Side hustles: the financial realities of freelancing in Hong Kong

Once upon a time it was moonlighting. Then it turned to consulting. Now it's a passion project or side hustle. Or, in internet speak, polyworking. Many people in Hong Kong are turning their passions or skills into additional income streams, resulting in a change in their financial independence, creativity and quality of life.

But this does come at a cost. First and foremost, the financial one - starting a baking business, or building out a digital presence for your consulting freelance gigs, are obvious upfront financial drains. There are business implications too, especially if your goal is to transition out of the 9-5 landscape and use this project as an additional income stream in retirement.

However, I believe this results in many people finding new ways to enjoy life, their passions and their experiences - but there are concerns that need to be understood:

• Business tax planning is different to personal tax planning so you really should engage with one of the many businesses that offer specialized advice and guidance

• Business goals – what are you wanting to achieve? Additional retirement income, or is your goal to build a business to sell it down the line?

Listen to my latest spot on RTHK's Your Money with Carolyn Wright for my top tips on managing your finances as a freelancer, moonlighter, baker or side hustler. Baking materials not included, I’m afraid!

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