Side Hustle or Job Scam? - Money Tip Tuesday

Have you been exploring the Internet to find easy and fast ways to make extra money on the side? If you’re currently hunting for these opportunities, there are a few precautions you'll need to take first because some of the side hustles you’re considering might be scams.  

Links: 

• Dog walking and pet sitting opportunities: Rover, Wag!, petsitter.com
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Transcript: 

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

Now more than ever, people are trying to make more money. There are many motivations to do so: some want to pay off debt, while others want to put more into savings and invest more to prepare for retirement; the list goes on and on.  

Many of these motivated people are earning more money with “side hustles.” 

Side hustles are added forms of employment that differ from someone’s full-time job. These aren’t typically the same as part-time jobs because side hustles offer more freedom, flexibility, and control that one might not be able to get with other opportunities.  

There are various options when it comes to side hustle; for those who are considering taking one on, please research these opportunities thoroughly to avoid getting scammed!   

Some job scams are easy to spot. The jobs are promoted as quick and easy ways to make large sums of money which easily raise some red flags.  

Unfortunately, there are some scams that are cleverly disguised as side hustles and before people realize, they have already been taken advantage of.  

Job Scams You Should be Aware Of:  

• Mystery Shopping: While some mystery shopping jobs are legitimate, there are companies that will try to scam you. Once you sign up, they will send you a check to deposit into your account then instruct you to head to a specific store to test out their money transfer service by transferring part of that money back to them. Unfortunately, the checks turn out to be fake. By the time the bank realizes it, you’ve transferred your own money and are also on the hook for the rest of the money you deposited.  
  
  
• Medical Billing: It seems like a simple enough job—working from home entering data and handling medical billing. Once you’re “offered a job”, you’re asked to pay upfront for supplies, special software, or specific training or certifications. The scam is: after you complete these requirements, there are no medical billing jobs for you to do.  
  
  
• Multi-Level Marketing: Often referred to as MLM, Direct Sales, or Network Marketing, these types of companies all have the same business model, which is to sell products and recruit others to do the same. The promise of time and financial freedom can be too wonderful to resist but the truth is, only 25% of people in MLMs make a profit; of that 25%, only 3% make more than $25,000/year. You may be enticed to join a network marketing company, but the reality is you won’t make the money you’re promised.  

Not all side hustles are scams though. There are many legitimate jobs you can begin today to make some extra money.  

 

Side hustle ideas that are NOT scams: 

• Dog Walking/Pet Sitting: If you’re passionate about animals, dog walking or pet sitting are great ways to make extra money in just a few hours. Pet owners are always looking for reliable people to take care of their pets—and that includes walking and setting up specific play times or watching them over night. If you know people who have pets, you can reach out to them and offer your pet sitting services. Another way to build clientele is through apps such as Rover, Wag! or PetSitter.com.  
  
  
• Food/Grocery Delivery Driver: Food and grocery delivery have become increasingly popular since the pandemic and this is a great way to earn some money when it fits into your schedule. Typically, these services offer quick and easy sign up. If you live in a city, you can deliver on bike or a scooter. Although the compensation structure differs between companies (some pay weekly while others allow you to cash out immediately), drivers can expect to keep 100% of their tips on top of other offers and potential base pay. 
   
• Car Detailing: Interior and exterior car detailing is something that many people can do, they just don’t want to. That's why car detailing is a great side hustle for someone who has the time and space for it. This side hustle can be started without spending a huge amount on cleaning supplies and the cleaning supplies that you do buy can be used for multiple cars! 

Research is key! Before you start any new job, you should always do some of your own research and get any questions you have answered.  

Top Tips to Avoid Being Scammed:  

• Never deposit a check with the intention of sending that money to someone else 
• Be aware if someone tells the job will make you money quickly 
• Don’t pay for certifications or trainings with a promise of unlimited jobs available after completion 

TRUST YOUR GUT! If something doesn’t feel right, it’s okay to walk away and find another opportunity.  

If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!