Are you riding the wave of 'side job legalization'? The reality of side jobs that office workers need to know right now
Are you riding the wave of 'side job legalization'? The reality of side jobs that office workers need to know right now
I'll start with the conclusion. There is almost no reason not to start a side job now. In fact, today is the earliest possible time in your life to start.
This is not hype or anything; if you look at the background of the times, it is seriously true. This time, I will share the 'reality of side jobs' that I organized myself after listening to a conversation on a side job-related radio program.
Why are side jobs being 'legalized' now?
First, these are the two trends you want to keep in mind.
Government support: The government is promoting side jobs as part of work-style reform.
A rush of legalization by major companies: Famous companies like SoftBank, Rohto Pharmaceutical, Shinsei Bank, and HIS are one after another allowing side jobs.
The reason why even major companies are all legalizing them is simple.
They can no longer guarantee lifetime employment (companies themselves are also facing the risk of deteriorating performance)
Work-style reform and compliance strengthening have led to overtime regulations, making it harder for employees to increase their income.
Strengthening recruitment competitiveness: 'We allow side jobs' has become a weapon to attract talented personnel.
In other words, both the government and companies are changing side jobs from something 'special' to a 'natural option.' In these times of labor shortages, companies are also using the legalization of side jobs as a means to secure talent.
I will properly verbalize the benefits of side jobs
Let's not just end it with 'it seems like you can earn money,' but grasp it with logic.
Gain financial confidence → Your dependence on your main job decreases, and you become mentally stable.
Performance in your main job improves → By reducing dependence, you can speak your true feelings in meetings and are more likely to be entrusted with big jobs.
Broaden your perspective → You can encounter worlds and values that you couldn't see with just your main job.
Satisfy your desire for growth → Even if the risk of suddenly becoming independent is scary, you can take on challenges with low risk through a side job.
Especially the third point, 'broadening your perspective,' is a subtle but effective point. The behavioral change itself becomes an asset, such as starting to read the Nikkei newspaper after you start investing in stocks.
I will also honestly tell you the disadvantages
Since it sounds suspicious if it's all good news, I will also properly explain the risks.
Time-consuming→ You need at least 30 minutes to an hour after your main job. However, once you start 'making money,' you will naturally become immersed in it.
Risk of interference with your main job→ There are cases where side hustles are prohibited by work regulations, but stock investment and real estate ownership are often treated as 'asset holding' and not as side hustles (compliance with laws such as insider trading is a separate issue).
Hassle of taxes and tax returns→ If your side hustle income exceeds 200,000 yen per year, you need to file a tax return. However, if you choose 'ordinary collection' (paying tax yourself), your side hustle will not be exposed to your company.
Risk of financial loss→ Investment-based side hustles are high-risk, high-return. If you do them without learning, you may lose your principal.
What is important here is that 'side hustles that compete with your main job are a no-go.' Taking orders in the same industry or doing a side hustle that steals customers from your main job will lose you trust, so you should definitely avoid it. This is more about manners than logic.
Side hustles are broadly divided into two types
Active work type: Earning by using your own time and skills (selling photos, researching for product sales, etc.)
Investment type: Buying assets and earning through a system (stocks, FX, real estate, etc.)
Rather than which one is correct, you should choose based on your personality, asset background, and family's understanding.
If you like working steadily with your hands → Active work type is recommended
If you have some surplus funds and can take risks → Starting with the investment type is also an option
What I personally find easy to recommend is product sales. The reason is simple,
You don't go into debt (you don't use leverage like in real estate)
The principal is unlikely to decrease significantly
You can start even by selling unwanted items (initial cost is almost zero)
Going from '0 to 1' is the scariest and hardest part, but conversely, once you break through this, going from 1 to 100 is faster than you think.
30,000 yen a month will change your 'view'
In reality, it is common for a salaryman's raise to be around 5,000 to 6,000 yen per year. In other words, it is calculated that it will take 5 years to get a 30,000 yen monthly raise. Moreover, there are common cases where once you become a manager, you lose overtime pay, your responsibilities increase, and your take-home pay actually decreases.
On the other hand, with a side hustle, you can increase your income at your own discretion, such as 10,000 yen → 30,000 yen → 50,000 yen per month. This 'sense of being able to control it yourself' is the greatest value of a side hustle, as you can build up your income at your own discretion.
Just like a bicycle with training wheels, it's scary at first, but once you get used to it, you'll realize you don't need them anymore. This is exactly what a side job feels like.
Today's key points
There is a historical background where both the government and large corporations are moving toward liberalizing side jobs
The benefits include 'self-confidence,' 'positive impact on your main job,' and 'broadening your perspective'
The disadvantages include 'time constraints,' 'risk of competition with your main job,' and 'capital risk in investment-based side jobs'
Choose between labor-based or investment-based side jobs according to your personality, funds, and family's understanding
Starting small and continuing steadily is the key to maximum reproducibility
I will be diving deeper into side job know-how regularly from now on, so if you are interested, please be sure to follow me.