A Little Bit Richer

Iona: Hello, and welcome to A Little Bit Richer, with me, Iona Bain, brought to you by L&G.

Now, with life so busy and living costs high, it can be hard to think of creative ways to boost your income with a side hustle. Here to help us think outside the box and unlock our potential to make some long- term extra income is Emmanuel Asuquo. At 22, Emmanuel became the youngest Barclays financial advisor in the country. Over the past 15 years, he's worked at RBS and NatWest, and then branched out into TV presenting on

Channel Four and the BBC. He’s written two bestselling books on money management, and has even spoken in parliament about the importance of financial literacy in schools. Welcome, Emman.

Emmanuel: Thank you for having me, Iona.

Iona: So we’re chatting about side hustles today.

Emmanuel: Yes.

Iona: They’ve been around for a while now.

Emmanuel: Yes.

Iona: What’s the situation at the moment with side hustles?

Emmanuel: With the cost of living crisis and everybody worrying about money and I think just living costs going up in general, I think side hustles have gone from a thing of people being a nice- to- have to a lot of people having- to- have just to maintain their lifestyle.

Since the pandemic, we have been cutting and cutting and reducing our costs and becoming more savvy and spending out less and eating out less and going on less holidays, I don't think there's anything left to cut. And so now, it's how do we increase our income, and side hustles have formed that way of us increasing our income to be actually able to enjoy life.

Iona: I think side hustles can sometimes get a bit of a bad rep. There’s some people who don't like the term side hustle, they think it sounds a little bit too harsh and clinical, and there are others that think that side hustle is shorthand for taking all the joy out of everything that you do and monetizing every last activity in your life. But do you feel that side hustles still have their place and can still be worthwhile?

Emmanuel: I think side hustles are so worthwhile, and I think what I've found is for a lot of people what was a side hustle has become their main hustle, and actually enabled them to have financial freedom, have time freedom, have life freedom.

And even if you might make less on your side hustle than you did employed, the fact that you're now able to spend more time with your kids or are now able to work from wherever you want in the world, that freedom and flexibility means that people are actually enjoying life and seeing life as a much better option, so I think side hustles are fantastic.

Iona: What’s a good starting point if someone is thinking about how they can make some extra cash?

Emmanuel: Oh, I love this. I always tell people I don't wake up in the morning thinking about how much money I can make, I wake up in the morning thinking who can I help, and as long as I can find people to help, I'll be able to make money, people will pay me for the help that I can give them. So for me, it's all about finding a problem and then finding a solution.

And a lot of the times, you will talk about things, " Oh, I wish that was better, that could do better, I could do better than that." And again, you’ve now found people that you can help, you found a community that you can help, and by helping them, you're able to help yourself. And I think that's the first place to start is, what's the problem I want to solve, can I solve it, do I have the skills, and who is the community that I'm going to help?

Iona: And when we’re thinking about side hustles, are we talking mainly about the online world here or can you have side hustles in person? What does a side hustle look like?

Emmanuel: Good question. Obviously, you’ve got your main work or whatever you do for your main income, a side hustle is I always call it what you do between 5:00 to 9:00. So you’ve got your 9:00 to 5: 00, and then your side hustle is what you do from 5: 00 to 9:00, and it's like, actually, outside of work, what is the things that I can do to make that additional income? And that may be, again, in person, service- based side hustles are excellent.

So for example, if you're an English teacher and then you can do tutoring, that's a side hustle and it's a skill that you have already. If you are a PA and you can then do executive PA in the evenings for small businesses, that's a side hustle, you haven't had to learn a new skill. All you’re doing is applying this skill you already have in another environment, and so that is the easy side hustle. Sometimes a side hustle can just be, actually, there's a problem, here's a solution, and now I can go on with it.

Iona: It’s a bit like inventing in the 21st century, isn't it?

Emmanuel: Exactly that. One of the big things about social media is that we feel like you need so many numbers, but actually, think about it. Someone will have 1, 000 followers and feel like that's nothing. Imagine 1, 000 people in one room or in one space, that's a lot of people that you're able to get access to, and not all of them have to buy from you.

