Christopher Liew: The harsh truth about side hustles in Canada

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Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.

In days past, side hustles were often just a way to make passive income on the side to help save extra money. Now, for many, side hustling is a way of life that allows people to earn the extra money they need to pay their rent and bills, save up to start a business, or contribute to their retirement.

Side hustles offer flexibility, independence, and a chance to earn extra income in an era of rising living costs.

Whether you’re interested in rideshare driving and food delivery or freelancing and online businesses, taking on so-called “gig work” is becoming the norm, especially for those living in a larger, more expensive urban environment.

The harsher realities of side hustles

For many, juggling a full-time job and a side hustle (or multiple gigs) leaves little time for rest, relationships, or financial stability. What often starts as a way to stay afloat, get ahead, or pursue a passion can quickly become unsustainable.

While having an extra side job or side business can definitely help you elevate your lifestyle and catch up with bills, there are some all-too-realistic realities that you should consider beforehand.

1. You’ll pay both the employee and employer portions of the Canada Pension Plan (CPP) contributions

One significant financial difference for self-employed individuals compared to regular employees involves CPP contributions. While employees and employers each pay a share (5.95 per cent each in 2025), the Canada Revenue Agency (CRA) requires self-employed individuals to cover both portions, for a total of 11.90 per cent.

This mandatory double CPP contribution is separate from and in addition to the regular federal and provincial income taxes you’ll owe on your net business profit.

2. Work is often seasonal

Depending on what type of gig work you do or what your industry is, your income can become heavily reliant on the seasons and holidays.

For example, as a rideshare driver, you’ll generally be the busiest on weekends (in larger cities), around holidays, or early in the morning if you live close to an airport. This can limit the amount you can earn during certain times of the year.

3. You’re on the hook for everything

One of the hidden perks of traditional employment is having someone else to absorb the fallout when things go wrong. In the gig economy, you are the boss, the worker, and the customer service. So when a job runs late, a client is unhappy, or a refund is demanded, it’s all on you. That constant pressure can wear people down.

4. The time trade-off is real

A common misconception is that gig work is “flexible.” And while it’s true that you can choose when you work, that doesn’t mean you work less. Many side hustlers end up trading their evenings, weekends, and personal time just to make ends meet.

Is having a side hustle worth it?

In my opinion, the key to side hustling and being happy is to have an end goal. If you’re working the extra hours to build a small business or save extra money with a side hustle, it should be something that helps you build towards a larger goal of yours.

With that in mind, you’ll be able to push through the hard times, stay focused when things aren’t going your way, and balance your budget effectively.