April 3, 2025 • 17 mins
Whether you're looking for some extra income, creative fulfilment, or a path to financial independence, side hustles are a great way to do this.
In this episode, financial advisor Emmanuel Asuquo and our host Iona Bain dive into the world of side hustles— from what you could offer, when you might need to pay tax and ideas to generate business.
They explore the highs and lows, the myths and realities, and strategies to balance it with your full-time job. Because taking time to develop a side hustle you’re passionate about, can go a long way to making you a little bit richer.
Follow Emmanuel on Instagram @theemaneffectuk
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You can play the podcast and find other useful content on Legal & General’s website:
https://www.legalandgeneral.com/podcasts/a-little-bit-richer
Iona and her guests share their own personal thoughts and opinions in this podcast. These might be different from Legal & General’s take on things. They give financial guidance for a UK audience that’s relevant at the time of recording. It’s general best practice, not the kind of personalised advice you’d get from a financial adviser.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Iona Bain (00:02):
Hello, and welcome to A Little Bit Richer, with me,
Iona Bain, brought to you by LNG. 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
(00:24):
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 Asuquo (00:44):
Thank you for having me, Iona.
Iona Bain (00:45):
So we're chatting about side hustles today.
Emmanuel Asuquo (00:48):
Yes.
Iona Bain (00:48):
They've been around for a while now.
Emmanuel Asuquo (00:50):
Yes.
Iona Bain (00:51):
What's the situation at the moment with side hustles?
Emmanuel Asuquo (00:54):
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,
(01:16):
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 Bain (01:25):
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
(01:46):
still have their place and can still be worthwhile?
Emmanuel Asuquo (01:47):
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
(02:08):
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 Bain (02:17):
What's a good starting point if someone is thinking about
how they can make some extra cash?
Emmanuel Asuquo (02:21):
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
(02:41):
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 Bain (02:59):
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 Asuquo (03:09):
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
what you do from 5
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
(03:32):
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,
(03:53):
there's a problem, here's a solution, and now I can
go on with it.
Iona Bain (03:57):
It's a bit like inventing in the 21st century, isn't it?
Emmanuel Asuquo (04:00):
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
(04:23):
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 Bain (04:34):
No, no.
Emmanuel Asuquo (04:36):
You're trying to work a few hours in the evening
to make a little extra money.
Iona Bain (04:39):
Because you need to make it sustainable.
Emmanuel Asuquo (04:40):
Exactly.
Iona Bain (04:41):
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 Asuquo (04:53):
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
(05:14):
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,
(05:36):
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
(05:57):
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 Bain (06:03):
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 Asuquo (06:21):
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
(06:42):
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
(07:02):
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,
(07:22):
that will never stop. So I always say, if you
love it, do it, and you'll enjoy the benefits.
Iona Bain (07:27):
You'll figure it out.
Emmanuel Asuquo (07:27):
Yeah.
Iona Bain (07:28):
Some business ideas do need some money to get off
the ground.
Emmanuel Asuquo (07:32):
Yes.
Iona Bain (07:32):
So what are your tips for starting a business on the side
that is relatively low cost?
Emmanuel Asuquo (07:39):
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
(08:00):
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 Bain (08:15):
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 Asuquo (08:23):
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
(08:45):
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
(09:08):
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,
(09:29):
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 Bain (09:35):
That almost seems like a cheat code.
Emmanuel Asuquo (09:36):
That is the cheat code.
Iona Bain (09:39):
It's allowed?
Emmanuel Asuquo (09:40):
It's allowed.
Iona Bain (09:40):
It about reaching those people where they're at with the
services maybe that they're already using.
Emmanuel Asuquo (09:44):
Exactly.
Iona Bain (09:44):
And what are the most popular side hustles that you're seeing at the moment?
Emmanuel Asuquo (09:48):
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,
(10:09):
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 Bain (10:18):
Got you. So what about the tax implications of side hustles?
Emmanuel Asuquo (10:22):
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
(10:43):
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
(11:06):
count towards the £1, 000. And so, once you get over the £1,
000, that needs to be declared to HMRC.
Iona Bain (11:11):
And how do you do that?
Emmanuel Asuquo (11:13):
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
(11:35):
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 Bain (11:50):
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 Asuquo (11:59):
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
(12:20):
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
(12:41):
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
(13:02):
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,
(13:22):
but the reality is that there normally needs to be
work to be done.
Iona Bain (13:25):
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 Asuquo (13:33):
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,
(13:54):
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 Bain (14:13):
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 Asuquo (14:28):
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
(14:49):
just enjoy life?