And so, the problem with side hustles is we think we need so many customers, but actually, you only need a small community that you're able to service and you're able to make money from it, because again, it's on the side. This is not a full- time job, you're not trying to work eight hours in the day and then eight hours in the evening as well.

Iona: No, no.

Emmanuel: You’re trying to work a few hours in the evening to make a little extra money.

Iona: Because you need to make it sustainable.

Emmanuel: Exactly.

Iona: A lot of people do not want to get home from work and think, oh my goodness, I've got another eight hours ahead of me. So what are your tips in terms of actually making sure that the side hustle doesn't take over too much and become exhausting?

Emmanuel: I think it’s so important to really have a plan. For me, it’s about having boundaries, because again, I speak to people, especially when you've got kids, I've got four kids and I always tell people, my kids are really important to me, but I can't say my kids are important to me if I spend all my time working. If I don’t spend time with my kids, how important can they be? And I know sometimes, we want to make money for our kids, but there's an importance about being there.

So for me, as much as I love work and I'm busy, there has to be cutoffs, there has to be time for other things as well. And also, look at how much you actually want to make.

So one of the things is that as we start to get good at our side hustle, we start to make more, and then all of a sudden, because we make it more, we start to put more energy into it and we start to make more, and then all of a sudden, it becomes something that has taken over us, we're just chasing the money. And actually, this was only meant to be something on the side to support what you're doing during the day. And so, it’s really about having those boundaries.

I speak to Uber drivers, for example, and they'll always tell me, " I'm going to make X amount today, and once I make that, I'm on the way home. It don’t matter how many other journeys there are, how many other trip,? If I make that in the first three hours or I make that in six hours, once I've made what I need to make, I'm going home." And I think that's a great mindset to have of, what do I need to be making from this, and once I've made that, let me put it down.

Iona: We all need to listen to the Uber drivers, they've got the right idea. And also, what are your thoughts on doing a side hustle and it's something that you love, maybe it's a hobby or an activity that you've enjoyed in the past? On the one hand, it means you're motivated to do it, but on the other hand, I have heard from people sometimes that it can take a bit of the joy out of it. So what are your thoughts on that?

Emmanuel: Yeah, I agree, it can take the joy out of it. But at the same time, I think what's important is that if I'm doing what I love, there are times when I don't want to do it. So for example, me as a financial advisor, I love what I do, I love helping people with their finances and money. There are some days though that I'm going through life and life makes me feel like I really don't want to do this, but I still get up and do it, because I would do it for free, and because I would do it for free, why wouldn't I do it to get paid?

And so, for me, it's about doing something that you love is so important. So if you love football and then you create a football coaching side hustle, yes, kids can be annoying, parents even worse, but you love football, you love it, you love the sport, and so you're giving back to the sport and you're encouraging and empowering young people.

So I think, yes, there are going to be days when you're not going to enjoy it, yes, it's going to take some of the fun out of it, but also, the legacy that you build, because again, I can love football and I can love it for myself, but when I have now coached these kids and now they grow up and some of them go professional, or even if they don't, in the future, they're still calling you coach 10 years later, that will never stop. So I always say, if you love it, do it, and you'll enjoy the benefits.

Iona: You’ll figure it out.

Emmanuel: Yeah.

Iona: Some business ideas do need some money to get off the ground.

Emmanuel: Yes.

Iona: So what are your tips for starting a business on the side that is relatively low cost?

Emmanuel: Yes, I think so important. I always tell people, if you can do service- based side hustles, that normally reduces your costs. If you do product- based businesses, that's where it really becomes high cost, and so you have to think about then maybe looking at getting some investment or getting some support or crowdfunding, telling friends, family and so forth to come and support you, because it can really become a drain.

So I really say, if you're going to start, start off on a service- based business, something like gardening or car washing or stuff that maybe might be physical but not necessarily need a lot of money, because once you've bought the equipment, you're ready to go.

Iona: And if you have a service, is it enough to promote it through social media, or do you think that you need to do a little bit more to get the word out there?

