Millennial boosts income by five figure income from side hustle

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Jennifer Wang spends most of her days as a pharmacist at Toronto General Hospital, but in her downtime, she’s creating content, working with brands and earning more than five figures through her social media side hustle.

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Wang, 32, originally started posting photos of her outfits on Instagram about 10 years ago while she was in pharmacy school. But she said it wasn’t until the past few years, when she started producing content for TikTok and YouTube, that her side hustle really took off as an income-producing venture.

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“It was my ‘What’s not worth buying at Artizia?’ video that (went viral),” Wang recounted, “It got probably over one million views on TikTok.”

Wang’s content, which often involves her advising her viewers on what clothing not to buy or recommending items for their quality and value for money, focuses on “de-influencing,” or consuming mindfully in order to fight textile pollution.

As an example, she mentioned finding a “super sheer” Merino wool sweater at The Row, the luxury fashion label established by the Olsen twins, and compared it to a more affordable and higher-quality version she spotted at Japanese casual wear retailer Uniqlo.

She said the income she brings in from her side hustle varies from month-to-month but is “definitely over five figures.”

Young Canadians, side gigs and entrepreneurship

Recent data from Coast Capital Savings Federal Credit Union and the non-profit Financial Resilience Institute indicated 48 per cent of 18- to 24-year-olds and 41 per cent of 25- to 34-year-olds took on side gigs in the last year. In comparison, just one-third of all Canadians polled reported the same.

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The most recent Royal Bank of Canada small business poll also found there are more aspiring entrepreneurs under the age of 35 than any other age group. They are mainly motivated by the idea of doing more meaningful work that aligns with their values and making extra money.

And almost all small business owners who responded to the poll said they think the current economic and market conditions are forcing them to be more proactive.

“I don’t think it’s a secret that it’s gotten more and more expensive for individuals to get ahead,” said Chris Moscatello, the director of small business banking at Coast Capital. “I think there are a certain amount of individuals getting into the space that are doing it because they’re passionate about it or they’re skilled in it, but there’s an equal amount of individuals that are getting into this … to make ends meet or to get ahead.”

Moscatello said Canadians may take on side gigs to build their savings, purchase property, invest in retirement savings plans or fund their children’s higher education. While he has mainly seen an uptick in the service industry space, he has noted interest in the influencer sphere as well.

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Claire Fan, an economist at RBC, also indicated that younger Canadians are disproportionately impacted by the slowdown in the labour market, which could be prompting them to explore other opportunities to generate income.

Cindy Marques, a Toronto-based certified financial planner at Open Access Ltd., said she has worked with millennial and generation Z Canadians who are either worse off financially compared with their parents or are surprisingly successful because they have another stream of income.

She has also seen more young Canadians in her workshops and presentations bring up content creation as an income-producing venture.

“It’s a platform that’s available to us to make money that wasn’t there before,” she said, noting that most people, like Wang, often don’t start with content creation with the intention of becoming an influencer or making a lot of money.

Managing multiple streams of income

It isn’t always easy managing (and reporting) your pay when it is coming from different places.

Wang, who earns money from brand deals, advertisements and commission links, hires an accountant to do her taxes each year. She also incorporated her business to keep her side hustle income separate and is investing that money into her future fashion line.

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It can be beneficial to keep your personal finances separate in this way, Moscatello said. For example, a large balance on your corporate credit card won’t affect your personal credit or impact your eligibility for lower interest rates on a mortgage when you are buying a home.

Corporate tax rates are also typically lower than personal tax rates, which can save you some money come tax season, although you’ll likely have to work with a professional on filing.

“The first step is come up with an idea and a plan,” said Moscatello, adding that aspiring entrepreneurs need to ensure they have enough capital for their business venture and can connect with their banker and financial advisor to ensure the right processes are in place.

“I’m not sure there’s anything more important than making sure that you have a good financial team around you.”

Should you take your side hustle full time?

Although many people with small businesses as their side hustles hope to transition their projects into full-time careers, Wang doesn’t ever plan on leaving pharmacy work.

For one, she has seen content creators go through sharp peaks and valleys in their viewership numbers and doesn’t want to sacrifice her job security. “I definitely don’t want to just drop my professional role and pursue something for 10 years and have a gap in my resume to try to come back to later.”

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Marques noted that, just like many other small business ventures, relying on income from content creation without a backup plan can be risky.

“It just depends on how established you are in the industry, and whether you can bank on the consistency of these brands or companies wanting to continue to work with you,” she cautioned, adding that some influencers might feel pressured to promote brands and products that don’t align with their values just for a paycheque.

While working her 9-to-5, Wang intends on developing a clothing line for working women that tackles common issues, such as offering quality white shirts that are 100 per cent cotton and are not transparent.

She also hopes to buy a home in the suburbs with her husband someday.

“I (come from a lower income) immigrant family, so we were taught to save and invest in safe ways,” said Wang, who has since learned how to balance saving responsibly while spending on her wants, too. “I feel like I have a healthier relationship with money now.”

• Email: gmvsuhanic@postmedia.com

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