HOW TO START A SIDE HUSTLE make extra mo AND

Whether it’s renting a spare room on Airbnb or doing odd jobs through Airtasker, working in the sharing economy can be a major income earner or cash booster for some, discusses financial planning expert Helen Baker.

If planned and structured well, it can make a real change to your financial situation. But flying in without considering costs or personal security, could be dangerous. Take the time to think about your options. Time spent researching and planning is always a good investment. Whether it’s your primary income or you’re testing the waters, there are a few dos and don’ts to maintain financial security in the sharing economy.

DON’T SACRIFICE YOUR PERSONAL FINANCES

Know your limits and how much you want to invest to make it work. You’re effectively starting a new business. In the initial set up, you will invest your own money. After that, draw a clear line between business and personal finances.

Think about whether you run the business in your own name, as a trust or as a company. This decision could determine whether you are personally liable for any debts. Understand your finances: what’s coming in, what’s going out, what you owe and what others owe you. This will help you avoid costly mistakes.

DO GET INSURANCE

Maintain your income protection insurance to protect against sickness or injury, trauma and TPD (Total and Permanent Disability) insurances. You might also need professional indemnity