Low-Investment Side Hustles for College Students on a Budget

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As a college student, not only do you have to worry about staying on top of schoolwork, but you also have to support yourself financially. Unfortunately, this is a common experience, especially with rising living expenses and tuition costs. In 2024 alone, the average student paid $38,270 for tuition alone. These costs also don’t include the expenses students pay to support their families. More than one out of five college students support at least one child, amounting to 3.8 million college students. Because of these financial stressors, many college students have no choice but to pick up a part-time or full-time job.

Instead of opting for a traditional job, developing a side hustle can help you offset some of the costs associated with college. Side hustles are exactly what they sound like: a job you do can operate on the side. They often come with perks like flexibility and profitability. If you pick the right side hustle, it can also grow into a full-fledged business you can continue to operate after you earn your diploma. That said, picking up a side hustle with little to no initial investment is essential. This way, you can still profit from the work with minimal startup capital. In this guide, we’ll explore the low-investment side hustles you can pursue and how to navigate the associated legal, financial, and professional challenges.

Affordable Side Hustle Ideas for College Students

While you can start any job virtually to make ends meet in college, these ventures are particularly beneficial side hustles due to their flexibility and profitability:

Freelancing and Online Services

As a freelancer, you can offer your services to anyone on a contractual basis. Your service may include anything from writing, graphic design, video editing, or social media management — essentially any skill other businesses or individuals may require. Freelancing is beneficial because you often pick up clients or projects on your own terms. If you have time for an extra project, you can take it on. If you have a big test to study for, you can decline the project.

There are also online marketplaces for freelancers, like Fiverr, Upwork, and Freelancer, that allow you to market your skills, showcase your portfolio and connect with potential clients. These platforms also make it easy for you to build your credibility. The more clients you connect with over time, the more credibility you’ll establish, and more clients will gravitate toward you.

Creative Ventures

You can easily build your craft into a business venture if you have a creative side. For example, you can build a side hustle through the following projects:

• Handmade items: If you like to sew, make pottery, or paint, you can sell these projects on Etsy or at local markets and campus events.
• Digital products: If you like creating personalized illustrations, logos, social media templates, or even customized cards, you can sell your products and templates online for others to use.
• Photography: Many people will pay you for weddings, special events, family photos, and portrait sessions.
• DIY and upcycling projects: If you like to restore furniture or thrifted items, you can often sell them for a profit at the farmer’s market, Facebook Marketplace, or online.

Ultimately, anything you create can be someone else’s treasure for which they would be willing to pay. While some of these ventures may require an initial investment to make the product — for example, you would need to buy a yarn if you wanted to sew a sweater — you can always require your clients to pay an initial deposit to help you foot the bill. This way, you can protect yourself financially.

Tutoring and Academic Assistance

Even at the most prestigious universities, college students will need academic support at one point or another. If you are proficient in a particular subject, you can offer tutoring services at your university. You can also tutor younger students at your local high school. With universities requiring students to achieve a minimum SAT, ACT, or GRE score, many high school parents and students alike would be willing to pay to help with test preparation.

You also don’t have to tutor in person, either. Online apps like TutorMe allow tutors to connect students needing academic assistance online, so you never have to leave home to earn money. This can be incredibly convenient if you have a busy schedule.

Online Content Creation

Online content creation has never been more popular, and for good reason. Many video platforms like YouTube and TikTok have plenty of revenue potential from affiliate marketing, sponsorships, creator funds, and ad revenue. According to a Statista report, YouTube’s advertising revenue amounted to nine billion U.S. dollars in 2022, and TikTok paid its creators between 13 and 23 million dollars in 2023. On these platforms, you can share educational content, vlog your daily life, and even livestream with viewers to talk.

You also can publish content in other ways, such as publishing a blog or relying on social media apps like Instagram that can easily allow you to connect to users. Like YouTube and TikTok, you can earn income from sponsorships and ad revenue that can support you in college.

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The Reality of Running a Side Hustle as a Student

While there are plenty of low-investment side hustles you can start as a college student, it’s best to fully understand their pros and cons before committing.

Benefits of Having a Side Job

While many students may gravitate towards traditional part-time and full-time jobs, they may quickly find that a gig unrelated to their passions or interests quickly consumes their lives. Side hustles, on the other hand, provide a flexible option to pay for tuition, textbooks, living expenses, and other costs associated with college. They also provide valuable real-world experience. If you want to gain practical skills like time management, communication, marketing, and financial planning, side hustles can impart these skills, which you can apply to future professional careers.

Whether freelancing, tutoring, or creating digital content, these experiences help build a resume and demonstrate initiative to potential employers.

