More than a few of today's successful businesses started as side hustles. Even if they don't lead to full-time careers, the added income can give practitioners welcome financial breathing room.

Real estate investor Tom Brickman has turned his side-hustle passion into a lucrative profession in personal finance. Along with money experts at consumer credit reporting company Experian, he offered tips and tricks that have helped him side-hustle his way into real estate and more.

"A side hustle is any other form of income outside your normal 9-to-5 income," Brickman said. "I do real estate, flip merchandise and coach. I have friends who watch dogs, bake cookies and create YouTube content as their side hustle. Options are endless. Just start."

He has favorite content-creation side hustles:

• Bloggers
• YouTube
• Twitter

"Pick your passion and go with it," Brickman said. "I have a friend making $1,000 a month walking dogs as a side hustle. Another decorates cookies. Side Hustle Queen is a great source."

The Ask Experian blog looks at how to make extra money from home, including food delivery driver, social media influencer, online tutoring, daycare or babysitting, and more.

There is no bright line that marks if you are ready to transition from side hustle to full-time career.

"Test the waters," Brickman said. "I spent two months just living on rental income to make sure I'm ready to leave my 9-to-5. Make sure that side hustle makes you happy. No sick days are available when you are the boss."

Telltale Signs for Change

Experian's experts said the move to full time is a personal decision, but there are signs you might be ready:

• You consistently bring in enough money to replace your income.
• You have a savings safety net.
• You have a plan to cover the benefits your full-time job may have provided.

Any transition incurs personal and financial considerations.

"The details are important," Brickman said. "Cost of healthcare, business and insurance all need to be factored in before the side-hustle transition happens."

Debt Free Guys™ looks at the pros and cons of starting a side business.

Experian lists factors influencing a career transition:

• How many hours per week will you be working?
• Can you do it all or will you need a team?
• How will you measure your success?

"I track finances through an app on my phone, including rents, expenses and bills," Brickman said. "I also use Stessa to track the value of my assets."

Experian recommends keeping business finances separate from personal finances by opening a separate bank account for the business. You can also open a business credit card to build your business credit and track business expenses.

Changing a career and owning a business is an emotional experience.

"This has been a struggle for me," Brickman said. "I've been working with Debt Free Guys to ease the transition. I run the numbers with multiple different factors, and I'm ready. The guys are coaching me over the finish line."

Built-In Bounce Back

A CNBC article stresses resiliency, making these points:

• Every day will be a very different road than what you envisioned.
• Be OK with change.
• Be OK with pivoting.
• Be OK with falling down and getting back up quickly.

"Common mistakes I witness often are unrealistic goals, unattainable numbers and not taking the human element into consideration," Brickman said. "When you collect rent from 15 people, it's likely not everyone will pay early or on time every month. Life happens. Be ready."

Experian cited other frequent startup miscues:

• Lack of organization
• Failing to set up your business properly financially
• Overworking yourself
• Not setting enough money aside for taxes

Additionally, Experian has pro tips to separate business credit from personal credit:

• Be sure you use your business credit for your expenses.
• Set up your business as a separate entity.
• Obtain a federal Employer Identification Number.
• Have a business account in your legal business name.

The Ask Experian blog has more about establishing business credit.

"The best way to safeguard your small business during an economic downturn is to diversify," Brickman said. "My resale business dramatically dropped off at first during the pandemic because no one bought makeup. Yet, after a few weeks we had sold over 1,000 thermometers that we had in stock."

How to Play Safe

Experian gives safeguards for small business:

• Protect your cash flow.
• See if you can source materials or services at a better price.
• Emphasize areas of your business where you are most successful.

Regardless of preparation, there are downsides to transitioning from side hustle to a full-time career.

"The passion you once had as a side hustle can disappear if you turn it into a full-time business," Brickman said. "Make sure to pay yourself first. Take mental health days when you get overwhelmed. This has helped me thrive."

As Experian noted, one major stressor is the responsibility to succeed in your endeavor. Sometimes there is no easy way to separate your personal life and your entrepreneurial role.

Brickman said hesitation is the bane of an entrepreneur.

"Stop waiting," he said. "Start building your clients now. If you enjoy your side hustle, go for it."

As an added resource, Side Hustle Queen has 49 side hustle ideas to make money.

About the Author

Jim Katzaman is a manager at Largo Financial Services and worked in public affairs for the Air Force and federal government. You can connect with him on Twitter, Facebook and LinkedIn.

Disclaimer

This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.