Emmanuel: I think a little bit more is so needed. The algorithm is rude. I always tell people, the algorithm... I’ve been on social media a long time, when I first started, the reach that I could get when I only had 10,000 followers is so much more than now, and actually, the algorithm is only sending your stuff to very few people. I always tell people, you're one post away from going viral, but you could be 100 posts away, you actually don't know what's going to go. When you make that piece of content that you think is really going to go far, that's the one that doesn't do anything, and when you do that throwaway one that you don't even want to put it on there, that's the one that's going to fly.

So actually, it’s just about continually doing it and just being consistent. What I would say is find the community. So once I know the community, then I can find other people who have access to that community already.

So for example, I’m a financial advisor, so if I want to find clients, I will typically go to an accountant who will know people's finances and then I can help and support, or I'll go to a solicitor who then may have clients who might need financial advice and support. Actually, you can find people who already have the people that you're looking for, so that's really important. Once you know your audience, rather than you kill yourself to try and get there, find who's already in with that audience and see how you can collaborate and how you can make it easier for both of you.

Iona: That almost seems like a cheat code.

Emmanuel: That is the cheat code.

Iona: It’s allowed?

Emmanuel: It's allowed.

Iona: It about reaching those people where they're at with the services maybe that they're already using.

Emmanuel: Exactly.

Iona: And what are the most popular side hustles that you’re seeing at the moment?

Emmanuel: So I think the most popular ones are coaching, whether that be life coaching, career coaching. So let’s say I’ve got a senior job and there's someone that's junior that wants to get to the level, then you'll coach them their way through it.

Teaching, so whether I’m good at playing the guitar or the drums, then I teach lessons. If you have a skill that you can teach someone, those are really popular, because again, they can be done online, which means reduces your cost, means you can reach people across the world so you're not limited to your local area. So those are really, really popular.

Iona: Got you. So what about the tax implications of side hustles?

Emmanuel: Yes. This is the funny part, because I think sometimes, we think because we do the side hustle and because it's not work, we think we should have it all for free and it should all be ours and we're living in the Middle East where we don't pay tax. No, we here have to pay tax. So you’ve got your £1, 000 allowance, so up to £1,000, you don’t have to declare, but once you make over £ 1, 000... And that is profit, I think people need to understand, when we say that £1,000, that is profit.

So if you are selling old goods or things in your house and you're selling it for less than the value that you bought it for, even if you make £1, 000, that is not what's included, that doesn't count. But if you are going to charity shops or going and buying something for a lower price and selling it for more and you're making profit, that would count towards the £1, 000. And so, once you get over the £1, 000, that needs to be declared to HMRC.

Iona: And how do you do that?

Emmanuel: It depends how you’ve registered your company. Typically, for side hustles, you would be a sole trader. So a sole trader basically means you and your business are the same, so any money you make and any money in your business make is the same.

So what you would do is do a self- assessment return and you would then talk about the income that you've made from your side hustle. Some people will have a limited company, so if you're making more money from your side hustle, then you might have a limited company where you and your company are separate. So you’d then have to do a tax return for your company, and also then the company will pay tax, but then if you took money out of your company and paid yourself, you would then have to pay tax on that as well. So you have to bear that in mind.

Iona: Super, really helpful. And finally, what about passive income streams, what are they and how realistic are they for anyone who's listening or watching this?

Emmanuel: Passive income streams are the dream, they're like Midas's gold, they're what we're looking for. Basically, a passive income stream is where you put money into something and then it gives you an income each month, each year, without you having to go back and work for it, so your money's working for you. Now, it sounds really difficult and really hard, but there are some ways that you can do this.

So for example, I meet people who have a spare room, so you could rent out that room, no additional work, don't have to move anywhere, don't have to do anything, you could rent out that room, and every month, that room, or every week, depending on how you rent it out, could be making you money, so that could be considered passively. Or you could have a car, some people get a car and then they rent out that car, and again, they get an income from that car every single month.

