5 Side Gigs To Avoid if You Want to Build Wealth
Written by
Emily Fowler
Edited by
Zuri Anderson
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The idea of adding a side gig to boost savings, pay off debt or build wealth sounds great. But not every side hustle is going to give the same bang for the buck.
Many people dive into side hustles that promise quick cash but fail to deliver on long-term wealth-building.
Let’s take a closer look at the gigs that could be wasting time and energy rather than helping build that financial safety net.
Low-Paying Gigs on Freelance Platforms
Freelancing might seem like a flexible way to earn extra cash, but not all platforms are created equal.
Take Fiverr or Upwork, for example. While there are plenty of people on these platforms making decent money, many others are stuck in low-paying gigs that barely cover basic expenses.
Dr. Annie Cole, Ed.D., money coach, co-founder of Money Essentials for Women and the author of 101 Ways to Build Wealth, warned against taking jobs that pay less than $10 an hour.
“Many freelancers on Fiverr or Upwork will charge less than $10 an hour. Those platforms usually take 20% of your income, leaving you with $8 or less for an hour’s work. This probably isn’t worth your time and will leave you feeling drained and exhausted,” she said.
In theory, freelance work is great. In practice, if the compensation isn’t there, it’s more of a time sink than a wealth builder.
For a side gig to be worthwhile, Cole recommends it pays an hourly rate that’s on par with or higher than your main income source. If it doesn’t, it’s better to look for higher-paying opportunities.
Delivery Driver Gigs With Low Profit Margins
Ridesharing and delivery services (think Uber and DoorDash) are often marketed as quick ways to make extra cash. But unless drivers are in a high-demand market and putting in long hours, these jobs often end up with low returns for the time spent.
Cole recommended considering whether a side gig aligns with the person’s broader career plan or lifestyle. If the side gig doesn’t offer high pay or flexible hours, it could easily become a time-sucking burden.
Delivery drivers, for example, often deal with high wear and tear on their vehicles, fuel costs and unpredictable pay based on demand (on average $18.29, according to Salary Expert), making it harder to accumulate wealth over time.
Survey and Market Research Gigs
Survey-taking platforms like Swagbucks, InboxDollars and others promise small payouts in exchange for answering questions or watching ads. But here’s the reality: The hours spent doing these tasks usually don’t justify the payout.
Even for someone doing surveys every day, the return is often so small it barely covers a cup of coffee (Swagbucks suggests the average user can make $2 to $5 a day).
Building wealth requires putting time into ventures that offer higher returns, not those that drain time for minimal reward.
Selling Unused or Low-Value Items
Some people turn to selling things they no longer need — old clothes, gadgets, books — as a quick cash grab. While this isn’t inherently bad, it rarely leads to building sustainable wealth.
Cole advised that a great side hustle “is something that you love doing and you’re good at. You’re getting paid a high hourly or flat rate.”
Selling random items doesn’t meet this criteria and, while great if you’re looking to clear closet space, is often just a quick fix for immediate cash rather than a way to build wealth.
Multi-Level Marketing Schemes (MLMs)
Multi-level marketing schemes, or MLMs, promise that you can earn money by selling products while recruiting others to do the same. But the reality is, most people at the bottom of the pyramid rarely make a profit, let alone build wealth.
The focus is often more on recruitment than product sales, and the entry costs (buying into the product line) can add up fast. These schemes are often structured in ways that benefit the people at the top, leaving the majority of participants with little to show for their effort.
If wealth-building is the goal, it’s better to steer clear of these types of opportunities.
The Bottom Line
“Before you take on any side hustle, get really clear on what you want to get out of it,” Cole said. “Decide how much you want to make and how many hours you’re willing to spend on the side hustle.
“From there, reflect on your top skills and think about how to translate them into something someone would pay for. Finally, think about your work-life balance and make sure you’re not taking on something that will eventually lead to burnout and low pay.”
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