Side hustles are all the rage right now. Whether you’re looking to boost your income, pursue a passion, or build a safety net, a side gig can seem like the perfect solution. But while the idea of earning extra cash sounds great, side hustles are called hustles for a reason—they’re not a cakewalk. Before jumping into the fray, here are 5 things to watch out for:

1. Burnout… it’s real

Balancing a full-time job, personal life, and a side hustle can be a fast track to exhaustion. The hustle culture may glamorize working around the clock, but overcommitting yourself can tank your mental and physical health. To avoid burnout:

  • Set realistic time commitments for your side hustle.
  • Prioritize downtime (and sleep. Make sure you get enough sleep!)
  • Learn to say no to opportunities that might stretch you too thin.

2. Beware of scammers and fraudsters

Unfortunately, the rise of side hustles has also led to an increase in scams targeting eager hustlers. Multi-level marketing schemes, fake job postings, or “opportunities” requiring upfront investments can leave you worse off than when you started. Protect yourself by:

  • Researching the opportunity thoroughly.
  • Checking reviews and forums for other people’s experiences.
  • Trusting your gut if something feels off.
  • Never ‘invest’ money in a hustle. (The goal is for you to make money!)

3. Don’t get into tax trouble

Earning extra side hustle money isn’t all profit; the IRS will want their share. A lot of side hustlers overlook the tax liabilities that come with self-employed income. Here’s what you need to know:

  • Keep track of your earnings and expenses.
  • Set aside part of your side hustle income for taxes.
  • Consider consulting an accountant to understand what you could owe.

4. Time management challenges

It’s easy to underestimate the time a side hustle will take. Over time, you might find it eating into your primary job or personal life, which could strain your relationships or compromise your performance at your hustle. Make sure this doesn’t happen by:

  • Using an app to manage your schedule.
  • Setting healthy boundaries around work and personal time.
  • Continuing to check in on whether the side hustle matches up with your goals.

5. Hidden costs

Some side gigs require upfront or ongoing investments, whether it’s buying equipment, paying for marketing, or even learning new skills. These costs can add up and erode your profits. Before committing, figure out what you might be on the hook for in terms of:

  • Startup costs.
  • Monthly expenses.
  • How long will it take to break even and make a profit?

And, of course, don’t give anyone money just to participate in their side hustle—if they ask you to, it’s usually a scam. (And even if it’s not, they should be paying you, not asking you for money!)