Iona Bain (14:50):
Oh, but Emman, they say that they don't want to gatekeep.
Emmanuel Asuquo (14:51):
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
(15:12):
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 Bain (15:29):
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 Asuquo (15:37):
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 WhatsApps, that
(15:58):
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.
(16:19):
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
(16:40):
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 Bain (16:48):
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 Asuquo (16:58):
No, thank you.
Iona Bain (17:00):
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
(17:25):
time, see you soon.
Hello, and welcome to A Little Bit Richer, with me,
Iona Bain, brought to you by LNG. 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
(00:24):
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 Asuquo (00:44):
Thank you for having me, Iona.
Iona Bain (00:45):
So we're chatting about side hustles today.
Emmanuel Asuquo (00:48):
Yes.
Iona Bain (00:48):
They've been around for a while now.
Emmanuel Asuquo (00:50):
Yes.
Iona Bain (00:51):
What's the situation at the moment with side hustles?
Emmanuel Asuquo (00:54):
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,
(01:16):
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 Bain (01:25):
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
(01:46):
still have their place and can still be worthwhile?
Emmanuel Asuquo (01:47):
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
(02:08):
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 Bain (02:17):
What's a good starting point if someone is thinking about
how they can make some extra cash?
Emmanuel Asuquo (02:21):
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
(02:41):
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 Bain (02:59):
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 Asuquo (03:09):
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
what you do from 5
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
(03:32):
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,
(03:53):
there's a problem, here's a solution, and now I can
go on with it.
Iona Bain (03:57):
It's a bit like inventing in the 21st century, isn't it?
Emmanuel Asuquo (04:00):
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
(04:23):
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 Bain (04:34):
No, no.
Emmanuel Asuquo (04:36):
You're trying to work a few hours in the evening
to make a little extra money.
Iona Bain (04:39):
Because you need to make it sustainable.
Emmanuel Asuquo (04:40):
Exactly.
Iona Bain (04:41):
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 Asuquo (04:53):
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
(05:14):
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,
(05:36):
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
(05:57):
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 Bain (06:03):
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 Asuquo (06:21):
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
(06:42):
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
(07:02):
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,
(07:22):
that will never stop. So I always say, if you
love it, do it, and you'll enjoy the benefits.
Iona Bain (07:27):
You'll figure it out.
Emmanuel Asuquo (07:27):
Yeah.
Iona Bain (07:28):
Some business ideas do need some money to get off
the ground.
Emmanuel Asuquo (07:32):
Yes.
Iona Bain (07:32):
So what are your tips for starting a business on the side
that is relatively low cost?
Emmanuel Asuquo (07:39):
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
(08:00):
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 Bain (08:15):
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 Asuquo (08:23):
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
(08:45):
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
(09:08):
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,
(09:29):
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 Bain (09:35):
That almost seems like a cheat code.
Emmanuel Asuquo (09:36):
That is the cheat code.
Iona Bain (09:39):
It's allowed?
Emmanuel Asuquo (09:40):
It's allowed.
Iona Bain (09:40):
It about reaching those people where they're at with the
services maybe that they're already using.
Emmanuel Asuquo (09:44):
Exactly.
Iona Bain (09:44):
And what are the most popular side hustles that you're seeing at the moment?
Emmanuel Asuquo (09:48):
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,
(10:09):
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 Bain (10:18):
Got you. So what about the tax implications of side hustles?
Emmanuel Asuquo (10:22):
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
(10:43):
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
(11:06):
count towards the £1, 000. And so, once you get over the £1,
000, that needs to be declared to HMRC.
Iona Bain (11:11):
And how do you do that?
Emmanuel Asuquo (11:13):
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
(11:35):
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 Bain (11:50):
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 Asuquo (11:59):
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
(12:20):
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
(12:41):
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
(13:02):
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,
(13:22):
but the reality is that there normally needs to be
work to be done.
Iona Bain (13:25):
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 Asuquo (13:33):
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,
(13:54):
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 Bain (14:13):
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 Asuquo (14:28):
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
(14:49):
just enjoy life?
Iona Bain (14:50):
Oh, but Emman, they say that they don't want to gatekeep.
Emmanuel Asuquo (14:51):
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
(15:12):
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 Bain (15:29):
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 Asuquo (15:37):
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 WhatsApps, that
(15:58):
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.
(16:19):
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
(16:40):
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 Bain (16:48):
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 Asuquo (16:58):
No, thank you.
Iona Bain (17:00):
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
(17:25):
time, see you soon.
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