Side hustles also open doors to professional networking opportunities. Engaging with clients, customers, and other entrepreneurs allows students to make connections that could lead to internships, job offers, or long-term business ventures. Starting early gives students an advantage in financial stability and career development while still in school.

Challenges of Having a Side Gig

While a side hustle offers financial benefits and valuable experience, college students face unique challenges when balancing entrepreneurship with academic responsibilities. One of the biggest hurdles is time management. Between attending classes, studying, participating in extracurricular activities, and maintaining a social life, students often have limited time to dedicate to a side hustle. Without careful planning, it can be challenging to maintain a steady income while keeping up with coursework.

Another challenge is navigating legal and financial responsibilities. Many students may not be familiar with business regulations, including whether they need permits, how to report income for taxes, or if they should set up a business structure like an LLC. While some side hustles, like freelancing or tutoring, have fewer legal requirements, others—such as selling products or providing services—may require more formal registration. Understanding tax obligations and self-employment rules is essential to avoid unexpected financial issues.

However, you can easily overcome these challenges by being proactive and researching deeper into building a successful side hustle.

Navigating the Legal and Financial Aspects of a Side Hustle

Students may be particularly intimidated by the legal and financial challenges of gigs. However, you can easily overcome them in the following ways.

Do You Need a Permit or License?

As mentioned, you may not need a permit or a license, depending on your side hustle and what state you live in. For example, you don’t need a license for freelancing, tutoring, or online content creation unless you want to operate as a business. However, you’ll need a permit or a license if your side hustle operates under a brand name or is involved in a regulated industry. Here are some common scenarios:

• Offering services like photography or personal training: If you provide services that require liability considerations (e.g., event photography, fitness coaching, or consulting), you may need a business license or insurance coverage.
• Running a food-related business: Selling baked goods, catering or homemade meals may require health permits and food handling certifications, depending on local laws.
• Operating under a brand name: If you’re using a name other than your legal name, you may need to register a DBA (Doing Business As) or fictitious business name.

Students who are unsure about licensing requirements should contact their local city or state business office, or consult online legal resources such as the Small Business Administration (SBA).

Avoiding Copyright and Trademark Infringement

When starting a side hustle, you must be mindful of copyright, trademark, and trade dress laws to avoid legal issues. Using protected content — images, logos, music, or brand names — without permission can lead to costly copyright infringement disputes.

Here’s what students should know about intellectual property laws:

• Copyright: Copyright protects original creative works, such as written content, music, videos, graphics, and software. If you’re selling digital products, running a YouTube channel, or using images for social media marketing, you must create original content, purchase licensed media, or use royalty-free resources.
• Trademark: Trademarks protect brand names, logos, and slogans. If you plan to launch a business under a unique name, it’s important to research whether a similar trademark already exists. Using an already registered brand name could result in legal action and force a rebranding.
• Trade dress: This applies to packaging, product designs, or visual branding elements that distinguish a business. If you sell handmade products, be cautious about copying the look and feel of another brand’s packaging or branding style.

Students should conduct a trademark search through the U.S. Patent and Trademark Office (USPTO) before naming their business to protect their brand and avoid infringement. If the business grows, partnering with an intellectual property attorney can help secure a trademark early, ensuring legal protection and preventing others from copying the brand.

Understanding Tax Implications

Compared to traditional jobs, side hustles require you to report and pay taxes. Here are some tax considerations you should consider when starting and running your side hustle:

• Self-employment taxes: If you earn $400 or more annually from freelancing, selling products, or providing services, you must file a self-employment tax return with the IRS.
• Quarterly estimated taxes: If your side hustle generates a steady income, the IRS may require you to pay estimated taxes every quarter instead of a lump sum at tax time.
• Tracking income and expenses: Keeping clear financial records helps with tax deductions and reduces the amount owed. Deductible expenses can include business-related software, supplies, marketing costs, and even a portion of rent or utilities if working from home.

While these taxes may feel overwhelming, filing your taxes regularly is essential to avoid potential fines, penalties, and even business closures. Luckily, platforms like QuickBooks Self-Employed and TurboTax Self-Employed help you stay on top of your taxes year-round.

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Time Management for Student Entrepreneurs

All college students need to manage their time wisely. College students who commit to a side hustle must be extra diligent with their schedule. Between studying, class time, extracurriculars, your personal life, and your side hustle, you can quickly become swamped with tasks, causing anxiety and stress. However, you can manage as long as you:

• Set a schedule: Plotting out your daily, weekly, and monthly commitments can help you stay on top of deadlines — whether you use a physical agenda book or an online calendar.
• Prioritize tasks: Naturally, you must prioritize some tasks over others. For example, classes and study time will precede personal and work time. However, your side hustle work can take precedence over personal time. Determine these priorities early on, and then you can tackle each task individually.
• Use time blocking: Allocate specific hours each week for studying, side hustle work, and relaxation. Keeping a consistent routine helps prevent procrastination.
• Leverage downtime: Use gaps between classes, weekends, or quiet mornings to work on your side hustle without cutting into study time.