So, it all depends on what you’re doing. But typically, I would say that most things, although they say they're passive, require work, anything that you're making money from needs to be maintained and tends to need to require work. So one of the big ones people talk about is owning a property and renting it out, but even if you rent out that property, even if you get an estate agent to manage that, there's still work to be done, because there may need to be updating to the property, there may need work that needs to be done, there may be times when the property is empty, you may need to help with the marketing.

There’s work to be done to really maintain that income and make sure that that grows and works on. So I’d say passive sounds amazing, but the reality is that there normally needs to be work to be done.

Iona: And also, often, you need an asset to begin with that you can benefit from, such as property or a car, and that's not a reality for a lot of younger people in particular.

Emmanuel: Exactly, and it’s something that you have to build up to. So I don’t think you need to die on that cross of, I need to get passive income. I think first of all, just start where you're at. And I think the hardest, hardest, hardest part of all of everything that we've said today is getting started, because there's the imposter syndrome, there's nobody will buy from me, who wants to buy what I've got to sell, and this already exists.

I always tell people, look at the bread aisle, the next time you go into a supermarket, go to the bread aisle. There is so many options of bread, and none of them said, " Well, bread already exists, so I'm not going to make a new one," and they're all being bought. So don’t worry about the fact that somebody else is doing a similar business or somebody else has a similar idea, you are unique, you are your superpower, you go out and do it.

Iona: The other thing is that I have seen, in recent times, a lot of people online marketing ways to get passive income, and I must say, a lot of those offers seem a little bit too good to be true. What are your thoughts on the passive income industry that's on social media these days?

Emmanuel: I think the problem is that we all want to dream. And I always tell people, anything that's worth it takes time and is hard work, you've got to do the work. And so, let’s really think about it. If I had this investment and I know that if we invest it, you're going to make a 100% return, why am I on the internet telling strangers? Wouldn’t I just keep this to me and my family members and we just enjoy life?

Iona: Oh, but Emman, they say that they don't want to gatekeep.

Emmanuel: And you have to really look into it, because a lot of the time, when you really dig deep, they're not making money from the thing they're telling you about, they're actually making money from the course. And that’s okay, but let’s be honest and open. And so, what’s really important is, yes, it’s great to get education, it's great to invest in yourself, but understand that it takes work and hard work.

If you’re not prepared to put the work in, don't follow the dream. Focus on what you can do, what you are doing. And remember, I always talk about personal finance, the clue is in the name, it's personal, so don't look at what other people are doing and how other people make money, understand your journey that you're on, your personal finance journey, and focus on that.

Iona: Great advice. Well, to finish, let's have three tips from you about what you can do to build your income with a side hustle.

Emmanuel: Okay. So number one, I think what's really important is, who can I help? Always focus on helping people. Business in general is all about helping people. So who can you help? Two, marketing. One of the biggest problems I find for most people when they build a side hustle is that they're only posting on Instagram or in their WhatsApp, that is not marketing. You really have to market, understand who's the audience that you're trying to reach and be noisy about it.

Doing one post a week, nobody cares, because if you understand how many posts are going out in the minute that you're sending, let alone the day, to get people's attention, you need to be noisy, so marketing is really, really important.

And then, three is about customer feedback. I think one of the big things that people feel when they do a side hustle is they don't actually ask people, " Why did you choose my service? How did you find my service? How can I improve?" The biggest companies improve through knowledge of their customers, because the people that are buying from you... We’re killing ourselves marketing to people that don't know you, yet you're not putting the attention to the people that are actually buying from you.

So actually focusing on those who are buying from you, those who are actually consuming your product, and ask them, " How can I improve?" And I promise you, you will get more sales.

Iona: Fantastic. Well, Emman, that’s all been incredibly helpful. It’s inspired me to go away and see, what can I monetize, what can I make into a side hustle, quick. Thank you very much.

Emmanuel: No, thank you.

Iona: Thank you so much, Emmanuel, that was really inspiring. Next time, we’re going to have financial psychotherapist, Vicky Reynal. She’ll be here to help us work out the psychology behind our spending. I would love it if you could follow the podcast, leave us a review, and help others get a little bit richer too. You can keep up with the show on YouTube, Instagram and TikTok @legalandgeneral. Thanks for listening. Until next time, see you soon.