working full-time, taking on an extra job can lead to burnout. For those who want to earn more money, is it really a better option to use your spare time tutoring or doing food delivery versus requesting a raise at work?

We asked two career experts how to weigh the trade-offs and how to know whether it’s better to ask for a salary bump or to start a side hustle.

A Raise Can Beat a Side Hustle

Career experts note that while gig work can be a useful way to supplement your income, it may not be right for everyone. You may not earn a substantial amount of money from gig work, and it may be overwhelming to juggle on top of a full-time job.

“I have seen side hustles that are generally lower hourly wages— like driving for Uber or picking up a bartending shift or two,” said Jessica McNamee, CFP and founder of Sirius Wealth Strategies. “I think it all depends on perspective. Ultimately, we all only have so much gas in our tanks.

Instead of splitting your energy between two jobs, McNamee suggests doubling down on your current role.

“People work so many hours in their primary position, and it takes even more time and energy to have a side hustle,” said McNamee. “If you can invest a little more with your [current] employer and achieve the same goal, I think that’s more efficient.”

When asking for a raise, she suggests that people ask themselves whether or not they think they deserve the raise and if they have the evidence to back up the request. If so, it could be a good time to have a conversation with your boss.

How to Negotiate a Raise

To negotiate, Vicki Salemi, a career expert at Monster, recommends that people come to the negotiation with research and data about what they’ve done for the company and the salaries for similar roles at comparable companies.

“Think less about needing the money and [about being] underpaid, and more about the value you add to the company in terms of revenue,” said Salemi. “Anything that’s measurable, quantifiable will help you [in negotiation]…. Be strategic, talk to your boss, think about the timing, and also try to have a conversation in person rather than on the phone or through a screen.”

When to Consider a Side Hustle Instead

However, if your request for a raise isn’t successful, you might need to go back to the drawing board. You might think about looking for a new job or getting a side hustle, experts advised.

“While this negotiation is happening, if the raise does go through—great—but keep your expectations in check…It can be a lengthy process. That’s why you should be actively interviewing, exploring other external, full-time job opportunities as well as a side hustle,” said Salemi.

To find the right side gig, McNamee recommends thinking about what you enjoy and what you could gain from it.

“If it’s possible to either A) find something that you enjoy to some extent, or you can at least have some fun doing or B) something that starts as a little side project, but could develop into another career path–that can be really exciting,” said McNamee.

This could mean monetizing a hobby. For example, if you love thrifting, you may consider opening a shop on a site like eBay or Poshmark to resell items you find. It could also mean doing a side hustle–like part-time consulting work, before starting your own consulting business.

The Bottom Line

Asking for and getting a raise at work might be a more effective and efficient way to earn extra money compared to a side hustle.

Before you request a raise, make sure to do your research: what have you contributed to your company? Is your salary on par with roles at similar companies in similar cities?

But if you don’t get a raise or must wait a long time to receive one, it could be a good idea to job hunt or consider getting a side hustle. Just make sure your side gig is worth the time and effort you’ll put into it and that it’s something you’ll enjoy.