Smart Money Moves: How to turn your side hustle into a real business

From weekend bakers to after-hours designers, many women are building second income streams – but without a plan, that extra cash can easily disappear into day-to-day spending.Treating your hustle like a small business protects your time, stabilises cash flow, and turns side income into something sustainable.’

June Thein, 43, knows what it means to hustle. Years ago, she juggled a branding agency, a bakery, a Crossfit gym, and an online curry puff business overseas. When she returned to Singapore during the pandemic, she began training and helping out at Impact MMA, one of the city’s pioneer fight gyms.

Initially supporting operations part-time, she eventually took over ownership – inheriting debt, rebuilding member confidence, and steering renovations and cash flow to steady the business.

“The gym was struggling when I took over, so if I really wanted to make things work, I had to give it everything,” she says. “It would’ve been a pity to let the business die without giving it a proper chance.”

But her story isn’t just about a career change – it’s about hustling smart, and making your money work as hard as you do.

Your side hustle needs a budgeting plan

Good financial management means drawing a clear line between hobby and business – and letting numbers, not excitement over new gear, guide your choices.

June’s habit is simple – and strict. She starts with overheads, not upgrades. Many hobbyists who turn passions into paid work blur this line. A photographer might justify a $4,000 lens because a few paid shoots offset it, or a streamer might splurge on a high-end gaming PC that will take years to earn back.

June does it differently. She sets daily, weekly and monthly revenue targets for Impact MMA, then tracks them against upcoming bills. Only when essentials are covered does she approve discretionary spending.

“My first priority is always to make sure that our overheads are well covered. I know what our revenue targets have to be each day, each week and each month,” she says.

That discipline helps her avoid a common trap: celebrating a busy month with purchases that inflate fixed costs, and choke next month’s cash flow.

• Start by separating your money flows: Open a dedicated bank account for your hustle, so income and expenses don’t mix with personal spending. Once that picture is clear, decide where each dollar goes.

• Cover essentials first: Materials, delivery, platform fees, and software are priority.

• Reinvest wisely: Set aside a share for better tools, skills or marketing.

• Build a buffer: Save consistently so cash flow remains steady month to month.

Track your numbers every month

You do not need complex software to run a side hustle, but you do need a single source of truth. A spreadsheet or a basic accounting app is enough if you update it consistently.

At Impact MMA, tracking underpins every decision. The gym needed renovation, new mats and fresh fittings, but June refused a big splash. Instead, she spread upgrades across months, sequencing them after payroll, rent and utilities, and adjusting plans when numbers tightened. The spreadsheet is not a formality; it’s the reason the gym could keep improving while paying its bills on time.

• Record every payment and expense. Group costs by type to spot patterns. If you sell products, track inventory and unit costs; if you freelance, log invoices, payment dates, and fees so your earnings stay transparent.

• Choose one day each month to review gross profit, net profit and cash in the bank. That rhythm drives small improvements: Negotiate with a supplier, switch to a cheaper delivery method, drop a service that brings no return.

• If your hustle is freelance or consulting, make predictability part of the admin. Set a clear scope of work, and put timelines and number of revisions in writing.

• Track your hourly earnings. This allows you to spot low-margin work early and limit unpaid meetings. A few small retainers for ongoing work can help steady income between projects.

Your buffer is your safety net

Side hustle income fluctuates. Clients pay late, orders slow, and advertising costs can spike without warning. When a slow quarter hits, a financial cushion keeps the lights on and payroll covered. With that buffer, you can make level-headed decisions about pricing, product tweaks, or marketing tests, instead of reacting out of panic.

June credits her buffer for helping Impact MMA make steady upgrades without disrupting monthly targets. When a good deal on equipment comes up, the cash is ready.

• Aim to hold several months of essential business expenses in a separate savings pot, so rent, subscriptions and core supplies are covered even when sales soften.

• Refill the buffer promptly after any drawdown.

Spend wisely: Grow on purpose, not by impulse

Reinvestment improves quality, capacity and visibility over time, but it only works when it is purposeful. June keeps fixed costs lean, and learns to do her own maintenance where possible, so more cash is available for essentials. Every dollar saved on decor can go to a coach, a mat, or a member experience that people actually pay for. That bias towards function over flair is not austere; it is strategic. It keeps the gym improving in ways customers notice.

“Spend as little as possible on renovations, furnishings and fittings without compromising too much on quality. Learn to rely less on contractors, handymen and suppliers,” she advises.

• Spend on things that raise your standard of work or help customers find you, and delay cosmetic or non-portable upgrades until cash flow is strong. A stitched logo on an apron is nice; a tool that halves production time is better.

• A short course that sharpens a core skill can beat a scatter of social media boosts that do not convert.

Work smarter, not harder

A side hustle should support the life you’re building, not drain it. June is clear about this trade-off. Owning Impact MMA could easily consume every waking hour if she let it. Instead, she sets boundaries, empowers her coaches, and uses data to decide what to pause. Sustainability isn’t a soft concept here – it’s a line item. Time, like cash, is budgeted.

“You can’t avoid the heavy lifting,” she says. “Running your own business means you’ll do everything at some point. Eventually, you have to decide whether your side hustle pays you – and makes you happier – than your nine-to-five.”

• Consider how the work fits your energy and schedule across a normal week, and adjust output goals to avoid chronic fatigue. Set aside part of earnings for insurance, emergency savings and retirement.

• Review prices annually to reflect rising costs and rising capability.

• Be candid about opportunity cost. If an activity absorbs many hours for thin returns, replace it with work that moves the needle or delivers joy.

The bottom line

June learnt some of these lessons the hard way. “Looking back, when I was running my agency, we spent too much on having a nice, trendy office, and hiring beyond what we needed,” she says.

Now, she keeps fixed costs lean, covers overheads first, and spreads renovations and equipment purchases over several months. Growth comes from skills, service quality, and a strong community – not showy spending.

Your hustle’s details may differ from June’s gym, but the principles still apply: Separate the money, track it, file it properly, hold a buffer, reinvest where returns are real, and protect your time.

TAX BASICS TO KNOW

1. All side hustle income is taxable. Salary earners file Form B1. Self-employed persons, freelancers and sole proprietors file Form B under “Trade, Business, Profession or Vocation”.

2. Choose a 12-month accounting period. Report profits in this period in the following Year of Assessment. Keep invoices, receipts, bank statements and ledgers (digital or paper) for at least five years.

3. Claim only business-related expenses. Personal spending doesn’t qualify. If your taxable supplies exceed $1 million in 12 months, you must register for GST.

4. File on time. The e-filing window is usually March-April each year – reconcile early to avoid a rush.

5. Medisave contributions apply if you’re self-employed. Compulsory amounts are assessed after filing; voluntary top-ups may qualify for tax relief.

6. When in doubt, ask IRAS. Their officers can advise on filing categories, records and GST requirements.

Smart Money Moves is a column that breaks down everyday financial decisions, from daily spending and saving hacks to making your money work smarter for you.