Moonlighting to Supplement Your Income
Moonlighting to Supplement Your Income
Because of the lack of available credit since the housing collapse, and the broader poor economy, more and more people are moonlighting to generate a second income to survive. Before the recent economic slump people mostly moonlighted to buy luxury items.
There are various forms of moonlighting. Ranging from having a second job, becoming self-employed, or being someone skilled at what they do and offer their service to anyone outside the normal hours of their day job.
The latter type of moonlighting may be a win-win situation for both the consumer and the moonlighter.
First, the consumer gets a professional job done at a fraction of the cost of hiring a company that the professional works for.
Secondly, the benefit to the moonlighter offering their service outside of normal work hours. Specifically, not having to take time off work, and receiving greater compensation for their time compared to doing the job through their company.
However, there are risks to consider for both the consumer and the moonlighter.
For the consumer wishing to use the services of a moonlighter it only makes sense to use someone highly recommended and who is insured for the work being performed.
The greatest risk is on the moonlighter
The moonlighter risks being let go if their employer finds out they are competing in the same field. The moonlighter would do well to review their employment agreement.
The moonlighter needs to have the correct liability insurance for their trade to cover accidents and omissions.
Another type of moonlighter is one who start their own online business, and there are more and more like this every day. The possibility of making a substantial second income online has a big draw.
Regardless of the type of moonlighter, the objective is to make money. This can’t be stressed enough, when you make money you must keep records. You must record all revenue and expenses in order to meet your tax obligations.
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