Side Hustles · Earn Extra Income
Side hustles that fit real life
What Americans actually do for extra money, what it costs to start and the rules to know.
The best side hustle ideas are the ones that fit the hours you actually have, use a skill or asset you already own and cost little to start. The Federal Reserve’s household survey shows that most people earning extra money do exactly that: a few hours a week, selling, driving or doing short tasks.
In the Federal Reserve Board’s 2024 Survey of Household Economics and Decisionmaking, fielded in October 2024, 20% of U.S. adults said they earned money from a gig activity in the prior month. Selling items was the most common at 13%, and 9% did short-term tasks such as giving rides, delivering takeout or doing odd jobs. Only 21% of people doing gigs called it their main job.
This guide turns that data into a practical list. For each idea, you will see the startup cost, how people find customers and the California permits or taxes that apply. Pick one, test it for 30 days and keep records from the first dollar.
What Americans actually do for side income
The Fed groups gig activities into selling, renting and short-term tasks. Most sellers were clearing out things they already owned, but a meaningful share sold goods they bought to resell or made themselves.
Gig activities in the prior month, share of all adults
Source: Federal Reserve Board, Economic Well-Being of U.S. Households in 2024 (survey fielded October 2024). Respondents could choose more than one activity.
Gigs are mostly part-time by design. In the same survey, 96% of people doing gig activities spent fewer than 35 hours a week on them, and 70% spent fewer than five hours. Fifty-five percent agreed that the work gave them flexibility, while a lower 35% said it gave them work-life balance.
Hours a week spent on gig activities
- 70%Under 5 hours
- 26%5 to 34 hours
- 4%35 hours or more
Source: Federal Reserve Board, 2024 report. The 5-to-34-hour share is calculated by Inksight from the report’s 96% (under 35 hours) and 70% (under five hours) figures.
12 side hustle ideas with real demand
These ideas follow the activities people already earn from, plus services that small businesses buy every week. No list can promise income; demand depends on your area, your price and your follow-through.
Selling and making
- 1. Reselling. Buy underpriced items at thrift stores, estate sales or clearance racks and sell them online. Start with a category you know, such as sneakers, tools or vintage clothing.
- 2. Handmade goods. Jewelry, candles, prints, woodwork or sewing projects sold online and at weekend markets. Price for materials, fees and your hours, not just materials.
- 3. Home-based food. Bread, cookies, jams and other approved low-risk foods under California’s cottage food rules (details below).
- 4. Renting what you own. Cameras, party equipment, tools or a spare room. Check your lease, insurance and local rules first.
Services people book
- 5. Rideshare and delivery. Fast to start if you have a reliable car and a clean record; track every business mile from the first day.
- 6. Pet sitting and dog walking. Low startup cost and repeat customers; reviews and referrals drive growth.
- 7. Cleaning, yard work and handyman tasks. Steady local demand. California requires a contractor’s license for larger jobs, so learn the limits before you bid.
- 8. Tutoring and lessons. School subjects, test prep, music, languages or sports, in person or online.
Skills small businesses pay for
- 9. Bookkeeping and admin help. Invoicing, data entry and monthly reconciliations for owners who would rather sell than do paperwork.
- 10. Social media and content. Posts, short videos and photos for local shops. See our Instagram for business guide for what owners need.
- 11. Writing, design and web updates. Menus, flyers, websites and product pages.
- 12. AI-assisted services. Using AI tools to deliver faster drafts, transcripts or research for clients, with your own review on every deliverable.
Compare the startup cost and the rules
Side hustle ideas at a glance
| Idea | Startup cost | What to check in California |
|---|---|---|
| Reselling | Low: inventory you buy | Seller’s permit from CDTFA for retail sales |
| Handmade goods | Low to medium: materials, booth fees | Seller’s permit; city business license |
| Home-based food | Low to medium: packaging, labels | Cottage food registration or permit with your county environmental health office |
| Rideshare and delivery | Medium: car costs, insurance | Platform rules; commercial use on your auto policy |
| Pet care, cleaning, yard work | Low: supplies | City business license; liability insurance |
| Tutoring and lessons | Low | City business license if you work from home |
| Bookkeeping, content, design | Low: software, laptop | Clear written agreements with clients |
| Renting equipment or space | Uses what you own | Lease, HOA and insurance terms; local rental rules |
In the City of Sacramento, a home-based business generally still needs a business operations tax certificate; our Sacramento business license guide walks through the steps. Other cities in the region have their own versions.
The cottage food option
California lets a Cottage Food Operation prepare and package certain non-potentially hazardous foods in a private home kitchen. The California Department of Public Health keeps the list of approved foods, but you register or get a permit from your local environmental health department, which in Sacramento County is the county’s Environmental Management Department.
- Class A sells directly to the public, including by phone or online. CDPH lists current maximum gross annual sales of $75,000.
- Class B can also sell indirectly through restaurants and markets. CDPH lists current gross annual sales of $150,000.
- CDPH posts an adjusted sales limit for 2026; check the current figure before you plan around it.
Taxes start with the first dollar
Side hustle income is taxable whether or not you get a form. The IRS says you must report all income, and self-employment tax of 15.3% applies once net earnings from self-employment reach $400 in a year. Payment apps and marketplaces send a Form 1099-K only when payments exceed $20,000 in more than 200 transactions, the threshold restored by the One, Big, Beautiful Bill.
One month of a reselling side hustle (illustrative)
Illustrative example. Set aside part of every profit for federal and California income tax plus self-employment tax; our side hustle taxes guide and quarterly estimated taxes guide explain how much and when.
