How to manage your side hustle money & maximise your earnings

Have you been making some extra cash on the side, but you’re not too sure how to manage it? Well, you might not be alone as according to new research from GoDaddy, the average Aussie side hustle generates over $21,000 a year.

So, on top of your regular job, you’re probably wondering—how do you actually get that money working for you?

The best thing about having a lot of extra income isn’t splurging out (although a few of you might disagree), but actually giving yourself more breathing room. It’s good to always remember that money is a tool, and having a full belt is pretty handy.

Budget your expenses and side income 

So, if you haven’t already, make a budget so that you can figure out your total income and expenses. That way, you’ll know where your money vacuums are and you’ll be able to cut them back to more manageable levels. 

Another advantage to cutting discretionary spending is that, alongside all that side hustle money, you can make sure that you’ve got plenty going into savings, loan repayments, or whatever else you might have elected to funnel your money into.

Consider a high-interest savings account

Once you have a good handle on what you’re income and expenses are, it’s time to actually get that spare cash actually working for you. Most people don’t actively search for the best savings account they can get. But by searching you can set yourself up ahead of a lot of other savers.

One of the best kinds of savings accounts you can have is a high-interest savings account. To reap the full benefits of these accounts, you’ll usually need to meet certain conditions—this is known as a bonus rate. Some conditions are fairly simple, however, with some only requiring regular transactions or deposits.

Set financial goals for savings

It’s important to know what you’re saving your money for, and setting goals to save towards can help keep you motivated to stash away your cash every paycheck. You also don’t have to set grand goals or only one singular goal -  there are loads of ways of going about it.

Short-term or smaller goals you can set can be as simple as saving towards an emergency fund or a deposit for a car. Longer-term goals can be as big as a home deposit or simply building a nest egg of savings for retirement. 

Ready to get saving towards your goal with a high-interest savings account, but you don’t know which one you should use? At Mozo, we have dozens of savings account providers for you to compare so that you can get the account that works best for you.