While maintaining free time for your side hustle is essential, letting it rule over your life can lead to significant burnout. As such, it may be best to know your limits and avoid saying “yes” to everything. Sometimes, you may need to decline a client to prioritize your well-being.

Scaling Your Side Hustle as a College Entrepreneur

Many college students succeed in their side hustle to the point it becomes an entrepreneurial pursuit. If this happens, you must know how to scale operations appropriately to help your business flourish.

Hiring Help When Needed

At some point, work for your side hustle will become too overwhelming, and you may require more staffing to cover operations. You’ll know this if it starts to affect your client relationships, your academic performance, or if you have enough revenue to invest in your business’s growth. When in this situation, you have several options:

• Hiring employees: Bringing part-time employees can provide consistent support and ensure work meets your standards. However, hiring requires payroll management, legal responsibilities, and a long-term financial commitment.
• Outsourcing to contractors: Freelancers or independent contractors can help with specific projects, such as graphic design, customer service, or bookkeeping. This approach offers flexibility and allows you to pay only for completed work, though it may require ongoing management and quality control.
• Using automation: You can automate specific business tasks, such as invoicing, social media posting, and email responses, with various software online. Automation saves time and reduces human error but may not replace the need for creative or customer-facing roles.

Ultimately, your hiring strategy will depend on your business and what help you need.

Establish an Online Presence

If you haven’t already, establish an online presence. Doing so will help market your business, helping you attract clients and build credibility. There are several ways to do so, such as:

• Social media: Posting on apps like Instagram, Facebook, or TikTok can help you engage with potential customers. Plus, you can use paid advertising to help fund the venture.
• LinkedIn: Through LinkedIn, you can meet potential clients, business partners, and other professionals that can take your business to the next level.
• Online portfolio: If you are a freelancer, photographer, or sell art, creating an online portfolio can help others understand the caliber of your work. Publishing it on an accessible website can impress potential customers, increasing conversions.

Consistently posting and engaging with online users can help you attract more customers and grow your business.

Partner With a Trial Attorney

As your side hustle grows into a business, you’ll likely run into areas of conflict. To avoid this, hire a trial attorney who specializes in business conflicts. Contacting one early on can help you when you are

• Drafting and reviewing contracts: Whether you work with clients, suppliers, or contractors, clear, legally binding agreements can prevent misunderstandings and protect your business interests.
• Protecting intellectual property protection: An attorney can help with trademark registration and copyright concerns and avoid infringement issues.
• Business structure and compliance: If your side hustle grows, a lawyer can advise on forming an LLC or other legal entity to protect your assets and ensure tax compliance.

While side hustles come with their challenges, they’re a great idea if you want to gain extra income, while building professional skills and a potential career. With the right strategies and mindset, a small side hustle can evolve into a profitable venture that lasts well beyond college.

Resources for College Students Starting a Side Hustle

If you need more information regarding starting a low-investment side hustle, use these resources:

Financial and Legal Literacy Resources

• IRS Small Business and Self-Employed Tax Center: Offers free resources and guides on tax responsibilities for small businesses and freelancers.
• SBA (Small Business Administration: Provides tools, funding options, and guides tailored to new entrepreneurs, including students.
• Klein & Wilson Business Law: Essential legal advice on topics like copyright, trademarks, and trade dress to avoid common legal pitfalls.

Platforms to Launch and Market Side Hustles

• Fiverr: Ideal for freelancing services like graphic design, writing, or digital marketing.
• Etsy: An excellent platform for selling handmade or vintage goods and digital products.
• Upwork: This is for students seeking long-term freelance contracts in web development or content writing contracts.
• TaskRabbit: Perfect for offering local services like moving help, cleaning, or errands.

Tools for Managing Time, Income, and Expenses

• QuickBooks Self-Employed: Helps track expenses, organize income, and prepare for tax season.
• Trello: A free task management tool to help balance side hustle responsibilities and academic tasks.
• Wave: A free accounting software for small businesses and freelancers.

Educational Resources on Starting a Business

• Coursera & Udemy Courses: Affordable online courses covering entrepreneurship, marketing, and freelancing.
• SCORE (Service Corps of Retired Executives): Free mentoring and workshops for small business owners.