Plan for uneven months
Side income rarely arrives in equal monthly checks. In the Fed’s 2025 survey, fielded in October 2025, 58% of self-employed adults said their income varied from month to month, and 22% struggled to pay bills because of it. Among people who worked for someone else, 28% reported varying income and 10% struggled as a result.
Income that varied month to month, by type of work
Source: Federal Reserve Board, Economic Well-Being of U.S. Households in 2025 (May 13, 2026).
The fix is simple and boring: open a separate account for the side hustle, move a fixed share of each payment into savings for taxes and keep a small cash cushion before you buy more inventory. Our business bank account guide covers the options.
How to pick and test one idea in 30 days
A 30-day side hustle test
- List what you already haveSkills, a car, tools, a kitchen, a following, free evenings. The best idea usually starts there.
- Pick one idea and one customerWrite one sentence: who pays, for what, at what price.
- Check the rulesSeller’s permit, city business license, cottage food registration or insurance, depending on the idea.
- Sell before you spendTake five orders or book five clients before buying equipment or ads.
- Track every dollar and hourA spreadsheet is enough: income, costs, miles and hours worked.
- Review at day 30Divide profit by hours. Keep it, raise prices or switch ideas.
In the Fed’s 2025 survey, one in four workers used generative AI at work in the prior month, and 81% of users agreed it saves them time. Use it for listings, quotes and schedules; see our ChatGPT for small business guide. Check every fact and price yourself before a customer sees it.
Common mistakes
- Counting sales as profit. Fees, shipping, supplies, mileage and taxes come out first.
- Skipping the permits. A seller’s permit, a city license or a cottage food registration is cheap compared with penalties.
- Mixing money. One account for personal spending and one for the side hustle makes taxes far easier.
- Pricing by the hour you hope for, not the hours it takes. Time a real order before you set a price.
- Ignoring your employer’s rules. Read your job’s conflict-of-interest and moonlighting policy first.
Key terms
- Gig activity: the Fed’s term for selling, renting or short-term tasks done for money outside a traditional job.
- Seller’s permit: a California registration with CDTFA for businesses that sell taxable goods at retail.
- Cottage Food Operation: a California home-kitchen food business registered or permitted by the county.
- Form 1099-K: a report of payments received through payment apps, marketplaces or card processors.
- Self-employment tax: Social Security and Medicare tax on self-employment profit, 15.3% in total.
The bottom line: the side hustle ideas that last are small, specific and measured. Start with what you already own or know, follow the California rules for your idea, set money aside for taxes and judge the result by profit per hour after 30 days.
Free help in the Sacramento region
You do not have to work through these decisions alone. SCORE Sacramento pairs owners with volunteer mentors, many of them retired executives, bankers and accountants, at no cost. The Sacramento Valley Small Business Development Center offers free one-on-one advising on financing, budgeting and financial statements. The SBA’s Sacramento District Office can explain loan programs and connect you with lenders, and community lenders such as California Capital and Opening Doors serve owners who need smaller loans or extra support. Browse our Business Resources and the free business help guide for more.
Key takeaways
- 20% of U.S. adults earned money from a gig in the prior month (Fed survey, October 2024).
- Selling things (13%) and short-term tasks (9%) are the most common side hustles.
- 70% of gig workers spend under five hours a week; only 21% call it their main job.
- In California, check for a seller’s permit, a city business license or cottage food registration.
- Self-employment tax of 15.3% applies once net earnings reach $400; 1099-K forms start above $20,000.
Frequently asked questions
What is the most common side hustle?
Selling things. In the Federal Reserve’s survey fielded in October 2024, 13 percent of adults earned money by selling items in the prior month, mostly things they already owned, ahead of short-term tasks such as rides and delivery at 9 percent.
How many hours do people spend on a side hustle?
Most spend very little. In the same Fed survey, 70 percent of people doing gig activities spent fewer than five hours a week on them, and 96 percent spent fewer than 35 hours.
Do I need a permit for a side hustle in California?
It depends on the idea. Selling taxable goods generally requires a seller’s permit from CDTFA, most cities require a business license or tax certificate, and home-kitchen food sales need cottage food registration or a permit from your county environmental health office.
Do I have to pay taxes on side hustle income?
Yes. All income is reportable even without a form. Self-employment tax of 15.3 percent applies once net earnings reach 400 dollars, on top of federal and California income tax.
What side hustle ideas cost the least to start?
Service ideas such as pet sitting, tutoring, cleaning, bookkeeping help and content creation usually need only supplies or a laptop. Reselling can also start small with a few items you already own.
Sources
- Federal Reserve Board: Economic Well-Being of U.S. Households in 2024 (May 2025), Employment and Gig Work
- Federal Reserve Board: Economic Well-Being of U.S. Households in 2025 (May 13, 2026)
- California Department of Public Health: Cottage Food Operations
- California Department of Tax and Fee Administration: Sales and use tax programs
- IRS: Gig Economy Tax Center
- IRS: FAQs on the Form 1099-K threshold under the One, Big, Beautiful Bill (IR-2025-107, FS-2025-08, Oct. 23, 2025)
- IRS: Self-employment tax (Social Security and Medicare taxes)
Keep reading on Inksight
- Business Credit vs. Personal Credit: What Every Small Business Owner Should Know
- How to Choose a Business Structure in California: Sole Proprietorship, LLC, S Corp or C Corp
- Business Banking 101: How to Choose and Open a Business Bank Account
- Small Business Funding Options: Loans, Grants and Investors
- Business Resources: all guides →
